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2021-12-31-accounts

HARRISON HOUSING

(A Company Limited by Guarantee) TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

Registered Charity Number 1101143 Registered Company Number 04932686 (England and Wales)

HARRISON HOUSING CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

Pages
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2
Independent Auditors' Report on the Financial Statements 11
Statement of Financial Activities 15
Balance Sheet 16
Statement of Cash Flows 17
Notes to the Financial Statements 18

HARRISON HOUSING

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 DECEMBER 2021

Trustees Air Marshal I C Morrison CBE, Vice Chair/Chairman from 29.10.2021
Mr M Collins, Chairman (Resigned 28.10.2021)
Mr H Knowles ACA,
Mrs M R Gunther (Resigned 7.12.2021)
Ms S Barber
Mr P Lautman
Ms S Hockett
Mr R Hicks ACA
Mr K Farnon
Mr N King (Resigned 1.10 2021)
Mrs E McGinn (Appointed 1.10.2021)
Mrs J Nammuni (Appointed 20.09.2021)
Mr F Jalalpour (Appointed 20.09.2021)
Company registered number 04932686
Charity registered number 1101143
Registered office 46 St James's Gardens
London W11 4RQ
Patron The Right Hon Lord Scott of Foscote
Secretary M Coleman FCA
Independent Auditors Moore Kingston Smith
Devonshire House
60 Goswell Road
London EC1M 7AD
Bankers The Royal Bank of Scotland
1 Redheughs Avenue
Edinburgh EH12 9JN
Solicitors Devonshire Solicitors LLP
30 Finsbury Circus
London EC2M 7DT
Investment Managers Investec Wealth & Investment
2 Gresham Street
London EC2V 7QP
M&G Investment
Chelmsford CM99 2XF
Brown Shipley
Founders Court, Lothbury
London EC2R 7HE
CCLA
Senator House, 85 Queen Victoria Street
London EC4V 4ET

Regulator of Social Housing regn. no. A4410

1

HARRISON HOUSING

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

The directors of the company (who are also the Trustees of the Charity under Charity Law) present their report and the audited financial statements for the year ended 31 December 2021. The report is prepared in line with the Charities Act 2011 and SORP (FRS 102).

Company status

The Harrison Housing is an almshouse Charity originally established in 1869 as Harrison Homes. It was incorporated 1 April 2004 when it became known as Harrison Housing.

Harrison Housing is a charitable company limited by guarantee, incorporated under the Companies Act 1985 on 15 October 2003 and registered as a Charity on 10 December 2003. The company was established under a Memorandum of Association which sets out the objects and powers of the charitable company and is governed under its Articles of Association. The original Articles of Association were amended by special resolution passed on 22 February 2010. In the event of the company being wound up, each member is required to contribute an amount not exceeding £10.

Organisational structure

The directors of the company are also Charity Trustees for the purposes of Charity law and under the company’s Articles are known as the Board who must comprise of not less than 6 and not more than 12 Trustees. The members of the Board are unpaid and have a variety of professional backgrounds relevant to the work of the Charity. The full Board meet at least 4 times per year and there are also two sub-committees: Property, and Finance, Risk & Audit, which meet on a quarterly basis. Both sub-committees report to the main Board.

OPERATING AND FINANCIAL REVIEW

Objectives and Activities

The objective of Harrison Housing is the relief of financial hardship suffered by older people and it does this primarily by the provision of housing and associated amenities. Harrison Housing also has a number of linked charities with similar objectives and who also provide almshouses. The precise criteria for the provision of accommodation by Harrison Housing and its linked charities varies slightly according to the underlying Trust Deed requirements.

The Trustees have given due consideration to the Charity Commission’s Public Benefit guidance when applying these objectives to decisions made about the Charity, its linked charities and how it operates.

Day-to-day activities include:

Applications for accommodation are received from older people most of whom live within the geographic areas where the Charity owns accommodation and they come from diverse backgrounds. The Charity does not discriminate when reviewing applications but it does ensure that applicants meet the criteria of the Charity offering accommodation and that they are in financial hardship at the point of application.

The Charity and its linked Charities own properties in St James’s Gardens and Minford Gardens in West London, Crawford Place in Marylebone, Shakespeare Road, Stanley Close and Royal Circus in South London, and Rousden Street in North London. Properties are divided into self-contained flats to provide sheltered accommodation and independent living. Larger sites have a Scheme Manager to provide on-site support during the working day, residents living on smaller sites can obtain help and advice from the Charity’s main hub at St James’s Gardens during the normal working day. The residents also benefit from regular visits by volunteer Visitors, one of whom is also a Trustee.

2

HARRISON HOUSING

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

There is cyclical programme of maintenance for all properties in addition to planned annual maintenance and routine repairs.

Achievements and Performance

Housing

Harrison Housing owns a housing stock of 111 units in 5 locations in London and there were no additions nor disposals of flats during the year under review.

The accommodation is popular with occupancy rates usually averaging over 98% with the average occupancy rate for 2021 being 98.5% (2020: 97.4%).

COVID-19 regulations which operated for some periods during 2021 are not considered to have had a material impact on finding new residents. However, the availability of contractors to carry out works did affect the time taken to complete some projects.

Housing income rose to £1,252k (2020: £1,207k) an increase of 3.7%. Income from the Charity’s investment portfolios was almost unchanged at £141k (2020: £140K).

Routine repairs are made on a timely basis and kitchens and bathrooms are assessed for upgrade to ensure compliance with the Decent Homes Standards when properties become vacant.

Direct operating costs increased to £1,131k (2020: £831k) as the result of expenditure on Cyclical Repairs rising from £10k in 2020 to £263k in 2021. Despite this increase not all planned projects were completed due to legal complexities delaying the planned work at Minford Gardens. However, the delayed works at Christian Union Almshouses were completed in December 2021.

Support costs increased by 30% from £401k in 2020 to £523k for 2021 mainly as the result of spending £51k on professional fees as plans were developed to investigate the feasibility of developing one of the sites owned by the Charity as well as two other projects that could potentially add a very small number of units to existing sites. Other factors affecting the increase in Support Costs include temporary staff costs incurred as the result of longterm sickness affecting one member of the team and costs associated with moving the Charity’s IT infrastructure into the Cloud.

Management services

The company has acted for several years as managing agent to other almshouse charities in the London area. Full management services were provided to Waltham Abbey Non-Educational Parochial Charities (11 units), West Hackney Almshouse Charity (9 units) and The Leathersellers’ Barnet Charity (22 units). The company also provided limited management services to Butchers & Drovers Charitable Institution (10 units in Hounslow)

3

HARRISON HOUSING

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

and St Giles-in-the-Fields Almshouses (8 units in Covent Garden) and a provided a Scheme Manager to Dulwich Almshouses for the first time during 2021.

Voluntary services

It is recognised that all Trustees are volunteers and give their time freely, without which the Charity could not operate. One of the Trustees of Harrison Housing is also part of a group of 6 people, known as the Visitors, who provide a confidential befriending service to Harrison Housing residents.

Value for money

The Charity continues to monitor its operating costs by reviewing such costs and considering alternatives when contracts come up for renewal, monitoring performance against budgets and benchmarking against similar organisations.

The Regulator of Social Housing requires all Housing Associations to follow a standard set of calculations using the regulator’s own metrics definitions to provide consistency across the sector. The results for Harrison Housing are set out below

2021 2020
Metric 1 Reinvestment 1.13% 0.56%
Metric 2 New supply delivered 0.00% 0.00%
Metric 3 Gearing 0.00% 0.00%
Metric 4 EBITDA MRI (EBITDA Major Repairs Included) Interest cover % 0.00% 0.00%
Metric 5 Headline Social Housing costs per unit £8,033 £5,503
Metric 6a Operating Margin (Social lettings) -5.42% 22.00%
Metric 6b Operating Margin (Overall) -21.22% 5.08%
Metric 7 ROCE % -2.05% 0.48%

The increase in Headline Social Housing Costs per unit is mainly a reflection of the money spent on Cyclical Repairs in 2021, some of which had been planned pre-Covid. The average spent on Headline Social Housing Costs over the 3 years to 2020 was £6,050 pa. The expenditure on Cyclical Repairs during 2021 is also primarily responsible for the Operating Margin returning a negative result. These outcomes were predicted in our 2020 report.

Metric 6a examines the margin the Charity achieves solely based on its income from social housing lettings compared to the directly attributable costs of operating those units. Metric 6b then looks at the margin in the context of total income from all sources and all operating costs.

The Charity continues to develop ideas for ways in which its existing estate may be capable of being developed to provide additional accommodation however, as the current economic outlook is bleak no final decision has been made as to whether or when these projects will be taken forward. But the Trustees believe the Charity remains financially sound and potentially capable of exploiting future opportunities if viable projects are identified.

Fundraising

The Charity does not undertake fund raising activities during its normal course of operations.

4

HARRISON HOUSING

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

Financial Review

Income and expenditure

Weekly maintenance contributions including service charges net of voids amounted to £1,251k in 2021 (2020: £1,207). The WMC element of the charges were increased for all properties by September 2020 CPI (0.5%) plus the maximum allowed increase of 1% making a total increase of 1.5% (2020: 2.7% using September 2019 CPI) with the increase being applied on the annual review date for each property. Service charge expenses were reviewed and increased in line with costs quoted by key Suppliers.

Void costs were below budget due to the high occupancy level experienced during 2021.

Management of other schemes generated income of £147k (2020: £107k) with the majority of the increase being attributable to a new Management Contract with Dulwich Almhouses which commenced in January 2021.

Expenditure on raising funds which are the costs of the charities Investment Managers was £38k (2020: £35k) representing 2.7% of gross investment income (2020: 2.5%). Management fees as a percentage of the total value of funds under management are approximately 0.6% (202:0.6%).

Expenditure on charitable activities was £1,651k (2020: £1,245k) representing 132% of income from charitable activities (2020: 103%). Included in expenditure on charitable activities are routine repairs and maintenance of £256k (2020: £224k) and the cost of Cyclical Repairs £263k (2020: £0). As noted in last year’s report the Cyclical Repairs originally planned for 2020 were postponed to 2021 and although progress has been made in “catching up” with such planned maintenance not all planned projects were completed in 2021. Other areas that saw above inflationary increases in expenditure include £51k spent on professional fees incurred in connection with projects for the expansion of accommodation offered to beneficiaries, unexpected costs incurred on temporary staff to cover long term absence of one member of staff and costs incurred in moving the Charity’s IT infrastructure into the Cloud.

The Charity’s cash balances and investments generated an almost unchanged level of income from that generated during 2020 with such income producing £141k (2020: £140k). Net realised and unrealised gains on investments for the year were £521k (2020: £19k) as investments recovered losses caused by the Covid 19 pandemic in 2020.

Trustees place reliance on the following factors when assessing the Charity’s ability to be able continue to operate as planned for the foreseeable future:

Cash held in the Charities bank accounts has remained fairly stable during the year although £150k was drawn down from the investment portfolio as planned to meet part of the cost on Cyclical Repairs.

5

HARRISON HOUSING

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

----- Start of picture text -----
Cash at Bank
700,000
600,000
500,000
400,000
300,000
200,000
100,000
0
----- End of picture text -----

Further information on the financial performance of the Charity is contained in the accompanying financial statements.

Investment policy and ESG

The Investment Policy is kept under review, having regard to expected requirements in relation to new projects under consideration by the Board, and reserve requirements. The overall objective of the investment policy for Harrison Housing in relation to its investments with Investec is to achieve long term capital growth and income on a total return basis of CPI +3% (formerly RPI +2%) with income rolled up and invested into capital.

During the year Investec was invited by the Trustees to demonstrate the procedures they have in place in respect of Environmental, Social and Governance considerations they undertake before investing the Charity’s funds. They more than satisfied the Trustees that their procedures and the checks and balances they have in place should guard against investment in companies whose activities could conflict with the aims of the Charity or otherwise bring into disrepute.

Performance achieved by Harrison Housing in the 12 months to December 2021 was 11.2% (2020: 3.35%) against a Benchmark Total Return of 12.61% (2020: 0.24%). The improved performance compared to 2020 was also reflected in the valuation of the portfolio with total gains for the year across all portfolios of £521k (2020 £19k).

For both Christian Union Almshouses and the Portal Home for Ladies, a cautious investment policy has been adopted to minimise risk. Investments are monitored and reviewed by Trustees on a regular basis.

Reserves policy

For Harrison Housing, designated reserves are maintained based on guidance issued by the Almshouse Association for the cyclical maintenance and repair of the properties. Details of these designated reserves and restricted funds appear in the notes to the financial statements.

Past policy by the Trustees approved the created a Designated Tangible Fixed Asset Reserve to reflect the net book value of fixed assets, less other funds specifically related to fixed assets. The intended purpose is that this fund should not be used for any other purpose as it seeks to reflect the Charity’s investment in fixed assets

The Trustees consider it prudent to retain free reserves equivalent to 12 months expenditure, which is forecast to exceed £1 million in 2022 on operating costs plus £0.5m on major repairs and capital expenditure. Unrestricted General reserves not invested in tangible fixed assets were approximately £5m at the balance sheet date. The value of General Reserves was above the free reserves target but in the light of current economic uncertainty with inflation expected to reach highs not seen for 40 years the Trustees are comfortable with the current level of the Reserve.

6

HARRISON HOUSING

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

At Christian Union Almshouses, reserves are also set aside in accordance with The Almshouse Association recommendations. In addition, an improvement fund is being built up for major development works required in the future.

At the Portal Home for Ladies, designated reserves are maintained on the specification of the Trust Deed for expenditure on cyclical maintenance and extraordinary repairs of the Charity’s property.

The Trustees have reviewed the current reserves policies in the light of current budgets and plans and consider that there are sufficient reserves to meet running costs for the foreseeable future.

Plans for Future Periods

The Trustees approved the 2022 budget in December 2021 which included Cyclical Repairs and Capital Expenditure on its property portfolio of £520k. However, since that time energy prices have continued to rise rapidly and the war in Ukraine has cast a shadow over economic forecasts bringing into question whether the 5 strategy for the Charity agreed in 2019 remains relevant and appropriate.

As a result of these events which are outside of the control of the Charity the Trustees have planned for a strategy review to take place in June/July 2022. The outcome of that review when decided may impact on and change the previously agreed strategy of the Charity.

Structure, Governance and Management

Day-to-day management is delegated to the Chief Executive, who is responsible for ensuring that the Charity delivers the services specified and that key performance indicators are met. The Chief Executive is responsible delivering the objectives set by the Trustees and for ensuring that staff continue to develop their skills and working processes in line with good practice.

The key management team who are responsible for the day-to-day operations of the three charities is made up of the Chief Executive, the Director of Finance and the Operations Director. Remuneration for senior management personnel is reviewed annually at the first Finance, Risk and Audit Committee meeting of the year, along with proposed salary rates for all members of staff. The Charity aims to pay staff salaries which are fair and in line with rates paid by similar sized almshouses and housing associations. In setting salaries each year where possible roles are benchmarked against rates paid by similar organisations and all staff are paid above the national living wage. Trustees are not remunerated for their roles in the Charity.

Recruitment and Appointment of Trustees

Trustees are appointed by the Board. During the year 3 new Trustees were appointed following the retirement of several long-standing Trustees. One of the new appointments has specific knowledge of housing and property and the appointment of all new Trustees is only made after identifying those individuals who can add skills to the Board. Martin Collins, the Chair also resigned during the year for personal reasons after decising to spend an increasing amount of time outside the UK.

Details of Trustees who served during the year and changes that took place during the year, and since, are shown on page 1.

Trustee Induction and Training

New Trustees are invited to familiarise themselves with the Charity and the context within which it operates. Briefing sessions are run, jointly led by the Chair of the Board and the Chief Executive of the Charity, covering: The obligations of Board members.

7

HARRISON HOUSING

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

Related parties

The Charity is registered with the Regulator of Social Hosuing as a Private Registered Provider and is a member of the Almshouse Association. The Charity may from time to time obtain grants or loans from these organisations in connection with capital or refurbishment projects.

Harrison Housing, The Christian Union Almshouses, Tonge Houses the Portal Homes for Ladies, Howis Trust, Whicher and Kifford Almshouses, Letita Cornwall, Kifford’s Almshouses, and Whicher’s Almshouses are all registered charities and are Linked Charities for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Act 2011.

Harrison Housing Trustees Limited, a wholly owned subsidiary of Harrison Housing, was dormant during the year and has never traded.

Risk management

The Trustees have assessed the major risks to which the company is exposed and in particular those related to the operations and finances of the company and they are satisfied that systems are in place to mitigate exposure to the major risks.

The principal governance risks identified are as follows:

Internal controls

The Trustees acknowledge their responsibility for the Charity's system of internal controls, including internal financial controls. The system of controls covers governance, strategy and finance, relating to the safeguarding of assets, the maintenance of proper accounting records and the reliability of financial information used both within the organisation and for publication. The systems established and maintained can provide reasonable but not absolute assurance against material misstatement or loss.

8

HARRISON HOUSING

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

Formal policies and procedures which have regard both to the size of the Charity include:

a) The appointment of suitably experienced and qualified personnel to implement the systems set up, and the appropriate delegation of authority to officers, staff and consultants to achieve this.

b) The establishment of detailed procedures for accounting and financial functions and for the operation of essential controls in all areas.

c) The production of detailed and longer term outline budgets and cash forecasts, and the submission of regular management accounts, to provide the information necessary to review and monitor the results of the organisation's operating activities and the financial position at any time.

d) The formal control of any new commitment, development or activity by setting up an appropriate subcommittee of the Trustees to authorise, record and monitor the project and the transactions involved.

e) An annual assessment of risks and risk management, as described above.

Statement of Board’s Responsibilities

The Trustees (who are also directors of Harrison Housing for the purposes of company law) are responsible for preparing the Report of the Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including the income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Charity and enable 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information. The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the Charity’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies’ exemption.

9

HARRISON HOUSING

(A company limited by guarantee)

TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021

Members of the Board

All Trustees of the Charity also become members of the Board and those who served in both capacities during the year are set out on page 1.

Auditor

Moore Kingston Smith are Auditors to the charitable company.

Approved by the Board on 28 June 2022 and signed on its behalf by:

Air Marshal Ian Morrision CBE

Chair

10

HARRISON HOUSING INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HARRISON HOUSING FOR THE YEAR ENDED 31 DECEMBER 2021

Opinion

We have audited the financial statements of Harrison Housing (‘the company’) for the year ended 31 December 2021 which comprise the Statement of Financial Activities, the Summary Income and Expenditure Account, the Balance Sheet, the Cash Flow Statement and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

Basis for opinion

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

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the trustees’ use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, 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.

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 there is a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement

11

HARRISON HOUSING INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HARRISON HOUSING FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of 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 trustees’ annual report.

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s Responsibilities for the audit of the financial statements

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

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

12

HARRISON HOUSING INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HARRISON HOUSING FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the charitable company.

Our approach was as follows:

13

HARRISON HOUSING INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HARRISON HOUSING FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Use of our report

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

Luke Holt (Senior Statutory Auditor) for and on behalf of Moore Kingston Smith LLP, Statutory Auditor

30 June 2022

Devonshire House 60 Goswell Road London EC1M 7AD

14

HARRISON HOUSING STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31ST DECEMBER 2021

Note
Income from:
Donations
4
Charitable activities
5, 6
Investments
7
Total Income
Expenditure on:
Raising funds
8
Charitable activities
9, 10
Total Expenditure
Net gains/(losses) on investments
16
Net income/(expenditure)
Transfers between funds
Other recognised losses
Actuarial gains/(losses) on defined benefit
27
pension scheme
Net Movement in Funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
20		 Unrestricted
Funds
£
807
912,168
121,862		 Restricted
Funds
£
-
339,771
18,944
358,715
6,006
303,546
309,552
79,592
128,755
(57,737)
-
-
71,018
9,249,777
9,320,795		 Total funds
2021
£
807
1,251,939
140,806		 Total funds
2020
£
847
1,207,422
139,973
1,034,837 1,393,552 1,348,242
31,661
1,347,126		 37,667
1,650,672		 35,112
1,220,924
1,378,787 1,688,339 1,256,036
440,909 520,501 18,978
96,959 225,714 111,184
57,737
-
40,392		 -
-
40,392		 -
-
(31,000)
195,088
4,897,777		 266,106
14,147,554		 80,184
14,067,370
5,092,865 14,413,660 14,147,554

All income and expenditure derive from continuing activities.

The Statement of Financial Activities includes all gains and losses recognised in the year.

15

HARRISON HOUSING BALANCE SHEET AS AT 31ST DECEMBER 2021

Note
FIXED ASSETS
Tangible assets
15
Investments
16
CURRENT ASSETS
Debtors: amounts falling due within one year
17
Investments
18
Cash at bank
CREDITORS
Amounts falling due within one year
19
NET CURRENT ASSETS/(LIABILITIES)
TOTAL ASSETS LESS CURRENT
LIABILITIES
Defined benefit pension scheme liability
27
NET ASSETS
CHARITY FUNDS
Restricted funds
20
Unrestricted funds
20		 2021
£
90,846
45,916
412,401
549,163
(223,024)		 2021
£
90,846
45,916
412,401
549,163
(223,024)		 2021
£
7,713,824
6,384,697
14,098,521
326,139
14,424,660
(11,000)
14,413,660
9,326,801
5,086,859
14,413,660		 2020
£
105,148
45,912
450,812
601,872
(142,944)		 2020
£
7,859,637
5,905,904
13,765,541
458,928
14,224,469
(76,915)
14,147,554
9,249,777
4,897,777
14,147,554

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies' regime.

The financial statements were approved by the Board of Trustees on 28 June 2022 and were signed on its behalf by:

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Air Marshal I Morrison CBE (Chair)

16

HARRISON HOUSING CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST DECEMBER 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Investment income
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Movement on investments cash account
Net cash provided by investing activities
Net cash used in financing
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£
(126,127)
140,806
(109,792)
950,766
(721,995)
(172,064)
87,721
-
(38,407)
496,724
458,317		 2020
£
139,324
139,973
(58,865)
1,244,800
(1,543,520)
204,066
(13,546)
-
125,778
370,946
496,724

Reconciliation of net expenditure to net cash flow from operating activities

17

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2021

1 GENERAL INFORMATION

Harrison Housing is a company limited by guarantee and is registered with the Charity Commission as an Almshouse Charity (Charity Registered number 1101143), the Registrar of Companies (Company Registration Number 4932686) and with The Regulator of Social Housing as a private registered provider (Regulator of Social Housing A4410).

The company was incorporated on 15 October 2003 and commenced its activities on 1 April 2004, when the assets and liabilities of The Harrison Homes were transferred to Harrison Housing.

The members of the Charity are the Trustees named on page 1. In the event of the Charity being wound up, the liability in respect o fthe guarantee is limited to £10 per member of the Charity.

The address of the registered office is given in the Charity information on page 1 of these financial statements. The nature of the Charity's operations and principal activities are detailed in the Trustees' Report.

2 ACCOUNTING POLICIES

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS102) - 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 (FRS102), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

Harrison Housing meets the definition of a public benefit entity under FRS 102. Assets and liabilites are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The financial statements are presented in sterling, which is the functional currency of the Charity, and are rounded to the nearest pound.

2.2 Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. Trading operations which for this purpose is income less operating costs but excluding depreciation, consistently show the charity to be cash positive generating approximately £10,000 per month. A large part of the charity's income is paid by local Councils in the form of Housing Benefit which is reasonably secure. It is generally possible for the charity to determine the timing of major expenditure such as cyclical repairs and large capital expenditure which would provide flexibility should cash flow become tight. Investments are valued at more than £5m which can be comparatively easily liquidated if an emergency was to arise. The value of the investments would cover operating costs (excluding major capital/cyclical works) for approximately 4 years even with no income which in itself would be highly unlikely. For these reasons, the Trustees believe the charity to be a going concern for at least 12 months from the date of signature of these financial statements.

18

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

ACCOUNTING POLICIES (Continued)

2.3 Income

All income is recognised once the Charity has entitlement to the income, it is probably that the income will be received and the amount of income receivable can be measured reliably.

Income from housing represents housing contributions (including service charge income), income from the provision of management services and charitable income.

No amount is included in the financial statements for volunteer time in line with the SORP (FRS 102). Further detail is given in the Trustees' Report.

Investment income is earned through holding assets for investment purposes such as shares. It included dividends and interest. Where it is not practical to identify investment management costs incurred within a scheme with reasonable accuracy the investment income is reported net of these costs. It is included when the amount can be measured reliably. Interest income is recognised using the effective interest method and dividend income is recognised as the Charity's right to receive payment is established.

Social Housing Capital grants are recognised only when receivable, or in the period in which a scheme is completed where the amount of the grant has been determined. Grants are reflected in the Fixed Asset Fund; all fixed assets are treated as restricted with depreciation on grant funded assets reducing this fund.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classifed by activity. The costs of each activity are made up of the total of direct costs and shared costs, including suport costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those acitivites on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset's use.

Expenditure on raising funds includes all expenditure incurred by the Charity to raise funds for its charitable purposes and includes costs of all fundraising activities events and non-charitable trading.

Expenditure on charitable activities is incurred on directly undertaking the activities which further the Charity's objectives, as well as any associated support costs.

All expenditure is inclusive of irrecoverable VAT.

19

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

ACCOUNTING POLICIES (Continued)

2.5 Taxation

The Charity is considered to meet the definition of a charitable company for UK corporation tax purposes. Accordingly, to the extent that income and gains fall within Part 11 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Acts 1992, the charity is exempt from UK taxation on such income and gains provided they are applied for charitable purposes.

2.6 Tangible fixed assets and depreciation

Tangible fixed assets costing £5,000 or more are capitalised and recognised when future economic benefits are probably and the cost or value of the asset can be measured reliably.

Tangible fixed assets are initially recognised at cost. After recognition, under the cost model, tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condition should be included in the measurement of cost.

Depreciation is charged so as to allocate the cost of tangible fixed assets less their residual value over their estimated useful lives.

The estimated useful lives are as follows:

Buildings 100 years
Roofs 70 years
Windows 30 years
Boilers 15 years
Kitchens 15 years
Bathrooms 15 years
Mechanical elements 30 years
Electrics 40 years
Lifts 20 years
Fixtures and fittings 10 years

2.7 Investments

Fixed asset investments are a form of basic financial instrument are initially recognised at their transaction value and subsequently measured at their fair value using the closing quoted market price or the share of the Net Asset Value of the fund (if unlisted). All gains and losses are taken to the Statement of Financial Activities as they arise.

The Statement of Financial Activities includes all net gains and losses arising on revaluation and disposals throughout the year. As investments are revalued to fair value continuously, no realised gains or losses arise.

2.8 Debtors

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

20

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

ACCOUNTING POLICIES (Continued)

2.9 Cash at bank and in hand

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

2.10 Loans and borrowing

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is messured at present value.

2.11 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement and the amount of the settlement can be estimated reliably.

Liabilites are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effects of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The undwinding of the discount is recognised in the Statement of Financial Activities as a finance cost.

2.12 Financial instruments

The Charity only holds basic financial instruments. The financial assets and financial liabilites of the Charity are as follows:

Debtors - trade and other debtors (including accrued income) are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 17. Prepayments are not financial instruments.

Cash at bank - is classifed as a basic financial instrument and is measured at face value.

Liabilites - trade creditors, accruals and other creditors will be classified as financial instruments, and are measured at amortised cost as detailed in Notes 19 and 20. Taxation and social security are not included in the financial instruments disclosure. Deferred income is not deemed to be a financial liability, as in the cash settlement has already taken place and there is simply an obligation to deliver charitable services rather than cash or another financial instrument.

2.13 Pensions

The charity's employees are entitled to join TPT Retirement Solutions (formerly The Pensions Trust)Social Housing Pension Scheme, a multi-employer defined benefit scheme. The Charity has adopted the Financial Reporting Council guidance 'Amendments to FRS102 multi-employer defined benefit plans' and the scheme has been accounted for as a defined benefit scheme from 1 January 2019.

21

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

ACCOUNTING POLICIES (Continued)

Pension scheme assets are measured at fair value and liabilites are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are performed triennally and are udpated at each reporting date.

The amount charged to the operating surplus are the current service costs and gains and losses on settlements and curtailments together with any change in the net defined benefit liability arising from employee service and are included as part of staff costs. Net interest on the defined benefit pension liability is shown as part of interest payable in the Statement of Financial Activities. Actuarial gains and losses on re-measurement of the defined benefit pension liability are reported within the Statement of Financial Activities.

2.14 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 Charity 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 financial statements.

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

Investment income, gains and losses are allocated to the appropriate fund.

3 CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

The Charity makes estimates and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year as discussed below.

Ctritical areas of judgment

The Charity has an obligation to fund the pension benefits of its employees who are current or past members of the pension scheme. The cost of the benefits and the present value of the obligation depend on a number of factors, including life expectancy, asset valuations, and the discount rate on corporate bonds. Management estimates these factors in determing the net pension liability in the Balance Sheet. The assumptions reflect historical experience and current trends. See Note 28 for the disclosures relating to the defined benefit pension scheme.

22

HARRISON HOUSING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

4 DONATIONS

DONATIONS
Unrestricted
funds
2021
£
Donations
807
Grants
-
807
Unrestricted
funds
2020
£
Donations
847
Grants
-
847		 Restricted
funds
2021
£
-
-
-
Restricted
funds
2020
£
-
-
-		 Total
funds
2020
£
807
-
807
Total
funds
2020
£
847
-
847

5 INCOME FROM CHARITABLE ACTIVITIES- BY FUND

Unrestricted
funds
2021
£
Housing activities
912,168
Unrestricted
funds
2020
£
Housing activities
876,047		 Restricted
funds
2021
£
339,771
Restricted
funds
2020
£
331,375		 Total
funds
2021
£
1,251,939
Total
funds
2020
£
1,207,422

23

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

6 INCOME FROM CHARITABLE ACTIVITIES- BY TYPE

Housing activities
Rental income receivable
Service charges receivable
Gross rental income
Losses from void accommodation
Management fees
Other rental income
Sundry income
Total		 2021
£
742,016
347,282
1,089,298
(16,081)
1,073,217
147,144
19,078
12,500
1,251,939		 2020
£
741,542
351,645
1,093,187
(17,034)
1,076,153
107,176
21,808
2,285
1,207,422

Rental income includes £56,326 (2020: £53,563) restricted income from the Greenwoods Almshouse, £87,052 (2020: £80,079) restricted to Christian Union Almshouses, £56,418 (2020: £56,484) restricted to Tonge Houses, Portal Homes for Ladies and £52,084 (2020: £52,628) restricted to Whicher & Kifford.

7 INCOME FROM INVESTMENTS

Dividend income
Bank deposit and bond interest
Dividend income
Bank deposit and bond interest		 Unrestricted
funds
2021
£
121,627
235
121,862
Unrestricted
funds
2020
£
117,725
726
118,451		 Restricted
funds
2021
£
18,944
-
18,944
Restricted
funds
2020
£
21,522
-
21,522		 Total
funds
2021
£
140,571
235
140,806
Total
funds
2020
£
139,247
726
139,973

All of the Charity's income from investments arises from money held in stocks, shares and interest bearing deposit accounts with Investec Wealth Management, M&G, Brown Shipley and CCLA.

24

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

8 EXPENDITURE ON RAISING FUNDS

EXPENDITURE ON RAISING FUNDS
Investment management fees
Investment management fees		 Unrestricted
funds
2021
£
31,661
Unrestricted
funds
2020
£
29,811		 Restricted
funds
2021
£
6,006
Restricted
funds
2020
£
5,301		 Total
funds
2021
£
37,667
Total
funds
2020
£
35,112
Housing activities
Housing activities		 Unrestricted
funds
2021
£
1,347,126
Unrestricted
funds
2020
£
979,927		 Restricted
funds
2021
£
303,546
Restricted
funds
2020
£
240,997		 Total
funds
2021
£
1,650,672
Total
funds
2020
£
1,220,924

10 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES- BY TYPE

Housing activities
Housing activities		 Activities
undertaken
directly
2021
£
1,127,654
Activities
undertaken
directly
2020
£
820,015		 Support
costs
2021
£
523,018
Support
costs
2020
£
400,909		 Total
funds
2021
£
1,650,672
Total
funds
2020
£
1,220,924

25

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

10 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES- BY TYPE (CONTINUED)

Analysis of direct costs
Direct staff costs
Depreciation
Routine repairs and maintenance
Cyclical repairs and maintenance
Analysis of support costs
Defined benefit pension scheme finance cost
Support staff costs
Legal and other professional fees
Governance costs
Other staff costs
Premise costs
Other costs
Bank charges and interest payable
Bad debt write off
11
GOVERNANCE COSTS
Audit
Accounts
12
AUDITORS' REMUNERATION
2020 under accrual audit and accounts
2021 accrual audit and accounts		 Total
funds
2021
£
373,337
240,606
250,927
262,784
1,127,654
Total
funds
2021
£
4,000
91,406
21,488
19,936
89,755
179,106
114,857
1,580
890
523,018
2021
£
18,936
1,000
19,936
2021
£
4,109
19,936
24,045		 Total
funds
2020
£
367,725
228,515
223,775
-
820,015
Total
funds
2020
£
3,000
39,569
47,391
20,178
36,299
168,658
73,657
1,208
10,949
400,909
2020
£
17,700
3,600
21,300
2020
£
-
21,300
21,300

26

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

13 STAFF COSTS

Wages and salaries
Social security costs
Employers pension costs
Particulars of employees
Operating staff- Full time
Operating staff- Part time
Administrative staff- Full time
Administrative staff- Part time
The average number of employees during the year, was as follows:		 2021
£
405,003
35,950
23,791
464,743
2021
3
3
4
3
13		 2020
£
361,683
32,557
23,635
417,875
2020
3
2
3
3
11

The remuneration of key management personnel (including pension, bonus and employers national insurance) in the year amounted to:

2021 2020
£ £
182,813 186,257

Remuneration payable to the highest paid Director in relation to the year ended 31 December 2021, excluding pension contributions was £71,970. (2020: £61,153). The Chief Executive is a member of the Social Housing Pension Scheme (SHPS).

The number of employees (FTE) who received total remuneration in the following bands were:

2021 2020
£60,000 - £69,999 1 1

14 Trustee's remuneration and expenses

During the year, no Trustees received received any remuneration or other benefits (2020: nil).

During the year ended 31 December 2021, no Trustee expenses have been incurred (2020: nil).

27

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

15 TANGIBLE FIXED ASSETS

COST
At 1st January 2021
Additions
Reclassification (note 1 below)
Disposals
At 31st December 2021
DEPRECIATION
At 1st January 2021
Reallocation (note 2 below)
Charge for the year
Eliminated on disposal
At 31st December 2021
NET BOOK VALUE
At 31st December 2021
At 31st December 2020		 Freehold
property
£
10,550,755
85,447
-
(126,014)
10,510,188
2,876,210
(47,443)
220,130
(125,124)
2,923,773
7,586,414
7,674,545		 Fixtures and
fittings
£
256,066
21,226
-
-
277,292
94,168
47,443
17,612
-
159,223
118,069
161,898		 Office
equipment
£
52,678
3,119
(15,000)
(20,864)
19,933
29,484
-
1,973
(20,864)
10,593
9,340
23,194		 Totals
£
10,859,499
109,792
(15,000)
(146,878)
10,807,413
2,999,862
-
239,715
(145,988)
3,093,589
7,713,824
7,859,637

The Trustees believe that the value of the housing properties is substantially in excess of cost, based on reinstatement values for insurance purposes. In the event that any housing property should be sold, a liability may arise for the repayment, at least in part, of grants received.

1. Reclassification of freehold land

The Charity owns freehold land at Newell Hall which has been re-classified as a property investment as it is held with a view to be sold at some future date. Currently the land has no planning nor development rights and has been valued at £15,000 (2020: £15,000) and it produces no income. The land has been included with investments in these financial statements and is valued at estimated market value.

2. Reallocation of depreciation charge

Depreciation previously shown as relating to Freehold Property in the 2020 accounts has been identified as belonging to Fixtures and Fittings and the accumulated depreciation has been realloc

28

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

16 FIXED ASSET INVESTMENTS

Quoted Investments - Fair value
At 1st January
Additions
Disposals
(Losses)/gains
At 31st December
Cash Movement
Freehold Investment Land
Reclassification from tangible fixed assets
Total Value of Investments at 31 December
At 31 December 2021
Book value of quoted investments		 2021
£
5,905,904
571,995
(800,766)
520,500
6,197,633
172,065
6,369,698
15,000
6,384,698
4,597,416		 2020
£
5,792,272
1,543,520
(1,244,800)
18,978
6,109,970
(204,066)
5,905,904
-
5,905,904
4,597,416

All the fixed asset investments are held in the UK

The the majority of quoted investments are managed listed securities held with Investec Wealth & Investment, and Browne Shipley. The balance of funds are held in M&G Charity Investment Funds. All funds are invested within listed companies for which there is a readily available market value. The historic valuation of the M&G holdings include £2,509 representing a permanent endowment fund which formed part of Greenwood's Almshouses Trust and £2,669 for Christian Union Almshouse.

The Charity owns freehold land at Newall Hall. The land is derelict and produces no income but is held for the long term with a view to maximising its ultimate value. It has been included in these finacial statements at estimated market value.

Harrison Housing also has a £1 investment in its wholly owned subsidiary Harrison Housing Trustees Limited.

29

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

17
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Maintenance contributions - housing
Other debtors
Prepayments and accrued income
18
CURRENT ASSET INVESTMENTS
Short term bank deposits
19
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income		 2021
£
48,444
4,869
37,533
90,846
2021
£
45,916
45,916
2021
£
115,818
13,949
29,004
64,253
223,024		 2020
£
29,357
32,998
42,793
105,148
2020
£
45,912
45,912
2020
£
63,115
2,285
27,132
50,412
142,944

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

20 STATEMENT OF FUNDS

Statement of funds -
current year
Designated funds
Cyclical Maintenance
Fund
Revaluation Reserve
General funds
General Reserve
Pension Reserve
Restricted funds
Howis Trust
Whicher & Kifford
Fixed asset fund
Portal
CUA
Total funds
Greenwoods
Balance at 1
January
2021
£
750,777
15,000
765,777
4,208,915
(76,915)
4,132,000
218,885
149,448
431,627
4,641,400
923,150
2,885,267
9,249,777
14,147,554		 Income
£
-
-
-
1,034,837
-
1,034,837
57,046
87,892
52,084
-
65,307
96,386
358,715
1,393,552		 Expenditure
£
(262,784)
-
(262,784)
(1,122,009)
-
(1,122,009)
(44,250)
(76,007)
(41,030)
-
(57,252)
(85,007)
(303,546)
(1,688,339)		 Transfers
in/out
170,000
-
170,000
(137,786)
25,523
(112,263)
(8,056)
(16,113)
(8,056)
-
(9,399)
(16,113)
(57,737)
-		 Gains/
(Losses)
£
-
-
-
440,909
40,392
481,301
1,642
-
-
-
32,440
45,510
79,592
560,893		 Balance at
31
December
2021
£
657,993
15,000
672,993
4,424,866
(11,000)
4,413,866
225,267
145,220
434,625
4,641,400
954,246
2,926,043
9,326,801
14,413,660

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

20 STATEMENT OF FUNDS (continued)

Statement of funds -
prior year
Designated funds
Cyclical Maintenance Fund
Revaluation Reserve
General funds
General Reserve
Pension Reserve
Restricted funds
Howis Trust
Whicher & Kifford
Fixed asset fund
Portal
CUA
Total funds
Greenwoods		 Balance at 1
January
2020
£
600,777
15,000
615,777
4,290,848
(70,000)
4,220,848
210,026
135,847
422,148
4,641,400
924,840
2,896,484
9,230,745
14,067,370		 Income
£
-
-
-
995,345
-
995,345
54,261
88,621
52,628
-
64,226
93,161
352,897
1,348,242		 Expenditure
£
-
-
-
(1,033,823)
-
(1,033,823)
(36,199)
(59,181)
(35,229)
-
(48,035)
(67,654)
(246,298)
(1,280,121)		 Transfers
in/out
150,000
-
150,000
(93,431)
-
(93,431)
(7,731)
(15,839)
(7,920)
-
(9,240)
(15,839)
(56,569)
-		 Gains/
(Losses)
£
-
-
-
49,976
(6,915)
43,061
(1,472)
-
-
-
(8,641)
(20,885)
(30,998)
12,063		 Balance at
31
December
2020
£
750,777
15,000
765,777
4,208,915
(76,915)
4,132,000
218,885
149,448
431,627
4,641,400
923,150
2,885,267
9,249,777
14,147,554

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

20 STATEMENT OF FUNDS (CONTINUED)

General funds

The Pension reserve has been created to separately identify the defined benefit pension scheme liability.

Designated funds

Cyclical maintenance of the company's housing properties is carried out in accordance with a defined programme, dealing with internal decorations (flats and communal areas), and external decorations every seven years, and five years respectively. During the year, transfers have been made out of restricted funds and into the cyclical maintenance fund to top up the funds readily available to carry out these repairs.

The annual transfer from income and expenditure shown above represents the estimated annualised cost of the cyclical maintenance programme.

Amounts transferred each year from the designated reserves to income and expenditure account correspond with the cost of cyclical maintenance carried out during the year.

The balance on the cylical maintenance designated reserves at the year end represents the total of the aggregate annualised charges for projects within each maintenance cycle.

Restricted funds

The Charity's restricted reserves represent the net assets acquired under schemes sanctioned by the Charity Commission in June and July 2007 in relation to Greenwood's Almhouses Trust and the Howis Trust. The net surplus or deficit for the period represents the surplus or deficit of income less expenditure attributable to the Greenwoods Trust and the Howis Trust in respect of the period following their acquistion.

The restricted refurbishment reserve represents funds specifically for the purpose of refurbishing the properties at 1 and 2 Stanley Close belonging to Whicher and Kifford Almshouses.

The Fixed Asset Fund relates to the Social Housing Grant (note 26) that was paid to construct the buildings in tangible fixed assets and is restricted as the amounts would be repayable if the buildings were ever sold or demolished.

The Charity's restricted reserves include the net surplus of income less expenditure for Christian Union Almshouses and The Tonge, The Portal Home for Ladies in respect of the period following their acquisition.

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

21 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Analysis of net assets between funds -
Current year
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
Funds
£
15,000
5,055,267
250,617
(223,024)
(11,000)
5,086,860		 Restricted
Funds
£
7,698,824
1,329,431
298,546
-
-
9,326,801		 Total
Funds
£
7,713,824
6,384,698
549,163
(223,024)
(11,000)
14,413,661
Analysis of net assets between funds -
Prior year
Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Total		 Unrestricted
Funds
£
15,000
4,799,310
303,326
(142,944)
(76,915)
4,897,777		 Restricted
Funds
£
7,844,637
1,106,594
298,546
-
-
9,249,777		 Total
Funds
£
7,859,637
5,905,904
601,872
(142,944)
(76,915)
14,147,554

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

22 Reconciliation of net movement in funds to net cash flow from operating activities flow from operating activities
2021 2020
£ £
Net income for the year (as per the Statement of
Financial Activities) 266,106 80,184
Adjustments for:
Depreciation charges 239,715 228,233
Loss on the sale of fixed assets 890 362
(Gains)/Losses on investments (520,500) (18,978)
Investment income (140,806) (139,973)
Decrease/(increase) in debtors 14,302 (2,937)
Increase/(decrease) in creditors 80,080 (14,482)
Defined benefit pension scheme employer contributions payable (29,522) (27,085)
Defined benefit pension scheme finance cost 4,000 3,000
Defined benefit pension scheme actuarial (gains)/losses (40,392) 31,000
Net cash provided by operating activities (126,127) 139,324
23 Analysis of cash and cash equivalents 2021 2020
£ £
Cash in hand 412,401 450,812
Short term bank deposits 45,916 45,912
Total cash and cash equivalents
458,317 496,724
24 Analysis of net debt At 1 At 31
January December
2021 Cash flows 2021
£ £ £
Cash at bank and in hand 450,812 (38,411) 412,401
Liquid investments 45,912 4 45,916
496,724 (38,407) 458,317

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

25 CONTINGENT LIABILITIES

Other than the potential employer debt on the Pension Scheme (Note 27) there were no other contingent liabilities at the balance sheet date (2020: £nil).

26 SOCIAL HOUSING GRANT

The total Social Housing Grant received for the Harrison Housing charitable company as at the 31 December 2021, was £4,645,318 (2020 - £4,645,318), made up as follows:

Capital grant
Revenue grant
Total
Grant relating to components disposed of as at 01/01/2021
Disposals during 2021		 £
4,604,327
40,991
4,645,318
228,454
-
228,454

This liability is reflected within the Restricted Fixed Asset fund.

27 PENSION COMMITMENTS

The Charity participates in the Social Housing Pension Scheme (SHPS) a multi-employer scheme which provides benefits to some 450 non-associated employers. The scheme is a defined benefit scheme in the UK administered by TPT Retirement Solutions (TPT). Historically TPT has not been able to supply sufficient information for each employer’s share of SHPS to allow defined benefit accounting to be applied. Instead, in accordance with FRS 102 paragraphs 28.11 and 28.11A and, the Charity accounted for SHPS as a defined contribution scheme and recognised a liability for the present value of the deficit funding agreement.

Following a number of changes made to systems and processes by TPT, sufficient information is available for SHPS to allow defined benefit accounting to be applied with effect from 1 January 2019 and the Charity has adopted the ‘Amendments to FRS 102 multi-employer defined benefit plans’.

The scheme is classified as a ‘last-man standing arrangement’. Therefore the Charity is potentially liable for other participating employers’ obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out with an effective date of 30 September 2020. The actuarial valuation showed assets of £5,148m, liabilities of £6,708m and a deficit of £1,560m.

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

27 PENSION COMMITMENTS (CONTINUED)

Principal actuarial assumptions at the Balance Sheet date:

At 31
December
2021
%
Discount rate 1.79
Inflation (RPI) 3.64
Inflation (CPI) 2.99
Salary Growth 3.99
Allowance of commutation of pension for cash at retirement - percentage 75%
The mortality assumptions adopted at 31 December 2021 imply the following life
At 31
December
2021
Mortality rates (in years)
- for a male aged 65 now 21.6
- at 65 for a male aged 45 now 22.9
- for a female aged 65 now 23.5
- at 65 for a female aged 45 now 25.1
At 31
The Charity's share of the assets in the scheme was: December
2021
£
Global Equity 109,000
Absolute Return 27,000
Distressed Opportunities 19,000
Credit Relative Value 18,000
Alternative Risk Premia 22,000
Emerging Markets Debt 24,000
Risk Sharing 17,000
Insurance-Linked Securities 12,000
Property 14,000
Infrastructure 36,000
Private Debt 13,000
Opportunistic Illiquid Credit 17,000
Opportunistic Credit 4,000
Cash 3,000
Corporate Bond Fund 39,000
Liquid Credit 4,000
Long Lease Property 13,000
Secured Income 20,000
Liability Driven Investment 173,000
Currency Hedging (1,000)
Net Current Assets 1,000
Total Assets 584,000
The actual return on scheme assets was £34,000.

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

27 PENSION COMMITMENTS (CONTINUED)

None of the fair values of the assets shown above include any direct investments in the employer’s own financial instruments or any property occupied by, or other assets used by, the employer.

The amounts recognised in the Statement of Financial Activities are as follows:

Interest income
Interest cost
Administrative expenses
Total amount recognised in the Statement of Financial Activities
Interest income
Interest cost
Administrative expenses
Total amount recognised in the Statement of Financial Activities
Opening defined benefit obligation
Interest cost and administration expenses
Actuarial losses
Benefits paid
Closing defined benefit obligation
Movements in the fair value of the Charity's share of scheme assets were as follows:
Opening defined benefit scheme assets
Interest cost and administration expenses
Actuarial losses
Benefits paid
Closing defined benefit obligation
Movements in the present value of the defined benefit obligation were as follows:		 2021
£
6,000
(7,000)
(3,000)
(4,000)
2020
£
9,000
(10,000)
(2,000)
(3,000)
2021
£
632,000
10,000
(12,000)
(35,000)
595,000
2020
£
580,000
12,000
79,000
(39,000)
632,000

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)

28 OPERATING LEASE COMMITMENTS

Less than 1 year
Between 1 and 5 years
Greater than 5 years		 2021
£
1,154
2,309
-
3,463		 2020
£
1,154
3,463
-
4,617