l N Annual o o Report Proud of Our Social Impact Table of Contents Relerences.......................-..................................................-......................................................-............................................... chair's Stalemenl..................................................................................................................................................................... Our Vislon, Mlssion, chorilablg objecllve..........................-................................................................-....................... Our Govornanea..............................................,.....,.....,........,.................,..............-......................,.....,......................,........... Our Trusl&es....... Board ol Trustees, Govarnance...........................................................................-......................................-..................... Our Committee Slructure..................................................................................................-................................................... Our Management Tearn..................................................................................................................................................... Our Equality, Dlvor5Ity ond Incluslon Stalemgnl and strategy............................................................................... Progr955 Wlth Ovr plon5......... Slratogle plan - Our Alrns und obièetlv•s....... ..12 Our Suslainabilily Strate9y..................................................................................................................................................14 Our Porlormane?....... ..10 LHA'S Social Impact....... .17 whoAreW8.. -18 LHA People Va1ues..................................................................................................................................................................19 Measurin9 Our Social Impacl...........................................................................................................................................20 Our Sociol lrnpact/Ovr Ovtcomes................................................................................................................................ 21 The Mea5vrernenl..........................-........................ ..22 Our Year al a Glan¢è............-......-.................. .23 Th$ World Around Us...................-.......................................................................................................................................25 51ayin9 al LHA....................... -.27 Slayin9 al LHA - Our Residents......................................................-................................................................................28 Exploring Residanl Diver51ty & Background................................................................................................................29 Slaying al LHA - Outcomes". Gaining New E¥periences........................................................................................S0 Slaying at LHA- Oul¢orng5.' Improved Well_being.................-.......-...-...-....-.......-...-.......-.........................-....-....-...31 staying at LHA - Outcom95'. Fosterin9 Frigndships..........................-........................... ..32 Slaying al LHA - Outcomes." Sènsè ol Bèlon9ing.................... -33 Stayln9 at LHA - Our Impact.. Suslolnin9 Mlxad, Diverse Comrnunltles In London.......................................34 Slaying al LHA - Our Impact.. Enablin9 Sustainable Livelihoods........ .35 Slaying al LHA- Our Impact.. Making London Accessible to Young People..................................................37 LHA Rewords...................-.................-........-.....-.........................................-.....-...-........-...-.-...................................................-39 Volunteering at LHsi..................................................................._.......-...............................................................................AO LHA Collaboration5 - Publieis Group8............................................................................_............................................A5 LHA Fund............ ..A7 LHA Repurposin9............ -51 Who Vve Worked With..........................................................................................................................................................52 Project 25..................................................................................................................................................................................53 Looking Ahead............-...-....-...-...-...........................................................................................................-.............................54 Trustees, R8V18w and stra18gic R8POrt.........................................................................................................................55 The Aceovnts, Balance sheet and Report ol thè Directors for thè Period Ended 30 Sept8rnber 2022..........._.._..............................._........._.............. -62 References I. LHA social impact report 2021. 2. London calling.. International students, contribution to Britain'5 economic growth, London First,. PWC 2015. 3. Facing facts-. The impact of migrants on London, its workforce and its economy, London First,. PWC 2017. 4. HEPI International student Report. September 2027. 5. International Education Strategy.. 2022 progress update,. Department for Education May 2022. 6. London's poverty profile 2022 report (Trust for London). 2022. 7. Boroughs step up as cost of livin9 worries reach new heights; London Councils. December 2022. 8. Housing in London 2022 (GLA 2022). 9. Mayor ca115 for rent freeze to combat cost of living crisis. London Assémbly. March 2022. 10.what is affordab18 housin9 - HOC Library. March 2022. 11. Cycles ol i nsecurities.. Understanding the pol itics ol young Londoners- Ben O'Loughlin, James sloom. May 2022. Kiii.I'o. Chair's Statement The current cost-of-living crisis has again brought into focus how chollengi ng life is for people on low incomes, which makes our commitment to be o leading provider ol secure, low-cost accommodation in London even more crucial. All ol this has made the last year a very challengin9 one and has meant we have had to balance copin9 Wlth si9nificantly increas6d costs while maintaining resident f&es at a reasonable and affordable level. We have continued to focu5 on increasing and demonstrating our Social impact and ar6 pleased with the progres5 w& have mad6. As part of this initiative, we have continued our partnerships with a number of charities, with direct 9rant funding for some through the LHA Fund ond allocation of some of our accommodation to others. In the summer, we held a very successful round table conference with all these organisations to establish even closer l i nks and to increase our understanding of their need5. During the comin9 year, we are committed to reviewin9 the LHA Fund and to plotting its Future development and 6nhancement. You will lind 8lsewhere in thi5 report a summary of our social irnpact durin9 the year. We have also this year adopted a long-term focus for our property acquisition programme and the f inancial strategy needed to delivar it. l am conf ident that this approach will make our planned growth in bed numbers highly achievable. Duri ng th8 year, a number of our trustees have left us followi n9 the completion of their tenure, and we are gratelul to them for all their hard work and commitment. Also, this year we have strengthened our leadership group by creatin9 two new roles a newly establ ished Director of Estates role and an enhanced role at Director level to head our Operations Department. These appointments join our chief Executive and Finance Director in a new Executive Team. With the full Executive Team all now attending Board meetings and each Director attending their relevant committees, I believe we will forge an even better partnership between trustees and executive5. David Conroy Chairof the Board of Trustees OUR VISION OUR MISSION To be a leading provider in the charity sector of secure, low-cost accommodation in London. In order to achieve our vlslon, we will oxpand our offoring with a mission to acquirg, dgvglopfv ma5ntaln and manage secure, low4ost hoslel accommodatlon. OUR CHARITABLE OBJECTIVE To help relieve poverty by acquiring, establishing, maintaining and manoging host8ls that provide low-cost living accommodation for both students and working people ol limited Means who either study or work in the UK or Northern Ireland. We a150 aim to lurther any charitable purpose recognised by En91ish law by the provision of housing. OUR BRAND VALUES wheihar It's a youn9 per50n¥ first Ilme awa from home or they, w•ll.Irtsv•lad. safely motl•rs. Wé hov• stoiltsnd wcurity on sit• 24/7. Our •nIronC￿ ar• wcur•, and wo plovid• sal• plac•s lor b•lon9in9S. W• also prgwid• ¢ont•Trts Insuionc• as standard. W• g•nvin•ly ¢•r• ubovt th• p•opl• %*ho ¢oM• te itay wilh vs. A Home Away from Home W• ollyr youn9 P•L>pl• th• uliimot• Il•xibility. W• warti Ihérh t¢ hav6 the Ire@dom 1¢ ¢hoosb exactly how Ih•y want tg liv• by making things 51 a5 easy as w• con. W* have o worm Iri•ndly lomily pl'tsv4¥$0ma' muliilin9vuI 51ull who lake the lime ltr get lo know our residont5. They talk peoplo laTrgutsgFs, making Ihpm 1901 al homo. Wo haw tho b•$t locotloTh$ in tho h•ort ol London - Id801 lor wo slvdy. orlust explorqllon. We strive to creole an gnvironment that lee15 lomilior, like home. Qur r95iden15 tell us thol livin9 hor8 is the c10595t thi￿ to home. Our slaFf hove walk¢d in our r85iden15' 5hog5. WO oll•f a rttn90 ol room typès, Iocililie5, and eot&rlng Options ta sull all needs and all bud9et5. Everything i& Included Irorn bills and ouDci1 tax lo clganin9 and WIFI. They th•ro 1¢ oH8ry¢vng Poopl& svpport tsdvi¢•, to r&ossure them and mtsk& them fael ot hom•. Connecting People wlth Ploces Affordabilty Our knowlèdge, èxpèrtiiè ttnd &xpèri•ne& hblp ug to eonna¢l. W• Connect young paople to work ond their place of study. We onnocl y?ung PgDple to the vory hoart ol L¢ndon and all thv wond&rful expèriences it has to oll&i. chafity. w8 airn to our accomrnodation acce551ble lo all. Pri¢è£ start Irotn as little a$ £90 ￿r￿a•k ond th$r8 tsrg opli¢n$ lor cutered accommodallon too, providing two m8als a doy. Some ol our si105 0150 in¢ludg ts gyrn thol residents can uso lor Ireg. Wo help brin9 people togethgr in comrnunilies to gnoble thorn to make new connectlon5 wlth people and kn'end5hips that last a All ol our rooms are +ully inclusNe ol utilitie5, Inlernel acce4 PeT50nal belonging5 inSUfancv. ond all bgnelit Irorn 24-hour ￿￿ritY. Our Governance Our Trustees David ¢oTrroyJ Chair Alexandra WhiSton-D•w, Vl¢• Chalr OA, MCIPD Cknrtw•d rn•Trb¥iolith•lni141th•otP•rhan hdBPPUiiywilI.Trkthbèrol Iwol BBA, Msc P•l•r Fro¢ki•wIci 8Sc FRICS BA (Honsl, PODIP hLcludiP¥ Pluv￿rk+tu4dl￿1lWj Susan Jtshnson eA (Honsl DIP Ar¢h Als Mohomm•d 8A (Honil, MS¢ Moo Honi PGDipSvrV, MRICS ppointfjd 29.03.2022 SQy•llTh Iw•w￿￿e•lThHR￿1￿*N￿sq￿dCu￿￿r￿ty Ih•5o¥ih Eall ¢00 Adom P•¢lo Appoinlod 29.03.2022 HoA¢arnaljtrot Sottdhu shingor 8A (Hons , PGDIP Appolnt• 29.05.2022 •th MErtg. PPOint•d 27.09.2022 ¢haM•r•ds￿￿•yor￿A ITJlith Laffld QlradL4lll•41 andihUnlv•Ntyal R•Jding ekn¥i•dk¢ouTrt￿L.Cvrr¥nI H•DdolFifflanc•+or Brillth David 5aw•r Apppinted 27.09.2022 AIDC McTavish eon BA (Hon5 R•tired 14.12.2022 MS¢ IE I, Bse IE I, FRS4 R•lir•d 14.02.2C125 con +oru5 rg oryiDrth￿￿1# D*pfjitrn•nl5 Al Pr￿￿1$￿t￿n.¥¥q$ InI￿a DiilletoFal lhA5￿clUt1lnaT￿￿n d•1iY•rand9ffjwI￿r￿￿￿l1￿Ptsc1 Kuy Buxtoo 8A (Ho.,), BTP, MRTPI Retrirvd 24.03.2022 Anna15se Jalland Bsc (Honsl, MSC, MRICS Retirad 20.03.2022 Gile$ 8yFoFd MA IHonsl, M.Sei, ACA Retired 28.Q6.2022 Slrfrt*9yGro Briti Landaid C￿E Grodua'.è& Wtsrk Board of Trustees, Governance We take the 9overnance responsibilities of the Board of Trustees seriously. We observe the Charity Commission's governance code. Our Board comprises trustees with professional qualifications in planning, construction, project management, economics and finance, HR, social policy and law, providing a great braadth of skills at this level. Trustee trainin9 is an ongoing process: it includes external courses as appropriate lor specific needs and ¢ir¢ulation of newsletters and updates from the Charity Commission. We enhance our Board performance by careful analysis of complementary skill-sets and through an independently conducted annual self-appraisal process. while preserving continuity, diversity and experience, we seek an orderly rotation ol trustee5 to refresh the Board 5kill-set. LHA consider5 a rigorous review should a trustee consider standing for the Board for a fourth term. R6cruitmant of new trustees 15 carried out through a bilateral approach of networking and using professional recruitment services, including agenei8s that specialise in f inding excellent trust8e-level candidates lor th8 charitable sector. Prior to appointment, potential trustees follow the LHA three-phase selection process, which comprises an interview with the chairman and chief Executive and a tour of LHA facilitles, an interview by a Selectlon Panel of trustees and, fi nally, an invitation to shadow a Board meeting and be formally appointed at the appropriate Board meeting. There is a lormal induction process for new trustees, which Sncludes a trusteé familiarisation pack. The Board follows Charity Commission Gov8rnance guidelines by limiting Board numbers to twelve members. The Board has completed the process ol appointing the Vi¢e-Chair. Charity Commission Governance training has also been completed by an external consultant. Our Committee Structure P&l*r Frttcki&wlci ChoSr David Conroy Aloxandra whi5tC*n-Oew H•lgn Wyeth Appointfyd 27.09.2022 David 5ow•r Appointèd 27.092022 Giles Bylord Retirttd 28.06,22 Toyln kiill•r Re15r￿ 04.12.22 Propert Oversight and Projects ee LHA London Lld Su• Johnson choir P•t•r Frgcki•wl¢¥ Gtsr•th Moady App¢inl8d 29.03.?022 Adom Pool• Appointed 29.03.2022 Annalis• Jalland Retirèd 26.03.22 Kay Buxton Relirod 24.05.22 R•I￿r•d Offiu: SWN IPG People Committee Ali Mohamm•d chalr David Cpnroy Aldxandra Whi%ton-D•w Alec McTa¥iih Retlr•d 14.02.2023 Social Policy Committee Potra Groan cholr Btsnnlè chiu Horkarnoljeet 5andhv shinger Appointed 29.03.2022 Toyin MilleT Retired 04.12.22 Al•c McTovlsh R*tlr#d 14.02.2023 LHA Services Limited 54 Ecdeston Squarn London. SWN IPG Tony P¥rkin5, FRSA Chief Èxecutive & Comptsny Socrglary Marsho Gair, FCCA Finttftce Dir¢¢lor Alexandra whtston-oew chulr David Conroy Alec McTavi5h Retired 14.02.2023 Our Management Team Our management team provides a great combination OF skill sets. We are working hard to move the charity lorward. We recognise that it 15 important to invest in people if the business is to progres5. The year ahead will brin9 new challenges, but We believe our strategy is sound. The Board determines the policy, ensures the proper management of the LHA and provides eflective guidance and leadership to the chief Executive, the executive management team and employees of LHA. The Board appoints the chief Executive who reports to the Board at their meetin9s. The Board sets senior management remtjneration by reference to market benchmarking. Trustees are, individually and collectively, responsible for the overall governance and strate9ic direction of the organi5ation. From left.. Ben Alwell - Dlrector of Operotlons, Tony Perkins - CEO, Marsha Galr FCCA- Flnanc8 Dlrector, Andy Galrell _ Dlrector of Estates Our Equality, Diversity and Inclusion Statement and Strategy At LHA London, we are committed to supporting and promoting Equality, Diversity and Inclusion (EDI). This has long been our approach. and we aim to ensure it continues to be embraced by our staff and management team. It inform5 and shapes our business activities and the impact on our residents, employees and other stakeholders. We aim to Pr8vent discrimination of all sorts including indirect discrimination and unconscious bias, eliminate prejudice, promote inclusion and embrace and celebrate diversity within our organisation and our wider community through awareness, reviews and continual learning. Treat people equally and f airly in our deali ngs, respecting and embracing diversity. Recruit and promote people fairly while proactively ensuring equal access to job opportunities os well as professional and personal development lor existing StaH. Actively listen and learn about the needs of our residents to ensure that our 5ervic8s are suitable and acc85sibl8. In 2022, we continued to increa58 the provision of EDI. Diversity and inclusion start at the top ol our organisation. EDI is embedded in the charity Governance Code. LHA has set dedicated training for Board members and staff in 2023. We will ogree on a work plan for 2023 with clear goals and timescales. The Board and Executive Management team will develop viable plans for the future. During 2022, we continued our EDI training pro9ramm8. LHA has made a significant social impact through the provision of accommodation, the volunteer scheme and the LHA Fund. Because employees live alongside residents and volunteers, creating supported social spaces within the buildings, the issue of how to embed EDI is an essential part of their work. Hence, we will continue to train our staff on EDI to create a dynamic, inclusive culture. Equallty This plan will continue to Develop confidence in all areas ol equality, diversity, and inclusion. Understand the current UK egislation and protected characteristics. Explore inclusive language i n the workplace and what it means. Provide an opportunity to di5CU55 and understand both consciou5 and unconsciou5 biases and explore the next Steps that one can take in tackling them. Dlversty Its about everyone! Inclusion Feeling valued, respected an heard 10 In 2022, we have developed our Equality Diversity and Inclusion Strategy= Taking Steps to ensure eq4Jity of treatment among OL*r workforce and ensure that our vacancies are advertis8d to o diverse range of Cand￿dateS and, where relevant, to 9roups Identilied as disadvantaged or underrepresented,. taking positive action to recruit disabled people: ond ensurin9 there are no unlawful barriers to accessing our employment opportunities, train￿ng, progression opportunities, benefits and facilit165. Ensurin9 diversity in our workforce is rg9ularly monitored to provid8 8qual opportunities throughout the or9anisation. where appropriate, measures will be taken to identi and remove unnecessary obstacles and to meet the special needs of dssadvantaged or underrepresented groups. Encouragin9 our resident5 and other stake holders to participate in reviews of our services, thereby helping US to Shape the charity to meet the various needs of our residents. Ensuring our LHA Fund recipients, consultants and contractors echo our approach and can demonstrate their commitrnent to delivering and embracing our EDI principles. LHA 15 committed to hhonitoring our residents, diversity ne8ds to ensure the contributions, presence, and perspectives of different groupg of people are valued and integrated Into our hostels. Creating an envlronment in which individual diHerence5 and th& contributions of our staff, volunteors and resid8Trts arè r8cognis8d and valued. The provision of a working environmgnt that promotes dignity and respect for all. No form of intimidation, bullying or harassment will be tolerated. Providin9 trainlng, development, and progression opportunities to all staff. Ensuring that equality and inclusion in the workplace are good management and business proctice. Reviewing all our employment practices ond procedures to ensure fairness and inclusion lor all, Progress with Our Plans Strategic Plan Our Aims and Objectives LHA'S strategic objectives and vision are to own and manage secure, diverse, 900d_ quality and affordable accommodation comprising more than 500 additional bed5 by 2026. The Trustees held their annual Trustee Strate9y Day in February 2023 to consider irnplementin9 a revised five-year plan ond reassess the strategic growth plan. The ovtputs of the Strategy Day will olso aim to include reviewing ol the existing property portfolio, introducin9 0 mechanism for measuring and improving of social impact and reviewing the housing needs for London ond the needs ol yovng people of limited means. The 9lobal pandemic, Brexit's effect on accommodation needs and work/life balance changes will be closely assessed to ensure LHA'S future offer i n London is f it for purpose. We olfer accommodation services that provide a steppin9 Stone for young people to advance their careers and education while meeting their reasonable needs and enhancin9 their w811-b6in9. In addition, LHA will develop a concept providin9 even mor8 affordable accommodation for le55 W611_oH 6eneficiarie5, POS5ibly outside zone l and 2 but within the M25. The minimum standards will be defined by research carried out by the Social Policy Committee - a committee ol the main Board. This year's Social Impact section within this report will 9uide our impact benchmarki ng, and the search for suitable properties will be coordinated by the Property Oversight and Projects Committe& to ensure that the appropriate technical considerations are taken into account. The Social Policy Committee, chaired by Ms Petra Green, continued to monitor the offordability of our offer, and this year's report provide5 an overview of the ext8nsiv8 hostel re-purposln9 initiative in place to provide much-needed accommodation to vulnerable young people. The LHA Fund has provided support to many charities over the yeors, and this year's round-table event lormed the basis to reassess the direction and purpose of the Fund for 2023-24. The yearfs objectives focused on full recovery from pandemic. Our occupancy has recovered fully, and our volunteer programme is well supported with high enquiries to join the Scheme, The Central office Team moved into Sts new olfice location to enable a hybrid working environment and to 5UPPOrt our hostel operation. 13 Our land acquisition programme is now spear-headed by OL*r newly oppointed Director of Estates, ond the search for suitable additional bed numbers is u high priority for the charity. The Property and Projects Oversight Committee, chaired by Mrs Sue Johnson, continues to oversee the bid processes, lease negotiations and existing site extensions. LHA'S strate9ic Sustainability pillars are progressing well and are now to be fvlly integrated into our key performance indicators. Capital expenditure during the year has provided for a full external redecoration of the Halpin Hovse in South Kensington and 51te mobilisation for next yearfs major internal refurbishment at Holland House in Victoria. A cornprehensive pro9ramme of electrical systoms upgrades across the portfolio has a150 been 5ucce5sfully completed. The Finance Audit and Risk Committee, chaired by Mr Frackiewicz, has continued to monitor the finance function. Tho Trustee risk re9lSter and Health and Safety compliance is revi8wed at its meetings. This year, our strategic funding initiatlve5 for new land and buildin9 acquisitions were at the forefront of the objectives. We aim to implement a tender process for external statutory auditors for the 2023/24 financial year. Energy and supply chain costs have impacted our operatin9 margins. These costs have been budgeted For in the 5-year plan. The People Committee, chaired by Mr Ali Mohammed, received comprehensive reports on both employed and volunteering team members. We pride ourselves on having a diverse and inclusive team. The volunteer pro9ramme gives young people an opportunity to 8xperi&nce a safe London living environment. We have successfully met the challenges ol inflationary wage pr&s5ur6 In the hospitality 58Ctor. Our objectives lor next year also Include full external redecordation at Belvedere House in South Kensington and completion of the Holland House internal upgrade. Submission of the plannin9 application for 62-bed spaces at Friendship HoL*se in Southbank is also on the list, as are the introduction of new aims for the LHA Fund and completion ol lease terrns for the Hounslow site. Social Impact m&asurarnent will continue to provide greater alignment wlth our obiectlV65 through a new set of key perforrnance indicators. Wé ar8 committed to expanding our bed numbers to provide yet more affordable quality accommodation in London. We continue to monitor the skill Set of ovr Board to ensure the appropriate 9OV8rnance is in place. Tony Perkins Chief Executive and Company Secretory 14 Our Sustainability Strategy Our eight strategic pi Ilars continue to inform and drive OLsr sustainability ambitions. It is our intention to oncapsulate most of this work within our overarching net zero target -for our properties by 2050 and sooner lor our business operations - by 2030. These eight pillars are Green refurbishment I new build stewardship Living our purpose Volunteer scheme Living our values External stakeholder engagement Well-being strategy Impact reporting Quality management Under these pillars, we have developed a system to determine our carbon footprint and monitor the waste, water, and energy use from each of our propertie5. Thi5 allows us to make interventions to reduce our consumption and conserve energy by altering how buildings are operated ond used and through physical interventions. planned physical interventions - from minor to major - range from ensuring all low- energy l ighting, aerated taps, and PIRS (passive inlrared sensors) through to the use of biomass heating, photovoltaic energy generation and 9rey water usage. Through our building programme, we will enhance our outdoor spaces for the benefit of our residents and wildlife, allowing both toflourish. For example, greening and planting spaces will benef it the envi ronment and mental well-being. The impacts of the COVID-19 loekdowns on the m6rital health and w611_b8ing of 8V8ryone ar8 w811 recognisèd. We continua to take our duty seriously as responsibl8 employers. Our locus on the well_being of staff and residents includes the implementation of the "thriving at work" princi ples. In addition, we have provided all staff with mental health awareness training, and all hostels now have a team of train6d mental health first aiders. We have implemented our new people valu65'. SUPPOrtive, op8n and hon6St, w6lcomln9, professional, passionate and knowled9eabl8. Our focus on health and well_belng and our people values are woven through our performance assessment system, where an equal emphasis is placed upon behoviours and tar9ets. Our locus on health and well_being continues to be a key contributor to our productivity and the satisfaction of staff, residents and volunteers and to embedding alignment of our values in everythin9 we do. We continue to engage with key beneliciary groups that help us deliver our charitable purpose best and support our purpose through the LHA fund and to partner with key charities such as the Single Homeless Project. 16 Our Performance Is Based On Ka8ping our accommodation well- maintained Achieving consistently hlgh levels of customer sailslaclSon Having an impr8ssIv& set ol performance indicators Providing quality, affordable accommodaiion lor over 1700 residents and volunteers Displaying a commitment to placing dlverslly at the heart of our organlsatlon Providing high standard5 of services and facilities Being in sound financial health with a history ol strong financial rnanagemenl and planning LHA'S Social Impact A year ago, when I was composing th8 foreword for our 2021 report, I recall b8in9 filled with both pride and optimism. Pridg at the incredible work that our teams were doing throughout the pandemic and of the individuals we'd been able to support and optimism that we were seein9 the f irst gli mmers of recovery post COVID-19. It seemed the world was indeed finding a way to 'live with COVID,, and that an extended period ol uncertainty, fear and, at times, panic was coming to an end. Little did I know that a year later we would be faced with yet further uncertainty, fear and panic - now in the form of the cost-of_l ivi ng crisis. This report highlights the impact we've been able to make during this period, which covers the end of the pondemic and the start of the sharp rise in the cost of living that is impacting all of our lives. How8ver, giV8n all ol thi5,1 continu8 to be assured by the nation's ability to innovate and adapt by creating new initiatlV85 in response to world events ond by the posltive legacy that we, at LHA London, ore focused on building. With that in mind, I'm immensely proud of our achievements over the last year and want to thank everyone who has been involved. We will continue to strive to support more youn9 people and to have a greater impact through our places, pro9rommes and activities. For more information, please contact annualreportolhalondon.com Chief Executive and Company Secretary 18 Who Are We? We firmly believe everyone should be able to follow their dreams. The the cost ol accommodation should never be a barrier to a young person being able to study or work, and that no one should have to live in poverty in order to achieve their goals. As a charity, W6 operat6 13 host61s in the heart of one ol the world's most diverse and energetic citie5, and we provide a central and safe base for young people to 'Live their London Life,. Our14th hostel i n Hounslow is currently under development review. We believe London is the place to be for work, study and have adventures. From the hottest bands to the coolest bars, the finest galleries to the most amazing views, London is exciti ng, inspiring and, at times, moving. We offer a wide range of accommodation in some of the best central locations and attractive all-inclusive rates. IS However, we offer so much more than just a place to stay. We create safe ar¢d relaxed living environment5 whereby all youn9 people can live the lile they want. We also help youn9 people to make new connections, learn about different cultures and create lasting memories. 19 LHA People Values Our people values are at the heart of everything we do and critical to the continued growth and success of LH We encoura those aroun challenges e ourselves and us to overcome Open and Honest We are open to all and believe everyone should b8 able to express their views Welcoming We act with integrity in everythin9 we do Professionol We take ownership when we should Passionate We are passionate about deliverin9 an exceptional residents experience Knowledgeable We take pride in our expertise 20 Measuring Our Social Impact As a charity, we are determined to be a driver of social benelit by providing young people with aFFordable, sale and secure accommodation in London. Following our first Social impoct report in 2021, we hove looked more closely at how we view and measure social impact. Our overall ambition is to ensure we generat8 positive social impact through all of our places, programmes and activities. At the same time, we also want to acknowledge that we have a greater social impact through some ol our rnore focu5sed pro9rarnmes and activities, which are defined below. Project 25 Working Wlth referral partners to provido 'move-on' accommodotion lor young pèople living in 5vpporled accornrnodation Working with other like-rnindtd churitiès lo utili$e ovr buildings and expertlse lo have a shored Social impact LHA Fund Giving grants ta srnall choritles to support thern with proj8Ct5 aimed ot young people experien¢in9 homel8ssne$s Working & Volunteering Svpporling young peopl& who work and volunl8er with us in achieving Sustainable livelihoods LHA Rewards Ovr loyalty scheme that allows young people to receive up to 25% discoun* on their ttc¢ommodotion Staying @ LHA The Social Impact we have with every person that stttys with us each yeor For our first report, we designed a theory of change thot has enabled vs to articulate and measure the sociol impact and the outcomes achieved through our core activities. 21 Our Social Impact Accommodation youn9 people can aHord makes Central London more accessible to all young people, sustains diverse communities and enables sustainable livelihoods. Our Outcomes Through our places, programmes and activitl8S, W8 creat8 environments where people gain new experiences, foster friendships with one another, improve their well-being and develop a Sense of belonging. A• <.> LhoLondon 22 The Measurement In this yearfs report, we wanted to look more closely at the overall sentiment of people's responses to our social impact survey. In order to support our future activities, we wanted to better understand where our opportunities are to grow and improve our social impact. In this report, we have included the percentage of positive responses to questions (for comparison to last year) and have also applied the Likert scale to responses to gain a better understanding of how respondents feel overall. We hove used the below summary table to interpret the scores: Strive & Celebrate 1-66 Monitor to Fvrth8r Improve 4-50 Improve to Monitor Focus to Improve 23 Our Year at a Glance Projett 25 Peopl&- 8 Overnight5'. 1,129 People. 565 Overnights, 25,525 Collaborations People,, 15 Overnights.. 1,046 LHA Fund People. 695 Projects.. 11 Rewards People.. 1,403 Overnights.. 136,418 Volunteers People. 595 Overnights.. 43,680 Staying @ LHA People 9,044 Overnights.. 512,714 .24 Our Year at a Glance 16,168 UNIQUE ENQUIRIES FOR ACCOMMODATION OF RESIDENTS EARNING THE LONDON LIVING WAGE OR BELOW 64%; £276,810 AWARDED IN GRANTS AS PARTOF THE LHA FUND OF YOUNQ PEOPLE BENEFITTINO FROM LHA REWARDS FELT THEY COULDN'T HAVE AFFORDED TO STAY IN LONDON WITHOUT LHA 89/. 81 'VOLUNTIER' ENGAGEMENT SCORE OF RESIDENTS FEELMORE CONFIDENT A8OUT THEIR FINANCIAL SITUATION NOW THAN BEFORE THEY STAYED WITH LHA 81/. 97/. 91/ 55/ 95/ of young residents agree that their stay with LHA helped them to gain independence of residents indicate that they have made friends with other LHA residents of residents and volunteers fe81 that in London they are accepted for who they are ol residents feel they wer8 at risk ol homelessness il they had not been able to stay with LHA The World Around Us Londors's post-pandemic recovery was swift, and remarkably, its GDP recovered to pre- pandemic levels by Quarter 3 012021 (6J. As early as September 2021, there were clear si9115 that young people in the forrn of the student populotion were returning to London in large numbers. We must also remembgr that post-pandemic London is also post-Brexit London ond, a5 such, there is limited meaningful dota on what this means for yovng people movin9 to and living in the Capital. Thankfully, London's dependence on young people for It to thrive has remained unchang8d. Since the t*Jrn of the century, there has been a net inflow of young residents from the rest of England who move to London to study or begin work in their early careers(l) With its international appeal, London also draws hundreds ol thousands of young people Irom across the globe for studies and employment (2,3J, brin9ing huge economic, Intellectual and social capital to the city. The Value of International Students {4J nnua pp £6.04 Billion 140,000 The policy environment in the UK remains positive. In March 2019, the Government published its International Education Strate9y, commltting Itself to increasing the number of international higher education students choosing the UK as their study destination to 600,000 and to increasin9 th& valu6 of education exports to £35 billion per year by 2030. After a decade of rhetoric and policy changes that sugg05ted the Government's aim was the contrary, this commitment was welcomed throughout the higher education sector (4). It is notable that the 600,000 internatiorsal stud6nt5 target was exceeded for tho first tlme in 2020/21 (5) . However, data from 2021's admissions cycle suggests that the UK'S exit from the European Union has severely offected EU student recruitment, with acceptances in early August 2021 to under9raduate degree courses 56/. lower than at the equivalent point in 2020. This suggests the UK (and therefore London) cannot take its attractiveness as a 'study destination, for international students for granted 14). The caveat to this overall positive outlook on young people trovelli ng to London for study has been the onset of the cost-of_living crisis which has served to exacerbate the housing crisis even further. With inflation risi ng and Londoners experiencing staggeri ng increases to their energy bills, the rise in the cost ol living is putting increased pressure on Londoners. Additionally, on the back of the COVID-19 pandemic, this has particularly affected those on the lowest incomes and those without secure work. Poverty was a serious issue in London prior to the pandernic, and many struggled with the cost of housing, heatin9 and food. During this period, more Londoners both in and out of work needed benefits to make ends meet. Falling incomes, in real terms, and increases in the cost of living are expected to worsen living Standards lor many. In this context, the mental well_bein9 of Londoners has been significantly orode&6) 26 Londons Poverty Profile (6) 28.1/. (16/. Rest ol UK) im naomo StandaTd (MIS) (Estimat• April 38/. (3.6 Million) 2019 Pro-21)22 Inllatlon 15/ ndon•Th wlth Low or Very Low Fotsd Unemployment rates In London returned close to pre-pandemlc levels In the latter half ol 2022. Unemployment rates lor all age groups are higher in London than in the rest of England, something that ha5 been true since the turn of th6 century. Unemployment in London ha5 always been most prtsvalent among those aged betW88n 16 and 24 at 17.6/., compared to just 4.2/0 of those a9ed between 25 and 64. As w6 approached the peak of winter 2022, 77/0 of Londoners believed the cost OF livln9 was one of the most important issues facing the Capital with one in four Londoner5 f inding it diff icult to manage f inancially. 17) The March 2021 census showed a 7.7% increase in London's population since 2011 (i.e. 8.8 million people). It should be noted that London was still i n the midst of the pandemic, so it is likely the population 15 now even higher. London's hou5in9 stock has continued to Fail to meet the extra demand. (8JTh is has led to spi rallin9 rental costs in the Capital and caused the Mayor of London to call for an enforc8d rent freeze in London to prevent tha iSSLte from worsening. (9) In the wider context of what constitutes affordable housing, the Government released a report in March 2022 entitled what is Affordable Hou5ing.' Thi5 highlighted the many issues that need to be tackled and recognised. There is no a9r8ed definition of what 'affordable housing, is 90ing to be. The most commonly referred to definition of affordable housing is set out in Annex 2 to the National Planning Policy Framework (NPPF). This is the def inition used by local planning authorities when making provision within their areas to meet the local demand/need lor affordable housing. The NPPF definition incorporates Social rent, as well as a range of intermediate rent and for-sale prodLJCt5. The Aflordable Housing Commission (2020) concluded that 'many of these products are clearly unaffordable to those on mid to lower incomes,. (IOJ Providin9 affordable accommodation for youn9 people in London has never been more relevant. Sadly, LHA'S ability to grow its impact continues to be limited by it5 bed stock, and there ha5 never been a more pressing need For LHA to acquire and establish more hostels. The hostels that LHA provides ensure that young people from across the UK (and beyond) continue to have access to affordable accommodation in central London enabling them to pursue their passions and their careers. 27 Staying at LHA Over 9000 people benefitted Irom staying with LHA in 2021/22, and a total ol over half a million overnight stays were recorded. Occupancy recovery was exceptionally fast following the liftin9 of the COVID-19 restrictions, with youn9 people flocking back to London. The majority of our hostels have been over 95/0 occupied since October 2021 and, in the latter part of the year, we have consistently operated at over 99/• occupancy. From April 2022, we saw enquiry volume exceed pre-pandemic levels, peaking in September 2022 with over 2,800 unique enquiries for accommodation received in the month that's an increase of 83/0 compared to 2019. Sadly, though, we do not have sulficient bed stock to meet the current demand, this has only increased our ambition to acquire new sites and to increase the number, affordabil ity and range of facilities on offer to our r6sid6nts only increas6d as a result. Levds 100* 75* 96% 99% 73% 50% 54/0 2S9b 6117 2U2Ui21 2021122 39 28 Staying at LHA Our Residents LHA continues to operate an open-access policy that attracts people from diverse backgrounds and locations. I was on the verge of homelessness and losing everything that I had worked towards. it is so inspiring to live in Central London, to see new people and races every day. Employment different nationalrties were recorded as having stayed with LHA in the year 2021/22 residénfs are currently engaged in full or part-time work residents are currently engaged in full or part-time study .29 Exploring Resident Diversity & Background toftne 20.1% Edu London 46% Othe Retai kEA 16.9% Medi Not to Sa Profession 8.7% e.T% 4.8% Resident Ethnicity Entertainrnent 254% Medic PrEler Noito notto say Othe 1.6% Law Construction ity Lei5ufE I Sport C￿ViL Servant 80.4% 0% 5% io% 30 Staying at LHA- Outcomes: Gaining New Experiences OVERALL SCORE 75 By providing affordable accommodation in Central London, we enable residents to experience the city to its fullest and thrive in the unique, diverse and exciting &nvironment that Central London offers. For young people, LHA may be their first 'home away from home,, providing a sheltered environment with access to support. Our key findings... Belng able to stay In tentral London with LHA has allowed me to attend ' my wonderful full-time internship at Christian Dior. The services Included like on-site ,Jaundry room, bed sheet Changing. and daily room cleaning, have all helped me manage my time and focus on my internship. Staying with LHA in ,I,;Central London has also allowed me to go to , Iregular workout classes after work and then be li able to walk back home lo LHA. I was also able to meet friends and go out after work with colleagues and return li home at a reasonable tlme as there are great .,dinner, drink, cafes and shopping malls in Ywalking proximity which made me feel safe. ,Gain •XPori•ne Iivlng In a .global city 2021 2022 SCORE I wai abl• to ¢•nn•et wlth p••pl• wlth MIX￿, div•r5• ba¢k9roundJ in LHA n/a 81% 74 To what •xt•nt do you l••1 that th• ¥•luht••rlng •¥p•ri?n¢• hu$ 6••n valvablo to your prolasiionol developm•nt7 n/a 90% 81 Th• •xp•rl•nc•s I hav• hud In Lond•n loutside ol LHAI have b•en valuable to rn• 8$% 92% 85 My stay wlth LHA has halp•d mo to a¢hiwe rny goali n/a 88% 76 My Stay with LHA has hèlped m• to goln indtsp•nd•n¢• 75% 87% 75 yy '￿1 scorÈ£ Improved on pr4or yetsr Staying at LHA- Outcomes: Improved Well-Being OVERALL SCORE 74 66 We believe that the combination of affordable accommodation, high-quality lacilities, good locations, and sociable living helps to improve residents, overoll well-being. Usin9 the short Warwick-Edinbur9h Mentol Wellbeing Scale, we measured whether residents, well- being had improved since moving in with LHA. As shown below, there was a really positive sentiment among all our residents with regard to their well_being whilst staying at LHA.. Overall, il has meant peace of mind whilst working towards my career goals. I come from a low-ineome family and staying with LHA has made all the difference. Before I came across LHA online, I was looking at house shares sltuated much further away, and the rent was more than what I currently pay land bills were not included). They were not well maintained and were owned by private landlords whose main concern was money. Whilst there have been some rent increases at LHA, it is clear thal these were the minimum necessary and plenty of notice was given. When I previously rented privately, I lived in different places where there were a variety of issues which just made day-to-day life quite difficull. For example, these places had issues with micelrats, people using drugs, noise, no hot water, etc. I know at LHA this is not going to be the case and if an issue does arise (very rarely), It wlll be dealt wlth by the fantastic and hardworking staff. This has resulted in better well- being overall. l am working towards achieving financial security11 am currently on a fixed-term contract) and LHA has meant I can do so without excessive worrying about money and accommodation. I think there should be more organisations like LHA and it is a shame there aren't. l appreciate that this is a challenging time econorDically, but I really hope that LHA is able to continue for many years to comel .Compar•d to wh•n you mov•d In wlth LHA, do you fèèl th• following more or le55 Irgquently. SCORE I f••1 optlmljtic about th• futUT• 75 I f••1 U￿{u1 75 I hav• b••n l••lin9 IntOr•£tad In oth•r p••pl• 71 I hav• be•n leelin9 clos• to other people 68 I hav• bean f••lin9 ¢•nfideht 70 I ha¥• b••n f••ling internst•d In thin95 77 99 32 Staying at LHA- Outcomes: Fostering Friendships OVERALL SCORE 63 During the course o+ 2021/22, our hostels came back to life after two years of reduced social interaction. LHA Living is all about community and is becoming increasingly important as youn9 people start to realise the value of sharing alfordable living. It has proven a great way to make friend5 and feel less lonely - something that young people new to the Capital can struggle with. LHA is convenient and cost-eflective because it offers individuals more than just a home. It offers a lilestyle, a social network and an opportunity to connect with others in increasingly isolatin9 urban environments. whereas the majority or residents indicated that they had made friends with other residents and/or staff, they were less positive about a wider social network or community. This represents a key area of locus for the year ahead. 66 Staylng In L adem aehleve a good balance of work and life. Being close to Central London makes me explore new I things within the city make new friends. Residents frostor .fri•ndship$ with •a¢h othor 2021 2022 SCORE X thut 49rts• that they made Irl•nds th other re51d•nt5 54Y. 71% 66 x that Q9ree that th¢y mado Iriend¥ th stum n/a 73% 66 % that agr•0 thal th*r• w•$ • str¥hg 50n7e ol ¢ommunlty ol LtrIA S2% 72% 62 % thut f•01 part Social n•tsvork at LHA S9% 50 ndon. more endly % thut f801 that they are likely to stay in t¢uch with othor LHA residonts 47% 70% 65 Staying at LHA- Outcomes: Sense of Belonging OVERALL SCORE 73 66 The need to have a sense of belonging is a basic human instinct. It is a core pillar in our values as we look to create environments that feel like a home from home and connect people and places- with the added freedom to live their lives the way they want. We feel really honoured to be able operate in the locations that we do. This clearly resonates with our residents and volunteers who time and time again fall in love with the city. In fact, over 90/0 State they want to live in London in the fvture and 95/. feel accepted For who they are. Living in this place makes me realize that we don't need much to have amazing life experiences. We often fail to do and have experiences for not knowing places like LHA that provide 'living at home" I was glad I chose to live herel Thanks. 99 belonging to london among T•iid•nts 2021 2022 SCORE X thut Indicat• they would lik• t liv• In London in tha luture 66 60% 91% 80 Change my life because I feel more confident about my finances. Changed my life because I love staying here. Right now in my situation I cannot f ind a better place to move to. LHA is by far the best bargain in London, too good to be true, but it actually is a reality. Thank yOLt all, % that indicat• thoy l••1 pgrt 01 o Social nvtwork at LHA fi/a 59% 56 ¢¢•pted for they are in London 73Y, 95% 82 99 Staying at LHA- Our Impact: Sustainin Communi Mixed, Diverse ies in London OVERALL SCORE 74 LHA London is open to all and welcomes people from across the globe, creating a community of individuals from all walks ol life and all backgrounds. In so doing, it allows people to experience all the best things about London. 91/0 of residents and volunteers indicate they would like to live in London again- 94/0 of residents agree connectin9 With people with mixed, diverse backgrounds has been valuable to them and 81/0 agree they have been able to do this at LHA. Su$talnlng mlxod, divèri• communltle$ In London 2021 2022 SCORE X that Indieate th•y would lik• to 15ve in London In th• futur• 60% 91% 80 X that l••1 that conn•ètln9 with P•C*ple with rnixod, divorso backgrounds h b•*n valuablè to tham n/0 94% 84 % that l••1 part of th• LHA community /tt 59% 56 % that have been able to connect wlth pooplo wlth mlxed, di￿￿$• b¢A¢kgrovnds al LHA 81% 74 Staying at LHA- Our Impact: Enabling Sustainable Livelihoods OVERALL SCORE 72 y providing a foothold in London with the ability to pursue a career or studies, we help to enable sustainable livelihoods in the long term. These may include a more stoble financial or housing Situation, improved career opportunities or improved well-being. We asked residents about thei r housi ng situation prior to stayi ng with LHA. We found that 12/0 ol resident5 were living in temporary or emergency accommodation or were homeless prior to LHA. We consider this an important achievement for these individuals. LHA has been a helpful stepping stone towards a more sustainable livelihood. We asked alumni residents to think about how their life may have been different if they hadn't stayed with LHA. Comments ranged from 'no dilference, all the way to 'LHA having a tremendous impact on their lives,. For some, staying at LHA meant bein9 able to pursue their studies or employment or getting to know London and meet new people. For others, it was a chance to save Money towards a first deposit or to lead a more fulfilling life with less pressure. 66 Saving 80/0 of my salary consistently. Start investing and building my financial future. Living below my means to start a company in the next few months. Lots of cash available. Without LHA, I would fulfill my ambitions at a lower pace. 10 minutes by bike or 20 minutes by foot in my workplace. Being able to access Hyde Park and enjoy nature. I can say many things. l am grateful to LHA. Enablin9 ,5UStainable livelihood5 2021 2022 SCORE % thot l•vl that tho volunte•rin9 •xp•rlenc• hai been voluable to thelr prof0$5iond dwoloprnent % that l•el their stay with LHA has helped them to pursue their pa5SiOnS and/or earèora X that hal more corshdent (￿r)Ut thalr finanel $itVLXtion now thuh b•lor• they were 5tayin9 with LHA % that Feel more conlident about their future prospacts ax a rèsult tss their stuy wlth LHA 74% 90% 79 66% 85% 74 53% 84% 47% 83% 70 99 66 T have been able to move back to London, which has enabled me to pursue my career goals. Although l am still working towards a number of goals (such as obtaining a permanentllonger-term contract), l am in a much better position now than previously. I have been able to live in a convenient location {i.e. I have not had to live outside of London and spend lots of money and time commuting each dayl in a safe, comfortable, well-maintained building, with a friendly and welcoming atmosphere, which I have been able to afford. This has meant I have been able to go to work each day knowing that I have good accommodation to come back to in the evening, and I have not had the worry and stress of trying to rent from a private landlord. This has meant I have been able to focus on my work. I had accumulated private debt on a couple of credit cards when I was training, and I had been planning on paying that debt back quickly when I started working. Because of the pandemic, I was earning a very low income and was therefore unable to do that. However, living at LHA has meant I was able to clear that private debt over time, rather than paying all of my money to a private landlord and making minimum credit card repayments each month. Because I live in Central London, I have also been able to avail of work opportunities that would not have been open to me otherwise. Also, living in central London with LHA means I can spend my free time getting to know the city really well, which has had a positive impact on my mental health. 36 99 37 Staying at LHA- Our Impact: Making London Accessible to Young People LHA seeks to make London occ6ssible to young people by providing aflordable accommodation, facilities and support to its residents. Durin9 a year where rental prices have spiralled in London, leading to calls lor a rent freeze in the Capital (and even to people takin9 to the streets to protest about the unaffordable increases bein9 made by privote landlords), LHA has worked hard to minimise increases in accommodation charges and continued to offer up to 25/0 off on accommodation lor people aged under 30. LHA continue5 to assess the affordability of its'all-inclusive, offer on a regular basis. 56/0 of its accommodation meets the Mayor of London's affordable rent benchmark of no more than 30/ts of an individual's income bein9 spent on housing (for those earning National Minimum Wa9e), and 90/0 of its accommodation is affordable to those on low incomes (i.e. £29.5k or less per annum). Our surveys have shown that 54/0 of residents who stayed with LHA moved here from outside Londor). 60/. had never lived in London prior to their stay with LHA,. thus, for many, LHA was an introduction and Stepping Stone into the city. Makirbg London ae¢assibl• to young p•opl• % that l•el thvy would not have bfren able to come and stay If• Centml London Il they had not boon abl• to itay ut LHA 57% 58% % that fe•1 ihoy were ot rlsk ol hom•lessfie&s If th•y hod not boatt obl• tty stay LHA io% 43% 66 38 cided to stay in LHA as with the cost of living it allows me to save a bit more money. There's no contractlbands when staying long term. The accommodation is near my workplace and transport links are easy. LHA comes with people who clean the property every week and this has been difficult for me working 14 hours a day. The overall cost of the accommodation has been affordable as it allows me to pay we especially if my salary comes a bit later than expected. 99 39 LHA Rewards Providing young P80ple with their first Stepping stone to achieving independent livi ng in London is at the Centre of what we do. Alongside our volunteer scheme, LHA Reward5 15 central to us meetin9 thot aim. LHA Rewards offers young people under the age of 30 the opportunity to receive a discount of up to 25/0 on their accommodation. Over 1,400 youn9 people benelited from LHA Reward5 - that'5 OV6r135,000 OV6rnight stays. The need to support and understand young people has never been greater. The cycles of insecurity they can suffer from because of interconnected problems can seem inescapable. They have faced waves of crises since 2008 (f inancial crisis, COVID-19 etc), and their voic8s are mainly absent from public policy, 50 policymakers do not lully understand and cater to their issues. (li) We looked at responses specifically Irom residents benefittiTrg from LHA Rewards. Broadly, scores were comparable to those received from all residents, but the improving well_bei n9 score was slightly lower, whereas the fostering friendsh ips score was signif icantly hi9her. This emphasises the need to look specif ically at the challenges faced by young people in London and how they differ from those faced by the wider population, as discussed in 'Cycles of Insecurities,. Most notably, 89/0 ol young people benefittitl9 from Rewards felt they would not have been able to afford to come to stay in Central London if it had not been 40 LHA Rewards 66 .2022 Outcomes ALL REWARDS I have been able to complete an apprenticeship at The Times newspaper as a Galn Éxperlenc• ol ving in a Global City 75 75 Improvd W•ll.b•ln9 Amoh9 R•iid•nts 74 73 R•sid•nts/vrJlunt••rs Foit•r Ffl•ndihsps wlth Ea¢h Other 05 72 would not have been able to do this without LHA'S affordable accommodation. S••$• •1 B•l•r*9Sng t• London Arnon9 Residentb 73 76 99 .'2022 Impacts ALL REWARDS 66 Sustainlng rnlxed. divèrw ¢ommunltl•s In London 74 76 S love LHA, all the boxes I tick I truly mean it. l am proud and grateful to say to people that l am paying the cheapest rent in London. LHA saves me my money. Amenities are outstanding, location is perfect. It is really hard to find negatives. Enablin9 lUStttlDabl• Iiv•lihood Ic*r youth, homeless people and other 9roups living in Loadon ,72 74 Providing Affordable Llving In Central London For Thosè on Low Incom&s ALL REWARDS % that leel thot they would not have bean abla to eome to stay In Cantral London if they had hot abl• to $tuy with LHA 58% 89/ % that thtry were at risk ol home1•5sne$5 if they had not been able to Stay with LHA d3% 58% 99 41 Volunteering at LHA OVERALL SCORE 81 Volunteering at LHA London is an important part of not only keeping the cost of accommodation aflordable but also making a social impact. Over 600 people donated their time to LHA durin9 the year. 66 In the f irst place, I was able to to accomplish my dream of vlsitlng UK and a beautlful clty as London. I have increased my network with people around the world and I have made good f riends. I have learned to glve real value to my time, job, f riends and relatives. I have had time to develop both personal and professional skills, and even to improve spiritually. And finally I have received more than l expected f rom this volunteering experience. 'Volvnteering Qt LHA SCORE Ov•rall, how would yov rato your lunt••r •¥p•rl•n¢•P 84 If you had another opportunlty, how likely ar• t• volunt••r wlth ui a9aln7 80 How Iik•ly •r• you to r•¢¢mm•nd v•lunt••rln9 wlth LHA to tt th•nd? 80 99 Spanish 18.7% .42 Other 40% VOLUNTEER NATIONALITY PROFILE While I have been in LHA, I have been able to pursue my master's degree, which is a two- year degree. My experience in LHA, especially in Halpin House, has been great because of the role I have as a night porter and the people l am surrounded with. In terms of the room, it has been great since I can study without problems because of the time in which I can volunteer. My manager is a great person, always attentive, willing to support, always working with people and very supportive. My all gratitude for him. Without the support of LHA, I would not be able to sustain myself in terms of money to study. razilian 14.4% 10.4% Indian 6.4% British 10.1% 50+ 5.1% 40-49 VOLUNTEER AGE PROFILE 30-39 27.9% 18-29 58,1% O-I month 8.2% 1-2 months 7.7% 2-3 months 4.5% 3-4 months 5.9% LENGTH OF PL4CEMENT 12 months+ 51.8% 4-5 months 3.4% 5-6 months 3.8% 6-12 months 14.7% 43 Volunteering at LHA By volunte8rin9 Wlth LHA, people ar8 able to develop new skills and improve existing ones. 90/0 of participants feel that the volunteering experience has been valuable to their professional development. IOO/o ol participants feel they have improved their skills and expertise in hospitality as a result ol their volunteering experi8nc8. We asked our volunteers specifically about wh ich other skills they felt had improved as a result ol their participation. Positive improvements were recorded across all of the categories.. Which othor skills you fo01 had Improved as a result of you volunteering at LHA SCORE En9liih Lan9va9• 72 Trm• M*nug•m•nt Skills 84 Comm¥nl¢atloD skills Att•ntl•* to D•tail 85 Teamwork 84 Knowl•d90 01 H•ipltality 87 14GS 11 44 We asked all volunteers the same questions (as we did our residents), and across all indices, a greater level of social impact was noted. This reinlorced the importance ol the volunteer scheme to us meeting our charitable objectives. 2022 Outcomes VOLUNTEERS ONLY ALL Ga4n Exp•rl•ncg Ll¥lng in a Global City 75 84 Improv*d W•ll.B•ln9 Am¢n9 Rosidontl 74 83 R•51d•nts/volunteers F¢st•r Friandships wlth Eueh Oth•r 63 78 S•ns• •f 8•l•nglng t• London Amon9 R•iid•nt* 73 81 2022 Impae*5 VOLUNTEERS ONLY ALL Sv5taining mlx•d, div•r4• communltl•i In London 74 84 Enablin9 Stiitalnabl• livelihood lor yovth, horn•l•Js p•opl• and other group5 living in London 72 78 Providin9 affordable living in Central London for th¢$0 on low in¢om¢s VOLUNTEERS ONLY ALL % that leel that they would not have been able to come to Stay in contral London il they had not boon able to stay with LHA 58% 62% % thut l¢¢1 they wer• ut ri$k ¢+f hom01trs$nèss il thèy hud not been able to stay with LHA 43Y. 56% 45 LHA Collaborations- Publicis Groupe LHA'S collaboration with Publicis Groupe started in August 2020, as part of Saatchi Et Saatchi's 50th anniversary celebrations. The aim of the collaboration is to provide a roadmap de519ned to improve entry into the advertisin9 industry lor Black, Asian and Ethnic Minority talent, and those +rom low social mobility backgrounds. Saatchi & Saatchi was founded in 1970 by two brothers, the sons of Iraqi Jews who 95coped persecution in Iraq to corne to Britain. D85Pite being Outsiders to the industryi they created an ad agency ond revolutionised the industry with the belief that as long as you could marry chutzpah (meaning the 'quality of audacity'} with potentiol,'nothing is Impossible,. Saatchi & Saatchi is transforming this foundin9 ethos i nto future action with the launch of Saatchi Ignite, Saatchi Open and Saatchi Home a suite of pro9rammes aimed at inspiring, enabling and progressi ng more diverse talent from across the UK. Saatchi Home provides tiered affordable accommodation in zones 1-2 for interns. Saatchi Open candidates and Junior team members. Saatchi Home is supported by the Advertisin9 A550ciation and is designed to be a blueprint for the industry Sn removing barriers to entry - one of those being aHordab16 housing In Landon. Saatchi Home Rent-free/heavily subsidised tjccommodation for interns who live outside of London. Subsidised accommodation for Saatchi Open candidates. Preferential rates for all junior agency talent below a set salary threshold. In 2021/22, LHA welcomed 15 Saatchi Home porticiponts to o number of our properties - recording a total of 3040 overnights. ',46 The ambition is to now share this blueprint for success which can be replicated, at scale, by partners ond competitors alike while inspiring, enabling and progressing more diverse talent f rom ctcross the UK by providing either rent-free or subsided short-term accommodation as they settle into London and their new role. Hemi Patel, participant on the Saatchi Home and Saatchi Open programme said, 'This opportunity wouldn't have been possible without the support of LHA London and the Saatchi Open and Home pro9rammes. Like many students, I'd not heard of advert15ing a5 a career choice. It was only thank5 to chanc6 that my university lecturer was an ex- creative director, who recommended I give ￿t a Shot. It's why I'M a150 really keen to get involved in Saatchi Ignite,. Stephen Woodford, CEO of the Advertlsing Association said, 'The advertising industry 15 determined to make access to th8 industry a5 wide as possible and that means opening vp to talent from every kind of background ocross the UK and overseas. The Saatchi Home initiatlV8 Wlth LHA is exactly the kind of innovative solution we need to see to make a move to London much more affordable, so removing what is o major barrier lor many. I'd be delighted to see more agencies, production companies and media owners build on this pioneering partnership,. Sarah Jenkins, managin9 director of Saatchi & Saatchi said, 'We have deep-rooted barriers preventing too many brilliant and talented people from entering our industry. These are challenges made harder as a result of the pandemic and those already having to navi9ate London living costs, often without the welcome support of Bank of Mum Dad. I'm super proud of what we are doin9 Wlth LHA through Saatchi Hom6, but this can and should be much bigger than that. change will only come with the industry working together, at scale. Saatchi Home is a lantastic blueprint for any organisation who wonts to create demonstrable and sustainable change,. aT 47 LHA Fund The LHA Fund, in its current form, was established in 2014. The purpose of the lund is to make financial grants (up to £30k per annum) to small charities operating in London who are working with young people (under 35) and supporting them with issues ol homelessness. Through the fund, LHA seeks to grow its social impact beyond its own buildings and to help tackle complex issues beyond its own internal expertise. Through the fund, LHA has made grants for capital improvements, revenue costs (funding for salaries) and schemes, offering mentoring and advisory services to help young people access housing. In 2021/22, eleven projects received grant awards with a total value of £276,810, and 693 people were directly impacted by the Fund projects. Each fund is monitored through conversations with project leads and grant beneficiaries (where appropriate). Additionally, projects captur6 case studies and track outputs and outeom6s. K6y consid6rations include grant LtS8, outcom8s and impacts, circLtm5tanc6s affectin9 grant vsè and future changès ah8ad. 2021122 Projects Albert Kennedy Trust £28,810 BEAM £29,000 romley and Croydon omen's Aid £20,000 C4WS £30,000 Cardinal Hume £28,000 Evolve £25,000 Project 17 £20,000 Refugees at Home £16,000 Women and Girls Network £25,000 Spires £30,000 Z2K £25,000 48 Each year, the LHA monitoring conversation includes contextual changes that alfect or are likely to affect strategic d irection and operational issues ol organisations receivin9 LHA 9rants. Although COVlD-19 is still relevant, projects have moved on from crisis mode and many have mode the operational adjustments required. However, the Government's substantial funding for projects di rectly dealing with shelters or other forms of shared accommodation is now at an end, and there is as yet no comparable emphasis or action on provision of secure aff ordable accommodation in London at the volume needed. The housing crisis in London therefore conti nue5. There 15 Still an over-reliance on the private rented sector, and there is no signif icant change in the policy underlying Local Housin9 Allowance levels for Single people,. that is, there is still a tendency to see shared accommodation as 5Ultabl8 for m05t young people. For disturbing reasons, some ol the organisations funded this year have hit media headlines, notably Refugees at Home (ukraine) and Bromley and Croydon Women's Aid (at the launch of the new Tackling Domestic Abuse plan), wh ich ind icates that charities, however small and local, con be seen as the experts in national and international crises, 49 BEAM Case Study One person who has benefitted from LHA funding 15 25-year-old Detta, who was referred to Beam by Islington Council in early 2022. Detta became homeless when her dad kicked her out ond she ended up in t8mporary accommodation. Beam helped Detta raise £1,931 from 18 supporters - includin9 LHA - to fund a rental deposit, f irst month's rent, moving van and housing essentials. With Beam's support, Detta moved into a property in April 2022 and since then her life has be8n complet6ly transformed. Detta shared this update with her Beam supporters. 'Through your donations I have been able to secure a better horne and continue working towards 9etting a b6tter and greater place to call homeli IVESICOASI Read the full updat8 on h8r eampaign page here.. https://beam.org/campai9ns/detta For more information on LHA Fund projects, please visit www.Ihalondon.com/our-programmes/ r• 50 LHA Fund Looking Ahead Looking ahead to 2022/23, it is proposed that grants be mode to 14 charities (three more than the prior year). The total value of the proposed grants is C347￿00 (an incre f £70,990 from the prior year). 2022123 Proposed Funding 51 LHA Repurposing In late 2020, as the world started to understand the full impact of the pandemic and came to term5 Wlth the fact that i n all l ikel ihood there was no quick or easy lix to the crisis, LHA found itself in a new situation. We had empty bedrooms (over 200) and 8mpty beds (nearly 800). With none of our hostels ever mandated to close, w8 were determined to provide as much support as possible to house those that needed it most. LHA Repurposing was born. We reached out to the various charities we had worked with through the LHA Fund and our network of contacts soon grew, as did the requests for support. This was a period OF innovation for everyone involved, and we repL+rposed our hostels in a number of diHerent ways, ranging from simply providing a safe, secure and well_ maintained buildin9 for other charitie5 to operate i n, through to supporting charities in utilisi n9 our operational buildin95 all the way to our teams working alongside t6ams from other charities to fill th6 void left by the closing of n i9ht shelters. Wé view this work as a positiv8 legacy of the pandemic that has continuèd into our p05t-pand8mic operating plan. In 2021/22, 565 individuals benefitted from our various repurposing projects, and a total of 25,325 overnight stays were recorded. For the majority of individua15, this meant that rather than havlng to sleep rough on the streets of London, they were provided with the safety and security ol their own room and bed to sleep in. They were fed three meals a day and were able to access m8ntoring and advice servic85 to help them find a rout6 out of homelessness. "Ti" 11 52 Who We Worked With GLnssDOOR The team from Glass Door worked alongside LHA'S team at N8w Mansion House to deliver night shelter services between November 2021 and NAay 2022. They transf8rr8d their entire operation to our Holland House site up until August 2022, which enabled them to fully refurbish their existi ng hostel on Longmore Street. ] THE PASSAGE Ip h•m•l•¥¥Th¢¥ DePaL*I and New Horizon Youth Centre partnered to util ise our Hounslow Central building to create 'Hub 18-24'_ a dedicated service for young people aged 18-24 experiencing or at risk of experiencin9 homelessness. DEPAUL New Hori20n Youth Cenlre Thi5 charity has b6en able to provide refuge and support to women escaping violence through OLtr building5 since S8Ptember 2021. Single Homele Pmj¢ct Robes took up allocation OF rooms at our Davies Court site to deliver night shelter services between October 2021 and March 2022. robes 'Being able to utillse Holland House has been Instrumental ID allowlng us to bnng 125 people from the street into the assessment centre. We were atsle to provide an additional 15 emergency health bed spaces during this period and successfully moved 85 people from Holland House inlg accommodation, achieving 8 73% positive move-on In this period. We can't thank LHA enough for tne support we have received from the leèm and are Incredibly grateful to liave been given the opportunity to provlde our servlce out of Holland House whlle we undertook our refurblshment. It has be&n such a pleasurè working wlth you all, and I do hope we can continue to bulld our relatlonship with LHA for th lulure. Mldorl Hol, Hea(1 of Hou51ng and Progression, The Passage For mDre 5nforniabDn on DUI repurposlng projects. please vislt www.IhAIondon.￿mIa￿1￿rogranWnesI Project 25 Very much in its infancy, Project 25 is a legacy project born out of the pandemic. During our outreach work around the repurposing of our hostels, we identified a longer-term need to identify a percentage of our single rooms for reservation specilically for the provision of move-on accommodation for young people. A recurring theme through our conversations was the particular challenges faced by young people (under the age of 35) experiencing single person homelessness - both through the limitations imposed on them due to the benefits cap and the maximum housin9 allowance they are able to claim, and the severe lack of move-on accommodation once individuals complete a period in supported accommodation and are ready for independent living. In early 2022, w8 identified an opportunity, through the network of charities we hav8 built, to d6velop a conc6Pt for allocating a percentage ol our 5in918 roorns subsidised 5P8cifically for use by young people und8r 30 years of age who are s88king move-on accommodation alter having complet8d a period in a supported hostel or other accommodation. We initially offered 25 of our single bedrooms at a subsidised all-inclusive rate of £150 per week to a select number of r&ferring chariti&s in order to test the concept. Durlng 2021/22, there have been elght people referred to the scheme and a total of 1129 overnights have been recorded. We will be triallin9 the concept furthor in 2022/23 to better understand how to achieve the b85t impact lor beneficiaries. 54 Looking Ahead Although we're hugely proud of the social impact which we￿e been able to highlight in this report and the demonstrable growth of our social impact compared to last year, we're acutely aware there is still so much more we can do. Therefore, prioritie5 for our 2022/23 plan include the following.. .Growlng our numbers will d81iver hu9• gTeWth In our soeid impoct, and we will contiThve ovr locus on idontifying and astablishing LHA htsst*ls Londo As th• LHA Fund opproach•s Its tèn-year annlvarsaryi wa will b• corrying ovt a strateg￿¢ review ol the fund to ensure wetro maximisin9 Its soeiul ￿mPo¢t ond prwiding mtanin9lul support to 9ranl reclpient5. A slondout From this year's fèF5'b"rt Isihé poltintlLII dc> nidro lo 105ter Irlendships and improve the sense ol communlty among LHA r8sid•Tits. W• will bè looking lo mova our ovtrroll scor41n', Project 25 Wts Will lurthor devalop our P¢oj&¢t 25 ttètwoth ol rèlèrr¢rs ttt Bnsurg tho prtslec r8att es copac Tho voluntaer scheA t?5t 50gial impact. Thg profile ol and aetivitlgs carried out by our volunteers ore shihing due to chon9in9 ext6rnal Factors. W8- will carry ovt o review ol the entire Volunteer life cycle and. blish a plan for oontinuous improv8m8nt SO thot the scha an ¢ontlnue to o From str•n th to stren The journey of how w• m•a5uro oursocid Impact will contlnu•, and wtr will ltstsk to e5tabli5h real-time m8a5uremefit5 and conduct more focused case studies of our activities olon9sido our annval Survey. Trustees, Review and Strategic Report Trustees, Review and Strategic Report Tha Trustees, who are also Directors of the charity for the purpos8 of the Companies Act, submit their Annual Report with the Balance sheet for the Company on 30 September 2022 and the Statement of Financial Activities for the year ending on that date, approved by the Board of Trustees, on 28 February 2023. The charity is governed by its Memorandum and Articles of Association. The Charity is managed by Trustees who meet formally five times a year. Trustees and Members The Trustees who served during the year are named on page 5 of this report. Additional or replacement Trvstees are appointed by the remaining Trustees. Insurance agai nst Trustees, and officers, liabi lities in relation to the charity was maintained during the year 2021/2022, as cited in the Memorandum and Articles ol Association, Para 00 (I). Strategic Report The charity achieved surplus net incoming resources before transfers of £4,255,721 (2021,. £1,741,270), which is appro £500,000 over budget due to increased occupancy but taking i nto account losses on sale of investments. There was a spend of approximately £890,588 (2021,. £666,168) on repalrs and maintenance. Donations of £276Aio (2021; £383,833) were made during the year. Trustees, Review and Strategic Report Investment5 Barclays Wealth and HSBC w8re th8 managers of the charitys investment portfoli The investment policy remained unchanged during the year, havin9 the followin9 objectives.. The chority's assets should be invested and held in order to 9row their value over time. Because the charity does not rely on investment income for operational purposes, a total return approach (capital growth and income generation) can therefore be adopted for the investment portfolio. The f inancial objective of the investment portfolio is to mair)tain the real value of the assets, keepin9 it at least in line with inflation while generating a stable and sustainable return to grow the capital over the long term. The long-term target return set by the charity is at least the Bank of En9land base rate plL15 5/. Separately, cash deposits held by the charity are deemed shorter term and are u56d to maintain liquidity. The split between lon9er-term capital growth investments and shorter- term cash inv85tments will be r9view@d by the Committe8 on a regular basis and will be adju5t8d according to the charity's roquir8ments. Investment decisions should aim to opti mise the total return of the Portfolio in lin8 With the charity's risk appetite. The charity has defined this a5 moderate for the purposes of ts investment approach and has accepted a degree of risk to its capital. The charity is ab16 to tolerate volatility in the capital valu6 of the inv&stment portfolio and has a long- term time horizon of over five years. To minimis6 risk to an acceptable level, any ass8t5 Inv6Stod should be held within o diversified portfolio which doe5 not have excessive exposure to any specific sector o country. The Committee expects that the volatility experi@nced by investment portfolios should be no more than two-thirds of the volatility of global equities (in sterling). hould be noted that there is no Specif led exposure limit ot the sector or country level. However, the Committee reserves the right to set this if it freels appropriate. Asset closses may include cash, fixed income/bonds, equities, property Funds, hedge funds, commodities, or any other asset that is deemed sultable lor the charity. The base currency of the investment portfol sterling,. however, investments may be made in non-sterling assets. Withdrawals can be made Irom the investments as and when required by LHA to fund sts charitable purposes and objectives, such as buying or refurbishing property. LHA also allows lor the invested asset5 to be held a5 collateral a9ainst a lending facility. In line with the abovè policy, the Board d6cided to sell thè investments due to thè increasing volati lity in the market as well as its main objective of f inding a suitable property to create more beneficiary beds. The cash generated from investments 15 currently bein9 placed in 5hort-term deposit5 to moximise interest returns, Trustees, Review and Strategic Report Fixed Assets Around 1400,000 was spent on Bowden Court for bedroom upgrades and refurbishment ol showers and toilets. Additional works included a lift relurbi5hm8nt and a new servery. Davies Court saw improvements to the showers and toilets in Foundation Court at the cost of £91,000. Investigations have storted to review options to improve the cladding at Davies Court. The planning works started at Holland House, which will see refurbishment in 2022/23 before the site reopens to LHA residents after being re-purposed during COVID-19. Major electrical works were carried out across several sites at the cost of £098,000. The remaining Sltes will be completed in 2022/23. A sum of £37,000 was spent on cr6atin9 offices and a meeting room at the new Central office in Wilton Road, Victoria. Payment Policy It is the policy ol the charity to pay creditors in accordance with contracted term normally within 30 days. Results The net movement Sn funds during the year was a surplus of £12,491,557 compar6d with the previou5 year's surplus 01 £3,377,609. This was after allowing for realised and unrealis8d gains on investments and the actuarial gain on the charity's pension scheme, which was a loss of £1,252,959 and a gain of £42,000 respectively, compared to the 20219ains 01 £2,638,599 and £1,391,000. In 2022, there was also an evaluation of the LHA properties, resulting in a gain of £9,446,795. Trustees, Review and Strategic Report Reserves A5 of 30 September 2022, charitable Funds stand at £30,318,867 and De51gnat8d Funds at £249,942,480. Within Designated Funds, there is a fixed asset reserve of £249,942,480, which represents the net book value of the fixed assets. All other reserves are available to maintain and develop the future work of the Charity and are considered adequate by the Trustees for these purposes. The raserves the profit and loss account of LHA SeNices Ltd, the subsidiary company, were £299,899 as at 30 September 2022, compared to £211,674 in 2021. As a charity, LHA is obliged by the charities Commission to set a policy on reserves, and this establishes a level which is appropriate for LHA lor the year. LHA'S reserve policy is set to adequately support the continuation of the charity's current activity and future capital expenditure. The charity'5 aim 15 to monitor the r656rves policy throvghout the year throu9h th6 budgetary proces5 and to r6VleW the reserves policy to ensure it meets LHA'S changing needs and circumstances. Our r8serv8s policy is reviewed annually when w8 review our sources of incom8 and balancing the impact of future plans, commitments, our pension schemes and any management of f inancial risk involved. LHA'S target reserve level is set at six-months, working capital, which currently stands at approximately £4.5m. Our current reserve levels are higher than this because we expected to start two major projects. One of the projects has now been put on permanent hold due to 6scalatin9 buildin9 Costs. The other project a roof extension at Friendship House is b8ing prepared for planning. The new appointed Director of Estates is actlV81y looking for 5Ultable propertie5 SO It seem5 appropriate to hold larger cash balances to enable LHA to expand its portfolio. 160 Trustees, Review and Strategic Report Risk Mana98ment The Trustees actively review the major risks that the charity faces on a re9ular basis and believe that maintainin9 adequate resources, combined with conducting an annual review ol the control ol key financial systems, will enable the charity to COP8 Wlth any luture adverse conditions. The Trustees reviewed the Annual Risk hAatrix in December 2022. The trustees have also examined other operation business risks faced by the charity and conf irmed they have established systems to mitigate significant risks. The Finance Audit and Risk Committee reviews and updates the Trustee Board as necessary and hove identif led the followin9 as hi9h risk.. Inflationary pressures on utility, labour and supply chain costs The followin9 actions have been taken to mltlgate this rls LHA has made prudent bud9et assumptions for both the 2022-23 financial year and within the five-year strategic plan. The Board has also strengthened th8 ExecutlV8 Management Team with the recruitment of a Director of Estates. The new rol8 will involva QV8rseeing the lon9-term sustainobility targets ol the charity ond focusing on the initiatives available to oflset rising utility costs. Food and labour cost have also been carefully budgeted and monitored, and with the support of the successful volunteer programme, the charity will continue to provide the appropriate18vel of support withi n it5 operational activitl85. Trustees, Review and Strategic Report LHA Services Limited for 2021/22 LHA Services Ltd (LHAS), wholly owned by the charity and acting under a Iicence and agreement signed in 1991, fi Ils casual room vacancie5, particularly in holiday times and between long-term booking5. The rental and management lees were suspendedas a r8suIt of the pandemic. This suspension was reviewed in 2021/22 because there was a material increase in short- term bookings and then was re-introduced. LHAS has a taxable tradin9 surplus and, In accordance with the covenant signed on Ist October1997, an amount of £137,365 is to be transferred to the charity In 2021/22. In preparing these linancial statements, the Trustees are reqijired to Select 5Ultable accounting polici85 and then apply them consistently. obsorve the method5 and principles in the charities Statement5 of Recommended Practice {SORPs). Make judgement5 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 +inancial statements. Prepare the financial statements on a going concern basis unless it is appropriate to presum6 that the charitable company will not Continue in buslness. Th6 Truste85 aro responsible for k66pin9 proper accounting records, which disclose, with reasonable accuracy at any time, the financial position of the charitable company and 6nable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection froud and other irregularities. o far as the Trustees are aware, There is no relevant audit inlormatlon of which the charitable company's auditor is unaware The Tr￿Stee5 have taken all the steps that they ought to have token to Make themselves aware ol any relevant audit information and to establish that the auditor Is aware of that information. y Order of the Board Tony Perkins Compony Secretary 28 Kebruary 2023 **LHA London Limited Independent auditor’s report to the members of LHA London Limited** ## **Opinion** We have audited the financial statements of LHA London Limited (the ‘parent company’) and its subsidiary (‘the group’) for the year ended 30 September 2022 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Parent Charity Balance Sheets, the Consolidated Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 charity’s affairs as at 30 September 2022 and of the group’s 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. ## **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 charity in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ## **Conclusions relating to going concern** In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charity’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report. ## **Other information** The other information comprises the information included in the Report of the Trustees other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 62 **LHA London Limited Independent auditor’s report to the members of LHA London Limited** 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: - the information given in the Report of the Trustees and the Directors’ Report prepared for the purposes of company law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and - the Directors’ Report included within the Report of the Trustees has been prepared in accordance with applicable legal requirements. ## **Matters on which we are required to report by exception** In light of the knowledge and understanding of the charity and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors’ report included within the Report of the Trustees. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of trustees’ remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit. ## **Responsibilities of Trustees** As explained more fully in the trustees’ responsibilities statement, the trustees (who are also the directors of the parent charity for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the trustees are responsible for assessing the group’s and the parent charity’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative but to do so. 63 **LHA London Limited Independent auditor’s report to the members of LHA London Limited** ## **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 the financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. 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. Based on our understanding of the charity and its sector, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation. To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to: - Inquiring of management and, where appropriate, those charged with governance, as to whether the charity is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations; - Inspecting correspondence, if any, with relevant licensing or regulatory authorities; - Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and - Considering the risk of acts by the charity which were contrary to applicable laws and regulations, including fraud. We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006, and the Charities Act 2011. In addition, we evaluated the trustees’ and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to the valuation of property, income recognition (which we pinpointed to the cut-off assertion), and significant one-off or unusual transactions. Our audit procedures in relation to fraud included but were not limited to: - Making enquiries of the trustees and management on whether they had knowledge of any actual, suspected or alleged fraud; 64 **LHA London Limited Independent auditor’s report to the members of LHA London Limited** - Gaining an understanding of the internal controls established to mitigate risks related to fraud; - Discussing amongst the engagement team the risks of fraud; and - Addressing the risks of fraud through management override of controls by performing journal entry testing. There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. 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.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report. ## **Use of the audit report** This report is made solely to the charity’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 charity’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 charity and the charity’s members as a body for our audit work, for this report, or for the opinions we have formed. ## Signed: Nicola Wakefield (Mar 13, 2023 21:35 GMT) ## **Nicola Wakefield (Senior Statutory Auditor)** for and on behalf of Mazars LLP Chartered Accountants and Statutory Auditor 2[nd] Floor, 6 Sutton Plaza, Sutton Court Road, Sutton, SM1 4FS Date: 13-Mar-2023 65 ## **LHA London Limited Financial statements for the year ended 30 September 2022 Consolidated statement of financial activities** |**Notes**
**Income**
**_Income from charitable activities:_**
Operation of hostels
**_Income from other trading activities_**
4
**_Income from investments_**
**Total income**
**Expenditure**
**_Raising funds:_**
Commercial trading operations
Investment management fees
**_Charitable activities:_**
Operation of hostels
5
**Total expenditure**
**Net income before transfers**
Gross transfers between funds
**Net income after transfers**
Revaluation of property
10
(Losses)/Gains on investment assets
11
**Net income before actuarial movements**
Actuarial gain on pensionscheme
15
**Net movement in funds**
Fund balances brought forward at 1 October 2021
Fund balances carried forward at 30 September 2022|**General**
**Designated**
**Total**
**Total**
**Funds**
**Funds**
**2022**
**2021**
**£**
**£**
**£**
**£**
13,521,194
-
13,521,194
8,689,201
270,768
-
270,768
62,773
367,633
-
367,633
299,157| |---|---| ||14,159,595
-
14,159,595
9,051,131| ||133,730
-
133,730
12,736
41,723
-
41,723
106,634
9,728,421
-
9,728,421
7,190,491| ||9,903,874
-
9,903,874
7,309,861| ||4,255,721
-
4,255,721
1,741,270
(84,761)
84,761
-
-| ||4,170,960
84,761
4,255,721
1,741,270
-
9,446,795
9,446,795
(2,288,260)
(1,252,959)
-
(1,252,959)
2,638,599| ||2,918,001
9,531,556
12,449,557
2,091,609
42,000
-
42,000
1,286,000| ||2,960,001
9,531,556
12,491,557
3,377,609
27,358,866
240,410,924
267,769,790
264,392,181| ||30,318,867
249,942,480
280,261,347
267,769,790| All amounts relate to continuing activities; there were no recognised gains or losses other than those included above. 66 ## **LHA London Limited Financial statements for the year ended 30 September 2022 Balance sheets** |**Notes**
**Fixed assets**
Intangible assets
9
Tangible assets
10
Investments
11
**Current assets**
Stocks
12
Debtors
13
Cash at bank and in hand
**Creditors: amounts falling due**
**within one year**
14
**Net current assets**
**Total assets less current**
**liabilities**
**Pension (liability)**
15
**Net assets**
**The funds of the charity**
Unrestricted funds:
General
Designated
16
17|**----------- Group--------------**
**2022**
**2021**
**£**
**£**
3,029
7,574
249,942,480
240,410,924
-
24,523,411
249,945,509
264,941,909
11,594
9,830
574,768
838,665
32,651,971
4,099,048
33,238,333
4,947,543
(2,922,495)
(2,077,662)
30,315,838
2,869,881
280,261,347
267,811,790
-
(42,000)
280,261,347
267,769,790
30,318,867
27,358,866
249,942,480
240,410,924
280,261,347
267,769,790|**---------- Charity**
**2022**
**£**
3,029
249,942,480
150,000
250,095,509
11,594
649,406
32,263,006
32,924,006
(2,908,057)
30,015,949
280,111,458
-
280,111,458
30,168,978
249,942,480
280,111,458|**-------------**
**2021**
**£**
7,574
240,410,924
24,673,411| |---|---|---|---| ||||265,091,909
9,830
838,665
3,892,649| ||||4,741,144
(2,082,937)| ||||2,658,207| ||||267,750,116
(42,000)| ||||267,708,116| ||||27,297,192
240,410,924| ||||267,708,116| The financial statements were approved by the Trustees on 28 February 2023 and signed on their behalf by: **P Frackiewicz Trustee** **D Conroy Trustee** 67 ## **LHA London Limited Financial statements for the year ended 30 September 2022 Consolidated Statement of Cash Flows** |**Reconciliation of net income to net cash**
**inflow from operating activities**
Net income for the year
Depreciation charges
Amortisation charge
Loss/(Gain) on disposal of fixed assets
(Gain)/loss on revaluation of fixed assets
Loss/(gain) on investment assets
(Increase)/decrease in stocks
Decrease/(increase) in debtors
Increase in creditors
(Decrease) in pension liability
**Net cash generated from operating activities**
**Investing activities**
Purchase of tangible fixed assets
Purchase of investments
Proceeds from sale of investments
**Net cash generated from/(used in) investing activities**
**Net cash inflow/(outflow)**
**Increase/(decrease) in cash in the period**
**Cash and cash equivalents at 1 October 2021**
**Cash and cash equivalents at 30 September 2022**|**2022**
**£**
12,491,557
841,006
4,545
1,136,833
(9,446,795)
1,252,959
(1,764)
263,897
844,833
(42,000)
7,345,071
(2,062,600)
(7,108,689)
30,379,141
21,207,852
28,552,923
28,552,923
4,099,048
32,651,971|**2021**
**£**
3,377,609
794,756
4,545
(2,598)
2,288,260
(2,638,599)
1,019
(288,469)
548,055
(1,249,000)| |---|---|---| |||2,835,578| |||| |||(1,351,902)
(16,586,460)
10,941,570| |||(6,996,792)| |||(4,161,214)| |||(4,161,214)
8,260,262| |||4,099,048| 68 **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** ## **1 Accounting policies** ## **Basis of preparation** The accounts have been prepared under the historical cost convention with the exception of investments, functional freehold properties and long leasehold properties which have been included at market value. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019) – (Charities SORP (FRS 102)) and the Companies Act 2006. LHA London Limited meets the definition of a public benefit entity under FRS 102. The principal accounting policies adopted in the preparation of the accounts are set out below. The trustees consider that it is appropriate for these accounts to be prepared on the going concern basis. ## **Group accounts** These accounts consolidate the results of the Association and its wholly owned subsidiary, LHA Services Limited on a line by line basis. A separate statement of financial activities and income and expenditure account are not presented for the Association itself following exemptions afforded by section 408 of the Companies Act 2006 and paragraph 397 of the SORP. The financial activities of the charity are disclosed in note 3 to the financial statements. ## **Fund accounting** General funds are unrestricted funds which are available for use at the discretion of the trustees in furtherance of the general objectives of the Association and which have not been designated for other purposes. Designated funds comprise unrestricted funds that have been set aside by the trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the accounts. Investment income and gains or losses are allocated to the appropriate fund. ## **Valuation of properties** Functional freehold and long leasehold properties were included in the accounts at valuation for the first time in 2012/13. These have been valued by Colliers International Valuers UK LLP in September 2021. The properties will be revalued every three years. ## **Depreciation** Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
its expected useful life, as follows:|| |---|---| |Freehold and long leasehold buildings|Nil| |Short leasehold land and buildings|| |Furniture, fixtures and equipment|10 - 20 % p.a Straight line method| |Motor vehicles|| |Computer equipment|20 - 33.3 % p.a Straight line method| Moveable furniture and equipment is written out of the accounts after ten years as the Trustees consider that it has a negligible residual value. 69 **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** ## **Amortisation** Amortisation is provided on all intangible fixed assets at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: Website costs 20% pa straight line method ## **Investments** Fixed asset investments are stated at mid-market value at the balance sheet date. Gains and losses on revaluation of investments held as fixed assets are included in the statement of financial activities as unrealised. Where investments have been sold during the year the difference between sale proceeds and market value at the beginning of the period is included in the statement of financial activities. ## **Income** Income for operation of hostels relates to income received in the letting of beds for long stays, catering income, sundry income and is shown net of value added tax and discounts. ## **Expenditure** All expenditure is accounted for on an accruals basis and has been listed under headings that aggregate all the costs related to that activity. Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing LHA London Limited to the expenditure. Where costs cannot be directly attributed they have been allocated to activities on a basis consistent with the use of the resources. Direct costs, including directly attributable salaries, are allocated on an actual basis to the key strategic areas of activity. Overheads and other salaries are allocated between expenses headings on the basis of time spent. ## **Stocks** Stocks, which consist of consumables are valued at the lower of cost and net realisable value. ## **Pensions** The Charity operates a pension scheme providing benefits based on final pensionable pay. The expected cost of providing pensions, as calculated periodically by professionally qualified actuaries, is charged to the Statement of Financial Activities, so as to spread the costs of pensions over the expected remaining service lives of current employees on the basis of a constant percentage of current and estimated future earnings. The pension scheme assets are valued at market rate. A pension scheme deficit is recognised in full on the balance sheet, but where there is a pension scheme asset this is not recognised unless the asset can be realised through reduced future contributions. The actuarial gains are therefore limited to the gain required to bring the liability to zero. 70 ## **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** ## **2. Judgments in applying accounting policies and key sources of estimation uncertainty** In applying the charity’s accounting policies, the Trustees are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The Trustees' judgements, estimates and assumptions are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised, if the revision affects only that period, or in the period of the revision and future periods, if the revision affects both current and future periods. The key estimates and assumptions made in these accounts are considered to be - (a) Depreciation, which is provided at rates calculated to write off the cost, less the estimated residual value, of each fixed asset over its estimated useful life. This is of particular relevance to freehold properties which have not been depreciated as the residual value is deemed to be in excess of cost. - (b) The assumptions made in the revaluation of the charitable properties. The principal assumptions are the estimated rental potential in each area, the level of demand for similar properties and the degree of discounting applied to reflect the level of shared occupancy rooms. ## **3 Financial activities of the charity** A summary of the financial activities undertaken by the charity is set out below: |**Total income**
Total expenditure on charitable activities
Investment managers’ fees
Investment (losses)/gains
Revaluation of property
Actuarial gain on final salary pension scheme
**Net income**
Total funds brought forward
**Total funds carried forward**
**Represented by:**
General funds
Designated funds|**2022**
**2021**
**£**
**£**
14,027,650
8,997,465
(9,818,421)
(7,190,491)
(41,723)
(106,634)
(1,252,959)
2,638,599
9,446,795
(2,288,260)
42,000
1,286,000| |---|---| ||12,403,342
3,336,679
267,708,116 264,371,437| ||280,111,458 267,708,116| ||30,168,978
27,297,192
249,942,480240,410,924| ||280,111,458267,708,116| 71 **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** ## **4 Income from other trading activities** The Charity's one wholly owned trading subsidiary, LHA Services Limited, which is incorporated in the UK, distributes all of its taxable profits to the Charity. The activities of this subsidiary are the provision of short term accommodation and catering services together with the provision of amenities to the residents of LHA London Ltd. The charity owns the entire issued share capital of 150,000 ordinary shares of £1 each. A summary of the trading results is shown below. |
of the trading results is shown below.|| |---|---| |**Profit and Loss Account**|**2022**
**2021**| ||**£**
**£**| ||| |Turnover|270,768
62,773| |Cost of sales and administrative expenses|(133,730)
(12,736)| |Gross profit|137,038
50,037| |Interest receivable|327
18| |Net profit|137,365
50,055| |Amount distributed to LHA
London Limited|(49,150)
(9,125)| |**Retained profit in subsidiary**|88,215
40,930| |The assets and liabilities of the subsidiary were:
Current assets
Creditors: amounts falling due within one year
Total net assets
Aggregate share capital and reserves|**2022**
**2021**
**£**
**£**
388,965
221,198
(89,076)
(9,524)| |---|---| ||299,889
211,674| ||299,889
211,674| Included in administrative expenses are rent of £24,000 (2021 - £nil) and management charges of £66,000 (2021 - £nil) payable to LHA London Limited and these charges have been eliminated on consolidation. **Analysis of charitable expenditure** 72 ## **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** |**5**
**Staff costs**
**Other**
**Depreciation**
**Total**
**Total**
**(note 8)**
**(notes 9&10)**
**2022**
**2021**
**£**
**£**
**£**
**£**
**£**
**Charitable expenditure**
House operating costs
1,739,925
3,763,850
785,677
6,289,452
5,357,300
Support costs
1,386,181
1,684,146
55,329
3,125,656
1,411,735
Governance costs
(note 6)
-
36,503
-
36,503
37,623
Donations (note 7)
-
276,810
-
276,810
383,833
**Total**
3,126,106
5,761,309
841,006
9,728,421
7,190,491
**Charitable expenditure**
**Details of other costs**
**House**
**operating**
**costs**
**Support**
**costs**
**Total**
**2022**
**Total**
**2021**
**£**
**£**
**£**
**£**
Repairs & maintenance
887,588
3,000
890,588
666,168
Utilities
1,122,941
1,805
1,124,746
767,432
Catering
196,529
-
196,529
124,545
Insurance
266,958
7,450
274,408
196,511
Security
212,822
-
212,822
182,195
Rent and rates
111,415
30,046
141,461
261,902
Cleaning, laundry, waste, pest control
671,714
908
672,622
401,008
Other costs
293,883
1,640,937
1,934,820
731,485
3,763,850
1,684,146
5,447,996
3,331,246
Governance costs (note 6)
36,503
37,623
Donations (note 7)
276,810
383,833
Total other costs
5,761,309
3,752,702
**6**
**Governance costs**
Governance costs include:
**2022**
**2021**
**£**
**£**
Audit fees
21,895
21,045
Insurance against Trustees' and Officers' liabilities
13,907
16,578
Trustees’ expenses
701
-
36,503
37,623|**Staff costs**
**(note 8)**
**£**|**Other**
**Depreciation**
**Total**
**Total**
**(notes 9&10)**
**2022**
**2021**

**£**
**£**
**£**
**£**
3,763,850
785,677
6,289,452
5,357,300
1,684,146
55,329
3,125,656
1,411,735
36,503
-
36,503
37,623
276,810
-
276,810
383,833| |---|---|---| ||1,739,925|| ||1,386,181|| ||-|| ||-|| ||3,126,106|5,761,309
841,006
9,728,421
7,190,491| 73 **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** ## **7 Donations** |All donations were made to institutions
and these are broken down as follows:
Albert Kennedy Trust
New Horizons
Glass Door
C4WS
The Spires Centre
St Mary Le Bow
Evolve
Zacchaeus 2k Trust
Project Seventeen
Women & Girls Network
Refugees at Home
BEAM
Cardinal Hume
Bromley & Croydon Women’s Aid
Single Homeless Project
Whitechapel Mission
**8**
**Staff costs**
Wages and salaries
Social security costs
Other pension costs
**Average number of employees during the year**
Head office staff
Direct maintenance staff
Hostel staff
Number of employees with emoluments in excess of £60,000:
£60,000 - £70,000
£70,000 - £80,000
£80,000 - £90,000
£130,000 - £140,000
£140,000 - £150,000
£160,000 - £170,000||**2022**
**2021**
**£**
**£**
28,810
28,000
-
30,000
-
20,000
30,000
30,000
30,000
30,000
-
14,000
25,000
25,000
25,000
38,333
20,000
20,000
25,000
25.500
16,000
16,000
29,000
29,000
28,000
28,000
20,000
20,000
-
20,000
-
10,000| |---|---|---| |||276,810
383,833| |||**2022**
**2021**
**£**
**£**
2,228,682
2,130,860
218,955
195,935
678,469
311,693| |||3,126,106
2,638,488| |||16
16
6
5
52
51| |||74
72| |||1
1
1
-
1
-
1
1
1
-
-
1| 74 ## **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** The total of employee benefits, including employer pension contributions received by Key Management Personnel in 2022 is £473,436 (2021: £418,670). Key Management Personnel are the Chief Executive Officer, Finance Director, Director of Estates and Director of Operations. ## **9 Intangible fixed assets – Group & Charity** |**9**
**Intangible fixed assets – Group & Charity**|| |---|---| |**Cost**
At 1 October 2021
Additions
Disposals
At 30 September 2022
**Amortisation**
At 1 October 2021
Charge for the year
Released on disposal
At 30 September 2022
**Net book value**
**At 30 September 2022**
At 30 September 2021|**Website**
22,723
-
-| ||22,723| ||15,149
4,545
-| ||19,694| ||3,029| ||7,574| 75 ## **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** ## **10 Tangible fixed assets – Group and Charity** |**Cost**
At 1 October 2021
Additions
Disposals/write off
Transfers
Revaluation
At 30 September 2022
**Depreciation**
At 1 October 2021
Charge for the year
On disposals
At 30 September 2022
**Net book value**
At 30 September 2022
At 30 September 2021|**Freehold land**
**and buildings**
**Leasehold**
**land and**
**buildings**
**Property**
**improvements**
**Plant and**
**machinery**
**Total**
**£**
**£**
**£**
**£**
**£**
225,316,210
9,712,581
15,476,569
1,322,072 251,827,432
-
-
2,062,600
-
2,062,600
-
-
(1,104,365)
(193,961)
(1,298,326)
-
-
-
-
-
9,296,955
149,840
-
-
9,446,795| |---|---| ||234,613,165
9,862,421
16,434,804
1,128,111 262,038,501| ||-
-
10,348,393
1,068,115
11,416,508
-
-
785,675
55,331
841,006
-
-
-
(161,493)
(161,493)| ||-
-
11,134,068
961,953
12,096,021| ||234,613,165
9,862,421
5,300,736
166,158 249,942,480| ||225,316,210
9,712,581
5,128,176
253,957 240,410,924| The Trustees undertook a valuation of all the freehold and long leasehold properties in September 2021. The valuation was undertaken by Colliers CRE and the properties were valued at £239,300,000 (this includes freehold property, leasehold properties and property improvements above). The valuation of the properties were updated in 2021/22 using House Prices Index, resulting in a revaluation of £9,446,795. Property improvements include £107,418 (2021: £856,967) of assets under construction. 76 **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** |||**Investments**|||| |---|---|---|---|---|---| |**11**|**Investments**|**in**|||| |||**subsidiary**||**Other**|| |||**undertakings**|
**investments**||**Total**| |||**£**||**£**|**£**| ||**Market value**||||| ||At 1 October 2021|150,000|
24,523,411
24,673,411||| ||Additions|-|
7,108,689
7,108,689||| ||Disposals|-|
(30,379,141) (30,379,141)||| ||Net (losses) for the year|-|(1,252,959)
(1,252,959)||| ||At 30 September 2022|150,000||-|150,000| ||Historic cost at 30 September 2022|150,000||-|150,000| |**12**|**Stocks**|**--------- Group**|**----------**|**-------- Charity ---------**|| |||**2022**|**2021**|**2022**|**2021**| |||**£**|**£**|**£**|
**£**| ||Household equipment and food|11,594|9,830|11,594|9,830| |**13**|**Debtors**|**--------- Group ----------**||**-------- Charity ---------**|| |||**2022**|**2021**|**2022**|
**2021**| |||**£**|**£**|
**£**|
**£**| ||Trade debtors|87,386|223,947|87,386|
223,947| ||Other debtors|41,983|6,189|41,983|
6,189| ||Amounts owed from group companies|-|-|74,638|
-| ||VAT recoverable|59,724|136,631|59,724|
136,631| ||Prepayments and accrued income|385,675|471,898|385,675|
471,898| |||574,768|838,665|649,406|
838,665| |**14**|**Creditors: amounts falling due within**|**one year**|||| |||**--------- Group ----------**||**-------- Charity ---------**|| |||**2022**|**2021**|**2022**|
**2021**| |||**£**|**£**|
**£**|
**£**| ||Trade creditors|1,119,718|722,940|1,118,835|
722,940| ||Other taxes and social security costs|85,540|47,185|85,540|
47,185| ||Amounts owed to group companies|-|-|-|
14,799| ||Other creditors|28,438|-|28,438|
-| ||Fees and deposits in advance|779,340|830,356|779,340|
828,531| ||Accruals|909,459|477,181|895,904|
469,482| |||2,922,495|2,077,662|2,908,057|2,082,937| **15 Pension commitments** 77 **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** The charity makes contributions to a defined contribution pension scheme on behalf of a number of employees who are not included within the defined benefit pension scheme. Contributions in the year totalled £135,328 (2021: £116,121). The Charity operates a defined benefit scheme in the UK. The scheme is closed to new entrants. As a consequence the current service cost calculated under the projected unit method can be expected to increase over time, as the average age of the membership increases. A full actuarial valuation was carried out at 1 April 2021 and updated to 30 September 2022 by a qualified actuary, independent of the scheme's sponsoring employer. The major assumptions used by the actuary are shown below. The Charity currently pays contributions at the rate of 41.3% of pensionable pay following the actuary valuation on 1[st] April 2021. ## **Present values of scheme liabilities, fair value of assets and surplus/(deficit)** |Fair value of scheme assets
Present value of scheme liabilities
Surplus/(Deficit) in scheme|**At 30/9/22**
**At 30/9/21**
**At 30/9/20**
**£'000**
**£'000**
**£'000**
9,327
10,911
10,016
(5,547)
(10,953)
(11,307)| |---|---| ||3,780
(42)
(1,291)| 78 **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** ## **15 Pension commitments (continued)** ## **Reconciliation of opening and closing balances of the present value of the scheme liabilities** |Scheme liabilities at start of period
Current service cost
Interest cost
Actuarial (gains)
Experienced losses on liabilities
Changes to demographic assumptions
Benefits paid & death in service insurance premiums
Scheme liabilities at end of period|**2022**
**2021**
**£'000**
**£'000**
10,953
11,307
102
123
222
180
(5,895)
(806)
358
217
27
-
(220)
(68)| |---|---| ||5,547
10,953| ## **Reconciliation of opening and closing balances of the fair value of the scheme assets** |Fair value of scheme assets at start of period
Interest on assets
Expected return on scheme assets
Contributions by employer
Benefits paid
Fair value of scheme assets at end of period|10,911
10,016
226
161
(2,029)
697
439
105
(220)
(68)| |---|---| ||9,327
10,911| The actual return on the scheme assets over the year ending 30 September 2022 was (£1,803,000) (2021: £858,000). ## **Total expense recognised in the statement of financial activities** |**otal expense recognised in the statement of financial activities**|| |---|---| |Current service cost
Interest cost
Expected return on scheme assets
Total expense recognised in the statement of financial activities|102
123
222
180
(226)
(161)| ||98
142| The cumulative amount of actuarial gains and losses recognised in the statement of total recognised gains and losses since the adoption of FRS17 is a loss of £1,707,000 (2021: £1,749,000). 79 **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** |**15**|**Pension commitments (continued)**|||| |---|---|---|---|---| |**Assets**||**2022**|**2021**|**2020**| |||**£'000**|**£'000**|**£'000**| |Total assets||9,327|10,911|10,016| None of the fair values of the assets shown above include any of the employer's own financial instruments or any property occupied by, or other assets used by, the employer. ## **Assumptions** The assets of the scheme have been taken at market value and the liabilities have been calculated using the following principal actuarial assumptions: ||**2022**|**2021**| |---|---|---| ||**% per**|| ||**annum**|**% per annum**| |Rate of discount|5.30|2.05| |Inflation (RPI)|3.50|3.45| |Inflation (CPI)|2.90|2.85| |Salary increases|2.90|2.85| |Pension increases||| |Accrued before 1 July 2016|5.00|5.00| |Accrued after 1 July 2016|2.90|2.85| |Revaluation rate for deferred pensioners|5.00|5.00| |Commutation|Nil|Nil| |**Life expectancy**||| |Male retiring at age 65 in 2022|22.3|22.1| |Female retiring at age 65 in 2022|24.6|24.5| |Male retiring at age 65 in 2042|23.3|23.4| |Female retiring at age 65 in 2042|25.7|26.1| ## **Expected long term rate of return** The scheme's assets are invested in a unitised with profit fund. It is assumed that the long term rate of return on the fund will be 5.3% per annum (2021: 2.4%). 80 **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** ## **15 Pension commitments (continued)** ## **Amounts for the current and previous four periods** ||**2022**|**2021**|**2020**|**2019**| |---|---|---|---|---| ||**£'000**|**£'000**|**£'000**|**£'000**| |Fair value of assets|9,327|10,911|10,016|10,244| |Present value of scheme liabilities|(5,547)|(10,953)|(11,307)|(10,296)| |Surplus/(Deficit) in scheme|3,780|(42)|(1,291)|(52)| |Experience adjustment on scheme assets|-|-|(396)|301| |Experience adjustment on scheme liabilities|(358)|(217)|-|-| ## **16 Designated funds** |Fixed asset reserve|**Balance at**
**Transfers**
**Revaluation**
**Balance at**
**1 October 2021**
**30**
**September**
**2022**
**£**
**£**
**£**
**£**
240,410,924
84,761
9,446,795
249,942,480| |---|---| ||240,410,924
84,761
9,446,795
249,942,480| ## **17 Analysis of group net assets between funds** |Intangible fixed assets
Tangible fixed assets
Investments
Cash at bank and in hand
Other net current liabilities
Pension deficit|**General**
**Designated**
**Total**
**Funds**
**Funds**
**Funds**
**£**
**£**
**£**
3,029
-
3,029
-
249,942,480
249,942,480
-
-
-
32,651,971
32,651,971
(2,336,133)
-
(2,336,133)
-
-
-| |---|---| ||30,318,867
249,942,480
280,261,347| 81 **LHA London Limited Financial statements for the year ended 30 September 2022 Notes to the financial statements** ## **18 Operating lease commitments** At 30 September 2022 the group’s commitments under non-cancellable operating leases were as follows: |Less than 1 year
Between 2 and 5 years
After more than 5 years
Total|**Land & Buildings**
**2022**
**2021**
**£**
**£**
137,281
360
472,397
1,440
-
27,093| |---|---| ||609,678
28,893| At 30 September 2022, the group’s had no capital commitments (2021: capital commitments related to the Hounslow site and Friendship House amounted to £363,433). ## **19 Limited liability** The charitable company is limited by guarantee and does not have a share capital. Every member of the company undertakes to contribute to the assets of the company in the event of the same being wound up during the time he or she is a member, or within a year after he or she ceases to be a member, such amounts as may be required, not exceeding £10. ## **20 Related Party Transactions** The Trustees receive no remuneration. Travel expenses of £701 (2021: £nil) were reimbursed to 6 (2021: nil) Trustees during the year. Included in administrative expenses are rent of £24,000 (2021 - £nil) and management charges of £66,000 (2021 - £nil) payable to LHA London Limited by LHA Services Limited. The charges were eliminated on consolidation. 82