Sto BasDIs Cornpany Number 03964376 Registered in England St Basil's (Limited by Guarantee) Works with young people St Basil's Annual Report and Financial Statements Year ending 31 March 2021 ST BASIL'S (Lifflited by Cuarantee) INDEX PAGE Informatlon strategic Report Board Raport 21 Independent Report of the Auditor statement of Comprehensive Income 28 Statement of Flnanclal Position 29 Statement of Changes in Reserves 30 Statement of Cash Flows 31 Notes to thè Financial Statements 32 ST BASIL'S (Limited by Guarantee) INFORMA TION BOARD Helen Bates Maddy Bunker Paul Cadman (chair of the Setvice Delivery and Development Committee) Sara Fowler Steve Guyon OBE Feizal Halal OBE Chris Miller (chair of the Board of Directors) (chair of the Business Support and Audit Commitleel Raj Ram Jean Templelon Mall Thompson Chris Todd (Chief Executive) CHIEF EXECUTIVE Jean Templelon REGISTERED OFFICE Heath Mill Lane Deritend Biimingham B9 4AX CHARITY NUMBER 1080154 COMPANY NUMBER 03964376 REGULATOR OF SOCIAL HOUSING H 3994 EXTERNAL AUDITOR Beever and Slrulhers The Colmore Building 20 Colmore Circus Birmingham B4 6AT BANKERS SOLICITORS Lloyds Bank PIC 3rd Floor 125 Colmore Row Birmingham B3 3SD Anthony Collins Solicitors LLP 134 Edmund Street Birmingham B3 2ES ST BASIL'S (Limited by Giiarantee) STRATEGIC REPORT for the year ending 31 March 2021 The Board present their report and the Strategic Report together with the financial statements for the year ended 31 March 2021. St Basil's Ltd Sl Basil's Ltd is a Registered Provider of Social Housing, a registered Company and Charity providing a holistic range of accommodation and support setvices for young people aged 16-25 who are homeless. al risk or in conflict. We operate as a Psychologically Informed Environment. Legal and Policy Context St Basil's Ltd. hereafter referred lo as Sl Basils, is governed by Ihe Regulator of Social Housing IRSHI regulations and standards, Charity Commission rLJles, the Companies Act and the regulatory frameworks of service commissioners. In particular. this includes the Supporting People Quality Assessment Framework and other commissioner-specific standards. St Basils has no slalulory obligation lo provide Se￿iceS but many of the services provided are covered by legislation inclurjino Children Acts, which apply lo all service piovision for young people and children. Covid -19 Throughout 2020121 we have worked within the context of Covid-19 ensuring that our services remained accessible for young people. We have adapted continuoLJsly and kept all services open throughout the year and have supported some 748 young people al any one time within our seNices. All colleagues have been able to work with none furloughed We are hugely proud and grateful lo our young people, our staff and volunteers, OLJr partners and supporters for their creative and compassionate responses and continue lo take an inlenlionally cautious approach lo keep everyone safe and well, whilst never losing sight of our Mission and principles. We identified risks associated with charitable fundraising and reviewed our budget accordingly. We have exceeded our revised budget expectslions. Our Hlstory Since opening our doors in Sl Basils, church in Digbelh, Birmingham in 1972 to young men experiencing homelessness, we have maintained the same core objective lo prevent homelessness being part of growing up. In the 49 years since then, we have extended our accommodation, support and prevention services across Birmingham and other parts of the Wesl Midlands, including Solihull, Coventry, Sandwell, Walsall, North Worcestershire and Warwickshire. We have not only dealt with the presenting needs of some 3,000+ young people each year, bul have also invested in systemic change, developing the national Positive Accommodation and Support Pathways for young people in 2012, refreshed in 2015 and 2017 and more recently in 2019120. We have invested in becoming a Psychologically Informed Environment since 2011 and now provide consultancy, training and support to many other organi5alions lo assist them in improving their services. We have continually committed to ensuring that young people have voice and influence our own policies, priorities and services and since 2009 have been commissioned by national government lo facililale National Youth Voice, initially National Youth Reference Group and since 2013, National Youth Homeless Parliament, ensuring that government Ministers and those developing policies and programmes have the benefit of the lived experience of young people who have been homeless. We have invested in accredited training and employability programmes and have piloted schemes such as our award winning Live and Work Programme lo provide affordable, safe homes for young people whe they can live, work. learn and earn wilhoul having lo dual navigate a complex welfare benefits system. Homelessness is rooted in FX)verty, inequality and exclusion and Sl Basils has consislenlly championed those who have not benefited from our mainstream systems. Tackling inequ21ily and promoting inclusion and ensuring the diverse needs of young people are mel, remains one of our six strategic priorities. Enabling young people lo develop their talents and skills and grow their confidence lo move towards study and work underpins our approach. In 2020121, 3,860 young people sought our assistance, each one with their own experience, challenges, strengths and aspirations. Our job remains lo work with them lo remove the barriers which prevent achievement and to nurture their talent, skills and confidence lo enable them lo achieve their polenlial. We will continue this work with young people, partners and supporters for as long as it lakes. ST BASIL'S (Limited by Guarantee) Our Mission "st Basils works with young people to enable them lo find and keep a home, to develop their confidence, skills and opportunilles, and to prevent homelessness" Our Vision Our vision for young people is that: Homelessness is not Part of their experience of growing up There are inlegraled education. employment and housing pathways They are able to access the support and development opportunities they need lo secure their futures and realise their potential Our vlsion for St Basils as an organisation TS that: By 2022 we will be the leading provider of accommodation, support and psychologically informed services for young people across the Wesl Midlands. Our seNice developments will include: +¢ Increasing our bed spaces outside Birmingham and growing our services in new areas +¢ A nationally renowned centre of excellence for young people with complex needs Extending our service offer lo Care Leavers Additional Live and Work schemes for young people engaged in education. training and work We will be the national lead for.. Psychologically informed consultancy, training and reflective practice setvices Youth Voice engagement and support We are commilled to.. Preventing homelessness in the first place, through eady intervention and flexible prevention work with young people and their families Extending and improving our services that assist young people in realising their potential Building on our local, regional and national reputation for excellence in youth homelessness We will work towards our vision by.. Working alongside other agencies Influencing and informing both strategic and service development locally, regionally and nationally %• Sharing the learning from our experience and evaluation of what works • Ensuring young people are al the heart of all decision-making relating lo their lives and futures. %• Having a skilled and highly molivaled workforce which reflects the diverse community we serve The more that young people can be engaged in deciding about their own lives, their environment, and their communities, the more likely they are to successfully move into independence. Our challenge is lo create active not passive services which engage with the young person in co-creating a journey which provides both challenge and support. Increasingly we are focLJssing on developing skills and confidence which enable the young person to find a pathway lo employment as this is more likely lo enable them lo secure their independence, increase their choices and avoid homelessness. The framework for our vision encompasses.. Setvices for young people Community engagement + St Basils- a good plaee to work Services for young people We will continue to provide. improve and develop services, which meet a broad range of needs. responding lo young people with high and complex needs bul also developing prevention and early intervention services. which largel young people before those needs are acute. Communlly engagement We believe il is not possible lo provide services effectively to young people from diverse communities unless you reflect those communities at all levels within your organisation. We will promote and sustain our diversity by engaging with the diverse communities we serve as employers, service providers and conlribulors lo local neighbourhoods. We will work with young people supporting and molivaling them lo play an active part in securing the future of their communities, promoting cross community cohesion and breaking down barriers which might exist. iixye | 4 ST BASIL'S (Limlted by Gvarantee) st Basils - a good place to work We recogni5e that our diverse, skilled and highly motivated workforce is central lo our effecliv8ness. We will continue lo ensure we have the skills and capacity lo achieve our objectives by developing a reputation for quality standards, and by ensuring our employment and development policies and practices make St Basils a prefeired place to work. The Board wishes to explicitly recognise the commilment and dedication of the stsff team throughout this year, within a very complex and challenging ènvironment. P so far as each of the directors is aware, there is no relevant audit information las defined in the Companies Act 20061 of which the Company's auditor is unaware., and each of the directors has taken all the steps that they ought lo have taken as a director lo make them aware of any relevant audit information {as defined) and lo establish that the Company's auditor is aware of that information. Board Members. Responsibilities Legislation requires the Board lo prepare financial slalements for each financial year which give a true and fair view of the stale of the entity as at the end ol the financial year and of ils income and expenditure for the year ended on that date. In preparing those financial slalemenls, suitable accounting policies have been used, framed, lo the best of the Board's knowledge and belief, by reference to reasonable and prudent judgements and eslimales and applied consistently. Applicable accounting standards have been followed. The Board is also required lo indicate where the financial slalemenls are prepared other than on the basis that the enlily is a going concern. The Board is responsible for ensuring that arrangements are made for keeping proper books of account with respect to the entity's transactions and ils assets and liabilities and for maintaining a salisfaclory system of control over the enlily's books of account and Iransaclions. The Board is also responsible for ensuring that arrangements are made lo safeguard the assets of the entity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Compliance with the RSH Governance and Financial Vlablllty Standard. The Board confi'rms that the Company complies with the requirements of the Governance and Financial Viability Standard applicable for the year Approved by the Board on 13 September 2021 and signed on its behalf by Felzal Halat Chalr of the Board P ii&T e | 24 ST BASIL'S (Limited by Guaraiitee) INDEPENDENT REPORT OF THE AUDITOR for the year ending 31 March 2021 Opinion We have audited the financial slalemen15 of Sl Basils {Ihe 'company'} for the year ended 31 March 2021 which Comprise the Slalemenl of Comprehensive Income, the Slalemenl of Financial Position, the Statement of Changes in Reserves, the Slalemenl of Cash Flows and notes to the financial slalemenls, 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 Practi￿1. In our opinion, the financial statements.. give a true and fair view of the slate of the company 'affairs as al 31 March 2021 and of ils surplus for the year then ended., have been propeTly prepared in accordance with United Kingdom Generally AC￿pted Accounting Practice., have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI IISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the auclil of the financial statements section of our report. We are independent of the Iiusl in accordance with the ethical requirements that are relevant lo our audit of the finarTrcial 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 lo provide a basis for our opinion. Conclusions relating to golng concern In auditing the financial slalemenls. we have concluded that the Board's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material un¢ertainlies relating lo events or conditions that, individually or collectively, may cast significant doubl on the Company's ability to continue as a going concern for a period of al least ￿e1ve months from when the financial statements are aulhorised for issue. Our responsibilities and the responsibilities of the Board with respect lo going concern are described in the relevant sections of this report. Other informatlon The Board is responsible for the other information. The other information comprises the information included in the annual report, other than the financial slalemenls and our auditor's report Ihereon. Our opinion on the financial slalemenls does not cover the other information and, except lo the extent otherwise explicitly slated in our report, we do not express any form of assuran￿ conclusion thereon. In conneclion with our audit of the financial slalemenls, our responsibility is lo read the other information and. in doing so, consider whether the other information is materially inconsislenl with the financial statements or our knowledge obtained in the audit or otherwise appears lo be materially misslaled. 11 we identify such material inconsistencies or apparent material misslatemenls, we are required to determine whether there is a material misslalemenl in the financial statements or a material misslalement of the other information. If, based on the work we have performed, we conclude that there is a material misslalemenl of this other information, we are required lo Feport that fact. We have nothing lo report in this regard. Opinions on other matters preserlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Strategic Report and the Boaid ReFX)rt for the financial year for which the financial statements are prepared is consislenl with the financial slatemenls., and the Strategic Report and the Board Report have been prepared in accordance with applicable legal requirements. P Éi.y ij | 25 ST BASIL'S (Limited by Ciiarantee) Matters on which we are required to report by exception In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Board Report. We have nothing to report in respect of the following matters in relation to which the Companies Ael 2006 requires us lo report lo 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 slalements are not in agreement with the accounting records and returns.. or certain disclosures of directors, remuneration specific by law are not made., or we have not re￿IVed all the information and explanations we require for our audit. Responsibilities of the Board As explained more fully in the Ststement of the Board's responslbllities sel out on page 24, the Board is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board determines is necèssary to enable the preparation of financial slalemenls that are free from material misslalemenl, whether due to fraud or error. In preparing the financial slalemenls. the Board is responsible for assessing the company's ability lo continue as a going concern, disclosing, as applicable, matters related lo going concern and Ljsing the going concern basis of accounting unless the Board either intends lo liquidate the company or lo cease operations. or have no realistic alternative bul to do so. Auditor's responsibilities for the ludlt of the flnanclal staternents Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole are free from material misstalemenl, whether due lo fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, bul is not a guarantee that an audit conducted in accordance with ISAS IUKI will always delecl a material misslalement when il exists. Misststemenls can arise from fraud or error and are considered materi21 if, individually or in the aggregate. they could reasonably be expected lo influence the economic decisions of users tsken on the basis of these financial stalemenls. A further description of our responsibilities for the audit of the financial slalemenls is located on the Financial Reporting Council's website at www.frc or .uklaudilorsres onsibililies. This dèscription forms part of our auditor's report. Extent to which thg audit was consldered capable of detecting irregularities, including fraud We identify and assess the risks of material misslatemenl of the financial slalemenls, whether due lo fraud or error, and then design and perform audit procedures responsive lo those risks, including obtaining audit evidence that is sufficient and appropriate lo provide a basis for our opinion. In identifying and addressing risks of material misstalemenl in respect of irregularits'es. including fraud and non- compliance with laws and regulations, our procedures included the following.. We obtained an understanding of laws and regulations that affect the Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on ils opetations. Key laws and regLJlalions that we identified included the Companies Act, the Statement of Recommended Practice for registered housing providers.. Housing SORP 2018, the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2019. tax legislation, health and safety legi51alion, and employment legislation. We enquired of the Board and reviewed correspondence and Board meeting minutes for evidence of non- compliance with relevant laws and regulations. We also reviewed controls the Board have in place. where necessary, to ensure compliance. We gained an understanding of the controls that the Board have in place to prevent and delect fraud. We enquired of the Board about any incidences of fraud that had taken place during the accounting period. fii.¥e 126 **ST BASIL’S (Limited by Guarantee)** ## **_________________________________________________________________________** - The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: laws related to the construction and provision of social housing, recognising the nature of the Company’s activities and the regulated nature of the Company’s activities. - We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above. - We enquired of the Board about actual and potential litigation and claims. - We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud. - In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias. Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or noncompliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. ## **Use of the audit report** This report is made solely to the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and Chapter 4 of Part 2 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the trust’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 trust and the trust’s members as a body for our audit work, for this report, or for the opinions we have formed. Lee Cartwright (Senior Statutory Auditor) For and on behalf of Beever and Struthers, statutory auditor 20 Colmore Circus Queensway Birmingham B4 6AT Date: 14 September 2021 _P a g e |_ _**27**_ ST BASIL'S (Limited by Gu*i?ntee) STATEMENT OF COMPREHENSIVE INCOME For the year anded 31 March 2021 Notes 2021 £'OOO's 2020 £'ODO's TURNOVER Housing support contracts Birmingham City Council Solihull MBC Worcester CC Warwickshire Coventry CC Other CC 3.475 733 405 415 507 160 3,339 718 343 169 255 122 5,695 4,946 Income from lettings Fundraising Other income Amortisation of So¢ial Housing Grant 3b 3a 5,074 1,782 1.088 126 4,501 985 1.450 121 15 3a 13.765 12,003 OPERATING COSTS 113.1211 111,7001 OPERATING SURPLUS 3a 644 303 Inte￿5t receivable and similar income Interest payable and similar charges iio) 112) SURPLUS FOR THE YEAR 635 294 TOTAL COMPREHENSIVE INCOME FOR THE YEAR 635 294 P ii.¥iP | 21 ST BASIL'S (Limited by Guarantee) STATEMENT OF FINANCIAL POSITION As at 31 March 2021, company registration number 03964376 Notos 2021 £'OOO's 2020 £'OOO's FIXED ASSETS Housing properties - cost less depreciation Other property, plant & equipment 13,634 975 12,393 1,087 Total fixed assets 14,609 13,480 CURRENT ASSETS Debtors Cash and cash equivalents 11 1,158 3,453 1,227 1,758 4,611 2.985 CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR 12 11,9951 11.4821 NET CURRENT ASSETS 2,616 1,503 TOTAL ASSETS LESS CURRENT LIABILITIES 17,225 14,983 CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 13 {12,1331 {10,5261 NET ASSETS 5,092 4,457 CAPITAL AND RESERVES Revenue reserves Reslricled reserves 4,914 178 4,263 194 TOTAL RESERVES 5,092 4,457 The financial statements on pages were approved by the Board on 13 September 2021 and were signed on ils behalf b Je Ternpleton. Member o the Board Fei Ha Ch r of the Board Pii.gv 129 ST BASIL'S (Limiteil by Guar%ntee} STATEMENT OF CHANGES IN RESERVES For the year endlng 31 March 2021 Revenue reserves £'OOO's Reslricled Reserves £'OOO's 2021 Total £'OOO's 2020 Total £'OOO's At 1 Aprll 2020 4,263 194 4,457 4,163 Surplus from statement of comprehsnsive income Transfer tolfrom restricted reserves 635 16 635 294 {161 At 31 March 2021 4,914 178 5,092 4,457 ANALYSIS OF RESTRICTED RESERVES Young Women £'DOO's Young Men £'OOO's 2021 Total £'OOU's 2020 Total £'OOO's At 1 April 2020 194 194 214 Transfer from reslri¢led io revenue reserve 1161 (161 {20} At 31 March 2021 178 178 194 Pagg | 30 ST BASIL'S (Limited by Guarantee) STATEMENT OF CASH FLOWS For the year ending 31 March 2021 2021 2020 Notes £'OOO's £'OOO's £'OOO's £'OOO's NET CASH INFLOW FROM OPERATING ACTIVITIES 17 1,807 461 CASH FLOW FROM FINANCING ACTIVITIES Interest received Interest paid Housing loans repaid Investments encashed {10) 1151 112) (121 1211 CASH FLOW FROM INVESTING ACTIVITIES Purchase of housing properties Purchase of other property, plant & Equipment Capital grants and donations receivedlaccrued 1241 11,4561 18241 1214) 1107) 15 1,582 1881 500 1431) NET CHANGE IN CASH AND CASH EQUIVALENTS 1.695 CASH AND CASH EQUIVALENTS AT START OF YEAR 1,758 1,749 CASH AND CASH EQUIVALENTS AT END OF YEAR 3,453 1.758 Analysis of changes in net d8bt At 1st April £'ooo Cashflows Other non-cash At 31st March £'ooo £'ooo £'ooo Cash and cash equivalents Housing loans 1,758 1330) 1,695 15 3.453 13151 Total 1,428 1,710 3.138 Page | 31 ST BASIL'S (LÉmlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2021 ACCOUNTING POLICIES la) Basls ol account5ng st Basil's is a Company limited by guarantee which is incorporated and domiciled in the United Kingdom. The fi'nancial statements are prepared under the historical cost convention, in accordance with Financial Reporting Standard 102 IFRS 102} issued by the Financial Reporting Council and comply with the Accounting Dlrection for Private Registered Providers of Social HDU5ing 2018 the Slalement of Recommended Practice for Registered Social Housing Providers 2014 {SORPI and the Housing and Regeneration Act 2008. St Basils is a publi¢ benefit entity {PBEI, as defined in FRS 102 and applies the relevant paragraphs ptefixed PBE" in FRS 102. Statement of compliancg st Basils has prepared the financial statements in accordance with FRS 102. Turnover Turnover represents rents and service charges receivable {nel of k)sses from voids), revenue grants receivable from local authorities together with donalions and miscellaneous income. Income is generally recognised on a re￿1vable basis and is reported gross of related expenditure, where the amount is reasonably certain and when there is adequate certainty of receipt. The specific bases used are as follows.. In¢ome from charitable aelivities, including income from contracts, is accounted for when earned. Income received in advance is deferred until enlillemenl to the income has arisen., Grants are recognised when the enlillement to the grant is eonfirmed. Grants for the purchase of equipment and lowards the initial setting up of projects are eredited in full lo the various activities in furtherance of the charity'5 objects in the year in whÉch they are received. Grants received specifically for goods and services to be provided as parl of charitable activities are recorded against the actNily to which they relate.. Rental income is awounled for on a receivable basis, nel of voids., Donations, gifts. legacies and general grants receivable, which do not relate to speGilic charitable aelivilies, are calegorised as donations and legacies., The financial statements reflect no amounts In respect of lime provided by volunteers", Donated goods, services or facilities are brought into the accounts al their estimated fair value. )ere pro bono services are received and are material, the value of those Servi￿5, as estimated by the directors. is included as both income and expenditure,. Legacies are recognised as income when there Is entitlemenl, probability of receipt and measurability of the legacy. Ibl Icl Poge | 32 ST BASIL'S (Limited by Cllarante¢) (dl Depreclalion No depreciation is charged lo the Statement of Comprehensive Income in the year of acquisition or purchase on either category of asset. Housing properties Depreciation is calculated to writs down the cost of investment in spe¢rfiG comF¥)nenls which need replacing over different useful economic lives. St Basils h28 adopted the ft)Ilowing components and economic useful lives for its asset components., Structure 100 year life Kitchens 15 year life Bathrooms 15 year life Doors 20 yèar life Healing systems {Boilersl 25 year life Window 20 year life Roots 50 year life Security Systems 20 year life Refurbishment 20 year life Freehold land is not depreciated. Oth8rproperty, plant & equipmeni fppE) Depreciation is calculated to write down the cost of plant & equipment on a slraighl line basis over their eslimaled useful life. Computer equipm8nl and furnishing and fittings 5 years For improvements to leasehold property the economic lives for HoLJsing properties are adopted, iJnl8SS the period of the lesse is known to be lower. le} Social Housing Grant ISHGI and other capltal grants Vvhere grants are received from government agencies such as Homes England, local aulhorilies, devolved government agencies, health authorities and the European Commission which meet the definition of government giants. they are recognised when there is reasonable assurance that the conditions allached lo them will be complied with and that the grant will be received. Governrnenl grants are recognised using the accruals moclel and are classifiod either as a grant relating lo revenue or a grant relating lo assets. Grants relating to revenue are recognised in income on a syslemalic basis over the period in which related costs for which the grant is intended lo compensate are recognised. Vvhere a grant is receivable as compensation for expenses or losses already incufred or for the purpose of giving immediate linancial support with no fulL¢re related costs, il is recognised as revenue in the per in which it becomes receivable. Social Housing Grant {SHG} Grants relating lo assets are recognised in income on a syslernalic basis over the expected useful life of the asset. Grants received for housing properties are recognised in income over the expected Ljseful life of the housing property structure. Grants received from non-government sources are recognlsed as revenue using the performance model. Improvèments to properties Expenditure on existing housing properties other than replaced components is capilalised lo the extent that il improves the economic benefit of the asset either through an increase in rental incom8, a reduction in maintenance costs or through an extension of the life of the property. Restricted Reserves {el ifj Ig) The restricted reserves represent donations received but as yel unspent, in respect of specific projects logelher with capital grants and donations received for ￿striCted purposes. These are subject lo an external reslriclion as such they are separately recognised Pagf133 ST BASIL'S {Liinited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2021 ACCOUNTING POLICIES (Continued) Ihl Pension Costs st Basils has defined contribution schemes. Contributions payable to the Company's auto enrolment scheme with Legal and General are charged lo the Statement of Comprehensive Income as they become payable in accordance with the rules of the scheme. Contributions payable to the Company's defined conlribulion scheme with Engage Mutual are charged to the Slalement of Comprehensive Income as they become payable in accordance with the rules of the scheme. New membership of this scheme was slopped in 2014 when the Scheme with Legal and General was introduced. All new membership since 2014 has been into the Legal and General Scheme. Supporting People Separately identifiable tenancy related rent, seNtce and support Charge income ak)ng with any related costs for supported housing is disclosed linder 'supported housing, within note 3. Charges for and costs of support services funded under Supporting People are shown under'supporting People, within note 3. (il Operating Leases Leases that do not transfer all the risks and rewards Df ownership are classified as operating leases. Payments under operating leases are charged lo the Statement of Comprehensive Income on a straight line basis over the lease term. {kl Cash and cash equlvalents Cash and cash equivalents comprÈse cash in hand and demand deposits. together with other short term, highly liquid investments that are readily known amounts of cash and are subject to an insignificant risk of change in value. Financlal Instruments Financial assets and financial liabilities are recognised when the Company becomes a party to the conlraclual provisions of the instmment Im) Golng Concern The company's financial slatemenls have been prepared on a going concem basis which assumes an ability to continue operating for the foreseeable future. No significant concerns have been noted in the business plan updated for 2021122 and therefore we consider it appropriate to continua to prepare the financial statements on a going Concern basis. Page | 34 ST BASIL'S (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2021 ACCOUNTING POLICIES (Continued) Financial assets carried al amortised cost Financial assets carried al amortised cost comprtse rent arrears. trade and other receivables and cash and cash equivalents. Financial assets are initially re¢ognised at fair value plus directly allribulabl8 transaction costs. After initial recognition, they are measured al amortised cost using the effective interest method. Discounting is omill8d where the effect of discounting is immaterial. If there is objective evidence that there is an imp8irmenl loss on any asset, including social housing property, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted al the financial asseys original effective interest rate. The carrying amount of the asset is reduced accordingly. A financial asset is derecognised when the contractual rights lo the cash flows expire. or when the financial asset and all subslanlial risks and reward are transferred. If an arrangement constilules a financing transaction, the financial asset is measured al the present value ol the future payments discounted al a market rale of interest for a similar debt instrument Fin8nci81 liabilities carried al amortised oosl These financial liabilities include trade and other payables and interest bearing loans and borrowings. Non-currenl debt instruments which meet the necessary conditions in FRS 102, are initially recognised al fair value adjusted for any directly allribulable transaction cost and subsequently measured al amortised cost using the effective interest method, with inlerest-relaled charges ￿Cognised as an expense in finance costs in the Slalemenl of Comprehensive Income. Discour¢ling is omilled where the effect of discounting is immaterial. A fi'nancial liability is derecognised only when the contractual obligation is exb'nguished, that is, when the obligation is discharged, cancelled or expires. Financing trens8clffons For rent arrears where the arrangement conslitules, in effect, a financing transaction because of extended credit arrangements the arrears are measured at the present value of the future payments discounted al an appropriate market rale of interest. Significant Management Judgements and key Sources of estimation uncertainty. The preparation of the financial slalemenls requires management lo make judgemerlts, estimates and assumptions that affeel the application of policies and reported amounts of assets and liabilities. income, and expenses. The estimates and associated assumplions are based on historical experience and various other factors that are believed lo be reasonable under the cirGLtmslances, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates. EslimalÈs and underlying assumptions are reviewed on an ongoing basis. Revisions lo accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. Significant Management Judgemonls The following are management judgements in applying the accounting policies of the Company that have the most significant effect on the amounts recognised in the financial stalemenls. Capitalis8tft)n of developm8nl expenditure The company capilalises expenditure in accordance with the accounting policy on housing properties. Judgement is exercised ovei the likelihood that projects will continue, as lo whether development expenditure is capital or revenue. For the year ending 31 March 2021, there are capital additions of £1,456k (see note 8). of which £nil relates to the Capilalisalion of on-going development costs. Page135 ST BASIL'S (Limit¢d by Guarant¢e) NOTES TO THE FINANCIAL STATEMENTS For the year endlng 31 March 2021 2. Significant Management Judgements and key sources of estimation uncertainty. Icontinuedl Eslim8tion uncertainty The Company makes estimates and assumptions concerning the ftjlure. The resulting accounting estimates will, by definition, seldom equal the related actual result5 and may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Debtorprovisions Provision 15 made for rent arrears that are considered L6nco11eclable. These provisions require management's best estimate of the costs that will be incurred based on legislative and contractual requiremen15. In addition, the timing of the cash flows and the discount ratès used to establish net present value of the obligations require management's judgement. In the light of the experien￿ of recent years, the basis for deleimining the provision for rental debts has proved reasonable. Components of housing properties and useful lives Major components of housing properties have significantly different pattems of consltmption of economlc benefits and estimates are made lo alloeale the initial cost of the property to its major components and to depreciate each component separately over ils useful economic life. The Company considers whether there are any indications that the useful lives require revision al each reporting dale to ensure that they remain appropriatè. 3a. TURNOVER AND OPERATING IDEFICITIISURPLUS 2021 Turnover Operating Costs £'OOO's 2020 Tumover Operating Costs £'OOO's Surplusl Ideficiti £'OOO's Surplus/ (deficit) £'OOO's £'OOO's £'OOQ's Income and expenditure from lettings Supported housing residential (note 3bl 10.170 {10,7961 16261 9,233 18,8751 358 Other income and expenditure Fund raising Non-residential services 1,782 14861 1,296 986 15631 422 1,813 (1,8391 1261 1,786 12,2621 {4771 Total 13,765 113,1211 12,003 111,7001 303 Page | 36 ST BASIL'S (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2021 3b. INCOME AND EXPENDITURE FROM SOCIAL HOUSING 2021 2020 Supported Supported Housing HoL¢sing Accomm- Accomm- odation ation £'OOO's £'OOO's Income from lettlngs Rent receivable Service charges receivable 2,164 2,910 1.985 2,516 Net rents receivable 5,074 4,501 Supporting People Grant Other income 4,202 894 3.486 1,246 Total income from lettlngs 10,170 9,233 Expenditure on letting8 Management Services Routine maintenance Planned maintenan Bad debts Depreciation of properties 6,393 2,415 866 775 132 215 5.349 1,967 768 450 96 245 Total expendlture on lettings 10,796 8,875 Operating surplus on social hou81ng lottlngs 626 358 Rent losses from voids 566 333 SURPLUS ON ORDINARY ACTIVITIES 2021 £'OOO's 2020 £'OOO's Surplus on ordinary activities Is stated after charglngllcrediting} Depreciation of housing properties Depreciation of other fixed assets Auditorg, remuneralion'.- In their capacity as auditors In respect of other services Staff costs Inole 6} Amortisalion of social housing grants Other equipment lease oharges Land and buildings lease charges 215 326 245 480 18 19 7.333 11261 43 242 7.189 11211 18 320 Page | 37 ST BASIL'S (Limlted by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2021 TAXATION No 18xation charge arises as the Company is a registered charity and is exempl from tax on charitable a¢tivilies. STAFF COSTS 2021 £'000'5 2020 £'OOO's Staff costs including the Senior ManagèmentTeam Wages and salaries Social security costs Other pension costs 6,591 545 197 6,463 532 194 7,333 7,189 Average number of full tlme equivalent persons Ilncluding th¢ Chief Executive) employed during the year: Number Number Management Administration Housing support services 37 223 40 215 Total employees 268 263 DIRECTORS. EMOLUMENTS 2021 £'OOO's 2020 £'OOO's Emoluments of the Senior Management Team (including petision onlributions} 417 392 The emoluments of the Senior Managemenl Team disclosed above include amounts paid lo.. The Chief Executive, being the highest paid director lexcluding pension onlribulionsl 73 71 The Chief Executive is enlilled lo membership of the definèd pension contribution pension scheme operated by the company. No special terms or individual pension arrangements apply to this post, excopl for those common to a number of staff who transfèrred different arrangements from an earlier scheme. Employer pension contributions in respect of the Chief Executive amounted lo £4k (previous year £4kl- Apart from the Chief Executive. no other employees were paid in excess of £60k {previous year. no employees}. Pagg | 38 ST BASIL'S {Ltmited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year endlng 31 March 2021 The Board of Directors consists of twelve Non-Executive Directors and one ExeGulive Director {Chief Execulivel. The emoluments of the Chief Executive are included wlthin the Senior Management Team emoluments. The Non-Executive Directors receive no emoluments. TANGIBLE FIXED ASSETS- HOUSING PROPERTIES Houslng properties hold for lfrttlng £'OOO's COST Al 1 April 2020 Additions 15,205 1,456 At 31 March 2021 16,661 LESS: DEPRECIATION Al 1 April 2020 Charge for the year 2.812 215 At 31 Mareh 2021 3,027 NET BOOK VALUE At 31 March 2021 13,634 At 31 March 2020 12,393 As al 31 March 2021 there was no property under development {previous year.. £51 gk} Pcige | 39 ST BASIL'S (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2021 OTHER PROPERTY, PLA￿ & EQUIPMENT Short term Leasehold Computer properties equipment £'OOO's £'OOO'$ Furnlshings and fltllngs £'OOO's Total £'OOO's COST Al 1 April 2020 Additions 555 46 1,962 83 1,745 85 4,262 214 At 31 March 2021 601 2,045 1,830 4,475 ACCUMULATED DEPRECIATION At 1 April 2020 Charge for the year 233 30 1,633 149 1.309 147 3,175 326 At 31 March 2021 263 1,782 1,456 3,501 NET BOOK VALUE At 31 Mareh 2021 338 263 374 975 Al 31 March 2020 322 329 436 1,087 10. UNITS IN MANAGEMENT 2021 Number 2020 Number Bed spaces 590 534 At the end of the year there were no units in development (2020.. 32). 11. DEBTORS 2021 £'OOO's 2020 £'OOO's Rental deblois Less.. Provision for bad debts 327 {1441 259 11091 Net rental debtors 183 150 other debtors Prepayments Accrued Income 601 237 137 724 204 149 1.158 1,227 Puge | 4t1 st BASIL'S (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2021 12. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2021 £'OOO's 2020 £'OOO's Rental pre-payments Accruals Deferred Income Trade creditors Other taxation and social security wsts Housing loans SHG due within one year Provision for other debts 279 288 495 537 179 15 202 230 171 479 256 175 13 119 39 1,995 1.482 13. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2021 £'OOO's 2020 £'OOO's SHG lo be released after one year Housing loan Provision for dilapidations 11,583 300 250 10.209 317 12,133 10,526 Profile of Housing loan.. Amount falling due 2-5 years Amount falling due 5+ years 59 241 52 265 300 317 The loan has a charge secured against John Austin Court payable lo Unity Trust Bank over 20 years. paying interest al 2.750/0 above base rale (variable). Al 31 March 2021 the nel book value of John Austin Court was £1,677k Iprevious year £1,699kl. 14. FINANCIAL INSTRUMENTS The carrying values of the Company's financial assets and liabilities are summarised by category below.. Flnanclal assets Measured al undiscounled amount receivable Rent arrears and other debtors (see note 111 Flnanclal Ilabilities Measured at amortised cost Loans payable Isee note 131 Measured al undiscounled amount payable Trade and other creditors Isee note 121 Page | 41 ST BASIL'S (Lirnited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year endlng 31 March 2021 15. SOCIAL HOUSING GRANT AMORTISATION MOVEMENT 2021 £'OQO's 2020 £'000'5 Deferred income- Grants As 1 April 2020 Grants received Amortisalion lo Statement of Comprehensive Income 10,328 1,582 11251 9,949 500 11211 At 31 March 2021 11,785 10,328 Amortisalion within olle year 202 119 Amortisalion after one year 11,583 10,209 The total value of grants received prior to any amortisalion is £13,856k {2020.' £12,274kl. 16. SHARE CAPITAL The Company is limited by guaranleÈ and does not have any share capital. RECONCILIATION OF OPERATING SURPLUS TO NET CASH FLOVV FROM OPERATING ACTIVITIES 2021 £'OOO's 2020 £'OOO's Operating surplus for the year Movement in debtors Movement in creditors Depreciation Amortisalion of grant 644 69 678 541 11251 303 1616) 171 724 11211 Net cash flow from operating activities 1.807 461 18. CAPITAL COMMITMENTS 2021 2020 £'OOO's £'ODO's Capital expenditure contracted for but not provided tor in the financial s12lemenls 1,532 Capital expenditure aulhorised but not yet Contracted for 738 634 Page | 42 ST BASIL'S (Llmited by Guarantec) NOTES TO THE FINANCIAL STATEMENTS For Ihe year ending 31 March 2021 The capital expenditure authorised but not yet contracted for, relates lo Sl Basil's capital programme for the coming year, and is funded from Sl Basil's own reserves. Grants and donations will be sought where possible. 19. OPERATING LEASE COMMITMENTS At 31 March 2021 the company had total minimum lease payments under non-cancellable operating leases as folbws.. other equipment leases.. 2021 £'QOO's 2020 £'OOO's Explry Date Less than 1 year Between 2 and 5 years After more than 5 years 43 43 43 86 129 Land & Building leases.. 2021 £'OOO's 2020 £'000'5 Explry Date Less than 1 year Be￿een 2 and S years After more than 5 years 281 811 627 115 416 862 1.719 1,393 20. LEGISLATIVE PROVISIONS The Company is a registered charity, a company limited by guarantee incorporated under the Companies Act 2006, and is a Registered Provider of Social Housing. 21. PENSION COMMITMENTS The Company operates two defined Contribution pension schemes. The 28sels of the schemes aTe held separately from those of the Company in independently administered funds. The pension charges as detailed in note 6 represents contributions payable by the Company lo the funds. Al 31 March 2021, pension contribulions still lo be paid into the pension fund amounted lo £38k (£39k in the previous yesrl, and these were paid in April 2021. This obligation is included in ciedilors on the Statement of Financial Position. 22. RELATED PARTIES Sara Fowler was a non executive director of BHSF Group Ltd which provides financial supwrt for St Basil's staff to cover medical costs, on 2 voluntary basis. Sl Basil's arrangements with BHSF pre-dated her appointment as a non executive director ol BHSF. Sara could not use her position lo her advantage. Page | 43 ST BASIL'S (Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS For the year ending 31 March 2021 RESTRICTED RESERVES Reslricled Reserve Opening Balance Expenditure £'OOO's £'OOO's Ck>sing Balance £'OOO's Young Women's Fund- Shelter Young Women's Fund- Hardship 131 131 63 1161 47 Total Restricted Resetves 194 (161 178 Young Women's Fund Ishellerl was established in 2009, lo provide grants and other relief of young women's hardship in Birmingham. Young Women's Fund (Hardship) was established in 2011112, to provide grants and other relief of young women's hardship. Pt7gg | 44