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2023-12-31-accounts

HARRISON HOUSING

(A Company Limited by Guarantee) TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

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

HARRISON HOUSING CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

Pages
Reference and Administrative Details of the Charity, its Trustees and Advisers 1
Trustees' Report 2
Independent Auditors' Report on the Financial Statements 10
Statement of Financial Activities 13
Balance Sheet 14
Statement of Cash Flows 15
Notes to the Financial Statements 16-37

HARRISON HOUSING REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31st DECEMBER 2023

Trustees Mr I C Morrison CBE, Chair of Trustees
Ms S Hockett, Vice-Chair of Trustees
Mr H Knowles ACA (resigned June 2023)
Mr P Lautman
Mr R Hicks ACA
Mrs E McGinn
Mrs J Nammuni
Mr F Jalalpour
Mr V Ochieng
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 Alison Robson-Young
Independent Auditors Moore Kingston Smith
6th Floor, 9 Appold Street
London EC2A 2AP
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 TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

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 2023. The report is prepared in line with the Charities Act 2011 and Statement of Recommended Practice for Social Housing Providers (SORP) 2018 and FRS102 (the Financial Reporting Standard applicable in the UK and Republic of Ireland).

Company status

The Charity was originally established in 1869 as an Almshouse under the name Harrison Homes. It was incorporated 1 April 2004 and the charity then became known as Harrison Housing and its operations were taken over by the charitable company.

Harrison Housing is a 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. 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, they 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 main Board meets at least 4 times per year and there is a sub-committees, Finance, Risk & Audit, which meets on a quarterly basis and report to the main Board.

OPERATING AND FINANCIAL REVIEW

Objectives and Activities

The main objective of Harrison Housing is the relief of financial hardship suffered by older people and it does this primarily by the provision of social housing and associated amenities. Harrison Housing has several linked charities with similar objectives and who also provide Almshouse accommodation. The precise criteria for the provision of accommodation by Harrison Housing and the 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 they operate.

Day-to-day activities include:

Applications for accommodation are received from older people most of whom live within the geographic areas where the Charities own 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, that they are in financial hardship at the point of application and that they have the right to reside in the UK.

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 comprise 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 hours. The residents also benefit from regular visits by volunteer Visitors.

There is cyclical programme of maintenance for all properties in addition to planned annual maintenance and routine repairs to ensure that all homes meet Decent Homes Standards.

2

HARRISON HOUSING TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

Achievements and Performance

Housing

Harrison Housing owns a housing stock of 112 units (2022; 111) in 5 locations in London. The additional unit was created during the year by converting some of the space previously used as an office at St James Gardens.

The average occupancy rate for the year was in line with the target rate but fractionally better on the previous year at 98.3% (2022: 98.1%). The target rate is 98%.

Total income excluding investment income rose to £1,385k (2022: £1,306k) an increase of 6% (2022: 4.3%). Income from the Charity’s investment portfolios increased slightly to £144k (2022: £142k).

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

Direct operating costs increased to £1,029k (2022: £823k) as the result of more cyclical repairs being completed, in comparison with 2022, and an increase in staff costs as temporary staff covered some of the key positions. Larger scale works are planned in accordance with necessity and value for money. We are mindful of the disruption works can cause to our customers and therefore try to plan work to minimise this in any given year.

Support costs increased by 12% to £769k in 2023 from £684k in 2022. This was caused by an increase in staff costs as vacancies were filled by more expensive temporary agency staff.

Management services

The company continued to act 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) and provided a Scheme Manager to Dulwich Almshouses. The contract with St Giles-in-the-Fields Almshouses (8 units in Covent Garden) ended on 30 June 2022.

Voluntary services

It is recognised that all Trustees are volunteers and give their time freely, without which the Charity could not operate.

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.

3

HARRISON HOUSING TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

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:

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2023|2022|2021|2020|2019| |Reinvestment|0.54%|0.17%|1.13%|0.56%|0.97%| |New supply delivered|0.89%|0.00%|0.00%|0.00%|0.00%| |Gearing|N/A|N/A|N/A|N/A|N/A| |EBITDA MRI Interest cover %|N/A|N/A|N/A|N/A|N/A| |Headline Social Housing costs per unit|£10,790|£5,499|£8,033|£5,503|£6,649| |Operating Margin (Social lettings)|-17.06%|27.63%|-5.42%|22.00%|5.17%| |Operating Margin (Overall)|-51.52%|-8.22%|-21.22%|5.08%|4.47%| |ROCE %|-5.93%|-0.85%|-2.05%|0.48%|0.09%|

----- End of picture text -----

The increase in Headline Social Housing Costs per unit reflects the additional spend on staff costs in the year and an Cyclical Repairs spend. This increase expenditure in these areas directly impacts the Operating Margin.

Operating margin is split between social and overall. To ascertain the social margin only directly attributable costs of operating the affordable housing is included. The total margin includes total income from all sources and all operating costs.

2023 has been an extraordinary year. The whole Leadership Team has been replaced and key positions were filled by contractors. Recruitment of a permanent leadership team took place in the first half of 2024 and the new Chief Executive started in May 2024. The Trustee and Leadership Team will be looking at setting improvement targets for these measures during 2024 as part of a wider improvement programme.

Fundraising

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

Financial Review

Income and expenditure

Weekly maintenance contributions including service charges net of voids amounted to £1,385k in 2023 (2022: £1,306k) an increase of 6.1%. The WMC element of the charges were increased 7.9% (2022:4.1%), Service charge levels were reviewed and increased in line budgeted expenditure.

Income lost to void periods were in line with budget at 2.0% of the Weekly Maintenance Charge (2022: 2.0%)

Management of other schemes generated income of £149k (2022: £146k). One contract ended on 30 June 2022 and a further contract finished in May 2024.

Expenditure on raising funds are the fees charged by the charities Investment Managers. There was a slight reduction in charges during 2023 to £35.5k (2022: £37.0k) representing 26.7% of gross investment income (2022: 26.4%). Management fees as a percentage of the total value of funds under management are approximately 0.7% (2022: 0.7%).

Expenditure on charitable activities was £1,891k (2022: £1,545k) representing 165% of income from charitable activities (2022: 118%). Included in expenditure on charitable activities are routine repairs and maintenance of £255k (2022: £267k) and the cost of Cyclical Repairs £123k (2022: £17k). The Planned Cyclical Repairs did not take place in 2022 or 2023 due to a number of operational difficulties. In 2024 there has been significant work undertaken to survey all properties and to come up with a revised schedule of works for the next 10 years.

The Charity’s cash balances and investments generated slightly more income at £144k (2022: £142k). Net realised and unrealised income on investments for the year was £337k (2022: loss £902k) as financial markets recovered slightly from the world events and rising levels of inflation experienced in 2022.

4

HARRISON HOUSING TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

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:

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.

The Charity’s main Wealth Manager, Investec, operate a screening process on all investment prospects in respect of Environmental, Social and Governance considerations they undertake before investing the Charity’s funds. The Trustees remain satisfied 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. The Trustees are also aware of similar screening used by other Wealth Managers who invest on behalf of the Charity.

The 2023 investment returns from the main investment portfolio for the 12 months to December 2023 recovered from the 2022 position showing a return of 6.3% (2022: negative return of 12.29%) against a Benchmark Total Return of 4.92% (2022: negative return of 7.64%). Investment gains across all portfolios totalled £337k (2022 losses: £902k) as international financial markets recovered from the impacted of the Russian invasion of Ukraine in early 2022.

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 approved by the Trustees created a Designated Tangible Fixed Asset Reserve to reflect the net book value of fixed assets, less other funds specifically related to fixed assets. This is split between restricted reserves and permanent endowments where required. 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. Operating costs for 2024 are forecast to exceed £1.7m, in addition cyclical repairs and capital expenditure are budgeted at £510k. Unrestricted General reserves were approximately £3.2m at the balance sheet date and were above the free reserves target despite falling by approximately £0.8m compared to 2022.

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.

5

HARRISON HOUSING TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

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 2024 budget forecasts a loss of £287k. In addition to this planned Cyclical Repairs and budgeted Capital Expenditure has been set at £510k as the Charity has an ambitious plan for repairs. Against a background of organisational change and a ongoing challenging worldwide operating environment the Charity has paused its plans for developing new units.

Structure, Governance and Management

As a registered provider we continue to be regulated by the Regulator of Social Housing (RSH). It is a priority that we remain compliant with the RSH’s Regulatory Framework, including the Governance and Financial Viability Standard. We comply with the Governance and Financial Viability Standard as at 31 December 2023 and there have been no material changes since that date. We also comply with the NHF Code of Governance (2015 edition). The Trustees approved the adoption of the Code of Governance (2020 edition) and we are working to ensure full compliance with this version.

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 Finance Director and the Housing Manager. Remuneration for senior management personnel is reviewed annually by the Finance, Risk and Audit Committee, 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. Trustees are not remunerated for their roles in the Charity.

Recruitment and Appointment of Trustees

Trustees are appointed by the Board. During the year 1 Trustee retired from the Board. Succession planning for Trustees involves identifying required skills and recruitment is focused on targeting individuals who can add those skills to the Board.

Details of current Trustees and changes in the composition of the Board are shown on page 1. Some Trustees also serve on the Charity’s sub-committee or working groups in addition to their role on the main Board.

Trustee Induction and Training

When new Trustees join they 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:

Related parties

The Charity is registered with the Regulator of Social Housing 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, or the related body that provides funding (i.e. Homes England), in connection with capital or refurbishment projects.

6

HARRISON HOUSING TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

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.

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

Equality, Diversity and Inclusion (E,D&I)

ED&I is a main principle of good governance running through the National Housing Federations (NHF) Code of Governance, the NHF Code of Conduct, as well as the Regulator of Social Housing’s (RSH) Regulatory Standards.

We have continued to collect ED&I data from residents and will strive to engage with a diverse range of residents through our Resident Engagement Strategy to be developed during 2024.

On the back of this work we will create an ED&I action plan, which will provide full transparency on how we are achieving our Strategy. During 2024 we will create the organisational ED&I statement and a new Board Diversity Statement.

7

HARRISON HOUSING TRUSTEES’ REPORT FOR THE YEAR ENDED 31 DECEMBER 2023

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 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.

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 23 July 2024 and signed on its behalf by

Ian Morrison CBE Chair

8

HARRISON HOUSING INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HARRISON HOUSING FOR THE YEAR ENDED 31 DECEMBER 2023

Opinion

We have audited the financial statements of Harrison Housing (‘the company’) for the year ended 31 December 2023 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 of this other information, we are required to report that fact.

We have nothing to report in this regard.

9

HARRISON HOUSING INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HARRISON HOUSING FOR THE YEAR ENDED 31 DECEMBER 2023

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 8, the trustees (who are also 8, 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:

10

HARRISON HOUSING INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HARRISON HOUSING FOR THE YEAR ENDED 31 DECEMBER 2023

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:

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.

11

HARRISON HOUSING INDEPENDENT AUDITOR’S REPORT TO THE TRUSTEES OF HARRISON HOUSING FOR THE YEAR ENDED 31 DECEMBER 2023

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.

25 July 2024

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

6th Floor, 9 Appold Street London EC2A 2AP

12

HARRISON HOUSING STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31st DECEMBER 2023

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
Actuarial gains/(losses) on defined
27
benefit pension scheme
Net Movement in Funds
RECONCILIATION OF FUNDS
Total funds brought forward
TOTAL FUNDS CARRIED FORWARD
20		 Unrestricted
Funds
£
2,427
993,069
125,455		 Restricted
Funds
£
-
391,833
18,556
410,389
5,347
189,934
195,281
18,556
233,664
(634,285)
-
(400,622)
7,321,233
6,920,612		 Endowment
Funds
£
-
-
-
-
-
43,696
43,696
-
(43,696)
-
-
(43,696)
2,614,077
2,570,381		 Total funds
2023
£
2,427
1,384,902
144,011		 Total funds
2022
£
1,776
1,305,797
141,920
1,120,951 1,531,339 1,449,493
30,184
1,657,612		 35,531
1,891,242		 37,071
1,545,447
1,687,796 1,926,773 1,582,518
318,925 337,481 (902,316)
(247,920) (57,952) (1,035,341)
634,285
5,000		 -
5,000		 -
(94,000)
391,365
3,349,008		 (52,952)
13,284,319		 (1,129,341)
14,413,660
3,740,374 13,231,367 13,284,319

All income and expenditure derive from continuing activities.

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

13

HARRISON HOUSING BALANCE SHEET AS AT 31st DECEMBER 2023

2023 2023 2022 2022
Note £ £ £ £
FIXED ASSETS
Tangible assets 15 7,398,425 7,530,907
Investments 16 5,606,490 5,575,931
13,004,915 13,106,838
CURRENT ASSETS
Debtors: amounts falling due within one year 17 113,013 122,605
Investments 18 47,386 46,197
Cash at bank 500,411 341,766
660,810 510,569
CREDITORS
Amounts falling due within one year 19 (363,341) (246,043)
NET CURRENT ASSETS/(LIABILITIES) 297,469 264,526
TOTAL ASSETS LESS CURRENT
LIABILITIES 13,302,384 13,371,364
Defined benefit pension scheme liability 27 (71,017) (87,000)
NET ASSETS 13,231,367 13,284,364
CHARITY FUNDS
Endowment funds 20 2,570,381 2,614,077
Restricted funds 20 6,920,612 7,321,233
Unrestricted funds 20 3,740,374 3,349,008
13,231,367 13,284,319

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 25 July 2024 and were signed on its behalf by:

……………………………………..

I Morrison CBE (Chair)

14

HARRISON HOUSING CASH FLOW STATEMENT FOR THE YEAR ENDED 31st DECEMBER 2023

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		 2023
2022
£
£
(211,370)
(73,563)
144,011
141,920
(79,729)
(45,163)
1,747,744
1,438,255
(1,635,096)
(1,498,324)
194,274
(33,481)
371,204
3,209
-
-
159,834
(70,354)
387,963
458,318
547,797
387,963

Reconciliation of net expenditure to net cash flow from operating activities

15

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

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 of the 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 liabilities 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. 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 3 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.

16

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

ACCOUNTING POLICIES (Continued)

2.3 Income

All income is recognised when the Charity has entitlement to the income, when it is probable 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 classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support 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 activities 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.

17

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

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 probable 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.

18

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

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.

19

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

ACCOUNTING POLICIES (Continued)

Pension scheme assets are measured at fair value and liabilities 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 triennially and are updated 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.

Permanent endowment funds are fixed assets which are held in trust for the benefit of the charity over the long term and are subject to restrictions as regards how they may be used. The return arising from these assets are accounted for as unrestricted funds unless the donor has placed restrictions on the use of that income.

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

2.15 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 are discussed below.

Critical 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 determining 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.

20

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

4 DONATIONS

DONATIONS
Donations
Grants
Donations
Grants		 Unrestricted
funds
2023
£
2,427
-
2,427
Unrestricted
funds
2022
£
1,776
-
1,776		 Restricted
funds
2023
£
-
-
-
Restricted
funds
2022
£
-
-
-		 Total
funds
2023
£
2,427
-
2,427
Total
funds
2022
£
1,776
-
1,776

5 INCOME FROM CHARITABLE ACTIVITIES- BY FUND

Housing activities
Housing activities		 Unrestricted
funds
2023
£
993,069
Unrestricted
funds
2022
£
951,494		 Restricted
funds
2023
£
391,833
Restricted
funds
2022
£
354,303		 Total
funds
2023
£
1,384,902
Total
funds
2022
£
1,305,797

21

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

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
Total		 2023
£
823,287
413,623
1,236,910
(24,846)
1,212,063
149,003
23,836
1,384,902		 2022
£
762,984
398,114
1,161,098
(23,864)
1,137,234
145,786
22,777
1,305,797

Rental income includes £61,268 (2022: £59,333) restricted income from the Greenwoods Almshouse, £92,872 (2022: £88,919) restricted to Christian Union Almshouses, £60,103 (2022: £58,676) restricted to Tonge Houses, Portal Homes for Ladies and £58,550 (2022: £53,219) restricted to Whicher & Kifford.

7 INCOME FROM INVESTMENTS

INCOME FROM INVESTMENTS
Dividend income
Bank deposit and bond interest
Dividend income
Bank deposit and bond interest		 Unrestricted
funds
2023
£
114,284
11,171
125,455
Unrestricted
funds
2022
£
121,536
1,440
122,976		 Restricted
funds
2023
£
18,556
-
18,556
Restricted
funds
2022
£
18,944
-
18,944		 Total
funds
2023
£
132,840
11,171
144,011
Total
funds
2022
£
140,480
1,440
141,920

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.

22

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

8 EXPENDITURE ON RAISING FUNDS

8
EXPENDITURE ON RAISING FUNDS
Unrestricted
Restricted
Endowment
funds
funds
Funds
2023
2023
2023
£
£
£
Investment management fees
30,184
5,347
Unrestricted
Restricted
Endowment
funds
funds
Funds
2022
2022
2022
£
£
£
Investment management fees
31,432
5,638
9
ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES- BY FUND
Unrestricted
Restricted
Endowment
funds
funds
Funds
2023
2023
2023
£
£
£
Housing activities
1,657,612
189,934
43,696
Unrestricted
Restricted
Endowment
funds
funds
Funds
2022
2022
2022
£
£
£
Housing activities
1,198,941
287,427
59,079
10
ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES- BY TYPE
Activities
undertaken
Support
directly
costs
2023
2023
£
£
Housing activities
1,122,111
769,131
Activities
undertaken
Support
directly
costs
2022
2022
£
£
Housing activities
861,170
684,277		 Total
funds
2023
£
35,531
Total
funds
2022
£
37,071
Total
funds
2023
£
1,891,242
Total
funds
2022
£
1,545,447
Total
funds
2023
£
1,891,242
Total
funds
2022
£
1,545,447

23

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

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
Net income/(expenditure) is stated after charging/(crediting):
Rent payable under operating leases
Auditor's remuneration:
Audit
Accounts
12
AUDITORS' REMUNERATION
2023 under/(over) accrual audit and accounts
2023 accrual audit and accounts		 Total
funds
2023
£
440,115
210,362
254,903
123,637
1,029,018
Total
funds
2023
£
-
118,401
76,105
24,230
187,840
259,780
79,778
1,492
21,506
769,131
2023
£
1,205
24,230
-
24,230
2023
£
50,499
24,230
74,729		 Total
funds
2022
£
310,899
228,080
266,993
17,033
823,005
Total
funds
2022
£
2,000
93,792
17,256
24,518
176,258
220,096
128,907
1,451
20,000
684,277
2022
£
1,080
23,418
1,100
24,518
2022
£
(9,618)
24,518
14,900

24

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

13 STAFF COSTS

Wages and salaries
Social security costs
Employers pension costs		 2023
2022
£
£
355,585
350,074
36,458
31,806
21,946
22,811
413,989
404,691

Particulars of employees

The average number of employees during the year, was as follows:

Operating staff- Full time
Operating staff- Part time
Administrative staff- Full time
Administrative staff- Part time		 2023
2022
2
2
3
3
2
3
3
3
9
11

There were a number of temporary staff paid through agents during the year at a cost of £294,733 (2022: £156,308)

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

2023 2022
£ £
216,777 187,584

Remuneration payable to the highest paid employed Director in relation to the year ended 31 December 2023, excluding pension contributions was the Chief Executive at £87,155. (2022: £71,970). She left in September 2023 and was paid redundancy of £20,218 (not included in the above figure). The Chief Executive was a member of the Social Housing Pension Scheme (SHPS).

The interim Chief Executive was employed from November 2023 and was paid £22,600.

There was one interim Director employed as a consultant from November 2023 following the departure of the Finance Director. They were not paid through payroll, but acted as key management personnel. The amount of £19,500 was paid to Alison Robson-Young Ltd.

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

2023 2022
£70,000 - £79,999 - 1
£80,000 - £89,999 1 -

14 Trustee's remuneration and expenses

During the year, no Trustees received received any remuneration or other benefits (2022: nil).

During the year ended 31 December 2023, no Trustee expenses have been incurred (2022: nil).

25

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

15 TANGIBLE FIXED ASSETS

COST
At 1st January 2023
Reclassification
Additions
Disposals
At 31st December 2023
DEPRECIATION
At 1st January 2023
Reclassification
Charge for the year
Eliminated on disposal
At 31st December 2023
NET BOOK VALUE
At 31st December 2023
At 31st December 2022		 Freehold Fixtures and
property
fittings
£
£
10,522,778
293,561
(16,305)
16,305
38,834
40,895
(13,195)
(5,573)
10,532,112
345,188
3,127,357
165,069
(10,183)
10,183
188,945
17,240
(13,263)
(1,825)
3,292,856
190,666
7,239,256
154,522
7,395,421
128,492		 Office
equipment
£
19,933
-
-
-
19,933
12,940
-
2,347
-
15,287
4,647
6,994		 Totals
£
10,836,273
-
79,729
(18,768)
10,897,234
3,305,366
-
208,532
(15,089)
3,498,809
7,398,425
7,530,907

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 (2022: £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.

Accommodation in management

At the end of the year accommodation in management for each class of accommodation was as detailed below.

General housing
Supported housing and housing for older people
Total
Owned and managed
Managed, but not owned
Total		 2023
Number
46
126
172
112
60
172		 2022
Number
53
132
185
111
74
185

26

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

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
Book value of quoted investments		 2023
2022
£
£
5,560,931
6,369,698
1,635,096
1,498,324
(1,747,744)
(1,438,255)
337,481
(902,316)
5,785,764
5,527,451
(194,274)
33,481
5,591,490
5,560,931
15,000
15,000
5,606,490
5,575,931
4,597,416
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 financial statements at estimated market value.

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

27

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

17 DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Maintenance contributions - housing
Less : Bad Debt Provision
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		 2023
£
83,274
(38,450)
23,892
44,297
113,013
2023
£
47,386
47,386
2023
£
172,267
13,751
31,603
145,719
363,341		 2022
£
81,230
(39,823)
42,515
38,683
122,605
2022
£
46,197
46,197
2022
£
79,301
1,984
32,282
132,476
246,043

28

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

20 STATEMENT OF FUNDS

Balance at
Statement of funds -
1
current year
January
2023
£
Designated funds
Cyclical Maintenance Fund
1,040,960
Revaluation Reserve
15,000
1,055,960
General funds
General Reserve
2,380,241
Pension Reserve
(87,193)
2,293,048
Restricted funds
Greenwoods
233,191
Howis Trust
147,994
Whicher & Kifford
439,863
Fixed asset fund
5,388,829
Portal
342,863
CUA
768,493
7,321,233
Permanent Endowment funds
Portal
582,709
CUA
2,031,369
2,614,077
Total funds
13,284,319
Income
£
-
-
-
1,120,951
-
1,120,951
61,268
97,515
58,550
-
67,645
125,411
410,389
-
1,531,339		 Expenditure
£
(123,637)
-		 Transfers
in/out
400,000
-		 Gains/
(Losses)
£
-
-		 Balance at
31
December
2023
£
1,317,323
15,000
(123,637) 400,000 - 1,332,323
(1,564,159)
-		 223,259
11,027		 318,925
5,000		 2,479,217
(71,166)
(1,564,159) 234,285 323,925 2,408,051
(29,215)
(46,884)
(27,330)
-
(37,487)
(54,364)		 (10,256)
(20,512)
(10,256)
(560,786)
(11,965)
(20,512)		 371
-
-
-
6,247
11,938		 255,359
178,113
460,826
4,828,043
367,302
830,968
(195,281) (634,285) 18,556 6,920,612
(6,440)
(37,256)		 576,269
1,994,113
(43,696) - - 2,570,381
(1,926,773) - 342,481 13,231,367

29

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

20 STATEMENT OF FUNDS

Statement of funds -
Balance at 1
current year
January
2022
£
Designated funds
Cyclical Maintenance Fund
657,993
Revaluation Reserve
15,000
672,993
General funds
General Reserve
4,424,866
Pension Reserve
(11,000)
4,413,866
Restricted funds
Greenwoods
225,267
Howis Trust
145,220
Whicher & Kifford
434,625
Fixed asset fund
4,641,400
Portal
367,490
CUA
841,742
6,655,744
Permanent Endowment funds
Portal
586,756
CUA
2,084,301
2,671,057
Total funds
14,413,660		 Income
£
-
-
-
1,076,246
-
1,076,246
59,503
91,271
53,242
-
68,610
100,621
373,247
-
1,449,493		 Expenditure
£
(17,033)
-
(17,033)
(1,218,979)
-
(1,218,979)
(42,691)
(71,958)
(39,735)
-
(54,543)
(78,500)
(287,427)
(6,147)
(52,932)
(59,079)
(1,582,518)		 Transfers
in/out
400,000
-
400,000
(1,105,972)
17,807
(1,088,165)
(8,269)
(16,539)
(8,269)
747,429
(9,648)
(16,539)
688,165
-
-		 Gains/
(Losses)
£
-
-
-
(795,920)
(94,000)
(889,920)
(619)
-
-
-
(29,046)
(78,831)
(108,496)
2,100
2,100
(996,316)		 Balance at
31
December
2022
£
1,040,960
15,000
1,055,960
2,380,241
(87,193)
2,293,048
233,191
147,994
439,863
5,388,829
342,863
768,493
7,321,233
582,709
2,031,369
2,614,077
13,284,319

30

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

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 cyclical 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 Almshouses 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 acquisition.

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 reflects the amount 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 adjustment in the year is to bring the value of the Fixed Asset fund, together with the total permanent endowments, to the same value as the net book value of the Tangible Fixed Assets (Note 15).

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.

31

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

Permanent Endowment Funds

Permanent endowment funds are capital funds which are held in trust for the benefit of the charity over the long term and are subject to restrictions as regards how they may be used.

In 2017 Harrison Housing acquired the assets of Christian Union Almshouses and The Tonge, The Portal Home for Ladies. In the Charities Commission Scheme it is mentioned in the objects that the land should be retained by the Trustees to for use for the objects of the Charity. This means the properties were considered to be Permenent Endowments.

Both properties were valued at the point of Acquistion and they are held at the net present value. No further valuations have been required or taken place.

21 ANALYSIS OF NET ASSETS BETWEEN FUNDS

Analysis of net assets between funds -
Current year
Unrestricted
Funds
£
Tangible fixed assets
15,000
Fixed asset investments
3,797,468
Current assets
362,264
Creditors due within one year
(363,341)
Creditors due in more than one year
(71,017)
Total
3,740,373		 Restricted
Funds
£
4,813,043
1,809,023
298,546
-
-
6,920,612		 Endowment
Total
Funds
Funds
£
£
2,570,381
7,398,425
-
5,606,490
-
660,810
-
(363,341)
-
(71,017)
2,570,381
13,231,367
Analysis of net assets between funds -
Prior year
Unrestricted
Funds
£
Tangible fixed assets
15,000
Fixed asset investments
3,455,073
Current assets
212,023
Creditors due within one year
(246,043)
Creditors due in more than one year
(87,044)
Total
3,349,009		 Restricted
Funds
£
4,901,829
2,120,858
298,546
-
-
7,321,233		 Restated
Endowment
Total
Funds
Funds
£
£
2,614,077
7,530,907
-
5,575,931
-
510,569
-
(246,043)
-
(87,044)
2,614,077
13,284,320

32

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

22 Reconciliation of net movement in funds to net cash flow from operating activities

Adjustments for:
Depreciation charges
Loss on the sale of fixed assets
(Gains)/Losses on investments
Investment income
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Defined benefit pension scheme employer contributions payable
Defined benefit pension scheme finance cost
Defined benefit pension scheme actuarial (gains)/losses
Net cash used in operating activities
23
Analysis of cash and cash equivalents
Cash in hand
Short term bank deposits
Total cash and cash equivalents
24
Analysis of net debt
At 1
January
2023
£
Cash at bank and in hand
341,765
Liquid investments
46,197
387,962
Net income/(Loss) for the year (as per the Statement of Financial
Activities)		 2023
£
(52,952)
208,532
3,679
(337,481)
(144,011)
9,592
119,124
(18,852)
6,000
(5,000)
(211,370)
2023
£
500,411
47,386
547,797
Cash flows
£
158,646
1,189
159,835		 2022
£
(1,129,341)
221,958
6,122
902,316
(141,920)
(31,759)
23,019
(19,957)
2,000
94,000
(73,563)
2022
£
341,765
46,197
387,962
At 31
December
2023
£
500,411
47,386
547,797

33

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

25 CONTINGENT LIABILITIES

Other than the potential employer debt on the Pension Scheme (Note 27) and the potential VAT liability (Note 29) there were no other contingent liabilities at the balance sheet date (2022: £nil).

26 SOCIAL HOUSING GRANT

The total Social Housing Grant received for the Harrison Housing charitable company as at the 31 December 2023, was £4,645,318 (2022 - £4,645,318), made up as follows:

Capital grant
Revenue grant
Total
Grant relating to components disposed of as at 01/01/2023
Disposals during 2023		 £
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

Harrison Housing participates in the scheme, a multi-employer scheme which provides benefits to some 500 non-associated employers. The scheme is a defined benefit scheme in the UK. The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

The scheme is classified as a 'last-man standing arrangement'. Therefore, the company 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.

34

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

27 PENSION COMMITMENTS (CONTINUED)

Principal actuarial assumptions at the Balance Sheet date:

Discount rate
Inflation (RPI)
Inflation (CPI)
Salary Growth
Allowance for commutation of pension for cash at retirement - of
maximum allowance		 At 31
At 31
December
December
2023
2022
%
%
4.69%
5.08
3.17%
3.19
2.57%
2.57
3.57%
3.57
75%
75%

The mortality assumptions adopted at 31 December 2023 imply the following life expectancies:

Mortality rates (in years)
- for a male aged 65 now
- at 65 for a male aged 45 now
- for a female aged 65 now
- at 65 for a female aged 45 now
The Charity's share of the assets in the scheme was:
Global Equity
Absolute Return
Distressed Opportunities
Credit Relative Value
Alternative Risk Premia
Emerging Markets Debt
Risk Sharing
Insurance-Linked Securities
Property
Infrastructure
Private Debt
Opportunistic Illiquid Credit
Cash
Long Lease Property
Secured Income
Liability Driven Investment
Currency Hedging
Net Current Assets
Total Assets		 At 31
At 31
December
December
2023
2022
21.0
21.1
23.4
22.4
22.2
23.7
24.9
25.2
At 31
At 31
December
December
2023
2022
£
£
25,000
3,000
6,000
3,000
10,000
13,000
10,000
13,000
5,000
-
5,000
-
18,000
21,000
2,000
11,000
12,000
13,000
29,000
41,000
12,000
14,000
14,000
17,000
4,000
4,000
9,000
10,000
8,000
13,000
140,000
119,000
1,000
2,000
1,000
(9,000)
311,000
288,000

The actual return on plan assets (including any changes in share of assets) over the period from 31 December 2022 to 31 December 2023 was £42,000.

35

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

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:

2023
£
Interest income
14,000
Interest cost
(18,000)
Administrative expenses
(2,000)
Total amount recognised in the Statement of Financial Activities
(6,000)
Movements in the fair value of the Charity's share of scheme assets were as follows:
2023
£
Opening defined benefit scheme assets
375,000
Interest cost and administration expenses
20,000
Actuarial losses
23,000
Benefits paid
(36,000)
Closing defined benefit obligation
382,000
Defined benefit costs recognised in the Statement of Financial Activities are as follows:
28,000
(15,000)
2,000
(10,000)
5,000
Experience on plan assets (excluding amounts included in net interest
cost) - gain (loss)
Experience gains and losses arising on the plan liabilities - gain (loss)
Effects of changes in the demographic assumptions underlying the
present value of the defined benefit obligation - gain (loss)
Effects of changes in the financial assumptions underlying the present
value of the defined benefit obligation - gain (loss)
Total actuarial gains and losses (before restriction due to some of
the surplus not being recognisable) - gain (loss)		 2022
£
10,000
(10,000)
(2,000)
(2,000)
2022
£
595,000
12,000
(197,000)
(35,000)
375,000
(291,000)
44,000
9,000
144,000
(94,000)
The present values of the defined benefit obligation, fair value of assets and defined benefit The present values of the defined benefit obligation, fair value of assets and defined benefit liability:
2023 2022
£ £
Fair value of plan assets 311,000 288,000
Present value of defined benefit obligation (382,000) (375,000)
Defined (liability) to be recognised (71,000) (87,000)

36

HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2023

28 OPERATING LEASE COMMITMENTS

Less than 1 year
Between 1 and 5 years
Greater than 5 years		 2023
2022
£
£
1,155
1,154
-
1,155
-
-
1,155
2,309

29 CONTINGENT LIABILITY

During 2023, the VAT status of a number of transactions between Harrison Housing and its linked Charities were reviewed and the Charity has approached HMRC for clarification in relation to the treatment of these transactions. As at the date of signing of these financial statements, it is not possible to quantify as a reasonable estimate any potential inflow/outflow from these transactions nor the probability of these inflows/outflows crystallising. Consequential no provision has been made in these financial statements in relation to these amounts.

37