Item 9, Appendix 1 HARRISON HOUSING IA Company Limited by Guarantee} TRUSTEES REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 Registered Charlty Number 1101143 Registerod Company Number 04932686 (England and Walesl HARRISON HOUSING CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 Pages Reference and Administrative Details of the Charity, its Trustees and Advisers Trustees, Report Independent Auditors. Rgport on Ihg Finanoial Stat8menls 16 Statement of Financial Activities 20 Balance Sheet 21 Statement of Cash Flows 22 Notes lo th8 Financial Statements 2344 HARRISON HOUSING REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31st DECEMBER 2024 Trustees Mr I C Morrison CBE. Chair of Trustees s S Hockett, Vice-chair of Trustees MT P Lautman Mr R Hicks ACA Mrs E McGinn Mrs J Nammuni Mr F Jalalpour Mr V Ochieng Iresigned 26th February 20251 Mr P McLoughlin lappoinled 2nd January 20251 Ms S M¢Hugh lappoinled 2nd January 20251 Mr P Green (appointed 26th February 20251 Company rggisterod numbor 04932686 Charity registered number 1101143 Registered office 46 Sl James'g Gardens London W114RQ 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 Solichors Devonshirt Solieilors LLP 30 Finsbury Circus London EC2M 7DT Investment Managers Investec Wealth & Investment 2 Gresham Slretl 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 HARRISON HOUSING TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 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 2024. The report is prepared in line with the Charities Act 2011 and Statement of Recommended Practice for Charities (SORPI 2019 and the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102). Company status The Charity was originally established in 1869 as an Almshouse under the name Harrison Homes. It was incorporated 151 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 De￿rnber 2003. The company was established under a Memorandum ofAssociation which sets out the objects and powers ofthe 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. For over 150 years Harrison Housing has been driven by a strong social purpose. The charitable 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. 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 Ihe underlying Trust Deed requirements. The Trustees give due consideration to the Charity Commission's Public Benefit guidance whèn making decisions about the Charity, its linked charities and how they operate. The linked charities are.. Christian Union Almshouses linked charity number 1101143-6 Plowis Trust linked charity number 11001143-1 Kifford's Almhouses linked charity number 1101143-4 Letitia Cornwall linked charity number 1101143-3 The Tonge Houses The Portal Home for Ladies linked charity number 1101143-7 Whicher and Kifford Almshouses linked charity number 1101143-2 Whicher's Almshouses linked charity number 1101143-5 Harrison Housing was registered with the Regul8lor of Social Housing IRSHI on 24 Feb 2004. The RSH sets Economic and Consumer Regulatory Standards that define the outcomes that landlords must deliver. Harri50n Housing sets its working practices lo meet these standards, including adopting Ihe National Housing Federation's Code of Governance 2020. As a registered provider Harrison Housing must also be a member of the Housing Ombudsman Scheme. anisational structure The directors oflhe company, who are also Charity Trustees for the purposes of Charity law and under the company's Articles are known as the Board, which must comprise of no fewer than six and not more than 12 Trustees. The members of Ihe Board are unpaid and bring a wide range of skills and experience relevant to the work of the Charity. The main Board meets at least four limes per year and there is a sub-committee, Finance, Risk &Audit, which meets on a quarterly basis, has a clearly defined Term of Reference and reports to the main Board. HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 OPERATING AND FINANCIAL REVIEW Principal Activities Harrison Housing and its linked Charities own 112 properties in London (see map below). Properties comprise self-contained flats and consisting of general needs housing and sheltered accommodation for independent and supported living. Larger sheltered housing sites have a Scheme Manager to provide on-site support al differenl limes of the working day, whilst residents living on smaller sites can obtain help and advice from the Charity's main office at Sl James's Gardens during normal working hours. There is an out of hours service for emergency repairs as well as a "Tunslall" telecare system in all the sheltered housing schemes. The residents of sorne housing schemes also benefit frorn regular visits by volunteer Visitors. In addition, Harrison Housing also manages Almshouses for other Charities. Ther8 is a full range of ServI￿S available lo other Almshouse Charities from a full management service to specific operational services such as managing voids. Current managed properties are located West Hackney, Waltham Abbey, Dulwich and Barnet. Leathefsellers Close. Bamel Frands Green House, Wallham Abbey Greenwoods. Rousdeft Sireel, Camden West Haekn8y House. Stoke Newinglon Christian Union, Crawford Place. Padthnglon Whicher & Kifford, Stanley Close. Vauxhall Si James Gardens. Holland Park Howls Trust, Shakespeare Road. Heme Hll Minford Gardens. Shepherd's Bush Portal Homes. Wesl NoTh¥ood The Dulwi¢h Almshouses, Duhvich 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 and are fully compliant with current health & safety legislation appropriate to the buildings and residents within them. Purpose, Vision and Values Purpose, vision and values are the core of any strategic plan. Why are we here, what should the organisation look like and what wi51 enable us to achieve our goals. During 2024, Staff and Trustees worked together to review and improve these. The aim was to lake the original charitable aims and modernise the wording lo make it more meaningful to current stakeholders. Our newly defined purpose and vision: O To provide well maintained and safe homes to support older people in housing and financlal need. O Supporting our residents to live independently. The values that sit alongside this, and drive organisational behaviour, have also been reviewed and HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 fom part ofthe appraisal process for staff and Trustees. They are summarised as "SHARP" values.. Supportiv8- supporting residents, colleagues and other slak8holders. Honest- be clear and open. do the right thing and spe8k up. Adaptable- embracing and welcoming change and challenge. Respectful - polite and courteous, celebrating and promoting diversity. Professional - using expertise and knowledge to assess risk and make informed decisions. Priorities and strategy The priority for 2024 has been to continue to slrenglhen and consolidate on the fundamental operational improvements which began in 2023. Adopting the philosophy of "Doing the basics brilliantly" has meant that we have seen significant operational improvements. More details can be found under the section Achievements and Performance. Looking forward. th8 priorities for 2025 and beyond fall under five main areas. Underneath each of these we have defined broad statements of what outcomes should be. Each year these will be targeted through th8 S8tting of k8y performance indicator5 IKPII that will measure the improvements mada. Residents: Improve engagement, communication and support through a wide range of communication channels to increase resident engagement annually. Using the feedback lo improve service delivery and incr8ase resident satisfaction. Employees.. Implement a performanc8 management framework to drive accountability and values alignment, targeting employee engagement to achieve 1000/0. Recruit and train professional staff with appropriate qualifications, skills and 8xperience, committed to learning and development. Flnancial Sustainability: Optimise income from properties while maintaining affordability for residents. Establish additional revenue streams (e.g. fundraising and grant funding}. Review and refine the investment policy for ethical consideration and risk-reward balance. Understanding costs and maintaining value for money. Reviewing the effectiveness of services provided. Slress testing the long-term business plan to plan now and for the long term. Assets.. Maintain compliance and safe homes 100 % of the lime. Develop a long-temi strategy lo ensure properties are accessible, fil for purpose, sustainable, and energy-efficient, identifying assets unfit for cost-effective upgrades for potential sale. Governance: Ensure compliance with the Code of Governance and in1rodu￿ robust tracking of strategic deliverables. Details of whal is deliverable each year will form part of the objectives for the Leadership Team, set by Trustees. As a people-focused business, our residents and employees are an overriding priority, but we do nol underestimate the importance of financial sustainabilily going forward in order to achieve our charitable aims, maintain our assets and to remain independent. Operating Environment The financial capacity of charities and housing associations continued to be stretched throughout 2024, due to the iTnpact of rising costs and available funding being reduced. There was also the increased regulatory expectation to improve homes and the additional costs of meeling new HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 consumer regulations. From April 2024, Registered Providers {RP's), including Harrison Housing, needed to d8monstrate compliance with the newly revised Consumer Standards. This was in addition to the existing Governan￿ and Financial Viability standards. The Housing Ombudsman and the RSH published Memorandum of Understanding in June 2024 which set out each bodies responsibilities and how they will work with RPS to make sure that Consumer Standards are met. As a RP we are required to demonstrate th8t we are effectively monitoring any residents, complaints, that our complaints process is compliant with the Housing Ombudsman's Complaint handling code and r8POrt annually lo the Housing Ombudsman as well as publish the results for residents. As part of the Consumer Standard, 2024 also saw the first sel of°Tenant Satisfaction Measures" (TSMS) being collected and published by the Regulator of Social Housing. The TSMS results highlighted that the biggest area for social housing providers lo improve was complaints-handling. Despite 700/0 of social housing renters reporting they were satisfied overall, 66 % of Ihern were dissatisfied with the way complaints were handled. 2024 was a year of historical political changes, increased signs of climate change and continued global unrest with the ongoing war in Ukraine and the escalating conflict in Gaza. In July 2024, a new Labour Government was elected. In October the Government introduced its first budget which aimed to kickstart new building of social housing, increasing supply by 1.5million homes over 5 years at the cost of £5 billion. The budgel also launched the consultation period on th8 new Rent standard. The proposal is an above inflation increase for a further five years starting in 2026. September 2024 saw the publication of the final report from the Grenfell Tower Inquiry. After a number of years of increased building safety legislalion, the inquiry did not make any further recommendations lo add more regulation on social housing providers. The Government's full response was published in early 2025. In November 2024, Presidenl Trump was elected for his second term in the White House. During the early part of 2025 some of the key policy decisions being made have had 8 negative impact on the Investment markets, meaning that returns enjoyed during the first three quarters of 2024 have not continued. Markets are recovering slowly but remain volatile. The Government has made significant changes to housing legislation that will take effect during 2025 which may have an impact.. Renters, rights bill - Changes the current grounds for possession under the Housing Act 1988. Awaab's Law- landlords will have a Set timescale in which to tackle hazards such as damp and mould. Pets - there will be a right to request a pet, which landlords cannol unreasonably refuse. Professionalisation of social housing managers - require housing qualificalions for the leadership leam of social housing providers. Procurement Act 2023 - sets out a new purchasing process for contracts over £214,904. The Housing Health and Safety Rating System {HHSRSI review is now expected in 2025. This will help ta inforrn the new Decent Homes standard which will also inolude Ihe new EPC standards for socia1 housing. Achievements and Performance The priority for the past 12 months has been to operate away from the issues experienced during 2023 by "Doing the basics brilliantly . Here are some of the big things we achieved in 2024= HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Safe properties - 100 /0 complian¢e with the 'big 7° Asbestos and Damp & Mould. An increased number of safety checks have been undertaken at schemes and Person-centred Fire Risk Assessments IPCFRA'S) were cornpleted for our most vulnerable residents. Ten cases of Damp or mould identified and repaired, or appropriate monitoring has been put in place. Significant investment in our homes - the replacement of balconies and boilers at St James,, roofs works at Sl James,, Minford, and Christian Union. Other significant works undertaken in managed properties. stock Condition Surveys - 1000/0 of extemal and 980/0 of internal areas of properties have been completed. A costed programme for cyclical and major works included in the 10-year business plan to ensure that all aspects of our properties meet Decent Homes standards. Day to day repairs completed efficiently and repairs standard circulated to residents. Eleven new complaints were received and responded to, with just one case escalated to'stage 2 of the new complaints procedure. Re-let ￿e1ve properties in the year. Completed the first Tenants Satisfaction Measures (TSM) survey and achieved an overall 68Q/o satisfaction. (Inside Housing published thg average for 203 landlords for 2023/24 at 69D/o.) Filed the 2022 and 2023 accounts for Harrison Housing and up to data filing for 811 of the managed Almshouse accounts. We have improved processes in many areas of the organisation to help us be more efficient in the future, including moving finance lo the integrated housing management system ISDMI and improving the Hum8n Resources Management System. Supplier invoices are being actioned within appropriate timescales and approvals ar8 significanlly easier with increased use of SDM. Written 10-year financial plans for all of the Almshouses we manage so they can be more certain about the future. Written or updated 18 policies. By using internal surveying resources rath8r than external consultants wherever possib18, we have managed to make significant savings on cyclical and major works for Harrison Housing and our managed Almshouses, as well as Completing some preventative work to Save costs in the fulure. Just some examples of savings made are.. Balconies and roof repairs at St James, cost £82k, previously quoted over £230k. Boilers at both St James, building cost £122k, quoted £160k. Quoted for replacement of parapets, chapel repairs and replacement paths at a managed scheme at a cost of £885k- following a drone 5uNey it was found only minor r8pairs required to one parapet at £57k. Gas, Electrical. Fire, Lifts, Legionella, Mana ement services Harrison Housing continued lo act as managing agenl to other Almshouse charities in the London and Essex areas. Full management ServI￿S were provided to Waltham Abbey Non-Educational Parochial Charities111 units), West Hackney Almshouse Charity {9 units) and The Leathersellers, Barnet Charity 122 units). Harrison HoLtsing also provided a Scheme Manager lo Dulwich Almshouses. The management contract with Smoothfields ended in May 2024 when the remaining properties were sold. Volunta services It is recognised thal all Trustees are volunteers and give their time freely, without which the Charity could not operate. There is also a °Visitors° service for residents that request it. This is provided free of charge and HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 provides seNices and assistance to those residents who may like addition help beyond the core serVi￿S provided by Harrison Housing staff. Visitors are not renumerated for their services. Fundraisin The Charity does not currently undertake fund raising activities during its normal course of operations. Financial Review Value for mone Vfm The Charily 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. There have also been system upgrades in the year to improve efficiencies, therefore reducing future costs. The Regulator of Social Housing requires all Housing Associations to follow a standard sel of calculations using the regulator's own metrics definitions to provide consistency across the sector. The results for Harrison Housing are set out below.. 2024 2023 5.60% 0.54% 0.00% 0.89% N/A NIA N/A N/A £6,805 £10,790 24.21¥. -17.060 2022 0.17% 0.00% NIA NIA £5,499 2021 1.130A 0.00% NIA NIA £8,033 -5.42UA -8.22% -21.22% -0.85% 2020 0.56% 0.00% NIA N/A £5,503 22.OOYo 5.08% Reinvestment New supply delivered Gearing EBITDA MRI Interest cover % Headline Social Housing costs per un Operating Margin (Social lettingsl Operating Margin (Overall) ROCE % -17.42% -51.52% -1.52% -5.93% -2.05% 0.48% The measures are still far from where we would expect them to be. In the narrative we hav8 compared lo the Global accounts wh8re appropriate. Reinvestment- Afler many years of under investment in properties we can now see that the reinvestment in homes is in line with the lower quartile spend expected in the global accounts at 50kn. We expect this level of reinvestment to continue over the next few years. New supply- In 2023 one office was turned into a flat, bul no other new supply has been delivered. In the next few years we would expect to see that figure increase as we convert more spaces into homes and look at land holding to see if development is possible, but it is unlikely to benchmark consistently with other providers as developing new properties is not a main strategy for Harrison Housing. Gearing and interest cover are not relevant measures to us as we do not have any loans, instead we hold investments which is more in line with the charilable expectations. Headline Social Housing Costs - these have decreased in 2024 but continue to reflect Ihe additional spend on staff costs in the year and higher than normal repairs spend. The upper quartile costs in the Global Accounts are £6,607, so we still have further improvements to make, but it is much more in line with our peers. Due to our size and client base. we would expect to be slightly more expensive than the average social housing provider, so we would not be expecting to improve this to the median or lower quartile benchmark. HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Operating margin is split between social and overall. To ascertain the social margin only direclly attribut8ble costs of operating the affordable housing is included. The total margin includes total income from all sources and all operating costs. The operating margin of social letting compares favourably to the global accounts median benchmark of 21 %. Overall margin is negative as we continue to make losses ov8rall and the s8Ctor Vfm measures do not 811ow for gains on investments to be included. The bLJdgel for 2024 shows losses decreasing as we make efficiency savings across the organisation, but significant improvements are still required. The lower quartile overall benchmark is 12.9D/o. Once again due to our size and client base we are not expecting to exceed this benchmark every year. Small organisations need lo benchmark an average over a period of time as, due to the cyclical nature of our work, any one year is not a good reflection of our achievements. The return on capital employed IROCEI is the surplus generated from assets. As we are currently making losses, this is reflected in these measures. The lower quartile is 2.1 % which for us would mean creating a surplus of £281 k. We believe that this is not yet achievable but are working towards this as a goal. 2023 and 2024 hav8 both been extraordinary years in Harrison Housing's hislory. Key Leadership roles became vacant during 2023 and were filled by interim staff and consultants for an extended period. Recruitment of a permanent Leadership Team took place in the first half of 2024 and th8 new Chief Executive started in May 2024. The Trustees and new Leadership Team have made significant improvements during 2024 as part of a wider improvement programme, but much is yet to be achieved to improve the value for money metrics. financial metrics In addition to the Vfm metrics we closely monitor some key financi81 measure5'. 2024 2023 2022 2021 112 112 iii iii 57 74 97.6% 98.1% 2020 iii Numberof properties owned Number of properties managed Average Occupancy Rate (%} 75 98.5% 75 97.4% 98.3% Management Contratt Income (£1 Percentage increase (decreosej 146,9Ct) -1% 149,(XJ3 145,786 -1% 147,144 37% 107,176 Income excludi ng investments (£1 Percentage increose 1,287,546 1,212,C63 1,137,234 1,073,217 1,076,153 6.2% 6.6% 6.0% -0.3% Direct Operati ng Costs Percentoge increose (decreose) 762, 178 1,208,428 {36.9%) 610,405 (31.5%) 891,662 46.0% 610,848 Support Costs Percentoge increose (decreose) 851,285 10. 7% 769, 131 12.4% 684,277 30.8% 523,018 400,909 30.5% Total Investments held [£1 Pe￿ntage in¢reose (det￿ose) 5,615,966 5,591,490 5,5fiJ,931 6,369,698 s,￿5,904 0.4% 0.5% (12. 7%) 7.9% Investment management fees1£1 Investmentmangementfees- % offund 36,797 35,531 0.6% 37,071 37,667 0.6% 35,112 Income f rom investments 165,819 15.1% 144,011 1.5% 141,920 I40,8￿6 0.6% 139.973 PercentrJge NncreLTse HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The number of properties managed over the past 5 years has dropped, however due to inflationary increases management fee income has stayed largely the same. During 2024 we reviewed the cost of running each management contract and have made some adjustments to staff employed so that savings can be realised in 2025. The average occupancy rate in 2024 was the lowest in five years. This was due to one flat being hard to let and a further property being used as a decant flat for some major works. No properties were let within our 21-day target. This is a key objective for 2025. Income excluding investments is the weekly maintenance contributions IWMCI, including service charges, net of voids. This amounted to £1,288k in 202412023= £1,212k) an increase of 6.2°/.. The WMC element of the charges increased by 9.7°/012023.'7.9 /.}. This is due to the timing of increases during the year as the WMC increased by 7.7 /0 from April 2024. Service charge levels were revièwed and increased in line with budgeted exp8nditure. Direct operating cos15 were significantly reduced from 2023, largely du8 to staff costs as temporary staff were replaced by permanent (see note 13). Included in this figure ar8 cyclical repairs at £73k (2023.. £123kl and day to day repairs of £297k12023.. £255kl. A significant spend on properties during 2024 was capital in nature as highlighted in the VIM measures above. In 2024 there has been significant work undertaken to survey all properties and to produce a revised schedule of works for the next 10 years and so we plan for day-to-day repair5 to reduce over the same period. The Charily's cash balances and investments generated slightly more income al £166k {2023.' £144k). As per Note 16 the net realised and unrealised income on investments for the year was £312k (2023.. £337kl, despite the drawdown of £400k in the year. Financial markets recovered further from the world 8vents and rising levels of inflation experienced in 2022, however by the end of 2024, going into 2025, they were once again more volatile, particularly the US markets. Goin Concern Trustees place reliance on the following factors when assessing the Charity's ability lo be able to continue to operate as planned for the foreseeable future.. The Charity is not funded by donations. Income from letting properties should remain stable and predictable, subject to any temporary voids. A significant proportion of monthly income is received from local authorities in the form of housing benefit, or universal credit, for residents and, under current benefit legislation, this is unlikely to change in the short term. Al the balance sheet date, the Charity held £352k in cash and short-term cash deposits (2023.. £500kl The Charity has an investment portfolio worth in 8xcess of £5.6m at the balance sheet date after £400k was withdrawn during the year to contribute to Gyclical and capital works12023: £5.6ml. The underlying investments could be realised within a short timescale if the need arose, with the prO￿ed$ received in cash. Major expendilure is generally attributable to capital items or cyclical repairs which in many cases can be delayed in the short tem should the ne8d arise. Further information on the financial performance of the Charity is contained in the accompanying financial statements. Investment Polic and Environmental Social and Governance A roach ESG The Investment Policy is reviewed annually in December. The overall objective of the investment policy for Harrison Housing is to achieve long term capital growih and income on a total return basis of CPI +30/0 Wlth income rolled up and invested into capital. HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 The Charity's main Wealth Manager, Rathbones (previously Investecl, operate a screening process on all investment prospects in respect of Environmental, Social and Governance considerations before investing the Charity's funds. The Trustees remain satisfied Ihal 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 it into disrepute. The Trustees are also aware of similar screening used by other Wealth Managers who invesl on behalf of the Charity. The 2024 investment returns from the main Rathbones investment portfolio for the 12 months to December 2024 was marginally lower than the 2023 return at 8.301. {2023'. 8.8D/o) and performed bolow the Benchmark Total Return of 9.550/012023.. 9.320/01. A review of the portfolio's performance is due to be undertaken in 2025. Harrison Housing and Christian Union Almshouses lak8 a medium risk approach to investing. For the Portal Home for Ladies investments, a cautious investment policy has been adopted to minimise risk. Investments are monitored and reviewed by Trustees on a regular basis. Reserves Polic For Harrison Housing, designated reserves are maintained based on guidance issued by the Almshouse Association for the cyclical maintenance and repair of the properties and ratified by Trustees annually. Details of these designated reserves and restricted funds appear in the notes to the financial statements (Note 2.141. Past policy approved by the Trustees created a Designatad 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 resetves and permanent endowments where required. The intended purpose is that this fund should not be used for any other purpose as it seek5 to reflect the Charity's investment in fixed assets. The Trustees consider it prudent to retain free reserves equivalent to 12 months expenditur8. Operaling costs for 2025 are forécast to exceed £1.6m, in addilion cyclical repairs and capital expenditure are budgeted at £550k. Unrestricted General Reserves were approximately £3.4m at the balance sheet date and were above the free reserves target. The Portal Home for Ladies designated reserves are maintained on the specification ofthe Trust Deed for expenditure on cyclical maintenance and extraordinary repairs of the Charity's property. There is also a permanent endowment fund which directly reflects the nel book value of the property transferred in 2017. The Christian Union Almshouses designated reserves are also maintained based on guidance issued by the Almshouse Association. They too have a permanenl endowment fund which directly reflects the net book value of the property held. The Trustees have reviewed the current reserves policies in Ihe light of current budgets and plans and consider that there are sufficient reseNes to meet running costs for the foreseeable future. Plans for Future Periods The 2025 budget forecasts a reduced loss of £105k {2024.. £287k). In addition to this, planned Cyclical Repairs and budgeted Capital Expenditure has been set at £550k (2024.. £51 Okl as the cyclical works and major repairs continue to be required after a preceding period of 5 years of reduced investment. There is an opportunity cost to this level of spending as further withdrawals from the investtnent portfolio are likely lo be required. Following the in-depth stock condition surveys carried OLrt in 2024, a draft 10-year plan of major and 10 HARRISON HOUSING TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 cyclical works has been created. During 2025 we will seek to understand how planned works may be timed to enjoy better value for money, whilst maintaining the investment portrolio, and therefore protecting the investment income. Against a background of organisational change and the ongoing challenging worldwide operating environment, the Charity has paused its plans for developing any significant numbers of new properties. The objectives have been set out for 2025 as.. Resldents: Create a Resident engagement strategy. Create or update resident focused policies. Undertak8 occupancy audits lo validate the accuracy of data held about our residents. Create a communications plan and create a new website. Employees: Review the slaff5ng structure to ensure the right people are doing the right things to deliver our 51rategy. Create and embed a Performance Manag8m8nt Framework, Learning & Development plan and staff induction training. Create an Equality, Diversity & Inclusion action plan, statement and policy. Flnanclal Sustalnablllty: Increase Income - including implement "formula rent., actively seek grant funding, explore fundraising opportunities and review historical arrears. Review the cost base - specifically review seNice charges in consullation with residents. Complete the work on VAT liability and put a VAT group in place for the linked charities. Review the Investment portfolio - understand fees, returns in relation to the benchmark. Create a 30-year business plan and stress test. Seek new management contracts and review existing contracts. Assets: Maintain compliance and safe homes 100'/0 of the time. Create or update health & safety and asset focused policies. Assess existing properties for accessibility and sustainability over the long-term Undertake viability analysis of current propet118S. Sell the land holding at BraGknell. Governance: Create Trustee Appraisal framework. Creale, access and improve the Risk Appetite Statement 8usiness continuity plan testing across all locations. Monitor and work lowards 100°/o compliance with the NHF Code of Governance Other: Increase the performance and use of the housing management systern to create more efficiencies. Tender for new IT service provider While these objectives are ambitious, and so may take longer than 12 months, we are determined to continue the Pa￿ and trajeclory of the improvements that slarted during 2024. HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Structure, Governance. Risk and Management As a registered provider we continue to be regulated by the Regulator of Social Housing IRSH). 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 2024 and there have been no material changes since that dat8. W8 also comply with the NHF Code of Governance12020 edition). Day-to-day management is delegated to the Chief Executive, who is responsible for ensuring that the Charity delivers the setvices specified and that key perfomiance indiGators are met. The Chief Executive is responsible for 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 Leadership Team responsible for the day-to-day operations of the three charities is made up of the Chief Executive, the Finance Manager and the Head of Operations. During 2024 the role of Head of Oper8tions was split between the former Asset Manager and the former Housing Manager. Remuneration for the Chief Executive is reviewed annually by the Finance, Risk and Audit Committe8, along with proposed salary rates for all members of staff. The Charity aims lo pay staff salaries which are fair and in line with rates paid by similar sized Almshouses and RPS. A salary benchmarking review will be undertaken in the later part of 2025. Trustees are not remunerated for their roles in the Charity. Recruitment and A ointment of Trustees Trustees are appointed by the Board. During the year Trustee were recruited to enhance the financial management skills of the Board. No Trustees retired. Succession planning for Trustees involves identifying required skills and recruitment is focused on tsrgeting individuals who can add those skills to the Board. Details of current Trustees and changes in the composilion of the Board are shown on page 1. Some Trustees also serve on the Charity's sU￿¢0MMittee or, from time to tim8, working groups in addition to their role on the main Board. Trustee Induction and Tralnln When new Trustees join they are invited to familiarise themselves with the Charity and the context within which it operales. 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 oul the operalional framework for the Charity in¢luding the Memorandum and Articles of Association. Resourcing and the current financial position as sel out in the latest statutory and management accounts. Future plans and objectives. I nformation from the various Charity Commission publications signposted through the Commission's guide"The Essential Trustee" togetherwith the Charity's governing documents, its Memorandum and Articles of Association and the latest published statutory financial statements. Related arties 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 Ihe related body that provides funding {i.e. Homes England), in onnection with capilal or refurbishment projects. Harrison Housing, The Christian Union Almshouses, Tonge Houses the Portal Homes for Ladies, Howls Trust, Whicher and Kifford Almshouses, Letita Cornwall, Kifford's Almshouses. and Whicher's 12 HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Almshouses are all registered charilies and are Linked Charities for the purposes of Part 4 (registration) and Part 8 (accounting) of the Charities Acl 2011. Harrison Housing Trustees Limited, a wholly owned subsidiary of Harrison Housing, was dormanl during the year and has never traded. Risk mana ement During 2024 a new robust Risk Management Policy was put in place. The Truslees have assessed the major risks to which the company is exposed and in particular those related to the operations and finances of the Charity and they are satisfied that systems are in place to mitigate exposure to the major risks. The principal governan￿ risks identified are as follows.. Undertaking activities outside of the objectives of the Charity: we mitigat8 this risk by seeking legal and other advice before venturing into new areas of operation. Failing to respond lo changes in legislation and best practice recomm8ndations'. we mitigate this risk by regularly reviewing policies and procedures in th8 light of changing requirements and engaging qualified professionals for compliance visits. Unable to fill Trustee vacanGies with persons possessing 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 il requires. Financial risk.. as inflation has increased operating costs significantly the Board is closely scrutinising costs and future plans that involve significant cash outlay. Life cycles of major components are also kept under review. On a quarterly basis the Finance, Risk & Audit Committee reviews the identified key risks for the organisation. They consider whether the idenlified plans for improvement are adequate and appropriate as well as considering the need for any further risk mitigating action. They also review the operational risks separately. Following this detailed review of Ihe risk register, it is also reviewed by the whole Board of Tnjstees. Internal controls The Trustees acknowledge their responsibility for the Charity's system of intemal controls, including intemal 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 lo both to the size and complexty of the Charily include: a. The appointment of 5Ultably experienced and qualified personnel to implement the systems set up, and the appropriate delegation of authority to offI￿rS, staff and consultants to achieve this. b. The establishment of detailed procedures for accounting and financial fundions 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 activilies and the financial position al any time. d. The formal control of any new commitment, development or aclivity by setting up an appropriate sub-committee of the Trustees to authorise. record and monitor the project and the transactions involved. 8. An annual assessmenl of Ihe Charity's risk appetite and a quarterly assessment of risk management, as described above. 13 HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 E ualit Diversi and Inclusion ED&1 ED&1 is a main principle of good governance running through both the National Housing Federation's {NHF) Code of Governance and Code of Conduct, as well as the Regulator of Social Housing's IRSH} Regulatory Standards. We aim to collect ED&1 data from residents and will strive to engage with a diverse range of residents through our Resident Engagement Strategy, which is to be developed during 2025. On the back of this work, we will Greate an ED&1 action plan, which will provide full transparency on how we are achieving our Strategy. During 2025 we will create the organi5ational ED&1 statement and new Board Diversity Statement. Statement of the Board's Res onsibilities 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 Practi¢e). Company law r8quires the Trustees to prepare financial statements for each finan¢ial year which give a true and f8ir view of the slate 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 stalemenls, 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 Statement of Recornmended PractiC8'. use the recommended accounting pr8Ctices as set out in Statement of Recommended Practice for Charilies (SORP) 2019 and FRS102 {the Financial Reporting Standard appli¢able in the UK and Republic of Ireland}. prepare the financial statements on th8 going con¢ern basis unless it is inappropriate to presurne that the charitable company will continue in operation. state whether applicable UK accounting slandards have been followed, subject to any material departures disclosed and explained in the financial statements. The Trustees are responsible for keeping adequale 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 prevenlion 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 oughl to have taken to make themselves aware of any relevant audit informalion and to establish that the auditors are aware of Ihat infomation. 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. 14 HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Members of the Board All Trustees ofthe Charity also become members ofthe 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. Ap OV8d th8 Board on 11 June 2025 and signed on its b8half by lan Chair rri$on BE 15 HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 Auditors Opinion We have audited the financial slatements of Harrison Housing ('the company,) for the year ended 31 December 2024 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 Practi￿1. In our opinion the financial statements.. give a true and fair view of the state of the charitable company's affairs as 8t 31 December 2024 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, Ihe Charilies Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. Basis for opinion We conducted our audit in accordance with International Standards on Auditing {UK) {ISAs IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the audit of the financial statemenls section of our report. We are independent of the charitable company in accordance wilh the elhic81 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 sufficienl and appropriate to provide a basis for our opinion. Conclusions relating to going concern In 8uditing the fin8ncial st8tements, we have concluded that the trust88s' use of the going Gon￿rn basis of accounting in the preparation of th8 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 Ihe trustees with respect to going concern are described in the relevant sections of this report. Other infomiation The other information comprises the information included in the annual report, other than the financial statements and our auditor's report Ihereon. The Irustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not Gover the other information and, except to the extent otherwise explicilly 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 16 HARRISON HOUSING TRUSTEES. REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 course of the audit or othewise appears to be malerially 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 statemenls themselves. If, based on the work we have performed, we conclude that there is 8 material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit: the information given in the trustees, annual report for the financial year for which the financial stalemenls are prepared is consislenl with the financial statements., and the trustees, annual report has 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 und8rstanding of th8 company and its environment obtained in th8 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 lo you if, in our opinion.. adequate accounting records have not b&en kept, or returns adequate for our audit have not been received from branches not visited by us., or the financial slatemenls are not in agreement with the accounting records and returns- or certain disclosures of trustees, remuneration specified by18w are not made., or we have not received all the information and explanations we require for our audil or the trust88s were not entitled to prepare the financial statements in accordance with the small companies regime and lake 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 8, th8 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 misstatemenl, whelher due lo fraud or error. In preparing the financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going Goncern, disGlosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to 5iquidate the charitable company or to cease operations, or have no realistic alternative bul 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 IUKI will always detect a material misslatemenl when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 17 HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 aggregale, they could reasonably be expected lo influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAS {UKI we exercise professional judgément and maintain professional sceptiGism Ihroughout the audit. We also.. Identify and assess the risks of material misstatement of the financial staternents, whether due to fraud or error, design and perform audrt procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate lo provide a basis for our opinion. The risk of not detecting a material misstatement resLJlting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intenlional omissions, misrepresentations, or the override of internal conlrol. Obtain an understanding of intemal control relevant to the audit in order to design aud¢t procedures thal are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the charitab5e company's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Ihe truslees. Conclude on the appropriateness of the trustees, use of the going concern basi5 of accounting and, based on the audil evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the charitable company's ability lo continue as a going concern. If we conclude thal a malerial uncertainty exists, we are required to draw attention in our auditor's report lo 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 Gompany to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, 8nd whether the financial statements represent the underlying transactions and events in a mann8r that achieves fair presentation. We communicate with those charg8d with governance regarding, among other matters, the planned scope and liming of the audil and significant audit findings, including any significant deficiencies in internal control that we idenlify during our audit. Explanation as to what extent the audit was considered capable of detècting 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, lo delecl material misstatements in respecl of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is delailed below. The objectives of our audit in respect of fraud. are,. lo identify and assess the risks of material misstatement of the financial slatemenls 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 underslanding of the legal and regulatory requirements applicable to the charitable company and considered thal the most significant are the Companies Act 2006. the 18 HARRISON HOUSING TRUSTEES, REPORT FOR THE YEAR ENDED 31 DECEMBER 2024 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 wilh 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 lo fraud and how it might occur, by holding discussions with management and those charged with governance. 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 thos8 charged with governance and obtaining additional corroborative evidence as required. There are inherent limitalions in the audit procedures described above. We arè less likely to become aware of instances of non-compliance with laws and regulations that are not closely related lo 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 resulling from error, as fraud may involve deliberate concealment by, for example, forgery or int8ntional misrepresentations, or through collusion. Use of our report This report is made solely to the charitable company's members, as a body, in accordance wilh Chapter 3 of Part 16 of Ihe Companies Act 2006. Our audit work has been undertaken so Ihat we might state to the company's members those matters we are required to stale 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 85 8 body, for our audit work, for this report, or for the opinions we have formed. Luke Holt (Senior Statutory Audilor} for and on behalf of Moore Kingston Smith LLP, Statutory Auditor Date:18 June 2025 6th Floor, 9 Appold Street London EC2A 2AP 19 HARRISON HOUSING STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING AN INCOME AND EXPENDITURE ACCOUNT} FOR THE YEAR ENDED 31st DECEMBER 2024 Unrestricted Restricted Endowment Total funds Funds Funds Funds Total funds 2023 Note 2024 Income from.. Donations 16,730 1.041,494 16,730 2,427 1.384,902 Charitable activities 415,434 1,456,928 Investments 142,466 23,354 165,819 144,011 Total Income 1,200,689 438,788 1,639,477 1,531,339 Expgnditurg on: Raising funds Charitable activitie8 30,860 5,937 36,797 35,531 9,10 1.560,040 197,644 48,456 1,806,140 1.891.242 Total Expenditu 1,590,900 203,581 48,456 1,842,937 1,926,773 Net gainslllcssesl on investments 16 289,114 23.354 312,468 337,481 Not Incomgllexpgndlturg) 1101,096} 258,560 148,4561 109,008 57,952 Transfer¥ be￿een funds 1142,770} 142,770 Actuarial gain51llossesl on defined benefit pension scherna 27 8,000 8,000 5,000 Net Movement In Funds 1235,8661 401,330 148,4561 117,008 152.9521 RECONCILIATION OF FUNDS Total funds brought forward 3,585,442 7,075,544 2,570,381 13,231.367 13,284.319 TOTAL FUNDS CARRIEO FORWARD 20 3,349,576 7,476,874 2,521,925 13,348,375 13,231.387 All income and expenditure derive from continuing activities. The Stalgmanl of Financial Activi118s includes all gains and losses recognised in the year. 20 HARRISON HOUSING BALANCE SHEET AS AT 31st DECEMBER 2024 2024 2024 2023 2023 Not? FIXED ASSETS Tangible assets Investments 15 16 7,572,393 5,630.966 7,398,425 5,606,490 13,203,359 13.004,915 CURRENT ASSETS Debtors.. amounts falling due within one year Investments Cash at bank 17 18 85,158 48,672 352,146 485,976 113,013 47,386 500,411 660.810 CREDITORS Amounts falling due wlthSn one year 19 1291,9431 1363,341) NET CURRENT ASSETSI(LIABILITIES} 194,033 297,469 TOTAL ASSETS LESS CURRENT LIABILITIES 13,397,392 13,302,384 Defined benefit pension scheme liability 27 49,017 71,017 NET ASSETS 13,348,375 13,231.367 CHARITY FUNDS Endowment funds Restricted funds Unrestricted funds 20 20 20 2,521,925 7,476,874 3,349,576 2,570,381 7,075,544 3,585,442 13,348,375 13,231,367 These financial statements have been prepared in accordance with the provisions applicable lo companies subject to the small companies, regime. The financial statements were approved by the Board of Trustees on 11 June 2025 and were signed on its behalf by.. rrison C {Chairl 21 HARRISON HOUSING CASH FLOW STATEMENT FOR THE YEAR ENDED 31st DECEMBER 2024 2024 2023 Cash flows from operating activities Net cash used in operating activities 1184,9201 {211.3701 Cash flows from investing activtties Investment income Purchase of tangible fixed assets Proceeds from sale of investments Purchase of investments Movement on investments cash account 165,819 144,011 1415,8701 179,7291 3,715,698 1,747,744 13,431,S601 11,635,096) 3,854 194.274 Net ¢a$h provided by investing activities 37,942 371.204 Net cash used In flnanclng Change In cash and cash equlvalents In tha year Cash and cash equivalents al the beginning of the year 1146,9791 547.797 159,834 387,963 Cash and cash equivalents at the end of th8 yaar 400.818 547,797 Reconclllatlon of net expendlture to net cash flow from opar•tSng actlvltlos 22 HARRISON HOUSING NOTES TO THE FINANCiAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 GENERAL INFORMATION Harrison Housing is a company limited by gu8ranlee and is register&d with the Charity Commission as an AlmshoLJS@ Charity (Charity Registered number 11011431, the Registrar of Companies (Company Registration Number 49326861 and with The Regulator of Social Housing as a private registered provider {Regulator of Social Housing A44101. The company was incorporated on 15 October 2003 and commenced its activitie5 on 1 April 2004, when the assets and liabilikn'es of The Harrison Homes were transferred to Harrison Housing. The mernber5 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 15 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 ststemenls. The nature of the Charity's operations and principal activities are detailed in the Trustees, Report. ACCOUNTING POLICIES 2.1 Basls of preparatlon of flnanclal statemènts The financial slalements have been prepared in accordance with the Charities SORP IFRS1021- Accounting and Reporting by Chari119s.' Statement of Recomrnended Practice applicablo to harilies preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS1021, the Financial Reporting Stsndard applicable in the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Harrison Housing meets the definition of a public benefit entity under FRS 102. Assets and liabilities are inilial5y recognised al historical cost or transaction value unless otherwise slated in the relevant 8¢Gounling policy. The financial slaternents are presented in ¥terling, which is the functional currency of the Charity, and are rounded to the nearest pound. 2.2 Golng concem 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 incom$ is paid by local Councils in the form of Housing Senefit which is reasonably securo. 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 light. Investments are valued at more than £5m which can be comparatively easily liquidated if an emergency was lo arise. The value of the investments would cover operating costs (excluding major capilallcyclical works} for approximately 3 years even with no income which in itself would be highly unlikely. For these reasons, the Trustee$ believe the charity to be a going concern for at least 12 month5 from the date of signature of these financial statements. 23 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 ACCOUNTING POLICIES (Continuodl 2.3 Income All income 15 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 IFRS 1021. 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 wl(h reasonable accuracy the investment in¢ome is reported net of these costs. 11 is included when the amount can be measured rgliably. Interest income is recogni5ed using the effective interest method and dividend income is recognised as the Charity's right lo receive P8ymenl 1$ established. Social Housing Capital grants are recognised only whgn 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 reslricled with dgprecialion on grant funded assets reducing this fund. 2.4 Expénditur• Expenditure 18 recognised once there is a legal or conslruclivg obligation to transfer economic benefit lo a third paty, il 15 probable that a transfer of economic benefits will be required in settlement and thg amount of the obllgation can be measured reliably. Expenditure is classified by actlvity. 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 lo that activity. Shared costs which contribute to more than one activity and support costs which are not attributable lo a single activity are apportioned be￿een those aclivilios on 8 basis consislenl with the use of resources. Central stsff co$t5 are allocated on the basis of lime spent, and depreciatlon charges allocated on the portion of the assevs use. Expenditure on raising funds Includes all expendilurg incurred by the Charity lo raise funds for its charllable purposes and includes costs of all fundraising activities events and non-charitab18 trading. Expenditure on charitable activities is incurred on directly undertaking th8 activities which further the Charity's objectives, as well as any associated support costs. All expenditure is inclusive of irrecoverable VAT. 24 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 ACCOUNTING POLICIES (Continued} 2.5 Taxation The Charity is considered lo meet the definition of a charitable company for UK corporation tax purposes. Accordingly, lo the extent that income and gains fall within Part 11 of the Corporation Tax Act 2010 and section 256 of the Taxation of Chargeable Gains Acts 1992, the charity is exempl from UK taxation on such income and gains provided they are applied for charitable purposes. 2.6 Tangible fixgd assgts and depreclatlon Tangible fixed assets costing £5,000 or more are capitalised and ￿cognised when future economic bengfits are probable and the cost or valua of the as5el can be measured rgliably. Tangible fixed assets are initially recognised at cost. After recognition, under the cost model. tangible fixed asset5 are measured al cost less a¢cumulaled depreciation and any accumulated impairment losses. All costs incurred to bring a tangible fixed asset into its intended working condikn'on should be included in the measurement of cost. Depreciation is oharged so as to allocate the cost of tangible flxed assets less their residu81 value over their estimated useful lives. The estimated useful live8 are as follows.. Buildings Roofs Windows Boilers Kitchen$ Bathrooms Nfjechanical elements Electrics Lifts Fixtures and fittings 100 years 70 years 30 years 15 years 15 years 15 years 30 years 40 years 20 years 10 years 2.7 Investments Flxed asset investments are a form of basic financial instrument are initially recognised at their transaction value and subsequently measured al their fair value using the closing quoted market price or the sh8re of the Nel Asset Value of the fund lif unlisledl. 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 gain5 or losses arise. 2.8 Debtors Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued al the amount propaid n8t of any trade discounts due. 25 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 ACCOUNTING POLICIES (Continuodl 2.9 Cash at bank and In hand Cash at bank and in hand includes ¢ash and short term highly liquid investments with a short maturity of Ihree months or less from the date of acquisition or opening of the deposit or similar account. 2.10 Loans and borrowlng Loans and borrowings are initially recogni5ed at the transaction price including transaction costs. Subsequently, they are measured al amortised cost using the effective interest rate method, lass impairment. If an arrangement constitutes a finance transaction it is messured at present value. 2.11 Llabllltles Liabili1185 and provisions are recognised when there is an obligation at the Balancg Sheet dale as result of a past ev&nl. it is probable th8t a transfer of economic ben8fil will be required in settlement and th8 8mounl of the settlement can be estimated reliably. Liabililes are recognised al the amount that the Charity anticipates it will pay to Settle the debt or the amount il has received as advanced payments for the goods or services it must provlde. Provisions are measured at the best estimate of the amounts required lo settle the obligatlon. Wher? the effects of the lime value of money is material. the provision is based on the present value of those amount5, di5count8d at the prg-lax discount rale that reflects the risks spacific to the liability. The undwinding of th& discount is recognised in the Slalement of Flnancial Activities as a finance cost. 2.12 Flnanclal Instrumonts The Charity only holds basic financial instruments. The financial assets and financial liabilitas of the Charity are as follows.. Debtors - trade and other debtor$ (including 8ccrued income) are basic financlal in5trumanls and are debt instruments measured al amortised cost as detailed in Note 17. Prepayments are not financial inslrumenls. Cash at bank - is classifed as a baslc financial instrument and is measured at face value. Liabililes tr8de creditors, accrua15 and other creditors will be classified as financial instruments, and are measured at arnortised cost as detailed in Note$ 19 and 20. Taxation and social security are not included in the financial instruments disclosure. Deforred income 18 not deemed lo be a financial liability, as in the cash settlement has already taken place and there is simply an obligation lo deliver charitsble services rather than cash or another financial inslrumenl. 2.13 Penslons The charity's employees are entitled to join TPT Retirement Solutions Ifomierly The Pensions Trustl- Social HDusing Pension Scheme, a multi-employer defined benefit scheme. The Charity has adopted the Financial Reporting Council guidance 'Amendmenls to FRS102 multi*mploygr defined benefit plans, and the Scheme has been accounted for as a defined benefit scham9 from 1 January 2019. 26 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 315t DECEMBER 2024 ACCOUNTING POLICIES Icontlnuedl Pension scheme assets are Tneasured at fair value and liabilities 8re mo88ured on an actuarial basis using the projected unil method and discounted at a rale equivalent lo the current rale of return on hlgh quality corporate bond of equivalent term and currency to the liabilities. The actuarial valuations are performed Iriennially and are updated al each reporting dale. The amount ¢harg8d to the operating surplus are the current service costs and gains and108s88 on settlements and curtailments together with any change in the nel defined benefit liability arising from omployee sèrvicè and arg included as part of staff costs. Nel interest on th8 d8fin&d benefit pension liability is shown as part of inlaresl p8yabl& in the Slalement of Financial Activities. Aclijarial gains and losses on re-measurement of the defin8d benefit pen8ion liability are reported within the Slalemenl of Financial Activities. 2.14 Fund accountlng General funds are unrestricted funds which are availabl8 for use al the discretion of the Trustees in furtherance of the gener81 objectives of the Charity and which have not been designated for other purposes. Designated funds comprise unre$lri¢1od funds that have been sel aside by the Trustees for particu18r purposès. The aim and use of each designated fund is sel out in the notes lo the financial stalemenl$. Roslri¢te& funds are funds which are lo be used in accordanc8 Wlth spacific restriction8 imp03ed 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 specifsc fund. The aim and use of each restricted fund is set out in the notes lo the financial slatemenls. Permanent endowment funds are fixgd assets which are held in trust for the benefit of the charity over the long term and are subject lo restrictions as regards how they may be used. The return arising from these assets are accounted for as unreslricled funds unle8S the donor has placed re8lriclions on the use of that income. Investment income, gains and 10$50$ ore allocated to the appropriate fund. 2.15 CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGMENT Estimates and ludgmonts are continually èvaluated and are based on historical oxpgrignce and olhar factors, including expectations of future evenlg that are bellevèd lo be reasonable under tho circumstances. Critical accounting estimates and assumptions,. Depreciation rates for tangible fixed assets Allocation of support costy Rent recoverable lor bad debll The Charity makes eslimales and assumptions concerning the future. The resulting accounting estimates and assumptions will, by definition, seldom equal the related a¢lual results. The estimates and assumptions that have a significant risk of causing a material adjustment to th8 ¢arrying amounts of assets and liabilities within the nèxt financial year are discussed below. Critical area3 of judgrnenl Useful economic lives of assets Defined Benefit Pension Scheme The Charty has an obligation lo fijnd the pension benefits of its employees who arg ¢urrgnt or past members of the pension scheme. The cost of the benefits and the present value of the obligation depand on a number of fa¢lors, including life expectancy, asset valuations, and the discount rale on corporate bonds. Management estimat&8 these factors in determining the net pension liability in the Balance Sheet. The assumptions reflect historical experien¢9 and cur￿nt t￿nds. See Note 28 for the disclosures relating to the defined benefit pension scheme. 27 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 DONATIONS Unrostricted funds 2024 Restricted funds 2024 Total fund$ 2024 Donations Grants 16,730 16,730 16,730 16.730 Unrostrlcted funds 2023 Restricted funds 2023 Total funds 2023 Donations Grants 2,427 2,427 2,427 2,427 INCOME FROM CHARITABLE ACTIVITIES- BY FUND Unrestrlcted funds 2024 Restrlcted funds 2024 Totsl funds 2024 Housing activities 1.041,494 415,434 1,456,928 Unrestrlctgd funds 2023 Restricted funds 2023 Total funds 2023 Housing aelivitles 993,069 391,833 1,384,902 28 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 INCOME FROM CHARITABLE ACTIVITIES- BY ￿PE 2024 2023 Houslng actlvltles Rental in¢ome receivable Service Charges receivable 903,287 424,147 823,287 413,623 Gross rental Income 1,327,434 1,236,919 Losses from void accommodation 139,8881 (24,846) 1,287,546 146,900 22,482 1,212.063 149,003 23,836 Management fee$ Other rental in¢ome Total 1,456,928 1,384,902 Rental income includes £62.36612023'. £61,268) restricted income from the Greenwoods Almshouse, £134.99812023.' £92,872) restricted lo Christian Union Almshousos. £70,38912023.' £60,103) restricted lo Tonge Houses, Portal Homes for Ladies and £70,38912023.' £58,550) restricted to Whlcher & Kifford. INCOME FROM INVESTMENTS Unrestrlctgd funds 2024 Restrlcted funds 2024 Total funds 2024 Dividend income Bank dep0811 and bond interest 133,085 9,381 23,354 156,439 9.381 142,466 23.354 165.819 Unrestrlcted funds 2023 Restrlcted funds 2023 Total funds 2023 Dividend incomg Bank deposit and bond interest 114,284 11,171 18,556 132.840 11.171 125,455 18,556 144,011 All of the Charity's income from investments arises from money held in stocks, shares and inlerg$t b$aring dgPOSIt accounts with Investec Wealth Management, M&G. Brown Shipley and CCLA. 29 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 EXPENDITURE ON RAISING FUNDS Unrostricted Restrictad funds funds 2024 2024 Endowment Funds 2024 Totsl funds 2024 Investment management fees 30,860 5,937 36,797 Unrgstricted funds 2023 Restricted funds 2023 Endowment Funds 2023 Total funds 2023 Investment management fee5 30,184 5,34T 35,531 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES- BY FUND Unre$trlctèd Restrlcted fundy fund$ 2024 2024 Endowmont Funds 2024 Total funds 2024 Houslng actlvltlos 1,560,040 197,644 48,456 1,806,140 Unrestrfcted Restrlctod funds funds 2023 2023 Endowment Funds 2023 Total funds 2023 Hou$lng a¢tlvltl 1,657,612 189,934 43, 696 1,891,242 10 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES- BY TYPE Activiti88 undertaken dirBCtIy 2024 Support costs 2024 Total funds 2024 Houslng actlvltles 954,855 851,285 1.806,140 Activities undertaken directly 2023 Support costs 2023 Total funds 2023 Houslng acttvltles 1,122,111 769, 131 1.891,242 30 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 10 ANALYSIS OF EXPENDITURE ON CHARITABLE ACTIVITIES- BY TYPE {CONTINUEDI Analysis of direct costs Total funds 2024 Total funds 2023 Direct staff costs Depreciation Routine repairs and maintenance Cyclical repairs and maintenance 392,791 213,629 296,861 72,526 440,115 210,362 254,903 123,637 975,806 1.029,018 Analysis of support costs Total funds 2024 Total funds 2023 Defined benefit pension scheme finance cost Support staff Costs Legal and other professlonal fee5 Governance costs Other staff costs Premise co815 Other costs Bank charg85 and int8r8sI payabla Bad debt write off 165,509 74,984 29,052 192,845 245,107 104,850 1,565 37,373 118,401 76,105 24,230 187,840 259, 780 T9,778 7,492 21,5Q6 851,285 769, 131 11 Not InGomo11gxpendlturg1 Is ststed after charglngl{credltlng1: 2024 2023 Rgnt payable under operaling18ase8 1,132 1,205 Audltorfs remuneratlon: Audit Accounts 29,052 24,230 29,052 24,230 12 AUDITORS. REMUNERATION 2024 2023 2024 underlloverl accrual audit and accounts 2024 accrual audit and accounts 5,453 29,052 50,499 24,230 34,505 74, 729 31 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 13 STAFF COSTS 2024 2023 Wages and salaries Social security costs Employers pension cost8 498,691 55,464 16,807 355,585 36,458 21,946 570,963 413,989 Particulars of employees The average numb8r of employees during the year, was as follows.. 2024 2023 Operating stsff- Full lime Operating $taff- Part lime Administrative staff- Full lime Administrative staff- Part lime 12 10 There were a number of temporary staff paid through agents during the y88r al a cost of £159,115 12023.. £294,733) The remuneration of key management personnal (including pension, bonus and employers national insurance) in the year amounted to.. 2024 2023 313,005 216, 777 Remungralion payablo lo tho high&sl paid employed Director in relation lo the year ended 31 Decembor 2024, excluding pension contributions was the Chief Executive al £61,635.7012023.. £87,155). They left in June 2023 and were replaced by the current Chief Execulive1£55.77118oth Chief Executives were members of the Social Housing Pension Scheme ISHPSI. There was on8 inl8rim Director employed as a consultant through lo May 2025 before taking on the Chief Execulieve position. They wore not paid through payroll, but acted as key management personnel. The amount of £56,450 was paid lo Alison Robgon-young Ltd. The number of employees IFTEI who received total remuneration in the following bands were.. 2024 2023 £70,000- £79,999 £80,000 - £89,999 14 Tru3t99'9 r9mungration and gXPgnsg3 During the year, no Trustees received received 8ny remuneration or other benefils12023'. nill. During the year ended 31 December 2024, Trustee expenses of £27.30 were incurred12023'. nill. 32 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 15 TANGIBLE FIXED ASSETS Freehold Fixtures and property fittings Office gquipment Totals COST Al Isl January 2024 Reclassification Additions Disp05als 10,532.112 345,188 19,933 10.897,233 415,870 182.1251 415,870 182,1251 Al 31st December 2024 10.865,857 345,188 19,933 11,230.978 DEPRECIATION Al 1 sl January 2024 Reclassification Charge for the year ESiminaled on disposal 3.292,856 190,666 15,287 3,498,809 195,943 53.853 15,380 2,306 213,629 {53,8531 Al 31st Decemb8r 2024 3,434,946 206,046 17,593 3,658,585 NET BOOK VALUE Al 31st December 2024 7.430,911 139,142 2,340 7.572.393 Al 3181 December 2023 7,239,256 154,522 4,647 7,398,425 The Trustees believe that the value of the housing properties is subslanlially in excess of cost, b8sed on reinstatement values for insurance purposes. In the event that any housing propety Should be sold. a liability m8y arise for the repayment. al least in part, of grants received. 1. Reclasslflcatlon of freehold land The Charity owns freehold land at New811 Hall which has begn rg-classified as a propety investment as il is held with a view to be sold at some future date. Currently the land has no planning nor devolopment rights and has been valued at £15,00012023.. £15,000) and it produces no income. The land has been included with investments in these financial statement5 and is valued al estimated market value. Accommodation In management At the end of the year accommodation in managernent for each cla$$ of accommodation was as detailed below. 2024 Numbor 46 123 2023 Number 46 126 General housing Supported housing and housing for older people Total 169 172 Owned and managed Managed, but not owned Total 112 57 112 60 169 172 33 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 16 FIXED ASSET INVESTMENTS 2024 2023 Quoted Invèstments- Falr value At 1 st January Additions Disposals (Lossesllgains 5.591,490 5,56Q,931 3.431,560 1,635,096 13,715,698) (1, 747, 744) 312,468 33T.481 At 3151 Oecember 5,619,820 5, 785. 764 Cash Movement {3,8541 (194,274 5,615,966 5,591,490 Freehold Investment Land Reclassification from tangible fixad assets 15,000 15,OC Total Valu• of Inv8strnants at 31 Docembor 5,630,966 5,606,490 Book valuo of quoted Investments At 31 December 4,597,416 4,597,416 All the fixed asset invgslments are held in the UK The the majority of quoted investments are managed listed securi1185 held with Inveslec Wealth & Investment and Browne Shipley. The balance of funds are held in M&G Charity Inveslrnenl 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 rèpresenting permanent endowment fund which formed part of Greenwood's Almshouses Trust and £2,669 for Christian Union Almshouse. The Charity owns freehold land al Newall Hall. The land is derelict and produces no income but is held for the long term with a view to maximising ils ultimate value. It has been included in these financial statements at esllmaled market value. Harrison Housing also has 8 £1 investment in its wholly ownod subsidiary Harrison Housing Trustees Limited. HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 17 DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Maintenance contributions - housing Less .' Bad Debt Provision Other debtors Prepayments and accwed income 87,779 {47,5511 2,119 42,811 83,274 f38.450J 23,892 44,297 85,158 113,013 18 CURRENT ASSET INVESTMENTS 2024 2023 Short lem bank depo81ts 48,672 47,386 48,672 47,386 19 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Trade cr8ditor$ Other laxalion and social security Olh8r creditors Accruals and deferred income 59.255 19.252 64,316 149,120 172,287 13, T51 31,603 145, T19 291,943 363,341 35 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDE[) 31st DECEMBER 2024 20 STATEMENT OF FUNDS Balonce at Balance at 31 D￿9Mber 2024 Statement of funds - urrent year January 2024 Transfers Inlout Galnsl IL055851 Income Expendlture D￿Ignated fund¥ Cyclical Maintenance Fund 1,317,323 169.4661 500.000 1,747.856 Rav8luation Reserve 15,000 15.000 1,332,323 69.466 500,000 1,782,858 General fvnds General ReBerve 2,324,285 1,200,689 11,521,434) 1656,9191 289,114 1.635,737 Pension Ra5erve 171,1661 14,149 8.000 149,0171 2,2S3, 119 1.200,689 297,114 1,521.434 642,770 1.586,720 Restrlcted funds Gr8enwoocSs Howls Trust Whicher & Kifford Fixed aSBet fund Port81 CUA 276,977 221,350 482,445 4,828,043 392,524 874,204 62,366 110,124 60,910 128,8431 151.0761 128.5931 300,266 258,166 503.648 5.050,469 422,844 941,478 122,2301 222,425 112,9871 122,2301 70,389 134,998 137,2111 157,8561 10,109 12.381 7,075,544 438,788 203,581 142,770 23.354 7.47e,874 P•mian•nt Endowm•nt fvndg Portal CUA 576,269 1,994,113 17,5721 140.8851 568,697 1,953,228 2,570,381 48.458 2,S21,925 Total funds 13,231,367 1,639,477 1,842,937 320,468 13,348.375 36 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMEIITS FOR THE YEAR ENDED 31st DECEMBER 2024 20 STATEMENT OF FUNDS Balance at Statemont of fuTrds- prlor yoar Balance at 1 January 31 Tran8for8 lfilout Galn81 ILossfrs1 De¢•rnbBr 2023 Incom8 Exp8ndltur 2023 D88lgnat8d fvnds Cydical Maintanance Fund 1,040,960 (123,6371 400.000 1,317,323 R8v81uatron Re8erve 15,000 15,000 t.055.960 (123,6371 400,000 1,332,323 G•n•ral lund• General Re8erwo 2,380,241 1, 120,951 {1,631, 1st) 135,319 318,925 2.324.285 Pen81gn Rgsglvg 187, 193) 71,027 5,000 171. 1661 2,293,048 1, 120.951 (1,631, 1511 146,345 323,925 2,253, 119 R•8trlct•d fund• GreenwDodB 253, 191 147.994 439.863 5.388.829 342,863 765,493 61,268 97.515 58,550 119,8871 (28. 1891 (17.9831 2,015 4,030 2,015 1560, 7861 2,351 4,030 371 276,977 221,350 482.445 4,828,043 392,524 874,204 Hows Trust Whi¢l)er & Kifford Fixed asBoI fund Port81 CUA 67,645 125,411 (26,5821 (35,6681 6,247 11.938 7,321,233 410,389 (128,2891 1546,345) 18.556 7.075.544 P•mi•nent Endowrnent tund8 Port81 CUA 582,709 2,031.369 (6,440? (37,256) 576,269 1,994, 713 2,614,077 (43,696) 2,570,381 Totsl fund 13,284,379 1,531,339 11,926, 773) 342,481 13,231,367 37 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 20 STATEMENT OF FUNDS ICONTINUEDI General funds The Pension reserve has been created lo separately identify the defined benefit pension scheme Designated funds Cyclical maintenance of the company's housing properties is carried out in 8ccordance with a defined programme. dealing with internal decorations (flats and communal areas), and external decorations every seven years, and fiv¢ years respectively. During the year, transfers have been made out of restricted funds and into the cyclical maintenanca fund to lop up the funds r8adily available to carry out these repairs. The annual transfer from income and expenditure shown above represents th? estimated annualised cost of the cyclical maintenance programme. Amounts transferred each year from the designaleLI reserves to income and expenditure account orrespond with the cost of cyclical maintenance carried out during the year. The balance on the cyclical maintenance designated r85erves al the year end represents the total of the aggregate annualised charges for proj8cls within each maintenance cycle. Restrlct8d lunds The Charity's reslricled resorves represent the net assets acquired under schemes sanctioned by the Charity Commission in June and July 2007 in relation lo Greenwood's Almshouses Trust and the Howls Trust. The net surplus or deficit for the period represents the surplus or deficit of income Sess expenditure attribulablg lo the Greenwoods Trust and the Howls Trust in respect of the period following their acquisltion. The restricted refurbishment reserve represènts funds specifically for the purpose of refurbishing the propertles at 1 and 2 Stanley Clo$e belonging lo Whicher and Kifford Almshouses. The Fixed Asset Fund reflects the amount that was paid lo conslruGI 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 tho ygar is to bring the value of the Fixed Asset fund, together with the total permanent 8ndowment8, to the same value as the net book value of the Tangible Fixed Assets {Note 15}. The Charity's restricted reserves include the nel SLtrplus of income less expenditure for Christian Union Almshouses and The Tonge. The Portal Home for Ladies in respect of the period following thelr acquisition. 38 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 Pennanent Endowrnent Funds Permanent endowment funds are capital funds which are held in trust for the benefit of the charty over the long term and are subject to restriction5 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 il is mentioned in the objects that the land should be retained by the Trustees lo for use for the objects of the Charity. This means the properties were considered to be Permenenl Endowments. Both properties were valued at the point of Acquistion and they are held 8t the net presgnl value. No further valuations have been required or taken place. 21 ANALYSIS OF NET ASSETS BETWEEN FUNDS Analysls of net assets between funds - Curront year Unrestrlcted Funds Restrlctod Endowment Funds Funds Total Funds Tangible fixed assats Fixed asset investments Current assets Creditors due within one year Creditors due in more than one year 16,000 3,488,106 187,430 {291,9431 149,0171 5,035,488 2,142.860 298.546 2,521,926 7,572.393 5,630,966 485,976 1291.9431 {49.0171 Total 3,349,576 7.476.874 2,521,925 13,348,375 Analysis of n8t assets botwoan funds - Prlor year Unrostricted Funds R6stat•d Restricted Endowment Funds Funds rotal Funds Tangible fixed assets Fixed assot investments Current assets Creditors due within one year Creditors due in more than one year 15,000 3,642,536 362,264 (363,341) (71,017) 4,813,044 1,963,954 298,546 2,570,38t 7,398,425 5,606,490 660,810 (363,341) (71,017) Total 3,585,442 7,075,544 2,570,381 13,231,367 39 HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024 22 Reconciliation of net movement in funds to net cash flow from operating activities 2024 2023 Net incomellLossl for the year las per the Statement of Financial Activities) 117,008 (52,952) Adlustments for.. Depreciation charges Loss on the sale of fixed assets IGainsllLosses on investments Investment income Decreasellincrgasel in debtors Increaselldecreasel in creditors Defined benefit pension scheme employer conlribulion8 pay8bl8 Defined benefit pension scheme finance cost Defined benefit pension scheme actuarial Igainslllosses 213,629 28,272 1312,468} 1165,819) 27,856 171,3981 118,9991 5,000 18,0001 208, 532 3,679 (337,481) f144,01 IJ 9, 592 119, 124 f18, 852) 6, 000 (5,000) Net cash used In operatlng actlvltlos {184,920J f211,370) 23 Analysls of cash and cash equlvalants 2024 2023 Cash in hand Shortterm bank deposits 352,146 48,672 500,411 47,386 Total c28h and cash equlvalents 400.818 547.797 24 Analysis of ngt dobt At1 January 2024 At31 December 2024 Cash flows Cash at bank and in hand Liquid investments 500,411 47,386 1148,2651 1,286 352,146 48,672 547,797 1146,979 400,818 40 **HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024** ## **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 (2023: £nil). ## **26 SOCIAL HOUSING GRANT** The total Social Housing Grant received for the Harrison Housing charitable company as at the 31 December 2024, was £4,645,318 (2023 - £4,645,318), made up as follows: |Capital grant
Revenue grant
**Total**
Grant relating to components disposed of as at 01/01/2024
Disposals during 2024|**£**
**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 2023. The actuarial valuation showed assets of £2,570m, liabilities of £3,263m and a deficit of £693m. 41 **HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024** ## **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
**2024**
2023
**%**
%
5.20
4.69
3.33
3.17
2.74
2.57
3.74
3.57
75.00
75.00| |---|---| The mortality assumptions adopted at 31 December 2024 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
Liquid Alternatives
Emerging Markets Debt
Risk Sharing
Insurance-Linked Securities
Property
Infrastructure
Real Assets
Private Debt
Opportunistic Illiquid Credit
Private Credit
Credit Relative Value
Investment Grade Credit
Cash
Long Lease Property
Secured Income
Liability Driven Investment
Currency Hedging
Net Current Assets
Total Assets|**At 31**
At 31
**December**
December
**2024**
2023
20.5
_21_
23.0
_23.4_
21.8
_22.2_
24.4
_24.9_
**At 31**
At 31
**December**
December
**2024**
2023
**£**
£
35,000
_25,000_
-
_6,000_
-
_10,000_
-
_10,000_
-
_5,000_
55,000
_-_
-
_5,000_
-
_18,000_
1,000
_2,000_
14,000
_12,000_
-
_29,000_
35,000
_-_
-
_12,000_
-
_14,000_
39,000
11,000
8,000
2,000
_4,000_
-
_9,000_
5,000
_8,000_
98,000
_140,000_
-
_1,000_
1,000
_1,000_
**304,000**
_311,000_| |---|---| The actual return on plan assets (including any changes in share of assets) over the period from 31 December 2023 to 31 December 2024 was £11,000. 42 **HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024** ## **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
Movements in the fair value of the Charity's share of scheme assets were a
**Opening defined benefit scheme assets**
Interest cost and administration expenses
Actuarial losses/(gains)
Benefits paid
**Closing defined benefit obligation**|**2024**
**£**
14,000
(17,000)
(2,000)
(5,000)
s follows:
**2024**
**£**
382,000
19,000
(11,000)
(37,000)
353,000|2023
£
_14,000_
_(18,000)_
_(2,000)_
_(6,000)_
2023
£
_375,000_
20,000
23,000
(36,000)
_382,000_| |---|---|---| Defined benefit costs recognised in the Statement of Financial Activities are as follows: |(3,000)
(6,000)
8,000
9,000
8,000
The present values of the defined benefit obligation, fair value of assets and defined benefit
**2024**
**£**
Fair value of plan assets
304,000
Present value of defined benefit obligation
(353,000)
Defined (liability) to be recognised
(49,000)
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)**|_28,000_
_(15,000)_
_2,000_
_(10,000)_
_5,000_
liability:
2023
£
_311,000_
_(382,000)_
_(71,000)_| |---|---| 43 ## **HARRISON HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st DECEMBER 2024** ## **28 OPERATING LEASE COMMITMENTS** |Less than 1 year
Between 1 and 5 years
Greater than 5 years|**2024**
**£**
**1,456**
**1,456**
**-**
**2,912**|**2023**
**£**
_1,155_
_-_
_-_
_1,155_| |---|---|---| ## **29 CONTINGENT LIABILITY** During 2024, 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. 44