## **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:
- Maintaining almshouse flats; Maintaining almshouse gardens; and Providing practical support to our residents through our Scheme Managers
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:
- At the balance sheet date the Charity held £458k in cash and short term cash deposits (2020: £497k) The Charity is in the fortunate position that it is not funded by donations and income from letting flats should remain stable, subject to any temporary voids.
- The Charity has an investment portfolio worth in excess of £6m at the balance sheet date, the underlying investments could be realised into cash within a short timescale if the need arose.
- Major expenses are generally incurred in respect of cyclical repairs which in many cases can be delayed in the short term should the need arise.
- A significant proportion of the cash received every month is received from local Councils in the form of Housing Benefit for residents
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.
- The main documents which set out the operational framework for the Charity including the Memorandum and Articles of Association.
- Resourcing and the current financial position as set out in the latest statutory and management accounts.
7
## **HARRISON HOUSING**
## **(A company limited by guarantee)**
## **TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2021**
- Future plans and objectives.
- Information from the various Charity Commission publications signposted through the Commission’s guide “The Essential Trustee” are distributed to new Trustees, together with the Charity’s governing documents, its Memorandum and Articles of Association and the latest published statutory financial statements.
## 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:
- Undertaking activities outside of the objectives of the Charity: we mitigate this risk by seeking legal and other advice before venturing into new areas of operation.
- Failing to respond to changes in legislation and best practice recommendations: we mitigate this risk by regularly reviewing policies and procedures in the light of changing requirements and engaging qualified professional for compliance visits.
- Trustees benefitting personally from their position: we mitigate this risk by not making payments to Trustees, reviewing Board performance and requiring annual declarations of interests to be provided by each Trustee.
- Unable to fill Trustee vacancies with persons appropriate skills to complement existing skills held by Board members: a nomination Committee exists who meet when vacancies arise and they are charged with undertaking such procedures that are considered necessary to find people with the skills that the Charity believes it requires
## 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:
- select suitable accounting policies and then apply them consistently;
- make judgments and estimates that are reasonable and prudent;
- observe methods and principles in the Charities SORP 2015 (FRS102)
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in operation;
- state whether applicable UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements.
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:
- there is no relevant audit information of which the Charity’s auditor is unaware; and
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:
- give a true and fair view of the state of the charitable company’s affairs as at 31 December 2021 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006, the Charities Act 2011, 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 (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:
- the information given in the trustees’ annual report for the financial year for which the financial statements are prepared is consistent with the financial statements; and trustees’ annual report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and 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:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or certain disclosures of trustees’ remuneration specified by law are not made; or] we have not received all the information and explanations we require for our audit or the trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies exemption in preparing the trustees’ annual report and from preparing a strategic report.
## **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:
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
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.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitable company’s internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the trustees.
- Conclude on the appropriateness of the trustees’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the charitable company to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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:
- We obtained an understanding of the legal and regulatory requirements applicable to the charitable company and considered that the most significant are the Companies Act 2006, the Charities Act 2011, the Charity SORP, and UK financial reporting standards as issued by the Financial Reporting Council
- We obtained an understanding of how the charitable company complies with these requirements by discussions with management and those charged with governance.
- We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.
13
**HARRISON HOUSING INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HARRISON HOUSING FOR THE YEAR ENDED 31 DECEMBER 2021 (CONTINUED)**
- We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.
- Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.
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:
��������������..
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:
- �Depreciation rates for tangible fixed assets
- �Allocation of support costs
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
- �Useful economic lives of assets
- �Defined Benefit Pension Scheme
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_|
- **9 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES- BY FUND**
|**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|