2021-03-31-accounts

Financial Statements

2020-21

www.eastendhomes.net

Registered Company number 4516155

EAST END HOMES LIMITED

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

EAST END HOMES LIMITED

Financial Statements for the Year ended 31 March 2021

CONTENTS

	Page
BOARD MEMBERS	4
EXECUTIVE MANAGEMENT TEAM	4
REGISTERED OFFICE AND ADVISORS	5
STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021	6
FINANCIAL PERFORMANCE	9
VALUE FOR MONEY (VFM)	12
FINANCIAL AND BUSINESS PERFORMANCE	13
ANALYSIS OF TURNOVER AND OPERATING COSTS	17
OPERATING COSTS PERFORMANCE AND COMPARISON	18
VALUE FOR MONEY GAINS	19
VALUE FOR MONEY SELF-ASSESSMENT CONCLUSION	19
RISK MANAGEMENT	21
PENSION COMMITMENTS AND ASSOCIATED ISSUES	24
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EAST END HOMES LIMITED	28
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2021	32
ASSOCIATION STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2021	33
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021	34
ASSOCIATION STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021	35
CONSOLIDATED STATEMENT OF CHANGES IN RESERVES	36
ASSOCIATION STATEMENT OF CHANGES IN RESERVES	36
CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021	37
ASSOCIATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021	38
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021	39

BOARD MEMBERS

The Board Members who served from 1 April 2020 up to the date of approval of these financial statements were as follows:

Maureen McEleney Chair until resigned 23 September 2020 Kevin Moore Chair since 23 September 2020 John Kettlewell Vice Chair until 23 September 2020 Neil McAree Vice Chair; appointed 23 September 2020 Forhana Begum Helen Goody Margaret Higgins Carol Hinvest Emdadul Haque Jahangir Mannan Cllr John Pierce resigned 28 February 2021 Cllr Motin Uz-Zaman Kevin Whittle Marek Wiluszynski Paul Bloss Chief Executive John Henderson Managing Director Steven Inkpen Director of Special Projects and New Business David Opoku Head of Finance

EXECUTIVE MANAGEMENT TEAM

SECRETARY

Alexander Bailey

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EAST END HOMES LTD REGISTERED OFFICE AND ADVISORS

Registered office

3 Resolution Plaza London E1 6PS

Auditors

Beever and Struthers 15 Bunhill Row London EC1Y 8LP

Solicitors

Trowers & Hamlins Sceptre Court 40 Tower Hill London EC3N 4DX

Bankers

Barclays Bank plc 1 Churchill Place London E14 5HP

Legal status

Registered Company number 4516155

Registered Charity number 1107691

A Registered Provider of Social Housing with the Regulator of Social Housing number L4434

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

The Board is pleased to present its report and the audited financial statements for East End Homes Limited (East End Homes) for the year ended 31 March 2021.

The Association

East End Homes was established in 2002 as a community-focussed housing association to accept the transfer of homes from the London Borough of Tower Hamlets as part of their Housing Choice programme. The first transfer, Mile End East, took place on 11 April 2005, followed by St George’s and Island Gardens on 16 January 2006. Further transfers took place for Holland estate on 13 November 2006 and for Glamis estate on 8 October 2007.

Our stakeholders all have an interest in the financial performance of East End Homes:

• residents, who want good quality housing and environments

• London Borough of Tower Hamlets, who seek to optimise housing opportunities in the area and meet the needs of local people

• our funders, who want to be assured that their investment is secure

• our staff, who need to understand what we aim to deliver and how we are going to achieve it

• the regulatory body, the Regulator of Social Housing (RSH), who have an oversight role to ensure that we are taking a strategic overview of how we invest our resources to achieve our corporate objectives.

Structure, governance, and management

East End Homes is a company limited by guarantee, governed by its Memorandum and Articles of Association, and a registered charity, administered by a Board of Management. It is also registered with the Regulator of Social Housing as a Registered Provider of Social Housing.

East End Homes has adopted the National Housing Federation’s (NHF) Code of Governance (2015) and carried out a self-assessment review of compliance during the year which did not reveal any areas of noncompliance with the Code.

The Board of Management comprised 11 non-executive directors at the year end who are listed on page 4: currently comprising 4 resident members; 1 local authority member nominated by the London Borough of Tower Hamlets; and 6 independent members. The non-executive directors are responsible for the overall strategic direction of East End Homes.

Independent Board members are recruited via advertising or sourcing through professional bodies. Applicants are interviewed by a panel to confirm their suitability. Training and induction of Board members is provided by officers with support from external specialists where required, and is overseen by the Chief Executive.

East End Homes has promoted and developed extensive resident involvement in the management of its estates and in the overall governance arrangements of East End Homes. Tenants and leaseholders have significant representation on the main Board of East End Homes. The East End Homes Board believes that accountability to the local community and resident involvement in decision-making contributes strongly to the delivery of improvements in service provision and the achievement of corporate objectives.

As an organisation which was set up following extensive stakeholder consultation leading to stock transfers, East End Homes’ business priorities have always been shaped by the needs and priorities of our residents. This has included maintaining local housing centres as the frontline of service provision, and delivering substantial block and estate improvements while working to address the financial concerns of long-standing resident homeowners.

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

The Board has the authority to appoint or remove the Executive Management Team as required and has responsibility for agreeing their pay and remuneration. The Board also retains responsibility to appoint the directors of the Board of the subsidiary organisation East End Homes (Community Development) Limited, and receives minutes of all meetings of the subsidiary Board.

Principal activities

East End Homes is in business to provide local people with quality and affordable homes, sustainable estates, and effective and efficient local housing services. East End Homes’ principal activities are to effectively manage, maintain, and develop homes, and to improve and regenerate its estates. Currently it manages 3,788 homes within the London Borough of Tower Hamlets and 8 homes within the London Borough of Newham.

As at 31 March 2021, East End Homes held a 100% share (1 share of £1) in East End Homes (Community Development) Limited. The principal activity of this subsidiary is to generate funds from non-social housing activities to support East End Homes’ core activities.

Public Benefit

East End Homes is a Registered Charity and the Board are required under Charity Law and the Charity Commission’s guidance to consider the public benefit delivered by the Charity. The Charity meets its public benefit obligations through its social housing activities which are explained in the rest of the report. As a public benefit entity, East End Homes has applied the public benefit entity (‘PBE’) prefixed paragraphs of FRS 102.

Our Mission

To provide a local housing service which is efficient, gives value for money and meets the needs, priorities and aspirations of all residents.

Our Vision

To achieve the comprehensive regeneration of our estates and bring about a sustained improvement in the homes and quality of life for residents.

Investment Programme

In 2020/21 East End Homes continued to work on improving the quality of its housing properties and estates, and the acquisition of new homes, spending £17.2 million (2019/20: £16.4million) on new build properties and refurbishment works to existing stock. To date East End Homes has invested £199.2 million into our Major Works and New Build programme analysed in the table below.

	2020/21	2019/20	2018/19	2017/18
Capital Investment (Major works and New properties) (cumulative)	£199.2m	£182.0m	£165.6m	£159.5m
Investment in refurbishment to existing properties	£124.9m	£121.8m	£115.9m	£111.4m
Social rented homes meetingthe Decent Homes Standard(%)	95.07	100	100	100
Investment in new build properties	£74.3m	£60.2m	£49.7m	£48.1m
New homes added (rented, gross)	-	12	3	5
New homes added (rented, net of property sales)	0	0	(0)	(3)
Value of stock (EUV-SH)	£133.01	£133.01m	£132.26m	£132.98m
Indicative Aggregate Market value	£709.98m	£709.8m	£579.6m	£539.2m

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

As set out in the Corporate Plan 2019 -2024, East End Homes’ vision is to achieve the comprehensive regeneration of our estates. East End Homes total capital investment since 2005 to date is £199.2 million. The investment has been funded through £70.7 million of overage and land sale receipts, generated through East End Homes’ development partnership with Telford Homes; £64.5 million in loans; £16.5 million of DCLG gap funding; and £47.5 million, through the group’s internally generated surpluses.

To date £124.9 million has been invested in the refurbishment of our existing properties, ensuring that the majority of East End Homes’ social rented units are up to at least the Decent Homes Standard. East End Homes has developed a rolling programme of inspection and planned maintenance to ensure that the homes we manage continue to meet the standard, and provide a warm and comfortable home for our residents. In June 2021, as part of the business plan update process, the Board agreed an updated 5-year capital investment programme of £38.3 million running from 2021 to 2026. The investment programme includes a £15.25 million provision for fire safety works following recommendations made by the Hackett review and Grenfell (Phase 1) enquiry and subsequent consolidated advice and legislation on fire safety by the Government. The extent of the works to be carried out and associated costs are being ascertained through an ongoing programme of survey of East End Homes’ blocks.

A number of purpose-built community facilities have been created or refurbished as part of the regeneration works to the estates. East End Homes aims to facilitate the availability of a wide range of activities for our communities from these facilities, with some remaining directly managed and others operated in partnership with local organisations. The Board has set a KPI target to drive strong use of our facilities under direct management. During 2020/21, these facilities have unfortunately largely needed to be closed in accordance with Government guidelines, significantly restricting their use. Appropriate adjustments have been made and new Covid -19 safety measures introduced to support the safe reopening of our facilities from the summer of 2021.

In 2020/21, East End Homes invested a further £14.1 million in new homes for renting, bringing the total investment to date to £74.3 million. This investment has already brought into management a total of 313 brand new homes for rent under our capital investment programme, including a number of large familysized homes and adapted properties. Our partnership working with developers has also led to the creation of around 820 homes for private sales on estates managed by East End Homes, supporting the overall availability of housing within Tower Hamlets. The private properties on East End Homes estates contribute around £198,000 annually in ground rents to the East End Homes business plan.

East End Homes owns a small portfolio of 60 privately rented residential units, including 8 units in LB Newham. The private rented properties generated £1,064,000 of income in 2020/21, and produced a surplus of £778,000.

East End Homes has continued to invest in the acquisition of new homes. The new homes are being built through planning agreements as part of new housing developments at Orchard Wharf E14 and Eric Street and Violet Road E3, with delivery of the new homes expected between 2021 and 2024. East End Homes’ financial investment in these schemes has been supported by the £45 million funding facility provided by M&G Investments.

East End Homes inherited a portfolio of commercial units as part of the stock transfers from LB Tower Hamlets and this portfolio has been increased and enhanced as part of the estate-wide regeneration programme. In 2019/20 East End Homes had 82 commercial units in management which generated £1.403 million income and contributed around £512,000 to the group surplus. In 2020/21, the income from this area of activity dropped to £1.124m and contributed £286,000 to the group surplus. The significant drop in income in 2020/21, is mainly due to the Government lockdown in March 2020 as a result of the ongoing Covid-19 pandemic. The Board has maintained regular oversight of the performance of the commercial portfolio through updates provided by officers, and has agreed rent relief or similar mitigations to support the ongoing viability of our commercial tenants, where a need for

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

such support could be demonstrated. The Board has decided to set up a working group in 2021/22 to review the prospects and opportunities for our commercial portfolio in the context of the pandemic and other challenges the commercial retail sector faces in the immediate future.

Financial Performance

Statement of Comprehensive Income

East End Homes (including all group activities) achieved an overall surplus of £2.8 million in the year to 31 March 2021. The surplus achieved will enable the group to continue to reinvest in improving existing homes and building new affordable homes.

The key areas of income and expenditure contributing to the results for East End Homes are as follows:

Turnover : £21.3 million, down up £1.6 million from £22.9million in 2019/20. The change is primarily due to the following:

• £1.7 million was included within the turnover for 2019/20, being Greater London Authority (GLA) grant recognised as income, to match the costs incurred in removing the old defective cladding system at Denning Point and ongoing works to install a new cladding system.

• £0.850 million relating EeH contract with Thames Water regarding collection of water rates from tenants on behalf of Thames Water ceased on 31 March 2020 i.e. 2019/20. From 1 April 2020, Thames Water bill residents directly for providing this service.

• £0.300 million reduction in Commercial shop income , a direct impact of the ongoing Covid 19 pandemic and the resulting Government lockdown for the greater part of 2020/21.

Offset by:

• £0.950 million increase in rental income receivable from General Needs in line with the Rent Standard 2020 recently issued by the RSH, new additional rental income from intermediate rent and private rented properties and related service charges income from the provision of services to residents on East End Homes’ estates.

• £0.300 million furlough support grant received to mitigate the impact of the ongoing pandemic and the Government lock down.

Operating costs: £16.6 million, down £2.7 million from £19.6 million in 2019/20. The reduction in operating costs are mainly due to the following:

• 2019/20 operating costs included £1.7 million expenditure incurred in the removal of the old defective cladding and installation a new cladding system at Denning Point. The costs of these works were recognised as major repairs within operating expenditure, funded by a matching GLA grant which was recognised as ‘government grant taken to income’.

• £0.850 million charge from Thames Water regarding collection of water rates from tenants on ceased on 31 March 2020. From 1 April 2020 (2020/21), Thames Water bill residents directly for providing this service.

• £0.200 million savings in operating expenditure including depreciation of housing properties during the year 2020/21.

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

Loan interest costs: Reduced from £2.459 million in 2019/20 to £2.256 million, mainly as a result of the expiry of a long standing fixed rate loan, which has now converted to a quarterly low rate variable basis. East End Homes’ total loan debt at the yearend was £58.5 million (2019/20: £43.5 million). The full year impact of the additional £15.0 million loans drawn during the year is expected in next financial year 2021/22.

Disposals of Property : During the year a strip of land was disposed of which generated net proceeds of £5,000. There were no disposals of property under the preserved Right to Buy scheme, compared to one (1) in 2019/20 which yielded net proceeds of £0.150 million.

Movement in valuation Pension Schemes: In 2020/21 the net deficit in East End Homes’ pension schemes recognised in the statement of comprehensive income was £0.474 million.

Statement of Financial Position

East End Homes’ reserves have increased by £2.371 million to £78.685 million; arising from £2.845 million Statement of Comprehensive Income surplus generated in 2020/21, offset by a £0.474 million net deficit recognised on the Local Government Pension Scheme and Social Housing Pension Scheme .

Cash Flow

East End Homes’ cash balance at 31 March 2021 was £8.870 million (2019/20: £3.432 million), a cash increase of £5.438 million from 1 April 2020. The cash increase is the result of £6.276 million cash inflow from operating revenue activities, £15.0 million net loans drawn, £3.491 million government grant received , offset by £16.931 million cash spend on refurbishment works to existing housing properties and acquisition of new homes, £2.294 million net interest costs and £0.104 million spend on other fixed assets (mainly IT infrastructure costs ).

Treasury Management

At 31 March 2021 East End Homes had an agreed £94.0 million loan facility, £49.0 million with Barclays Bank plc and £45 million with M&G Investments, of which £38.50 million was drawn down from the Barclays facility and £20.0 million from the M&G facility. These loans are secured against the group’s assets.

The Board has approved a Treasury Management Policy to control the risks associated with its treasury activities. The policy sets out a clear framework of policies, procedures and delegated authorities, which require reporting on the operations of the treasury function to the Finance and Audit Committee and to the Board on a quarterly basis.

Borrowings and Loan Profile

At 31 March 2021, East End Homes had total loan debt balance of £58.5 million comprising £42.0 million on a forward fixed interest rate arrangement and £16.5 million on a variable Libor-linked rate.

East End Homes continues to manage its interest rate exposure by having a significant proportion of its loan debt at fixed rates of interest, reducing exposure to interest rate fluctuations due to wider macro-economic factors.

The Board has an agreed Treasury Management Strategy which underpins how East End Homes supports its Business Plan, and a Risk Appetite Statement which summarises the strategic appetite and approach to risk, setting ‘golden rules’ for the Board to assess performance. In keeping with the Board’s approach to risk, the debt profile has been managed such that forward fixed rate loans consistently form a majority of the loan portfolio. This, combined with a lower level of debt per unit than many peers, demonstrates the Board’s relatively low risk approach to pursuing its corporate objectives. During the year, the Board agreed to

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

progress the refinancing of a significant part of the Barclays loan debt, to increase capacity and to provide sufficient headroom in EeH’ s business plan to support the delivery of current and future investment programmes.

The East End Homes Board approved loan debt profile within the Business Plan is set out below.

Homes in Management

East End Homes has an asset management strategy which aims to deliver homes and facilities which are in good condition, of suitable design, and in the right locations, to meet the aspirations of our communities.

The number of homes in management at the year end was:

2020/21	№ at Year End (31 March 2021)
Social Rented	2,243
Intermediate Rent	9
Private Rented	60
Leasehold	1,484
Total	3,796

There were no additions to or disposals from East End Homes’ stock during 2021/22.

Strategic Asset Management

East End Homes has since the first stock transfer in 2005, undertaken an extensive stock refurbishment programme which has included internal and external regeneration works to improve all properties to the Decent Homes Standard. An Asset Management Strategy was adopted by the Board in 2018, setting out the strategic plan to maintain properties in management to a high standard. The Board agrees a rolling 5 year capital investment programme to support delivery of the identified maintenance work, informed by stock condition data. In June 2021 the Board agreed an updated investment programme to existing stock

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

of £38.3 million running from 2021 to 2026. This includes the £15.25 million allocated to works to improve the fire safety of blocks based on an ongoing programme of the extensive surveys. The Finance & Audit Committee of the Board monitors all ongoing capital works schemes at each quarterly meeting to ensure that expenditure is controlled.

East End Homes has developed a comprehensive Assets & Liabilities Register which compiles all of the group’s assets and liabilities, providing up to date information for stakeholders including the Board. The Board continues to keep the register under review through independent assurance checks.

The Board’s Development and Asset Growth Strategy sets out the key principles upon which East End Homes will pursue new business opportunities and the delivery of new affordable housing. A key element of this strategy is to reconfirm that while there is a focus on maximising the potential of our existing assets, East End Homes will only seek to progress potential regeneration schemes on our estates where it can be shown that the scheme will viably deliver an increase in the overall level of social rented homes. The Board’s attitude towards growth is also influenced by the adopted Risk Appetite Statement, which includes ten golden rules summarising the corporate approach to risk. The Board has agreed that East End Homes will continue to focus on activities within Tower Hamlets but that opportunities outside the borough may be considered on their merits and compatibility with the organisation. An example of this is the acquisition in January 2020 of 8 residential units at Barking Road in the London Borough of Newham, our first scheme specifically targeted at key workers.

All prospective new business or regeneration schemes go through a process of option appraisals to identify whether the key requirements of this strategy are delivered by the scheme, with the Board able to review this information in forming decisions on whether to progress. The current updated East End Homes’ Business Plan includes the Board approved acquisition of 257 new affordable housing units, including the Orchard Wharf and Eric Street development schemes which in total will provide up to 223 new affordable homes in Tower Hamlets. East End Homes’ financial investment in these schemes is supported by the existing £94 million funding facilities provided by Barclays and M&G Investments. Completion of these new homes is expected by 2024.

The decision to progress these development schemes, followed rigorous financial viability assessments , including stress testing of the Business Plan to provide assurance to the Board on the ability of the plan to withstand a range of adverse scenarios. In all, 17 separate scenarios covering a range of possible risks and combinations of risks identified by our Risk Register and/or associated with the scheme were considered by the Board, along with mitigation actions to be undertaken should any of these scenarios crystallise. The business plan which supports these developments is updated annually and approved by the board, including a review the results of stress scenarios and mitigation strategies.

Value for Money (VFM)

Defining and Delivering VFM

East End Homes’ approach to VFM is set out in its VFM Strategy, agreed by the Board in December 2020. This strategy describes how EEH seeks to deliver efficiency in pursuing its corporate objectives; the role of the Board; and EEH’s strategic framework for monitoring VFM activity and delivering compliance with regulatory requirements. The strategy for 2020-25 was updated to reflect the revised regulatory framework and code of practice; the increased emphasis on performance metric reporting; and developing challenges for the financial performance of the organisation such as expenditure on building safety. It also built upon the strategic objectives set out in the Corporate Plan for 2019-24.

This VFM Strategy continues with the same summary definition of VFM for EEH as:

“ The provision of homes and services, at the right cost, that are fit for purpose and of the right quality for the needs and aspirations of our residents and stakeholders.”

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

The VFM Strategy sets out the key responsibilities of the Board and where these are delegated to Committees, maintaining an ongoing process of monitoring and review. These are categorised into three main strands:

• Value for Money monitoring – delivering the Vision, Mission and corporate objectives, matching the priorities set out and the commitments made in the Business Plan

• Return on Assets – processes for reviewing how physical and human resources are used; and ensuring that EEH’s activities do not compromise its financial sustainability whilst delivering the resources to pursue its ambitions

• Social Value – identifying and reporting the additional benefits generated by EEH through its activities including the social, wider economic and environmental outputs.

VFM performance will be monitored through the reporting against the adopted strategic metrics – including those specified by the regulator and sector collaboration, and those specifically identified by the EEH Board to reflect its strategic priorities. Reporting of this performance also allows for comparison against appropriate sector peer groups, allowing the Board to assess the effectiveness of its approach and to understand differences, in the context of operational structures and decisions. In the wider context of performance, the Board will also consider satisfaction data which communicates the perspectives of stakeholders on the services and outcomes being delivered.

In addition, a revised Value for Money Register is being compiled, seeking to identify within each financial year both the cashable and non-cashable gains delivered within a year, achieved through a combination of cost savings and additional income, and seeking to capture any wider social value generated through initiatives undertaken.

Financial and Business Performance

The Board has reviewed the organisation’s performance against the key metrics identified by the regulator. In addition, the Board has identified its own key metrics for assessing its attainment of Value for Money, corresponding to key strategic objectives which for 2020/21 included the ongoing monitoring of Tenant satisfaction with overall services, value for money satisfaction and the Integrated Asset Management Contract covering responsive repairs and void works. The table on the next page summarises East End Homes’ performance against these metrics and compares this performance against other landlords mainly operating in London, and to the national median. The cost metrics are calculated using the number of affordable rented homes (but excluding the leasehold and market rented properties in management).

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

		East End	East End
				London	All
		Homes	Homes
	YEAR	2021	2020	2020	2020
	Homes in management at the year end	2,252	2,252	313,348	2,768,098
Metric	Reinvestment %: (Properties acquired + development of new homes + work to existing homes + capitalised interest + schemes completed)/GBV (Cost)	10.23%	10.65%	7.3%	7.2%
1
	New supply delivered %: Total social housing units delivered ornewly builtunits acquired/total housing unitsownedat period end(2019 FVA will show the split between owned and managed)	0%	0.18%	1.9%	1.5%
Metric
2a
	New supply delivered %: Total non-social housing unitsdelivered or newly built units acquired(Total non-social rental units owned, non- social leasehold units owned, new outright sale units developed or acquired)/Total social and non-social housing unitsownedat period end	0%	0.21%	0.74%	0.0%
Metric
2b
Metric	Gearing %: (LT+ST Loans + Finance Leases- cash and cash equivalents)/Tangible fixed assets: Housing properties at cost	28.99%	25.46%	46.9%	44%
3
	EBITDA-MRI %: Operating surplus less amortised gov’t grant less grant taken to income plus interest receivable less capitalised major repairs plus total depreciation/interest payable and financing costs less capitalised interest in housing properties	84.53%	66.53%	118.9%	170%
Metric
4
Metric	Headline social housing cost per unit- Inc. owned and managed butexc. leaseholdand fully staircased shared ownership homes	£6,090	£6,816	£6,107	£3,835
5
	Management CPU	£773	£876	£1,293	£1,062
	Service charge CPU	£911	£1,354	£999	£441
	Maintenance CPU	£1,713	£1,647	£1,579	£1,107
	Major repairs CPU	£2,693	£2,939	£1,047	£813
	Other social housing CPU	£0	£0	£1,189	£412
Metric	Alternative 6(a) Operating margin %: (Operating surplus from social housing lettings / Turnover from social lettings	28.37%	24.41%	27.8%	25.7%
6a
Metric	Alternative 6 (b) Operating margin %: (Operating surplus (overall) / Turnover (overall))	22.06%	15.85%	20.3%	23.1%
6b
Metric	Return on capital employed %: Operating surplus overall plus gain/loss of disposal of fixed assets plus share of operating surplus from JVs or associates/Total assets less current liabilities	2.44%	2.18%	2.5%	3.4%
7
EEH Strategic Metrics
	(Effectiveness)Tenant satisfaction with overall services: Measured usingSTAR methodology (everytwoyears)	76.99%	79.20% (2019)	74.0% (2019)	86%
EEH 1
	(Effectiveness)Satisfaction with the quality of a repair: Transactional survey on job completion	93.9%	97.4%	89% (2019 LBTH)	-
EEH 2
	(Efficiency)Number of repairs completed per property:Both in- dwelling and communal repairs, including repairs reported by leasehold units	3.69	5.06	-	-
EEH 3
	(Efficiency)Void performance:average re-let time (days)	30.5	19.9	21 (2019 LBTH)	25.06
EEH 4a
	(Economy)Void performance:rent loss due to void properties as a percentage of annual rent debit	0.30%	0.21%	0.74%	0.9%
EEH 4b
	(Effectiveness)Value for Money Satisfaction:Tenants believing that rents represent value for money (STAR) (everytwoyears)	73.93%	75.41% (2019)	78.1% (2019)	85.02%
EEH 5a
	(Effectiveness)Value for Money Satisfaction:Leaseholders believing that service charges represent value for money (STAR) (every twoyears)	31.22% (2020)	31.22%	33% (2019)	43.90%
EEH 5b

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

East End Homes’ investment in the existing housing stock and acquisition of new homes in relation to the value of the asset base was significant at 10.23% (2020: 10.65%) compared to the 2020 median for London (7.3%) and National (7.2%). This is a direct result of £17.2 million investment (2019/20: £16.4 million) made during the year in the refurbishment of the existing stock and acquisition of new homes. The investments in new homes in 2020/21 includes payments made towards the acquisition of new homes currently being built through planning agreements as part of new housing developments at Orchard Wharf, Violet Road, Eric Street, Corbridge Crescent and also the Roslin and Gordon House infill schemes. These schemes will deliver 257 new homes, with completion expected between 2021 and 2024 respectively.

East End Homes’ gearing ratio (which measures the proportion of its borrowing in relation to the value of the asset base) remains comparatively low relative to those of other Registered Providers. The additional £15 million net loan borrowings to support increased investment in existing and new homes during 2020/21 has resulted in a marginal increase in the ratio from 25.46% to 28.99%, but still low compared to the median ratio for UK wide Registered Providers of 44% and London of 46.9%.

The group achieved an overall operating margin (a measure of profitability of operating assets) of 22.06% in 2020/21 compared to 15.85% recorded in 2019/20. This compares favourably to that of UK wide Registered Providers of 23.1% and London of 20.3%. It is worth noting that the margin in 2019/20 was impacted by a £1.5 million reduction in operating surplus, mainly the result of an additional £1.2 million depreciation charge, of which £0.938 million is attributable to the residual cost of the previously capitalised cladding system at Denning Point, which has now been removed.

East End Homes’ interest cover ratio increased from 66.53% in 2019/20 to 84.53% in 2020/21. This is as a result if the increase in the group’s operating surplus and margin in the year, coupled with the reduction in the interest payments on borrowings during the year. The interest cover ratio is achieved is below the London and UK wide median of 118.9% and 170% respectively, but will improve in the coming years as new acquisitions are completed.

The headline social housing cost per unit has reduced from £6,816 in 2019/20 to £6,090 in 2020/21. The headline cost per unit in 2020/21 was affected by significant capital investments in the refurbishment of stock and estate wide regeneration in accordance with the Board’s identified objectives. The cost per unit compares favourably with the median cost of £6,107 per unit for London-based Registered Providers in 2020.

East End Homes operating expenditure during the year, under the Management and Service costs per unit headings has reduced. The comparison of the groups’ cost per unit under the headings of Management, Services and Maintenance to the median cost for London-based and National Registered Providers is distorted by the methodology for applied for costs allocation. In particular, a significant amount of expenditure for London-based Registered Providers has been allocated under the heading of Other social housing. East End Homes has allocated all costs to the relevant headings under Management, Services and Maintenance. Nevertheless the groups’ overall operating cost per unit (excluding major works investment) of £3,397 compares very favourably to the median cost of £5,060 per unit (excluding major repairs) for London-based Registered Providers in 2020. We will continue to explore new avenues to reduce operating costs whilst maintaining a quality of service in line with the adopted corporate objectives.

In addition to reporting against the nationwide sector metrics, the Board of East End Homes has identified a suite of performance measures to capture resident satisfaction and broader indicators of performance. A census survey of all tenants is conducted every two years and was carried out in the autumn/winter of 2020/21. This survey found that overall satisfaction had declined slightly from the previous response in 2018/19. This is in keeping with a broader pattern of slightly falling satisfaction as identified by our benchmarking and may also have been influenced by the impacts on service delivery

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

during 2020/21 arising from the Covid-19 pandemic. Satisfaction with the quality of repairs had also fallen slightly and this is likely due to some issues only being addressed as emergency ‘make safe’ works during the peak of the restrictions, with follow-on works to complete the repair issued thereafter.

Predictably, the time taken to re-let empty properties also increased during the year due to a period in which new lettings were suspended and the process of viewing becoming more difficult due to Covid-19 restrictions, and this is a pattern discernible across the sector. Rent loss associated with void properties increased slightly although remains below the average level for other landlords against whom we compare our performance.

There was a small decrease in the proportion of tenants surveyed who believed that their rent represented value for money, although this was within the margin of error to the result reported in 2018/19. Given the biennial surveying, leaseholders were not surveyed during 2020/21 and thus the figure given in the performance table above represents the performance recorded in 2019/20.

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

Analysis of turnover and operating costs

Activity					Turnover and operating costs	Turnover and operating costs	Turnover and operating costs	Turnover and operating costs	Turnover and operating costs
	2021/22(projected)				2020/21			2019/20		2018/19
	Units	Turnover	Op. Costs	Units	Turnover	Op. Costs	Units	Turnover	Op. Costs	Units	Turnover	Op. Costs
		£000	£000		£000	£000		£000	£000		£000	£000
GN properties (tenant rents and service charges)	2283	15,848	(12,980)	2252	15,550	(11,589)	2252	15,610	(11,835)	2249	16,110	(11,403)
Shared Ownership	2	200	(151)	-	-	-	-	-	-	-	-	-
Leaseholder service charges	1487	2,137	(3,807)	1484	2,070	(3,534)	1484	2,130	(4,330)	1484	1,998	(4,089)
Miscellaneous Lets	-	290	(202)	-	288	(204)	-	260	(185)	-	257	(183)
Private rented properties	60	1,014	(231)	60	1,064	(286)	60	1,003	(195)	50	926	(195)
Commercial properties	82	1,176	(785)	82	1,124	(856)	77	1,403	(891)	77	1,532	(767)
Amortised grants	-	589	-	-	556	-	-	556	-	-	556	-
Government Grant	-			-	-	-		1,672	(1,672)
Overage receipts and other miscellaneous income	-	390	(187)	-	661	(192)	-	309	(198)	-	303	(188)
Total	-	21,644	(18,343)		21,313	(16,661)		22,943	(19,306)		21,682	(16,825)

The above analysis of turnover and operating costs shows the turnover in 2020/21 reduced from £22.943 million to £21.313 million, whilst operating costs reduced from £19.306 million to £16.661 million. The significant change in income and costs is affected mainly by the recognition of the costs incurred in 2019/20 (£1.672 million) on the de-cladding and re-cladding of the Denning Point block. Although this work is covered by a GLA grant, the accounting treatment was to recognise the costs within major repairs under operating cost and the matching grant taken as income and recognised within the Turnover for the year.

The income from general needs properties (tenant rents and service charges) was £60k lower in 2020/21 than in 2019/20. Although rents generally increased by 2.7% in line with the Rent Standard 2020 issued by the RSH, the impact is not obvious due to the cessation on 31 March 2020 (2019/20) of East End Homes’ contract with Thames Water regarding collection of water rates from tenants on their behalf. From 1 April

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

2020, Thames Water billed residents directly for providing this service.

Operating costs for the social rented properties were £246k lower in 2020/21 than in 2019/20, affected by the cost drivers identified above, but are forecast to increase in 2021/22 due to the recent significant increase in the insurance premium relating to EEH housing properties.

The Board recently approved a shared ownership sales programme for 48 of the new build units due to be completed at the Orchard Wharf and Violet Road schemes. The net income from this area of activity is forecast at £49k in 2021/22 and circa £6 million over the next three years.

Income from commercial properties is projected at £ 1.176 million in 2021/22 a reduction of £356k from the high level if £1.532 million in 2018/19. The current ongoing COVID- 19 pandemic presents a very challenging operating environment for our shop owners and will undoubtedly impact on this area of income for East End Homes.

East End Homes’ portfolio of 60 private rented properties contributed £1,014k to the group’s turnover, with a surplus of £783k. Given the uncertainties around the London housing market and the impact of the Covid19 pandemic, conservative assumptions have been made for rental income for these properties with marginal reduction in turnover forecast for 2021/22.

Operating Costs Performance and Comparison

Cost per unit	2021/22 projected	2020/21 Actual	2020/21 projected	2019/20 Actual	2018/19 Actual
Management	765.0	773.0	924.0	876.0	885.73
Services	1,547.0	911.0	1,279.0	1,354.0	954.74
Routine maintenance	1,546.0	1,571.0	1,534.0	1,504.0	1,284.13
Planned maintenance	147.0	142.0	146.0	143.0	138.73
Operating Costs	4,005.0	3,397.00	3,883.0	3,877.00	3,263.33
Major repairs	156.0	157.0	167.0	337.0	169.85
Capitalised Major Works expenditure	2,313.75	2,536.0	3,784.0	2,602.0	2,015.12
Exceptional Fire SafetyWorks	109.5	-	-	-	341.84
Total Operating Costs	6,537.25	6,090.0	7,834.0	6,816.0	5,790.14
Bad debts	18.4	212.3	81.0	11.1	55.14
Depreciation of costs of Housing properties	1,645.0	1,448.0	1,466.0	1,849.02	1,321.92
Total	8,200.65	7750.30	9,381.0	8,676.12	7,167.19

Sources: East End Homes Financial Statements / Budget. Consolidated (group) figures

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

The data above relates to East End Homes’ operating costs in relation to its affordable rented properties only.

The Board regularly reviews East End Homes’ costs per unit and has identified the main cost drivers behind these. Some cost drivers such as being based in London are a consequence of our operating environment. Benchmarking of operating costs takes place including in the table within this report. Other factors reflect the Board’s corporate objectives, including continuing to make substantial investment in maintaining and improving the condition of the stock through a capital investment programme, and the commitment to operating a local office-based delivery structure which differentiates East End Homes from other, centralised RPs.

Value for Money Gains

The East End Homes Board sets an annual target for Value for Money gains, and through its Committee structures monitors the delivery of this target. In addition to an overall financial target for each financial year, there is second headline target which is monitored through the Value for Money Register, relating to the satisfaction of tenants and leaseholders with the value for money of their rents or service charges.

For several years up to an including 2019/20 the Board set a target with a view to delivering cost savings counteracting the impact on cost per unit of inflationary pressures. During 2019/20 it became apparent that it was no longer possible to continue to drive cost savings without making alterations to the service delivery model to which the Board has reaffirmed its commitment in agreeing the Corporate Plan for 2019-24.

In March 2020, the East End Homes’ Board agreed a revised model for an annual Value for Money target saving from 2020/21 onwards, calculated as 2% of budgeted operating expenditure (excluding depreciation charges). The Board also agreed that where additional new income sources are identified, they will be recognised as VFM gains.

		VFM Gains
2020/21	Target	Achieved	Variance
	£254,000	£205,000	(£49,000)
2021/22	Target	Current Forecast	Variance
	£249,000	£150,000	(£99,000)

The £205,000 gains achieved in 2020/21 were largely from cumulative vacancy saving in budgeted staffing costs and from the renewal on insurances. The target of £249,000 in 2021/22 is expected to be achieved through a combination of cost savings and additional income. This would include items such as voids and new properties being brought into charge earlier than budgeted for.

Value for Money Self-Assessment Conclusion

Completion of this review supports the Board in assessing its capacity to meet its funders’ covenants, regulatory requirements, and business plan targets, while maintaining a focus on delivering the identified corporate objectives. The Board aims to maintain its commitment to localised service delivery and high quality service provision, and to investment in maintaining and improving the quality of its stock, whilst keeping careful control of costs in order to optimise outcomes. The assessment provides some comparative context for East End Homes looking at relative performance for London-based peers and national averages.

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

The following table summarises our actions against the specific expectations of the RSH:

Specific expectations of the RSH	Summary of how East End Homes is meeting these
	expectations
Registered providers must: a. clearly articulate their strategic objectives b. have an approach agreed by their Board to achieving value for money in meeting these objectives and demonstrate their delivery of value for money to stakeholders c. through their strategic objectives, articulate their strategy for delivering homes that meet a range of needs d. ensure that optimal benefit is derived from resources and assets and optimise economy, efficiency and effectiveness in the delivery of their strategic objectives	In September 2019 the Board agreed its updated Corporate Plan for the period 2019-24, which elucidates the strategic objectives for this period. During 2020 the Board and its committees reviewed and updated the Value for Money Strategy to support the revised Corporate Plan and its objectives. The revised VFM Strategy was signed off by Board in December 2020.
Registeredproviders must demonstrate:
a. a robust approach to achieving value for money – this must include a robust approach to decision making and a rigorous appraisal of potential options for improving performance	The Board has agreed an approach to achieving VFM through its Value for Money Strategy 2020/25, which includes a focus on considering and assessing options for service delivery. All Board reports contain a standard section assessing VFM implications of the report and the recommended decision.
b. regular and appropriate consideration by the Board of potential value for money gains – this must include full consideration of costs and benefits of alternative commercial, organisational and delivery structures	This report includes a summary of the Value for Money gains as delivered in the previous year and the plans for the current financial year. Identification of gains, in keeping with the VFM Strategy and the Board’s strategic approach, covers both the delivery of cost savings and the potential identification of additional income streams.
c. consideration of value for money across their whole business and where they invest in non-social housing activity, they should consider whether this generates returns commensurate to the risk involved and justification where this is not the case	Performance information for non-core business activity is specifically disaggregated, for example rent collection on non-social units and commercial tenancies. Where appropriate the Board takes a close interest for example in consideration of challenges facing commercial tenancies during the pandemic. The financial implications of such activities are kept under review to ensure that any potential risks to the underlying viability of the group is understood and mitigated, and specific stress tests cover impacts on non-core activities to support this.
d. that they have appropriate targets in place for measuring performance in achieving value for money in delivering their strategic objectives, and that they regularly monitor and report their performance against these targets	The Board has agreed targets in relation to Value for Money performance monitoring which include financial data and qualitative metrics relating to stakeholder satisfaction. Performance against targets is included within this report.
Registered providers must annually publish evidence in the statutory accounts to enable stakeholders to understand theprovider’s:
a. performance against its own value for money targets and any metrics set out by the regulator, and how that performance compares to peers	As part of determining its strategic approach to Value for Money, the Board has agreed to report performance (including in this document) covering the standard sector metrics and additional areas specifically selected to reflect the Board’s objectives and the particular nature of the

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

Specific expectations of the RSH	Summary of how East End Homes is meeting these
	expectations
	organisation. This includes reporting comparative performance to an appropriate peer group.
b. measurable plans to address any areas of underperformance, including clearly stating any areas where improvements would not be appropriate and the rationale for this	Further to the ongoing quarterly performance monitoring processes, the Board reviews performance specifically against Value for Money metrics and considers its response where targets have not been met, with reference to wider socio-economic factors. For the avoidance of doubt, the fact of being more expensive on a cost per unit basis would not necessarily be the cause for remedial action, if the Board considered that this was the demonstrable outcome of decisions taken which reflected the Corporate Plan and its objectives, for example the ongoing delivery of services through a localised office structure.

Risk Management

The East End Homes Board has an approach to risk management which involves tailored risk appetites reflecting the nature of each category of risk – for example there is a more risk-averse approach to risks associated with health and safety than to those associated with reputational damage. The Risk Register is reviewed quarterly by the Finance & Audit Committee with updates and discussions referred to the Board. All risks are assessed using a methodology which considers the potential impact on the organisation, and the likelihood of the risk occurring. For each entry on the register mitigating controls are identified, and the residual risk is assessed using the same methodology. The scores are then graded on a RAG basis with thresholds determined by the theme’s risk appetite.

The 10 risks in the table below are these which currently have a ‘red’ assessment at the residual risk stage (as at August 2021). For each of these, further to the mitigating controls cited in the table below, the Board has been agreed an assurance plan which sets out the measures being taken by the organisation with a view to further mitigating or reducing the risk, seeking either to reduce the potential impact of the risk on EEH’s ongoing viability or the likelihood of the risk scenario occurring. The issues identified the Risk Register influence the scenarios modelled in stress-testing exercises, and the Board’s mitigation planning as a result of these stress tests.

#	Risk	MitigatingControls
1	Rent / service charge collection (from social housing tenants) below business plan assumptions including impact of welfare reforms and recession arising from Covid-19 pandemic	Ongoing tracking of collection against projected income by Finance team. Collection reviewed quarterly within Board KPI report. Staff receive training on HB changes, debt and welfare advice Partnership with Bromley by Bow Centre to provide Financial Inclusion support to both tenants and leaseholders Impacts of welfare reform under review and impacts incorporated into business plan assumptions including collection rates, void losses, bad debt provision and ancillary costs. Welfare Reform Action Plan in place to optimise payment collection and sustain tenancies. Annual stress-testing of forecast assumptions within Business Plan, plus ad hoc stress-testing in response to events and new identified risk factors. Internal audit completed during 2020/21 showing substantial assurance.

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

#	Risk	MitigatingControls
2	Reduction in Commercial Income	Ongoing monitoring of KPI and impact on future budgetary assumptions, adopting a cautious approach on recovery and income projections, and bad debt provisions Proactive promotion of retail opportunities seeking to maintain high levels of occupancy, including temporary alternate uses if applicable (Avoid taking on responsibility for business rates liabilities on empty commercial properties where possible). Flexible payment policies introduced to seek to allow commercial tenants to recover from a short-term cashflow issues. All tenants were contacted during pandemic-related lockdown regarding first two quarters of 2020/21. Board setting up working group focused on commercial portfolio and monitoringof arrears cases.
3	Pensions: - Increased employer contributions - Increased scheme deficit	Cost increases on pension contributions included in revised business plan and budgets. Annual provision for pension scheme deficits made against reserves within Financial Statements. Business Plan takes into account anticipated increased level of employee participation in pension schemes brought about through automatic enrolment. EEH Board has chosen to close access to existing Defined Benefit schemes for new staff members and introduce a Defined Contribution scheme with lower employer costs.
4	Inflation: - Headline inflation rate - Build cost inflation	Ongoing monitoring Stress testing of Business Plan with different inflation rates. Introduce fixed price contracts Deliver efficiency savings. Key areas of potential inflation – IT, Repairs and Staffing Costs have all had contractual arrangements which seek to mitigate inflationary pressures.
5	Funding & Development Costs: Insufficient funding availability to support major works and new business schemes	Adequate financial appraisal of new schemes to ensure financial viability Ensure funding is in place to support agreed programme. Ensure sufficient scrutiny by Board. Regular review of scheme progress to ensure costs stay within budget. Regular updates to EMT and F&A of 24 month cash flow to ensure sufficient funding. Market conditions kept under review. Exploregrant fundingopportunities whereverpossible.
6	Corporate Manslaughter and Corporate Homicide Act – failure to comply with responsibilities relating to fire safety, gas safety, asbestos, electrical safety, water safety and / or any other aspect of health and safety including staff safety.	Programme of Fire Risk Assessments in place and monitoring processes for actions arising from these. Gas Servicing arrangements closely monitored, included within KPIs along with other Health and Safety KPIs and maintained at 100% on a continuous basis. Complete regulatory return on health & safety issues Health and Safety Policy in place, working group established and meeting regularly and Policy reviewed and agreed annually by the Board. Health and Safety responsibilities outlined at Board Training Day. Internal Audit compliance reviews.

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

#	Risk	MitigatingControls
		Provision made in capital works programme for potential installation of sprinklers into EEH tower blocks.
7	ACM Cladding has potential to lead to serious safety issues as well as unforeseen costs and reputational damage.	Non-compliant cladding on Denning Point has been replaced. Managing Agent for St Georges Private Sale blocks confirms cladding has been removed from the 5 blocks which were eligible for grant funding. Preparations underway for the 2 further blocks not deemed eligible i.e. requires collection of contributions.
8	Introduction of new responsibilities under the Building Safety Bill and Fire Safety Act	Keeping abreast of the work to implement Hackitt findings. Fire suppressant systems introduced to all high-risk refuse areas. Reviewing MHCLG issued guidance, including on Fire Doors and Spandrel Panels and High Pressure Laminate. Fire Safety Reports presented to the Board. Action Plan arising from the above report to be regularly presented to the Board, including reference to the consolidated advice note, which requires the review of all blocks 6 storeys and above with external cladding with a view to determining the level of risk. Initial stage of External Wall System (EWS) review now completed. Intrusive reports being obtained for all applicable blocks. Additional budgetary provision of £15million to be allocated for capital expenditure following refinancing with priority to fire safety works.
9	A Management Company associated with an EeH estate fails to meet its legal or health and safety responsibilities. - causes death or injury - reputational damage	Introduction of EeH Managing Agent Policy and Procedure. An expanded performance return identifying health and safety – 6 monthly report to SRC and annual review meeting. Internal audit completed in January 2020 finding adequate assurance, agreed recommendations are being implemented. Allocation of additional resource to support engagement with management companies.
10	Safety risk associated with Community Buildings – not directly managed	Included within Fire Risk Assessment Plan and health and safety audits Support provided in terms of criminal activity. Emphasis on safety issues rather than financial issues in any discussions with the groups Continue to include premises in EeH FRA and work with groups to identify responsible parties who will implement recommendations.

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

Pension commitments and associated issues

East End Homes participates in two defined benefit (DB) final salary schemes, the Local Government Pension Scheme through the London Borough of Tower Hamlets, and the Social Housing Pension Scheme (SHPS). Entry to both of these schemes is now closed. East End Homes also participates in a defined contribution (DC) scheme under the SHPS. Since the introduction of auto enrolment in May 2014, all new entrants are now automatically enrolled into the SHPS (DC) scheme unless they specifically opt out. From 2012 to date, the number of East End Homes staff enrolled in a pension scheme has grown from 62 to 98 (90% of staff). The deficits in the defined benefit schemes in previous years have meant that East End Homes has to set aside a significant provision to cover the pension liabilities.

Since 2018/19 information became available to enable the Group to account for the Social Housing Pension Scheme as a defined benefit scheme. At 31 March 2021 £1.881 million (2020: £0.590 million) has been provided or recognised through the statement of comprehensive income and Provision for liabilities and Charges as the Groups share of deficit on the Social Housing Pension Scheme.

At 31[st] March 2021 East End Homes were notified of a pension scheme surplus of £1.894 million on the LGPS scheme, compared to the 2019/20 surplus of £1.048 million . The changes in the fair values of plan assets, defined benefit obligation and Net Liability in the LGP scheme for year end has been fully provided against the income and expenditure reserves under the heading of Provision for liabilities and Charges.

The table below shows East End Homes’ pension liabilities at the in each of the last three financial years, together with the levels of staff membership of the schemes in relation to the overall workforce.

	2020/21	2020/21	2019/20	2019/20	2018/19
	№ of members	Deficit/ (Surplus) £’000	№ of members	Deficit/ (Surplus) £’000	№ of members	Deficit £’000
LGPS	18	(1,894)	20	(1,048)	22	1,412
SHPS(DB)	37	1,881	38	590	41	1,168
SHPS(DC)	43	-	41	-	37	-
Total	98	(13)	99	(458)	100	2,580
Workforce	109		111		110

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

Directors

The directors who have served during the year are disclosed in page 4.

Internal controls

The Board is responsible for East End Homes’ system of internal control and for its review. The system of internal control is designed to manage rather than eliminate the risk of failure to meet corporate objectives. It can provide reasonable, but not absolute assurance against the possibility of material misstatement or loss.

During the year under review, East End Homes has operated an ongoing process of risk management that enables it to identify, evaluate and manage the significant risks it faces. The Board is responsible for reviewing and managing the process.

The Board of East End Homes annually reviews compliance with the Regulatory Standards published by the Regulator of Social Housing. The self-assessment was reported and agreed by the East End Homes Board on 16 June 2021. On completion of this self-assessment the Board agreed that East End Homes was fully compliant with the Regulatory Standards, including the Governance & Financial Viability Standard.

The Board has adopted a process to review and gain assurance on the effectiveness of the system of internal control by the following means:

• a full programme of risk management activity overseen by the Finance and Audit Committee;

• regular reports from management covering performance and financial matters including key performance indicators;

• the outcome of the internal audit programme and the annual external audit; and

• external review by the Regulator of Social Housing.

The system of internal control established by the Board consists of:

• sound corporate governance arrangements including the adoption of the National Housing Federation’s Code of Governance,

• long term strategic plans with specific targets and objectives;

• a system of controls over financial operations and budgetary control;

• policies and procedures that are commensurate with East End Homes' standing orders and

• contingency planning arrangements to ensure the security of data, the ability to recover computer systems and maintain services in the event of major interruption.

There are no significant internal control issues that require disclosure in the annual financial statements.

Fraud

East End Homes complies with the Regulator of Social Housing’s requirements on fraud. In particular, we have an Anti-Fraud Policy which was most recently approved by the Board in June 2018.

The policy requires a register to be maintained of all actual and attempted fraud. All such cases are reported to the Finance & Audit Committee and the Board. Currently, any fraud in excess of £5,000 must be reported to the Regulator of Social Housing, in the absence of which a ‘nil’ return will be submitted.

In the year to 31 March 2021, there were no actual or attempted fraud cases.

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

Statement of the Board’s responsibilities

The Board is responsible for preparing the Strategic Report of the Board of Management and financial statements in accordance with applicable law and regulations.

The Companies Act 2006 and registered social housing legislation require the Board to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and Company and of the income and expenditure of the Group and Association for that period. In preparing these financial statements the Board is required to:

• select suitable accounting policies and then apply them consistently;

• make judgments and estimates that are reasonable and prudent;

• state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

• prepare the accounts on the going concern basis unless it is inappropriate to presume that the Group and Company will continue in business.

The Board is responsible for keeping proper accounting records, which disclose with reasonable accuracy at any time the financial position of the Group and Company and enable it to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. It has general responsibility for taking reasonable steps to safeguard the assets of the Group and Company and to prevent and detect fraud and other irregularities.

We, the Board members, who are also the directors of the Company, who held office at the date of approval of these Financial Statements set out above, each confirm, so far as we are aware, that:

• there is no relevant audit of which the Group’s and Company’s auditors are unaware; and

• we have taken all the steps that ought to have been taken as directors in order to make ourselves aware of any relevant audit information and to establish that the Group’s and Company’s auditors are aware of that information.

This confirmation is given and should be interpreted in accordance with the provisions of Section 418 of the Companies Act 2006. In approving the Strategic Report of the Board of Management, we also approve the Strategic Report included therein, in our capacity as company directors.

Going concern

After making enquiries the Board has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in the financial statements.

In considering the financial position of the group the Board has reviewed the short term cash flow forecast, available bank facilities and 30 year business plan.

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EAST END HOMES LIMITED STRATEGIC REPORT OF THE BOARD OF MANAGEMENT FOR THE YEAR ENDED 31 MARCH 2021

Annual general meeting

The annual general meeting will be held on 22 September 2021.

Auditors

Beever and Struthers Chartered Accountants have expressed their willingness to continue as external auditors and a resolution to re-appoint them shall be proposed at the annual general meeting.

Approved by the Board on 22 September 2021 and signed on its behalf by:

Kevin Moore Chair

John Kettlewell Jahangir Mannan Member Member

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EAST END HOMES LIMITED REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EAST END HOMES LIMITED

Opinion

We have audited the financial statements of East End Homes Limited “the parent Company” and its subsidiary (“the Group”) for the year ended 31 March 2021 which comprise the Consolidated Statement of Comprehensive Income, the Association Statement of Comprehensive Income, the Consolidated Statement of Financial Position, the Association Statement of Financial Position, the Consolidated Statement of Changes in Reserves, the Association Statement of Changes in Reserves, the Consolidated Statement of Cash Flows, the Association Statement of Cash Flows and the related notes, including a summary of significant accounting policies in Note 1. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”.

In our opinion the financial statements:

• give a true and fair view of the state of the Group’s and the Company’s affairs as at 31 March 2021 and of the Group’s and Company’s profit for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006, the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019.

Basis for opinion

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

Conclusions relating to going concern

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

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

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

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EAST END HOMES LIMITED REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EAST END HOMES LIMITED (continued)

Other information

The Board is responsible for the other information. The other information comprises the information included in the Strategic Report of the Board of Management, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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 Strategic Report of the Board of Management for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the Strategic Report of the Board of Management 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 understanding of the Group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report of the Board of Management.

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

• adequate accounting records have not been kept by the parent, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:

• a satisfactory system of control over transactions has not been maintained.

29

EAST END HOMES LIMITED REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EAST END HOMES LIMITED (continued)

Responsibilities of the Board

As explained more fully in the Statement of the Board’s responsibilities set out on page 26, the Board is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

• We obtained an understanding of laws and regulations that affect the Group and Association, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws and regulations that we identified included the Companies Act 2006, the Charities Act 2011, the Statement of Recommended Practice for registered housing providers: Housing SORP 2018, the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2019, tax legislation, health and safety legislation, and employment legislation.

• We enquired of the Board and reviewed correspondence and Board meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the Board have in place, where necessary, to ensure compliance.

• We gained an understanding of the controls that the Board have in place to prevent and detect fraud. We enquired of the trustees Board about any incidences of fraud that had taken place during the accounting period.

30

EAST END HOMES LIMITED

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF EAST END HOMES LIMITED (continued)

• The risk of fraud and non-compliance with laws and regulations and fraud was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: laws related to the construction and provision of social housing recognising the nature of the Group’s activities and the regulated nature of the Group’s activities.

• We reviewed financial statements disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.

• We enquired of the Board about actual and potential litigation and claims.

• We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.

• In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.

Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or noncompliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

Use of our report

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

Michael Tourville ACA Date: 30 September 2021

(Senior Statutory Auditor)

For and on behalf of Beever and Struthers Chartered Accountants and Statutory Auditor 15 Bunhill Row London EC1Y 8LP

31

EAST END HOMES LIMITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2021

Notes Turnover 2 Operating expenditure 2 Gain / (loss) on disposal of property, plant and equipment (fixed assets) 5 Operating surplus / (deficit) 2 Interest receivable and similar income 6 Interest and financing costs 7 Increase / (decrease) in valuation of investment properties Surplus / (deficit) for the year before taxation 8 Taxation 9 Surplus / (deficit) for the year Initial recognition of multi-employer defined benefit scheme Actuarial loss/gain in respect of pension schemes Total comprehensive income for the year	2021 £’000 2020 £’000 21,313 22,943 (16,611) (19,306) 5 150
	4,707 3,787 24 57 (2,256) (2,459) 370 -
	2,845 1,385 - -
	2,845 1,385 - (474) 3,387
	2,371 4,772

The results relate wholly to continuing activities.

The financial statements on pages 32 to 67 were approved and authorised for issue by the Board on 22 September 2021 and were signed on its behalf by:

The notes on pages 39 to 67 form an integral part of these financial statements.

Kevin Moore Chair

John Kettlewell Jahangir Mannan Member Member

32

EAST END HOMES LIMITED ASSOCIATION STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2021

Notes Turnover 2 Operating expenditure 2 Gain / (loss) on disposal of property, plant and equipment (fixed assets) 5 Operating surplus / (deficit) 2 Gift aid received from subsidiary Interest receivable and similar income 6 Interest and financing costs 7 Increase / (decrease) in valuation of investment properties Surplus / (deficit) for the year before taxation 8 Taxation 9 Surplus / (deficit) for the year after taxation Initial recognition of multi-employer defined benefit scheme Actuarial (loss) / gain in respect of pension schemes Total comprehensive Income for the year	2021 £’000 2020 £’000 21,035 22,668 (16,586) (19,275) 5 150
	4,454 3,543 245 235 24 56 (2,256) (2,459) 370 -
	2,837 1,375 - -
	2,837 1,375 - (474) 3,387
	2,363 4,762

The results relate wholly to continuing activities

The financial statements on pages 32 to 67 were approved and authorised for issue by the Board on 22 September 2021 and were signed on its behalf by:

The notes on pages 39 to 67 form an integral part of these financial statements

Kevin Moore Chair

John Kettlewell Member

Jahangir Mannan Member

33

EAST END HOMES LIMITED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021 Company number 4516155

Notes Fixed assets Tangible fixed assets: housing properties 10 Investment properties 11 Tangible fixed assets: other fixed assets 12 Current assets Trade and other debtors - due within one year 13 - due after one year 13 Cash and cash equivalents Less creditors: Amounts falling due within one year 14 Net current assets / (liabilities) Total assets less current liabilities Creditors: Amounts falling due after more than one year 15 Provision for liabilities and charges 20 Total net assets Capital and reserves Revaluation reserve Income and expenditure reserve Total Reserves	2021 £’000 2020 £’000 168,057 154,130 17,577 17,207 1,304 1,386
	186,938 172,723
	5,009 5,520 503 503 8,870 3,432
	14,382 9,455
	(8,185) (8,707)
	6,197 748
	193,135 173,471 (114,463) (97,615) 13 458
	78,685 76,314 1,794 1,424 76,891 74,890
	78,685 76,314

The notes on pages 39 to 67 form an integral part of these financial statements

The financial statements on pages 32 to 67 were approved and authorised for issue by the Board on 22 September 2021 and signed on its behalf by:

Kevin Moore Chair

John Kettlewell Member

Jahangir Mannan Member

34

EAST END HOMES LIMITED ASSOCIATION STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2021 Company number 4516155

Notes Fixed assets Tangible fixed assets: housing properties 10 Investment properties 11 Tangible fixed assets: other fixed assets 12 Current assets Trade and other debtors - due within one year 13 - due after one year 13 Cash and cash equivalents Less creditors: Amounts falling due within one year 14 Net current assets / (liabilities) Total assets less current liabilities Creditors: Amounts falling due after more than one year 15 Provision for liabilities and charges 20 Total net assets Capital and reserves Revaluation reserve Income and expenditure reserve Total reserves	2021 £’000 2020 £’000 168,057 154,130 17,577 17,207 1,304 1,386
	186,938 172,723
	5,001 5,564 503 503 8,553 3,060
	14,057 9,127
	(8,113) (8,624)
	5,944 503
	192,882 173,226 (114,463) (97,615) 13 458
	78,432 76,069 1,794 1,424 76,638 74,645
	78,432 76,069

The notes on pages 39 to 67 form an integral part of these financial statements

The financial statements on pages 32 to 67 were approved and authorised for issue by the Board on 22 September 2021 and signed on its behalf by:

Kevin Moore John Kettlewell Jahangir Mannan Chair Member Member

35

EAST END HOMES LIMITED CONSOLIDATED STATEMENT OF CHANGES IN RESERVES

Balance at 1 April 2019 Surplus / (deficit) from Statement of Comprehensive Income Transfer to/from revaluation reserve Balance at 31 March 2020 Surplus / (deficit) from Statement of Comprehensive Income Transfer to/from revaluation reserve Balance at 31 March 2021 ASSOCIATION STATEMENT OF CHANGES IN RESERVES Balance at 1 April 2019 Surplus / (deficit) from Statement of Comprehensive Income (Restated) Transfer to/from revaluation reserve Balance at 31 March 2020 Surplus / (deficit) from Statement of Comprehensive Income Transfer to/from revaluation reserve Balance at 31 March 2021	Group Group Group Income and expenditure reserve £’000 Revaluation reserve £’000 Total reserves £’000 70,118 1,424 71,542 4,772 - 4,772 - - -
	74,890 1,424 76,314 2,371 - 2,371 (370) 370 -
	76,891 1,794 78,685
	Association Association Association Income and expenditure reserve £’000 Revaluation reserve £’000 Total reserves £’000 69,883 1,424 71,307 4,762 - 4,762 - - -
	74,645 1,424 76,069 2,363 - 2,363 (370) 370 -
	76,638 1,794 78,432

The notes on pages 39 to 67 form an integral part of these financial statements.

36

EAST END HOMES LIMITED CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

	Notes		2021	2020
		£’000	£’000	£’000	£’000
Net cash generated from operating activities	i		6,271		9,760
Cash flow from investing activities
Purchase of investment properties			-	(3,602)
Purchase of tangible fixed assets		(104)		(143)
Acquisition and construction of housing properties		(16,931)		(16,272)
Proceeds from sale of tangible fixed assets			5	292
Interest Received			26	73
Grant Received		3,491		3,177
			(13,513)		(16,475)
Cash flow from financing activities
Interest Paid		(2,320)		(2,424)
New loans secured		20,000		10,000
Repayment of borrowings		(5,000)		(5,000)
			12,680		2,576
Net change in cash and cash equivalents			5,438		(4,139)
Cash and cash equivalents at beginning of the year			3,432		7,571
Cash and cash equivalents at end of the year			8,870		3,432
Cash and cash equivalents comprise:
Cash at bank			8,870		3,432
Note i
Cash flow from operating activities
Surplus for the year			2,538		4,772
Adjustments for non-cash items:
Depreciation of tangible fixed assets			3,447		4,357
(Increase)/ decrease in trade and other debtors			510		10,690
(Decrease)/ increase in trade and other creditors			(1,803)		(13,448)
Increase/ (decrease) in provisions			279		(3,038)
Carrying amount of tangible fixed asset disposals			-		22
Revaluation of investment properties			(371)		-
Adjustments for investing or financing activities:
Proceeds from the sale of tangible fixed assets			(5)		(292)
Interest payable			2,256		2,459
Interest received			(24)		(57)
Government grants amortised			(556)		(556)
Net cash generated from operating activities			6,271		9,760

The notes on pages 39 to 67 form an integral part of these financial statements.

37

EAST END HOMES LIMITED ASSOCIATION STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

	Notes	2021		2020
		£’000	£’000	£’000	£’000
Net cash generated from operating activities	i		6,326		9,772
Cash flow from investing activities
Purchase of investment properties		-		(3,602)
Purchase of tangible fixed assets		(104)		(143)
Acquisition and construction of housing properties		(16,931)		(16,272)
Proceeds from sale of tangible fixed assets		5		292
Interest Received		26		72
Grant Received		3,491		3,177
			(13,513)		(16,476)
Cash flow from financing activities
Interest Paid		(2,320)		(2,424)
New loans secured		20,000		10,000
Repayment of borrowings		(5,000)		(5,000)
			12,680		2,576
Net change in cash and cash equivalents			5,493		(4,128)
Cash and cash equivalents at beginning of the year			3,060		7,188
Cash and cash equivalents at end of the year			8,553		3,060
Cash and cash equivalents comprise:
Cash at bank			8,553		3,060
Note i
Cash flow from operating activities
Surplus for the year			2,530		4,762
Adjustments for non-cash
items:
Depreciation of tangible fixed assets			3,447		4,357
(Increase)/ decrease in trade and other debtors			562		10,715
(Decrease)/ increase in trade and other creditors			(1,792)		(8,601)
Increase/ (decrease) in provisions			279		(3,038)
Carrying amount of tangible fixed asset disposals			-		22
Revaluation of investment properties			(371)		-
Adjustments for investing or financing activities:
Proceeds from the sale of tangible fixed assets			(5)		(292)
Interest payable			2,256		2,459
Interest received			(24)		(56)
Government grants amortised			(556)		(556)
Net cash generated from operating activities			6,326		9,772

The notes on pages 39 to 67 form an integral part of these financial statements.

38

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. PRINCIPAL ACCOUNTING POLICIES

East End Homes Limited is a registered company limited by guarantee under the provisions of the Companies Act 2006 registered in England with registration number 4516155 and is registered as a charity in accordance with the Charities Act 2011 registration number 1107691. It is also registered with the Regulator of Social Housing as a Registered Provider of Social Housing under the provisions of the Housing and Regeneration Act 2008 registration number L4434. The registered office is 3 Resolution Plaza, London, E1 6PS.

The group comprises the following entities:

Name Incorporation Registered/Non-registered East End Homes Limited Companies Act 2006 Registered East End Homes (Community Companies Act 2006 Non-registered Development) Limited

Basis of Accounting

The Group and Association’s financial statements have been prepared in accordance with applicable United Kingdom Accounting Generally Accepted Accounting Practice (UK GAAP), the Housing SORP 2018: Statement of Recommended Practice for Registered Social Housing Providers, the Companies Act 2006, the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019.

The financial statements are prepared on the historical cost basis of accounting as modified by investment properties and pension fund assets and liabilities held at fair value and are presented in sterling £’000.

The Group and Association’s financial statements have been prepared in compliance with FRS 102. As a public benefit entity, East End Homes Limited has applied the public benefit entity ‘PBE’ prefixed paragraphs of FRS 102.

Parent company disclosure exemptions

In preparing the separate financial statements of the parent company, advantage has been taken of the following disclosure exemptions available in FRS 102:

• Disclosures in respect of the parent company’s financial instruments have not been presented as equivalent disclosures have been provided in respect of the group as a whole

• The accounting relating to the Social Housing Pension Fund has not been consistently applied. The accounting policy is set out on page 40. The consolidated financial statements have applied Financial Reporting Exposure Draft 71 ‘Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland – Multi-employer defined benefit plans.

Basis of Consolidation

The consolidated financial statements incorporate the results of East End Homes Limited and its subsidiary undertaking East End Homes (Community Development) Limited, registered company number 05838745, as at 31 March 2020 using the acquisition method of accounting as required. Where the acquisition method is used, the results of subsidiary undertakings are included from the date of acquisition, being the date the Group obtains control. Intra-group transactions are eliminated on consolidation.

39

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

Turnover

Turnover represents rental income receivable, amortised capital grant, service charges, revenue grants from local authorities, the Greater London Authority and Homes England, management fees receivable and other income and are recognised in relation to the period when the goods and services have been supplied.

Rental income is recognised when the property is available for let, net of voids. Income from property sales is recognised on legal completion. All income is recognised on a receivable basis and sales of property are recognised at completion. Income is recognised on delivery of service. Intra-group charges are on an arm’s length basis and are eliminated on consolidation.

Sale of properties developed for outright sale are included in Turnover and Cost of Sales

Housing properties

Housing properties are properties used in the provision of social benefit purposes or for wider community benefits. They include socially rented units.

East End Homes account for housing properties using the historical cost model. Housing properties are initially recognised at the cost of bringing them to their present condition. Such costs include the cost of acquiring land and the buildings, cost of construction, directly attributable administration costs and expenditure incurred in improving or reinvesting in existing properties.

Social housing properties in the course of development are carried at their development costs to date less impairment.

Housing properties are stated in the Statement of Financial Position at cost less depreciation less impairment. Depreciation is charged on completed social housing properties, excluding freehold land on a straight line basis over the useful economic life of the component from the date of practical completion.

Under SORP 2018, the costs of housing properties is split between their land and structure costs and a specific set of major components which require periodic refurbishment or replacement. The costs of refurbishment of or replacement of such components is capitalised and depreciated over the expected useful economic lives of the components as follows:

Component	Useful economic life(years)
Land	Not depreciated
Structure	100
Roof	30
Lift	50
Bathroom	30
Kitchen	25
Electrical	30
Heating Systems	20
Windows	30
Doors	30

Major repairs expenditure is capitalised where the works undertaken increase the future economic benefit to be derived from the property. An increase in the future economic benefit can arise through either an increase in the rental income or a reduction in future maintenance costs or a significant extension in the life of the property. Where the works are either routine repairs or replacements with no incremental benefit then the costs are charged to the statement of comprehensive income in the period in which they are incurred.

40

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

Land and properties that are donated from local authorities or acquired at a discount to their fair values as a result of planning requirement under Section 106 Town and Country Planning Act 1990 are carried in the Statement of Financial Position at their fair value subject to the restrictions attached to those assets and not at the consideration paid by East End Homes. Donated land is also carried at the fair value at the time of the donation rather than at £nil value.

Sales of housing properties

Property sales are attributable to preserved Right to Buy or Right to Acquire sales. The gain or loss on disposal of housing properties is recognised in the Statement of Comprehensive Income at the date of transfer of title.

Other tangible fixed assets

Other tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is provided to write the assets down to their residual values over their estimated useful economic lives, which are as follows:

Motor vehicles	-	3 years
Office furniture and equipment	-	5 years
Computer equipment	-	3 years
Office buildings	-	50 years

Loan interest costs

Loan interest costs are calculated using the effective interest method of the difference between the loan amounts at initial recognition and amount of maturity of the related loan.

Loan finance issue costs

These are amortised over the life of the related loan. Loans are stated in the Statement of Financial Position at the amount of the net proceeds after issue, plus increases to account for any subsequent amounts amortised. Where loans are redeemed during the year, any redemption penalty and any connected loan finance issue costs are recognised in the Statement of Comprehensive Income account in the year in which the redemption took place.

VAT

East End Homes Limited and East End Homes (Community Development) Limited are registered as a VAT group. A large proportion of East End Homes’ income comprises rental income, which is exempt for VAT purposes and gives rise to a partial exemption calculation. Expenditure is therefore shown inclusive of VAT. Recoverable VAT arising from partially exempt activities is credited to the Statement of Comprehensive Income.

Taxation

The Association has charitable status and therefore is not subject to Corporation Tax on surpluses derived from charitable activities.

Operating leases

Rental paid under operating leases is charged to the Statement of Comprehensive Income as incurred.

Provisions

East End Homes only provides for contractual liabilities and pension commitments which exist at the Statement of Financial Position date.

41

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

Treasury management

East End Homes has adopted CIPFA’s Code of Practice for Treasury Management in the Public Services (2017) and the accompanying Guidance Notes for Registered Providers.

Rent Setting

East End Homes complies with the Regulator of Social Housing’s Rent Standard as a key component of the Regulatory Framework.

Going Concern

The Board have considered the impact of COVID19 on its operations and have concluded that there is a reasonable expectation that the Group and Association have adequate resources to continue in operational existence for the foreseeable future. No other significant concerns have been noted in the business plan updated for 2019/20. Therefore, the Group and Association’s financial statements have been prepared on a going concern basis which assumes an ability to continue operating for the foreseeable future.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements:

a. Development expenditure

The Group capitalises development expenditure in accordance with the accounting policy described on page 50. Initial capitalisation of costs is based on management’s judgement that development scheme is confirmed, usually when Board approval has taken place including access to the appropriate funding. In determining whether a project is likely to cease, management monitors the development and considers if changes have occurred that result in impairment.

b. Categorisation of housing properties

The Group has undertaken a detailed review of the intending use of all housing properties. In determining the intending use, the Group has considered if the asset is held for social benefit or to earn commercial rentals. The Group has determined that commercial properties are investment properties.

c. Impairment

The Group has undertaken an Impairment Review of non-financial assets.

Other key sources of estimation and assumptions:

a. Tangible fixed assets

Other than investment properties, tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

42

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

b. Revaluation of investment properties

The Group and Association carries its investment properties at fair value, with changes in fair value being recognised in the Statement of Comprehensive Income. The Group and Association engaged independent valuation specialists to determine fair value at 31 March 2020 and 31 March 2021. The valuer used a fair value technique as an estimate for which the asset should exchange on the valuation date between a willing buyer and a willing seller in an arm’s length transaction. The key assumptions used to determine the fair value of investment property are further explained in note 11.

c. Pension and other post-employment benefits

East End Homes participates in two pension schemes namely; Social Housing Pension Scheme (SHPS) and LGPS with London Borough of Tower Hamlets (LBTH).

The full pension deficit liability for the Social Housing Pension Scheme (SHPS) is disclosed as a liability. The operating costs of providing retirement benefits to participating employees are recognised in the accounting periods in which the benefits are earned. The related finance costs, expected return on assets and any other changes in fair value of the assets and liabilities, are recognised in the accounting period in which they arise.

The full pension deficit liability for the London Borough of Tower Hamlets (LBTH) LGPS is disclosed as a liability. The operating costs of providing retirement benefits to participating employees are recognised in the accounting periods in which the benefits are earned. The related finance costs, expected return on assets and any other changes in fair value of the assets and liabilities, are recognised in the accounting period in which they arise.

The cost of providing retirement pensions and related benefits is charged to management expenses over the periods benefiting from the employees’ services. The disclosures in the financial statements follow the requirements of Section 28 of FRS 102 in relation to multi-employer funded schemes in which the Group has a participating interest.

The cost of defined benefit pension plans and other post-employment benefits are determined using actuarial valuations. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long-term nature of these plans, such estimates are subject to significant uncertainty. In determining the appropriate discount rate, management considers the interest rates of corporate bonds in the respective currency with at least AA rating, with extrapolated maturities corresponding to the expected duration of the defined benefit obligation. The underlying bonds are further reviewed for quality, and those having excessive credit spreads are removed from the population bonds on which the discount rate is based, on the basis that they do not represent high quality bonds. The mortality rate is based on publicly available mortality tables for the specific sector. Future salary increases and pension increases are based on expected future inflation rates for the respective sector.

Impairment of non-financial assets

Reviews for impairment of housing properties are carried out when a trigger has occurred and any impairment loss in a cash generating unit is recognised by a charge to the Statement of Comprehensive Income.

Impairment is recognised where the carrying value of a cash generating unit exceeds the higher of its net realisable value or its value in use. A cash generating unit is normally a group of properties at scheme level whose cash income can be separately identified.

43

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

Impairment of non-financial assets (continued)

Following a trigger for impairment, the Group and Association perform impairment tests based on fair value less costs to sell or a value in use calculation. The fair value less costs to sell calculation is based on available data from sales transactions in an arm’s length transaction on similar cash generating units (properties) or observable market prices less incremental costs for disposing of the properties. The value in use calculation is based on either a depreciated replacement cost or a discounted cash flow model. The depreciated replacement cost is based on available data of the cost of constructing or acquiring replacement properties to provide the same level of service potential to the Association as the existing property. The cash flows are derived from the business plan for the next 30 years and do not include significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash flows and the growth rate used for extrapolation purposes.

Following the assessment of impairment, no impairment losses were identified in the reporting period.

Non exchange transactions

Non exchange transactions such as donations, grants from non-government sources and legacies are recognised in the comprehensive income statement when received or receivable and do not impose future performance related conditions. Where there are performance conditions the non-exchange transactions are recognised as liabilities until the performed conditions have been discharged.

Service Charge

Service charges are set at a level which should recover the cost of providing services at the schemes. Where costs have either been under or over recovered, the resulting surplus of deficit is recovered or repaid in future years. The Group operates variable service charges on a scheme by scheme basis in full consultation with the residents. Where variable service charges are used, the charges will include an allowance for the surplus or deficit from prior years, with the surplus being returned to residents by a reduced charge and a deficit recovered by a higher charge. Until these are returned or recovered they are held as creditors or debtors in the Statement of Financial Position.

Capitalisation of interest and administration costs

Interest on loans financing development is capitalised up to the date of the completion of the scheme and only when development activity is in progress.

Administration costs relating to development activities are capitalised only to the extent that they are incremental to the development process and directly attributable to bringing the property into their intended use.

Investment properties

Investment property includes commercial and other properties not held for the social benefit of the Group and are measured at cost on initial recognition, which includes purchase cost and any directly attributable expenditure. Investment properties are included in the Statement of Financial Position at their fair value; where, fair value is the amount that willing and informed parties are able to transact. The fair value is determined in accordance with the guidance notes on the valuation of assets issued by the Royal Institute of Chartered Surveyors. Movements in the fair values of investment properties are recognised in the Statement of Comprehensive Income. No depreciation is provided.

Short-term debtors and creditors

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in other operating expenses.

44

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

Social Housing and other government grants

Government grants are grants from government sources such as local authorities and Homes England and they are accounted for under the accruals model. Government grants relating to assets are amortised over 100 years, or if the grant is allocated to a component or a building with a lease then it is amortised over the corresponding life. The unamortised element is treated in the Statement of Financial Position as deferred income.

When Social Housing Grant (SHG) in respect of housing properties in the course of construction exceeds the total cost to date of those housing properties, the excess is shown as a current liability.

Grants relating to revenue are be recognised in income on a systematic basis over the period in which the social landlord recognises the related costs for which the grant is intended to compensate. Grants that becomes receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised as revenue in the period in which they become receivable.

SHG must be recycled by the Group under certain conditions, if a property is sold, or if another relevant event takes place. In these cases, the SHG can be used for projects approved by the Homes England and Greater London Authority. However, SHG may have to be repaid if certain conditions are not met. If grant is not required to be recycled or repaid, any unamortised grant is recognised as Turnover. In certain circumstances, SHG may be repayable, and, in that event, is a subordinated unsecured repayable debt.

Other grants

Other grants are any grants other than government grants. They are held as deferred income and released to the Statement of Comprehensive Income in line with the revenue recognition criteria using the performance model. Revenue is recognised when the performance conditions attached to the other grants have been fully met.

Financial Instruments

Financial assets and financial liabilities are measured at transaction price initially, plus, in the case of a financial asset or financial liability not at fair value through the Statement of Comprehensive Income, transaction costs that are directly attributable to the acquisition or issue of the financial asset or financial liability.

Financial instruments held by the Group are classified as follows:

• Financial assets such as current asset investments and receivables are classified as loans and receivables and held at amortised cost using the effective interest method. Cash is held at cost.

• Financial liabilities such as bonds and loans are held at amortised cost using the effective interest method.

• Loans to or from subsidiaries including those that are due on demand are held at amortised cost using the effective interest method.

All loans held by the Group are classified as basic financial instruments in accordance with FRS 102. They are measured at transaction price plus transaction costs initially, and subsequently at amortised cost using the effective interest rate method. Loans repayable within one year are not discounted.

Financial assets and financial liabilities at fair value are classified using the following fair value hierarchy:

• The best evidence of fair value is a quoted price in an active market.

• When quoted prices are unavailable, the price of a recent transaction for an identical asset, adjusted to reflect any circumstances specific to the sale, such as a distress sale, if appropriate.

• Where there is no active market or recent transactions then a valuation technique is used to estimate what the transaction price would have been on the measurement date in an arm’s length exchange motivated by normal business considerations

45

EAST END HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

2. GROUP –TURNOVER, OPERATING COSTS AND OPERATING SURPLUS

2021 Turnover Operating Costs £’000 £’000 Income from social housing lettings General Needs & Intermediate Rent 16,394 (11,743) Income from non-social housing activities Leasehold 2,070 (3,534) Commercial lettings 1,124 (856) Overage receipts and other income 661 (192) Private rented properties 1,064 (286) Surplus on disposal of fixed assets 21,313 (16,611) Turnover Income from social housing Lettings Rent receivable net of identifiable service charge Service charge income Other income from social housing lettings Government grants taken to income Amortised government grants Total turnover from social housing lettings Operating expenditure on social housing lettings Management Service charge costs Routine maintenance Planned maintenance Major repairs expenditure Bad debts Depreciation of housing properties Total operating expenditure on social housing lettings Operating surplus on social housing lettings –General Needs Void losses	2021 Turnover Operating Costs £’000 £’000 16,394 (11,743) 2,070 (3,534) 1,124 (856) 661 (192) 1,064 (286)	2020 Operating Turnover Operating Operating Surplus Costs Surplus £’000 £’000 £’000 £’000 4,651 18,098 (13,680) 4,418 (1,464) 2,130 (4,330) (2,200) 268 1,403 (891) 512 469 309 (198) 111 778 1,003 (207) 796 5 - - 150	2020 Operating Turnover Operating Operating Surplus Costs Surplus £’000 £’000 £’000 £’000 4,651 18,098 (13,680) 4,418 (1,464) 2,130 (4,330) (2,200) 268 1,403 (891) 512 469 309 (198) 111 778 1,003 (207) 796 5 - - 150
		4,707 22,943 (19,306) 3,787 Total Total £’000 £’000 14,470 14,053 1,253 1,665 115 152 0 1,672 556 556 16,394 18,098 (1,740) (1,972) (2,052) (3,050) (3,538) (3,387) (320) (322) (354) (760) (478) (25) (3,261) (4,164) (11,743) (13,680) 4,651 4,418 113 89
			18,098
			(1,972) (3,050) (3,387) (322) (760) (25) (4,164)
			(13,680)
			4,418
			89

46

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

2. ASSOCIATION -TURNOVER, OPERATING COSTS AND OPERATING SURPLUS

2021 Turnover Operating Costs £’000 £’000 Income from social housing lettings General Needs & Intermediate Rent 16,394 (11,743) Income from non-social housing activities Leaseholders 2,070 (3,534) Commercial lettings 1,011 (855) Overage receipts and other income 496 (168) Private rented properties 1,064 (286) Surplus on disposal of fixed assets 21,035 (16,586)	2021 Turnover Operating Costs £’000 £’000 Income from social housing lettings General Needs & Intermediate Rent 16,394 (11,743) Income from non-social housing activities Leaseholders 2,070 (3,534) Commercial lettings 1,011 (855) Overage receipts and other income 496 (168) Private rented properties 1,064 (286) Surplus on disposal of fixed assets 21,035 (16,586)	2020 Operating Turnover Operating Operating Surplus Costs Surplus £’000 £’000 £’000 £’000 4,651 18,098 (13,680) 4,418 (1,464) 2,131 (4,332) (2,201) 156 1,291 (888) 403 328 145 (168) (23) 778 1,003 (207) 796 5 - - 150	2020 Operating Turnover Operating Operating Surplus Costs Surplus £’000 £’000 £’000 £’000 4,651 18,098 (13,680) 4,418 (1,464) 2,131 (4,332) (2,201) 156 1,291 (888) 403 328 145 (168) (23) 778 1,003 (207) 796 5 - - 150
	21,035 (16,586)	4,454 22,668 (19,275) 3,543
Income from social housing lettings - General needs Rent receivable net of identifiable service charge Service charge income Other income from social housing lettings Government grants taken to income Amortised government grants Total turnover from social housing lettings Operating expenditure on social housing lettings Management Service charge costs Routine maintenance Planned maintenance Major repairs expenditure Bad debts Depreciation of housing properties Total operating expenditure on social housing lettings Operating surplus on social housing lettings – General Needs Void losses		Total £'000 14,470 1,253 115 - 556 16,394 (1,740) (2,052) (3,538) (320) (354) (478) (3,261) (11,743) 4,651 113	Total £'000 14,053 1,665 152 1,672 556 18,098
			(1,972) (3,050) (3,387) (322) (760) (25) (4,164) (13,680)
			4,418
			89

47

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

3. DIRECTORS’ EMOLUMENTS – GROUP AND ASSOCIATION

The emoluments of the Chief Executive, Managing Director and Executive Management Team were £464,176 (2020: £413,822) of which the emoluments (excluding pension contributions) of the Managing Director was £120,316 (2020: £115,701). The emoluments of the Chief Executive were £101,829 (2020: £97,064).

The Managing Director is an ordinary member of London Borough of Tower Hamlets pension scheme. No enhanced or special terms apply.

None of the Members of the Board received any emoluments during the year and reimbursed expenses during the year amounted to £474 (2020: £1,792).

4. EMPLOYEE INFORMATION

The average number of persons employed during the year expressed in full time equivalents (35 hours per week) was:

Full time Part time Staff costs (for the above persons) Wages and salaries Social security costs Other pension costs	2021 88 12 100 GROUP 2021 £’000 4,046 403 759 5,208	2020 86 13
		99 GROUP 2020 £’000 3,801 395 727
		4,923

Staff costs (for the above persons)

48

EAST END HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

Aggregate number of full time equivalent staff whose remuneration exceeded £60,000 in the period:	2021		2020
£60,000 - £69,999	2		1
£70,000 - £79,999	2		2
£80,000 - £89,999	-		1
£90,000 - £99,999	1		1
£100,000 - £109,999	1		-
£110,000 - £119,999	-		1
£120,000- £129,000	1		-

5. GAIN ON DISPOSAL OF PROPERTY, PLANT AND EQUIPMENT (FIXED ASSETS)

Proceeds of sales Less: Costs of sales Surplus	GROUP ASSOCIATION 2021 2020 2021 2020 £’000 £’000 £’000 £’000 5 292 5 292 - (142) - (142)
	5 150 5 150

6. INTEREST RECEIVABLE AND SIMILAR INCOME

	GROUP		ASSOCIATION	ASSOCIATION
	2021	2020	2021	2020
	£’000	£’000	£’000	£’000
On loan to subsidiary company – East End
Homes (Community Development) Ltd	-	-	-		-
Deposit interest receivable from short-term investment of surplus cash balances	24	57	24		56
	24	57	24		56

7. INTEREST PAYABLE AND SIMILAR CHARGES

	GROUP		ASSOCIATION	ASSOCIATION
	2021	2020	2021	2020
	£’000	£’000	£’000	£’000
On bank loans, overdrafts and other loans	(2,256)	(2,459)	(2,256)	(2,459)

49

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

8. SURPLUS ON ORDINARY ACTIVITIES

	GROUP		ASSOCIATION	ASSOCIATION
	2021	2020	2021	2020
	£’000	£’000	£’000	£’000
Surplus on ordinary activities is stated
after charging:
Auditors remuneration excluding VAT
- in their capacity as auditors	32	27	30	25
- in respect of other services	2	2	1	1
Operating lease rentals:
- Land and Building	-	-	-	-
- Office Equipment	15	22	15	22
Depreciation
Depreciation of housing properties	3,261	4,164	3,261	4,164
Depreciation of other tangible fixed assets	186	193	186	193

9. TAXATION

The Association has charitable status on income and gains falling within section 478 of the Corporation Tax Act 2010 to the extent that these are applied to its charitable objects and therefore has no liability to corporation tax for the year. Taxable profits of the subsidiary company are gift aided to the charitable parent to minimise the corporation tax liability for the group.

	GROUP		ASSOCIATION	ASSOCIATION
	2021	2020	2021	2020
	£’000	£’000	£’000	£’000
UK corporation tax	-	-	-	-

50

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

10. TANGIBLE FIXED ASSETS – HOUSING PROPERTIES – GROUP & ASSOCIATION

	Housing properties completed Housing properties Under development Housing properties refurbishment programme Completed Housing properties refurbishment programme uncompleted Total £’000 £’000 £’000 £’000 £’000 Cost At 1 April 2020 57,340 11,453 108,138 3,601 180,532 Additions – Refurbishment - - - 5,710 5,710 Additions – New Build - 11,478 - - 11,478 Disposals - - - - - Transfer to I & E - - - Completions inyear - - 1,526 (1,526) -
	At 31 March 2021 57,340 22,931 109,664 7,785 197,720
	Depreciation At 1 April 2020 (4,200) - (22,202) - (26,402) Charged in year - - (3,261) - (3,261) Released on disposals - - - - -
	At 31 March 2021 (4,200) - (25,463) - (29,663)
	Net Book Value
	At 1 April 2020 53,140 11,453 85,936 3,601 154,130
	At 31 March 2021 53,140 25,528 84,201 5,188 168,057

51

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

10. TANGIBLE FIXED ASSETS – HOUSING PROPERTIES – GROUP & ASSOCIATION (CONTD)

	2021	2020
	£’000	£’000
Housing properties at cost comprise:
Freeholds	197,720	180,532

The cost of housing properties completed includes £2.8 million transfer value of properties on the Island Gardens estate

Additions to housing properties during the year of £17.2 million (2020: £16.4 million) relate to the capitalised costs towards acquisition of new affordable social housing units, and refurbishment works on existing stock including fees, capitalised salaries and incremental overheads

At 31 March 2021 the Board estimated the vacant possession open market value of East End Homes housing properties to be £709.8 million (2020: £709.8 million).

11. INVESTMENT PROPERTIES

At start of year Additions Gain (Loss) from adjustment in Value At end of year	Group Association 2021 2020 2021 2020 £’000 £’000 £’000 £’000 17,207 13,605 17,207 13,605 3,602 3,602 370 370
	17,577 17,207 17,577 17,207

East End Homes has to date invested in 60 (2020: 60) properties for private rent, which generate additional surpluses for reinvestment into the core business activities. These properties are treated as investment properties and recognised at their current market values. Investment properties were valued at 31 March 2021 by HCH Surveyors Ltd, a firm of professionally qualified surveyors. The valuation of properties was undertaken in accordance with the Royal Institute of Chartered Surveyors Valuation Standards.

At 31 March 2021 there were no contractual obligations in respect of the investment properties (2020: none).

52

EAST END HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

12. OTHER TANGIBLE FIXED ASSETS – ASSOCIATION & GROUP

Cost At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year Disposals At 31 March 2021 Net book value At 1 April 2020 At 31 March 2021	Office Computer Office Furniture & Motor Total Association Buildings Equipment Equipment Vehicles and Group £’000 £’000 £’000 £’000 £’000 1,367 1,142 694 154 3,357 - 90 14 - 104 - - - - - 1,367 1,232 708 154 3,461
	(303) (954) (588) (126) (1,971) (27) (94) (54) (11) (186) - - - - -
	(330) (1,048) (642) (137) (2,157)
	1,064 188 106 28 1,386
	1,037 184 66 17 1,304

53

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued) 13. DEBTORS

Amounts falling due within one year: Rental debtors Provision for bad and doubtful debts Shop rental debtors Provision for bad and doubtful debts Leasehold debtors Provision for bad and doubtful debts Other debtors Prepayments and accrued income Amounts due from other group entities Amounts due within one year Amounts falling due after more than one year: LBTH pension debtor	GROUP 2021 2020 £’000 £’000 933 858 (485) (442) 448 416 405 87 (101) (23) 304 64 3,749 3,587 (400) (393) 3,349 3,194 573 1,313 335 533 - - 908 1,846 5,009 5,520 503 503 5,512 6,023	ASSOCIATION 2021 2020 £’000 £’000 933 858 (485) (442)
		448 416 405 87 (101) (23)
		304 64 3,749 3,587 (400) (393)
		3,349 3,194 579 1,317 293 504 28 69
		900 1,890 5,001 5,564
		503 503
		5,504 6,067

54

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued) 14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Housing Loans Trade creditors Other creditors including other taxes social security and pensions Rents and service charges received in advance Accruals and deferred income Deferred capital grant Amount owed to group entity 15. CREDITORS: AMOUNTS FALLING DUE AFTER Pension creditor Deferred Capital Grant Housing Loans Loan Arrangement Fees	GROUP ASSOCIATION 2021 2020 2021 2020 £’000 £’000 £’000 £’000 1,000 - 1,000 - - - - - 2,257 2,312 2,257 2,312 1,073 932 1,073 932 3,268 4,876 3,196 4,793 587 587 587 587 - - - - 8,185 8,707 8,113 8,624 MORE THAN ONE YEAR GROUP ASSOCIATION 2021 2020 2021 2020 £’000 £’000 £’000 £’000 - - - - 57,874 54,939 57,874 54,939 57,500 43,500 57,500 43,500 (911) (824) (911) (824)
	114,463 97,615 114,463 97,615

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

55

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

To date East End Homes has received £13.0 million DCLG gap funding to finance refurbishment works to the Glamis stock (£2.1 million), Holland & Denning stock (£1.2 million), and the St George’s stock (£9.7 million). All gap funding received are recognised under deferred capital grant and released as income over the lives of the housing properties structures that the funds were used to refurbish.

16. DEFERRED CAPITAL GRANT AND FINANCIAL ASSISTANCE – GROUP & ASSOCIATION

		2021	2020
		£’000	£’000
Balance at 1 April		55,526	52,905
Grant received in the year		3,491	3,177
Released to income in the year		(556)	(556)
Disposals
Balance at 31 March		58,461	55,526
Amount due to be released < 1 year (Note 14)		587	587
Amount due to be released > 1 year (Note 15)		57,874	54,939
The total accumulated government grant and financial
assistance received or receivable at 31 March including		63,683	63,396
through the transfer of assets:
17. HOUSING LOANS
	GROUP		ASSOCIATION
	2021	2020	2021	2020
	£’000	£’000	£’000	£’000
Repayable;
Within one year or on demand	1,000	-	1,000	-
Between one and two years	8,500	1,000	8,500	1,000
Between two and three years	3,500	3,500	3,500	3,500
Between three and four years	4,000	3,500	4,000	3,500
Between four and five years	4,000	4,000	4,000	4,000
After more than five years	37,500	31,500	37,500	31,500
	58,500	43,500	58,500	43,500
Loan Arrangement Fees	(911)	(824)	(991)	(824)

The Association has an existing £94.0 million loan facility, comprising £49.0 million with Barclays Bank plc and £45.0 million with M&G Investments. At 31 March 2021, £58.5 million loans has been drawn down at an average rate of interest (plus margin) of 3.87%. The facility includes a revolving credit facility for £15.5 million. All loans are secured against the group’s assets.

56

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

18. CAPITAL COMMITMENTS – GROUP & ASSOCIATION

	2021	2020
	£’000	£’000
Capital expenditure contracted for but not provided in the financial statements	57,119	1,973
Capital expenditure authorised by the Board but not yet contracted for	39,869	27,090

Capital expenditure authorised by the Board relates to the acquisition of new build properties and the 5 year capital investment programme (2021-2026) including fire safety works and development agreements with London Borough of Tower Hamlets for refurbishment works to be carried out on properties transferred to East End Homes.

Capital commitments are projected to be funded from mainly from loan borrowings and internally generated resources.

19. OTHER FINANCIAL COMMITMENTS – GROUP & ASSOCIATION

At 31 March 2021 the group and association had an annual commitment under the lease of office equipment of £14,863(2020: £22,039) expiring within the next 12 months.

57

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

20. PENSION OBLIGATIONS – GROUP & ASSOCIATION

East End Homes participates in two defined benefit final salary schemes, the London Borough of Tower Hamlets Pension Scheme and the Social Housing Pension Scheme (SHPS) and a defined contribution scheme within the Social Housing Pension Scheme. The pension contributions, as shown in note 4, represent contributions payable by East End Homes to these schemes.

The disclosures required by the accounting requirements of FRS 102 relating to retirement benefits are as follows:

London Borough of Tower Hamlets Pension Scheme (LGPS)

The LGPS is a defined benefit statutory scheme, administered by the London Borough of Tower Hamlets in accordance with the Local Government Pension Scheme regulations 1997, as amended. It is contracted out of the state second pension.

Valuation Method Contributions to the scheme are determined by a qualified actuary on the basis of valuations, using the projected unit credit method. The last formal valuation of the Fund for the purpose of setting employers’ actual contributions was at 31 March 2019.

Financial Assumptions

The financial assumptions used for the purposes of the FRS 102 calculations as at 31 March 2021 and 31 March 2020 are shown in the table below.

Assumption as at	31 March 2021 %p.a.	31 March 2020 %p.a.
Pension Increase Rate	2.90	1.90
Salary Increases	3.05	2.10
Discount Rate	2.00	2.30

Expected Return on Assets

The expected return on assets is based on the long-term future expected investment return for each asset class as at the beginning of the period (i.e. as at 31 March 2020 for the year to 31 March 2021). The assets of the scheme as a whole and the expected returns as at 31 March 2021 and 31 March 2020 are shown in the table below:

Assets Main Fund	Value at 31 March 2021 £(000)	Value at 31 March 2020 £(000)
Equities	20,141	12,081
Bonds	2,804	5,839
Property	2,040	2,014
Cash	510	201
Total value of scheme assets	25,495	20,135

There is no provision for unitising the assets of a fund under the LGPS. The above assets as a whole are allocated to participating bodies on a consistent and reasonable basis.

The present value of the above assets and liabilities attributable to East End Homes at 31 March 2021 and 31 March 2020 was:

58

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

Net Pension Liability as at	31 March 2021 £(000)	31 March 2020 £(000)
Fair Value of Employer Assets	25,495	20,135
Present Value of Funded Liabilities	(23,601)	(19,254)
Net Underfunding in Funded Plans	1,894	881

In accordance with the accounting requirements of FRS 102 relating to retirement benefits, the following items have been recognised in the financial statements of East End Homes :

Impact on Statement of Financial Position

	31 March 2021 £(000)	31 March 2020 £(000)
Fair Value of Employer Assets	25,495	20,135
Present Value of Funded Liabilities	(23,601)	(19,254)
Net Liability provided for in the Financial Statements	1,894	881

The movement in the deficit in the scheme during the year is as follows:

	Year to 31 March 2021 £(000)	Year to 31 March 2020 £(000)
Deficit at beginning of theyear	881	(1,412)
Actuarialgains\ (Losses) during theyear	1,013	2,293
Surplus/ (Deficit) at end ofyear	1,894	881

Pensions Obligations Note - Social Housing Pension Scheme (SHPS)

East End Homes participates in the Social Housing Pension Scheme (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 last triennial valuation of the scheme for funding purposes was carried out as at 30 September 2017. This valuation revealed a deficit of £1,522m. A Recovery Plan has been put in place with the aim of removing this deficit by 30 September 2026.

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.

59

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

For accounting purposes, two actuarial valuations for the scheme were carried out with effective dates of 31 March 2018 and 30 September 2018. The liability figures from each valuation are rolled forward to the relevant accounting dates, if applicable, and are used in conjunction with the company’s fair share of the Scheme’s total assets to calculate the company’s net deficit or surplus at the accounting period start and end

PRESENT VALUES OF DEFINED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND DEFINED BENEFIT

ASSET (LIABILITY)

	31 March 2021	31 March 2020
	(£000s)	(£000s)
Fair value of plan assets	4,685	3,646
Present value of defined benefit obligation	6,566	4,236
Surplus (deficit) in plan	(1,881)	(590)
Unrecognised surplus	-	-
Defined benefit asset (liability) to be recognised	(1,881)	(590)
Deferred tax	-	-
Net defined benefit asset (liability) to be recognised	(1,881)	(590)
RECONCILIATION OF THE IMPACT OF THE ASSET CEILING
	Year ended	Year ended
	31 March 2021	31 March 2020
	(£000s)	(£000s)
Impact of asset ceiling at start of period	-	-
Effect of the asset ceiling included in net interest cost	-	-
Actuarial losses (gains) on asset ceiling	-	-
Impact of asset ceiling at end of period	-	-

60

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

RECONCILIATION OF OPENING AND CLOSING BALANCES OF THE DEFINED BENEFIT OBLIGATION

	Year ended
	31 March 2021
	(£000s)
Defined benefit obligation at start of period	4,236
Current service cost	323
Expenses	6
Interest expense	102
Contributions by plan participants	81
Actuarial losses (gains) due to scheme experience	41
Actuarial losses (gains) due to changes in demographic assumptions	20
Actuarial losses (gains) due to changes in financial assumptions	1,804
Benefits paid and expenses	(47)
Liabilities acquired in a business combination	-
Liabilities extinguished on settlements	-
Losses (gains) on curtailments	-
Losses (gains) due to benefit changes	-
Exchange rate changes	-
Defined benefit obligation at end of period	6,566

61

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

RECONCILIATION OF OPENING AND CLOSING BALANCES OF THE FAIR VALUE OF PLAN ASSETS

RECONCILIATION OF OPENING AND CLOSING BALANCES OF THE FAIR VALUE OF PLAN ASSETS
	Year ended
	31 March 2021
	(£000s)
Fair value of plan assets at start of period	3,646
Interest income	89
Experience on plan assets (excluding amounts included in interest income) - gain (loss)	528
Contributions by the employer	388
Contributions by plan participants	81
Benefits paid and expenses	(47)
Assets acquired in a business combination	-
Assets distributed on settlements	-
Exchange rate changes	-
Fair value ofplan assets at end ofperiod	4,685

The actual return on plan assets (including any changes in share of assets) over the period from 31 March 2020 to 31 March 2021 was £617,000.

DEFINED BENEFIT COSTS RECOGNISED IN STATEMENT OF COMPREHENSIVE
INCOME (SOCI)
	Period from
	31 March 2020 to
	31 March 2021
	(£000s)
Current service cost	323
Expenses	6
Net interest expense	13
Losses (gains) on business combinations	-
Losses (gains) on settlements	-
Losses (gains) on curtailments	-
Losses (gains) due to benefit changes	-
Defined benefit costs recognised in statement of comprehensive income (SoCI)	342

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EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

DEFINED BENEFIT COSTS RECOGNISED IN OTHER COMPREHENSIVE INCOME

		Year ended
		31 March 2021
		(£000s)
Experience on plan assets (excluding amounts included in net interest cost) - gain (loss)		528
Experience gains and losses arising on the plan liabilities - gain (loss)		(41)
Effects of changes in the demographic assumptions underlying the present value of the defined benefit obligation - gain (loss)		(20)
Effects of changes in the financial assumptions underlying the present value of the defined benefit obligation - gain (loss)		(1,804)
Total actuarial gains and losses (before restriction due to some of not being recognisable) - gain (loss)	the surplus	(1,337)
Effects of changes in the amount of surplus that is not recoverable (excluding
amounts included in net interest cost) - gain (loss)		-
Total amount recognised in other comprehensive income - gain (loss)		(1,337)
ASSETS
	31 March 2021	31 March 2020
	(£000s)	(£000s)
Global Equity	747	534
Absolute Return	259	190
Distressed Opportunities	135	70
Credit Relative Value	147	100
Alternative Risk Premia	176	255
Fund of Hedge Funds	1	2
EmergingMarkets Debt	189	110
Risk Sharing	171	123
Insurance-Linked Securities	113	112
Property	97	80
Infrastructure	312	271
Private Debt	112	74
Opportunistic Illiquid Credit	119	88
High Yield	140	-
Opportunistic Credit	128	-
Cash	-	-
Corporate Bond Fund	277	208
Liquid Credit	56	1
Long Lease Property	92	63

63

EAST END HOMES LIMITED

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

Secured Income	195	138
Over 15 Year Gilts	-	-
Index Linked All Stock Gilts	-	-
LiabilityDriven Investment	1,191	1,211
Net Current Assets	28	16
Total assets	4,685	3,646

64

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (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.

KEY ASSUMPTIONS

	31 March 2021	31 March 2020
	%per annum	%per annum
Discount Rate	2.22%	2.32%
Inflation (RPI)	3.18%	2.48%
Inflation (CPI)	2.88%	1.48%
Salary Growth	3.88%	2.48%
Allowance for commutation of pension for cash at retirement	75% of maximum allowance 75% of maximum allowance

The mortality assumptions adopted at 31 March 2021 imply the following life expectancies:

	Life expectancy at age 65
	(Years)
Male retiring in 2019	21.6
Female retiring in 2019	23.5
Male retiring in 2039	22.9
Female retiring in 2039	25.1

65

EAST END HOMES LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021 (continued)

21. NUMBER OF HOMES IN MANAGEMENT – GROUP & ASSOCIATION

The number of homes in management at the year end was:

Rented general needs accommodation Intermediate Rented Properties Leasehold properties Private rented properties	At 31 March 2021 At 31 March 2020 2,243 2,243 9 9 1,484 1,484 60 60
	3,796 3,796

22. RELATED PARTY TRANSACTIONS – GROUP & ASSOCIATION

As at 31 March 2021, four Board members were tenants or leaseholders of the association. Their tenancy agreements or leases have been granted on the same terms as for all other tenants and housing management procedures, including those relating to management of arrears, have been applied consistently to these tenants and leaseholders Board members. Rents, Service Charges and Major Works charged to the tenant or leasehold Board members was £30,680 (2020: £17,995). There were arrears on the charges raised at 31 March 2021 of £840 (2020: £400). The level of tenant or leaseholder Board member arrears is not materially different from other tenants and leaseholders.

As at 31 March 2021 one Board director was nominated by the London Borough of Tower Hamlets and a serving Councillor. Some services were purchased from LBTH during the period. All agency services are covered by an arm’s length contract, which was negotiated to ensure neither party subordinated its own separate interests; the Board members concerned are not able to use their position to their advantage. LBTH pays tenant Housing Benefit under the terms of current legislation and this is generally paid directly to East End Homes. There are no other related party transactions requiring disclosure.

23. SUBSIDIARY UNDERTAKING

As at 31 March 2021 East End Homes held 100% share (1 share of £1) in East End Homes (Community Development) Limited. Its principal activity is to generate funds from development opportunities in order to support East End Homes’ core activities of regenerating neighbourhoods.

Transactions with registered and non-registered elements of the business

The Association provides management services and other services to its subsidiary. There is a cost sharing agreement between East End Homes Limited and East End Homes (Community Development) Limited.

Transactions with non-registered entities

During the year East End Homes Limited had intra-group transactions with East End Homes (Community Development) Limited, a non-regulated entity, of £0.1 million (2020: £0.1 million) relating to management services on behalf of East End Homes (Community Development) Limited.

66

The balance outstanding at 31 March 2021 was £0.1 million. This balance was unsecured. During the year East End Homes (Community Development) Limited gifted £245k (2020: £235k).

24. CONTROLLING PARTY

East End Homes is controlled by members in general meeting who elect the Board of Management.

25. FINANCIAL INSTRUMENTS – GROUP

Financial Assets Financial assets at cost of transaction amount Financial assets at amortised cost of transaction Amount Financial Liabilities Financial liabilities at amortised cost	GROUP ASSOCIATION 2021 2020 2021 2020 £’000 £’000 £’000 £’000 8,870 3,432 8,553 3,060 6,348 6,348 6,420 6,420
	9,780 9,780 9,480 9,480 64,041 51,620 63,969 51,537

Financial assets measured at cost comprise cash at bank and in hand.

Financial assets measured at amortised cost comprise trade debtors, other debtors, amounts owed by the association’s undertakings, and the LBTH pension debtor.

Financial liabilities measured at amortised cost comprise bank loans, trade creditors, and other creditors.

26. NET DEBT

Analysis of changes in net debt:

GROUP	At 31 March	Cashflow	At 31 March
	2020		2021
	£000	£000	£000
Cash and cash equivalents	3,432	5,438	8,870
Housing loans due in one year	-	(1,000)	(1,000)
Housing loans due after one year	(43,500)	(14,000)	(57,500)
	(40,068)	(9,562)	(49,630)
ASSOCIATION	At 31 March	Cashflow	At 31 March
	2020		2021
	£000	£000	£000
Cash and cash equivalents	3,060	5,493	8,553
Housing loans due in one year	-	(1,000)	(1,000)
Housing loans due after one year	(43,500)	(14,000)	(57,500)
	(40,440)	(9,507)	(49,947)

3 Resolution Plaza London E1 6PS

www.eastendhomes.net