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2023-03-31-accounts

Teign Housing

Report and financial statements Reporting date 31 March 2023

Registered company number 04619035

Registered charity number 1112196

Regulator of Social Housing registration number LH4403

Contents

Teign Housing Company Information 1-2
Strategic Report incorporating the Value for Money Statement 3-29
Directors’ Report 30-31
Independent Auditor’s Report 32-36
Statement of Comprehensive Income 37
Statement of Financial Position 38
Statement of Changes in Reserves 39
Statement of Cash Flows 40
Notes to the Financial Statements 41-79

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Teign Housing – Company information

Board of Management

Non-Executive
Directors		 Board
Meeting
Attendance
(8 meetings)
Andrew Jones (Chair of Board – Retired 28/07/2022) 3
Angie Edwards-Jones (Chair of Audit Committee – Retired 27/10/2022) 5
Maureen Robinson (Chair of Board – Appointed as Chair 28/07/2022) 8
Rebecca Harwood-
Lincoln		 (Co-Optee to 27/07/2022, Full Board Member from
28/07/2022)		 7
Sean Palka (Co-Optee – Appointed 29/04/2022, Full Board Member from
27/10/2022)		 6
Stephen Cook (Chair of Audit Committee – Appointed 27/10/2022) 8
Stuart Davies (Chair of Templer HomeBuild – Appointed 28/7/2022) 7
Stephen Higginson 8
Joanna Davoile 7
Executive Director
Jo Reece (Chief Executive) 8
Auditors External Auditor Internal Auditor
Beever and Struthers PricewaterhouseCoopers LLP
150 Minories 2 Glass Wharf
London Bristol
EC3N 1LS BS2 0FR
Solicitors Housing Management Human Resources
Capsticks Solicitors LLP Tozers
1 George Street Southernhay West
London Exeter
SW19 4DR EX1 1UA
Governance and Development
Trowers & Hamlins LLP
3 Bunhill Row
London
EC1Y 8YZ

Bankers and Funders The Housing Finance Corporation GB Social Housing 3[rd] Floor 5 Great St Helen’s 17 St Swithin’s Lane London London EC3A 6AP EC4N 8AL

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Nationwide Building Society Public Sector Team Kings Park Road Moulton Park Northampton NN3 6NW

Helen Hilditch

Company Secretary Registered Office Millwood House Collett Way Newton Abbot Devon TQ12 4PH

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Strategic Report

The Directors present their Strategic Report incorporating the Value for Money Statement for the year ending 31 March 2023.

The Board confirms that this Strategic Report has been prepared in accordance with the principles set out in Para 4.7 of the 2018 SORP for Registered Social Housing Providers.

Overview of the Business

Teign Housing is a registered charity, a company limited by guarantee, and is registered with the Regulator of Social Housing. Our focus is on the core activity of the company which is the provision of low cost rented accommodation. The organisation has a wholly owned subsidiary, Templer HomeBuild Limited. Its purpose is to provide property maintenance and construction services to the Social Housing sector. Consolidated accounts for the Group are also reported along with those of Teign Housing, the parent organisation.

Vision

We dedicate ourselves to providing good quality homes and tailored housing support. Working with our diverse customers and trusted partners we provide effective services that bring long term benefits to all. We are sustainable in a fast-changing environment and reinvest our surpluses to grow our communities.

Values

Respectful

We treat people with empathy, respect diversity and provide quality customer service. We appreciate the relationships we build, and with our customers, contractors and partners, we are proud to be Team Teign .

Resourceful

We maximise our resources through innovation and by using our money in efficient ways. We look for opportunities to expand our business by building new homes and creating and growing valuable services. We recognise our role in supporting the local economy.

Ethical

We value our responsibility as a charity providing homes and services for those who need them and as an employer. We are an organisation with heart and strive to offer an empowering workplace and the personal service our communities want.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Governance

The Articles stipulate that there are up to 10 Board Members consisting of 7 non-executive and up to 3 executive members. The Board currently consists of 7 non-executive members and 1 executive member. The members of the Board are legally the directors of the company, and the Board is Teign Housing’s governing body.

The Board adopted the National Housing Federation (NHF) 2020 Code of Governance on 1 April 2021. The Board is committed to and complies with the standards in the Code however this year there has been one exception. The new Code states that the maximum tenure will normally be up to six consecutive years and may be extended to a maximum of nine years, where the Board agrees it is in the organisation’s best interest. A Board member was due to retire at the AGM in 2022. However, Teign no longer hold AGMs and the Board agreed a retirement date of 27 October 2022.

We aim to recruit Board members 6 months ahead of any vacancy. They join the Board as unpaid cooptees and are trained and inducted during this period before being formally appointed to the Board. Further training is carried out throughout their term of office. We conduct biannual pay benchmarking for all staff and Board posts and benchmark any vacancies for advertising. We have a schedule of standing orders and financial regulations which set out delegated authorities from the Board to its committees and the senior management team.

The Board is supported in its governance by two committees:

The key governing documents are the Articles, the Standing Orders, and the Financial Regulations, with a range of policies that guide the operational activities of the company.

All Board members are paid a fee for their services. Payments during the year were:

Andrew Jones Chair of Board (retired 28/07/2022) £2,977
Maureen Robinson Chair of Board (from 28/07/2022) £8,110
Angie Edwards-Jones Chair of Audit (retired 27/10/2022) £2,870
Stephen Cook Chair of Audit (appointed as chair 27/10/22) £5,578
Steve Higginson Chair of Remuneration £3,668
Stuart Davies Board Member £4,729
Joanna Davoile Board Member £3,318
Sean Palka Board Member £1,672
Rebecca Harwood-Lincoln Board Member Resident Voice Champion £2,700
Colin McDonald Independent Audit Committee Member £1,905

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

For the year ending 31 March 2023 the Board met on 8 occasions. There was 91% attendance at Board meetings.

Public Benefit Entity

As a public benefit entity, Teign Housing has applied the public benefit entity ‘PBE’ prefixed paragraphs of FRS 102. Teign Housing also pays due regard to the guidance published by the Charity Commission on public benefit.

We provide homes for rent at lower than market prices; homes designated for older people with additional needs and shared ownership properties. For our tenants and the wider community, we provide a personal alarm and home visit service under the brand Teigncare and through our commitment to building new homes we are helping to address the shortage of good quality affordable housing. During the year the decision was taken by the Board to cease the provision of the Teigncare service due to the significant level of investment required to maintain the service. On 3[rd] April 2023 the Teigncare service was sold to Appello Careline Ltd who have maintained provision of the service to the existing customers.

Financial Performance

Teign Housing Group has made a surplus after tax for the year of £2,549,000 (2021-22: deficit £1,661,000). Full details of our financial results can be found on pages 37 - 79.

Financial performance is monitored through the annual budget, which is set by the Board. The annual budget is based on the business plan and the Board receives a report, at each meeting, assessing the company’s performance against the budget.

Operational Performance

The current 3-year corporate plan was agreed by Board in March 2021. The Board have established a range of key performance indicators to assess the company’s performance in relation to the corporate plan objectives. The Board monitors quarterly through the Balanced Scorecard, Financial Framework, and the Development Report.

Further details of our operational performance including value for money can be found on pages 13 – 29.

Business Plan

The 30-year Business Plan reflects the strategic direction of the company and its future aspirations. The focus for the coming years will be to continue to maintain the housing stock to an appropriate level, deliver further new homes and manage services. The Business Plan has been thoroughly stress tested and the key risks to the organisation identified and appropriate mitigation arrangements are in place.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Treasury Management

At 31 March 2023 Teign Housing was funded by a £33m bond with The Housing Finance Corporation and a £25m bond with GB Social Housing and had a loan balance of £57.5m (2021-22: £57.5m) and an undrawn revolving credit facility (RCF) with Nationwide of £20m (2021-22: £20m). During the year the RCF end date was extended to 2028 from 2027. The funding agreements all contain three financial covenants. Finance costs on loans were £2.354m (2021-22: £2.411m) which equates to an average rate of 4.06% (2021-22: 4.06%). Finance costs of £391,000 were capitalised during the year (2021-22: £190,000). At 31 March 2023 Templer HomeBuild had loan balance with Teign Housing of £400,000 (2021-22: £400,000). This loan is drawn for a period of 6 months, being repaid to the parent and redrawn by the subsidiary in June and December each year. There was £15.431m of capital committed to the development programme which was in contract at 31 March 2023 (2021-22: £18.40m) and there was a cash and cash equivalents balance of £5.319m (2021-22: £16.373m). A 3-year cash flow forecast is maintained and is used to anticipate the group’s investment and borrowing requirements.

Reserves Policy

Reserves are retained at levels that allow the company to continue to achieve its corporate objectives and provide the new homes and services that the reserves are intended to support, whilst managing the risks associated with long term expenditure plans.

A budget is set each year along with a 30-year business plan including a forecast for reserves, allowing the company to achieve these objectives. This is monitored throughout the year and is reported quarterly through the management accounts to the Board.

The level held in the income and expenditure reserve at 31 March 2023 was £66,895,000 (2021-22 £64,397,000) and in the revaluation reserves £31,847,000 (2021-22 £31,929,000). Unrestricted reserves excluding tangible fixed assets net of grant were £-86,797,000 at 31 March 2023 (2021-22 £-78,729,000) and can only be released by disposing of tangible fixed assets.

Property Sales

During the year six properties were sold (2021-22: 17 properties) of which 1 property was under the Right to Acquire scheme (2021-22: 1 property), 5 properties were under the Right to Buy Scheme (202122: 10 properties), no properties were fully staircased (2021-22: 5 properties) or were sold on the open market (2021-22: 1 property). Teign Housing received proceeds of £700,300 of which £606,200 were from right to buy sales (2021-22: £1,178,000). Under the terms of the transfer agreement, £157,956 (2021-22: £759,000) of the right to buy sale proceeds were paid to Teignbridge District Council and the remainder was retained by Teign Housing in recognition of future income foregone and this will be invested in future development.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Staff

The average number of employees for the year ending 31 March 2023 was 160 (2021-22: 155 employees). The Board recognises the contribution made by all staff and is committed to the continued development of its staff. During the year the company spent £106,000 on staff training and development (2021-22: £131,000).

Restructure

A company-wide restructure was announced in September 2022, followed by a 30-day consultation period ahead of the new organisation structure taking effect from 1[st] December 2022. With the many expectations and new challenges that the Social Housing sector is facing, it was felt that a restructure would best provide the platform and stability to be able to meet the requirements and continued strive to deliver excellent service provision for our tenants. The restructure resulted in a net gain of 7 new positions across Teign Housing and Templer HomeBuild. A strengthened strategic focus was gained with the forming of new Director roles across the four main pillars of the organisation, this is supported by a Leadership team and a deeper organisational structure giving greater scope for employee progression.

Fire Safety Remedial Work

The Building Safety Act 2022 and the new Fire Safety (England) Regulations 2022, which came into force in January 2023, set out how landlords of high-rise buildings (those with seven stories or more, or over 18m high) should work with fire services to ensure a planned and effective response to fire alarms at these buildings. We have just one property, Douglas House in Teignmouth, which falls into this highrise definition.

To fully comply with this new legal requirement, Teign Housing commissioned an independent review of Douglas House. This Fire Risk Appraisal of External Walls (FRAEW) report based on PAS 9980 (Fire Risk Appraisal of external wall construction and cladding of existing blocks of flats – code of practice), resulted in a number of recommendations which we will be actioning including the removal of the external wall insulation. The residents have been informed of the decision and we are in constant communication with them about the progress of the project. We are in the early stages of the project and as yet the timescales and costs involved to Teign Housing are not known but are expected to be lengthy and considerable. Whilst we expect to be able to successfully apply to the Building Safety Fund for the funding of the work, this will occur after the work has begun.

Damp and Mould

In January 2023 Teign Housing and Templer HomeBuild collaborated to write a new Damp and Mould Policy and Procedure to set out and improve on the approach to dealing with these issues. We aim to

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

proactively reduce issues relating to damp and mould by maintaining the housing stock to decent homes standard or better through the asset management information system, investment programmes, Housing Health and Safety Rating System assessment outcomes, initiatives to maximise customer contact points to identify issues, and the use of environmental monitoring systems. Reactively, a Damp Mould and Condensation working group monitors the situation and actions informed via a case tracker and monthly update, a specific role to investigate and monitor DMC issues has been created within THB, a triage process has been adopted to categorise reports of damp and mould at the outset to prioritise our resources and residents are contacted following remedial works and mandatory training has been delivered with a view to continue this annually and to new starters. We will be exploring how we can better prepare for an expected spike in reports of damp and mould this Winter.

Development

During 2022-23 we entered into 4 new contracts with a total value of £9,320,000 to purchase 3 section 106 schemes that will deliver 28 rented and 14 shared ownership homes and a build contract to deliver 8 rented homes on land that we own in Widecombe in the Moor.

We were successful in bidding on 3 further section 106 schemes, which are proceeding to contract, and a further Land led project in the Upper Coly Valley. These schemes will deliver a total of 14 rented and 5 shared ownership properties.

Social
Rental
Units		 Low Cost
Home
Ownership		 Total
Units
Under construction 31/03/2022 90 37 127
Started in the year 65 20 85
Completed in the year 35 13 48
Under construction 31/03/2023 120 44 164

48 new affordable homes were completed in 2022-23. This was less than anticipated because of delays associated with labour and material shortages due to the impact on supply from the pandemic and war in Ukraine.

We currently have contractual agreements to develop 140 homes over the next 12 months and 32 homes in 2024-25.

Future Direction

To achieve the Corporate Vision and Values, we focus on the core of our business and the Board has committed to the following strategic aims:

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Performance against these aims is monitored as part of a three-year Corporate Plan for 2021 to 2024.

We are committed to maintaining our financial performance and our delivery of good homes and customer services. We achieve this by focusing on maintaining our operational performance, maximising our income and effectively driving down costs.

To support our strategic aims we have several strategies in place. The neighbourhood services strategy gives the direction to provide excellent services and the ageing well strategy to focus on our older customers.

The asset management strategy focuses on the quality of our homes and ensures that they are of a good standard and maintained appropriately. The development strategy sets out the aspirations for future development, along with the business plan which currently has capacity for 259 homes over the next 5 years. The regeneration strategy sets out plans for longer term regeneration and £203,000 has been included in the business plan for 2023-24 with £305,000 included in each of the next four years.

The carbon reduction strategy sets out plans for the business to reduce its carbon footprint and the first stage of this is to invest in homes which have a lower energy performance rating. In order to meet the government’s target of all homes having a minimum EPC (energy performance certificate) rating of C by 2035, in 2023-24 the business plan makes provision for £500,000 of investment in our homes to improve their energy performance rating and for the following 6 years £500,000 is included for this purpose, each year.

To maintain a sustainable business, we follow several policies which ensure our governance is continually reviewed and improved. We were re-accredited as Investors in People Platinum in 2020, we have a robust training and development policy and work life balance policy and in 2021-22 we introduced an agile working policy. The VFM strategy sets out how we continually seek to improve quality and performance and, where possible, reduce costs and create efficiencies.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Risk Management

We recognise that risks happen and in order to thrive and achieve our objectives we need to take a managed degree of risk.

We have a risk framework in place which manages our risks, closely monitors them, and ensures that the way we manage them is appropriate to the reward and opportunities they will deliver. We operate in a constant changing environment and our risk owners review their risk each month to ensure that they are still appropriate.

Any changes to our strategic risks are reported to our Audit Committee and Board on a quarterly basis. We support this with an assurance programme monitoring our performance via our scorecard, a robust internal audit programme and by undertaking internal assurance reviews into business processes. Our resident led scrutiny panel undertakes reviews of our service areas from a resident perspective and any identified areas for improvement are fed directly back to our Board.

Our Board considers emerging risks at each Board meeting, and during the year many of our previously emerging risks crystallised and were moved to our risk registers. These included the impact of inflation on materials and staffing, the impact of war in Europe and the increasing complexity of the mental health issues experienced by our residents.

Our top risks during the year were:

Risk Direction
of
movement
during
year		 Why is this a risk? How we manage this risk
Service
unable to
deal with
the
increasing
complexity
of
vulnerable
people		 This risk reflects the
impact of dealing
with third parties
(statutory &voluntary
sector) who are
finding resources
stretched and finding
cases more
challenging.
This has the
potential to affect the
delivery of our
Housing services.
With more pressure
on support agencies,
we find ourselves
supporting residents
and households with
more complex
needs.		 Our Housing strategy sets out the delivery of the
Housing
management
service
equipped
to
manage more complex cases.
We have an established Head Start service which
is structured to assist people through the start of
their tenancy and then a Tenancy Sustainment
service in place to support throughout the life of
the tenancy.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Risk Direction of
movement
during year		 Direction of
movement
during year		 Why is this a risk? Why is this a risk? How we manage this risk
Rental
income is
less than
forecast		 Rental income
provides us with the
resources to deliver
our services and to
provide new homes.
The current risk Is
the cost-of-living
crisis which sees
many of our
residents struggling
financially which
may impact on their
choices / ability to
pay their rent,
service charges or
alarm charges.		 We
closely
monitor
our
rent
collection
performance.
We have a well-established rents team, and a
team of head start advisors who have a good
relationship with our residents, and are able to
provide support at all stages of a tenancy
Risk Direction of
movement
during year		 Why is this a risk? How we manage this risk
Douglas
House
remedial
works		 Remedial works
identified to meet
standards
identified in
Building Safety
Act.		 Enhanced fire detection systems are in place within
property.
We held a resident consultation event to inform
residents and continue to update them on the
progress of the works.
We are working with Devon & Somerset Fire and
Rescue service to ensure highest levels of safety for
residents.
Risk Direction of
movement
during year		 Why is this a risk? How we manage this risk
Failure to
meet
consumer
regulatory
standards		 This is linked to
our overall
governance and
our aim of putting
our customer
first.		 We have a Resolutions Manager dedicated to
helping
residents
resolve
complaints
and
dissatisfaction.
During the year we rolled out of our new resident
involvement platform which will help us better
understand our tenants and their views.
Risk Direction
of
movement
during
year		 Why is this a risk? How we manage this risk
Loss of
key staff,
high
turnover
and / or
inability to
recruit to
keyroles.

t

 Recruitment
has
been
challenging
his year and there
has been a high
staff turnover		 We restructured the organisation during the year.
This gave us more opportunity to grow and further
develop our services. It allowed for development of
a new leadership team.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Risk Direction of
movement
during year		 Direction of
movement
during year		 Why is this a risk? How we manage this risk How we manage this risk How we manage this risk
Planned
surplus
from
sales of
home
ownership
properties
or asset
disposals
is not
achieved.		 Uncertainty over
the home
ownership
market.
Potential delays
in the delivery of
new homes
available.		 Our business plan has been thoroughly stress
tested for this scenario including a 30% drop in
market value and mitigates considered.
Our business plan has been thoroughly stress
tested for this scenario including a 30% drop in
market value and mitigates considered.
Risk Direction
of
movement
during
year
Why is this a risk?		 How we manage this risk
Failure
to
manage
property
assets
appropriately		 This
risk
encompasses both
our aims to meet
environmental
targets and also
maintain
high
levels of service
throughout
the
pandemic		 We are currently undertaking a stock condition
survey which will cover approximately 25% of our
homes. This will be followed by further regular
surveys.
We maintain high levels of Health & Safety
compliance.
We have a multi discipline group monitoring cases
of Damp, Mould and Condensation.
Our organisational restructure created a Head of
Asset Investment role, to ensure that we manage
our property assets well.
Risk Direction
of
movement
during
year		 Why is this a risk? How we manage this risk
Failure
to
demonstrate
effective
governance
in
setting
and
operating an
appropriate
strategic
direction		 Last year we had
a number of Board
members
reaching the end
of their term and
wanted to ensure
that we maintain a
high level of skill,
experience
and
expertise at Board
level whilst being
representative of
our residents		 We ran a successful Board recruitment campaign
and co-opted two new Board members who were
subsequently both fully appointed to the Teign
Housing Board during the course of the year. One
of the appointments was to the new role of
Resident Voice Champion to provide insight to the
Board on Teign Housing's complaint handling
culture. The Board also completed an external
review of its overall skills matrix and annual
appraisal process in April 2022. The Board is now
considering its approach for the recruitment of a
new Chair to replace the current incumbent who is
due toretireinthe summerof 2024.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Value for Money Statement

The Value for Money (VFM) strategy was approved by the Board in July 2021 and reflects both the changes to the value for money standard issued by the regulator in April 2018 and the organisation’s corporate plan.

The standard states that a set of metrics should be used to measure the value for money achieved within the organisation and these are presented below.

----- Start of picture text -----
Budget Target Sector
Group Association FY23 FY22 Metrics
2022/23 2021/22 2022/23 2021/22 2023/24 2022/23 2021/22
Metric 1 Reinvestment % 9.7% 7.4% 9.7% 7.4% 13.3% 8.8% 5.74%
Metric 2 A New supply delivered SH % 1.3% 1.1% 1.3% 1.1% 3.7% 2.2% 1.53%
B New supply delivered NSH % 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0%
Metric 3 Gearing % 32.9% 28.1% 32.9% 28.1% 34.0% 36.2% 41.98%
Metric 4 EBITDA MRI Interest Cover % 135.9% 156.7% 143.8% 155.9% 127.3% 166.6% 141.39%
Metric 5 Social housing cost per unit £ £ 4,418 £ 4,023 £ 4,418 £ 4,023 £ 4,770 £ 4,300 £ 4,360
Metric 6 A Operating margin SH % 19.3% 20.0% 21.8% 19.7% 21.2% 26.0% 23.95%
B Operating margin overall % 20.2% 21.8% 21.3% 21.6% 20.3% 24.7% 22.70%
Metric 7 ROCE % 2.7% 2.6% 2.6% 2.6% 2.6% 3.1% 3.28%
----- End of picture text -----

The group’s metrics presented above compare favourably against the sector average in some areas, but less favourably in others.

The group’s re-investment of 9.7% has exceeded our target and increased when compared against last year and the sector, despite developments having been delayed at the start of the year due to materials and labour shortages. An element of this will be due to inflation and the rising cost of materials influencing the total expenditure nevertheless it does reflect our continued investment in our properties. The latest sector metrics relate to 2021-22 and as such it is difficult to compare with this benchmark as this will include lockdown delays that Housing Associations will have experienced. Even with the initial delays and shortages the both the development and capital improvement programmes have performed well with significant investment. In 2022-23 we bid on 23 section 106 schemes and were successful in securing 6 schemes with a total of 75 homes.

We have a strong development pipeline through both the purchase of section 106 schemes and smaller land led developments, both within the Teignbridge District and further afield in neighbouring authority areas. This has been further facilitated through the additional funding secured last year from the refinancing. Because of this we are seeing an increase in re-investment from the 9.7% achieved this year to 13.3% forecast for next year.

New supply delivered is a calculation based on units completed in 2022-23. We have achieved 1.3% new supply through delivering 48 units, this compares to a target of 2.2%. This difference is due to the delivery of 18 homes slipping into next year. However, these 18 homes are expected to be ready between April and July 2023.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

We are just below the sector average on this metric however as the benchmark relates to 2021-22 data it is not showing the delays that have been felt across the building sector.

Committed new supply is forecasted to increase by a further 136 units in 2023-24 including 59 affordable rent, 41 social rent and 36 shared ownership properties. We will continue to seek new opportunities to achieve our development aspirations and we now have the capacity to deliver 259 homes over the next 5 years. In the 2022-23 plan the capacity was 403 homes, we have delivered 48 of these, which would leave a remaining capacity of 355, however due to the effects of the rental income cap of 7% for 2023-24, increased inflation rates averaging 14% on materials and labour costs and up to 20% on some build costs and general inflation forecast to be over the Bank of England target of 2% for 2023-24, this has resulted in a loss in capacity of 96 homes.

Gearing has increased by 4.8% from 2021-22 to 32.9%. We are utilising the loan, secured in early 202122, and cash reserves to fund our increased investment into new homes and regeneration, increasing the ratio. At 32.9%, this remains well below the sector average and gives us scope to increase this. We have potential through unencumbered stock to increase funding with the additional loan debt. This will allow us to further invest into new homes and regeneration, give the financial capacity to meet any requirements from the Decent Homes 2 Standard and stock condition surveys, as well as continue to develop our extensive digitalisation agenda. All of which aims to improve the quality of our homes, effectiveness of our service to tenants, improve efficiencies and achieve savings for both tenants and Teign Housing. This can be achieved whilst keeping our interest cover well within sustainable levels.

The EBITDA MRI interest cover (Earnings Before Interest, Tax, Depreciation and Amortisation, Major Repairs Included) has reduced as although the operating surplus has increased from 2021-22 by £220,000, our expenditure on capitalised major repairs has increased. The metric adjusts for this cost and reduces as the level of expenditure in this area increases. Although our funders do not use EBITDA MRI as one of their covenants, we remain within the historic targets. As a result of continued investment next year this, the interest cover ratio is expected to fall further next year as we continue our programme in new and existing properties however the new covenant terms mean that this reduction is sustainable and well above thresholds.

The social housing cost per unit has increased from £4,023 last year to £4,418 this year. This has been due to an increase in the planned maintenance compliance spending, continued regeneration works at during 2022-23 as well as an increase in the number of high cost void rectifications and the effect of high inflation across all materials and labour. Overall, whilst we have seen a cost per property increase compared to the prior year, this brings us more aligned to sector average spending per unit.

The operating margin has decreased from last year. A reduction in operating surplus was anticipated with the drive to improve our service delivered to tenants however the climate of economic instability and high inflation rates seen during 2022-23 was unforeseen at the time of budgeting, leading to the operating margin being below target.

The return on capital employed remains static due to a marginal increase operating surplus compared to last year and asset base. This metric slightly behind target and the sector. It is forecasted to continue

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

stabilise as the investments into new homes and services are realised and generate greater turnover and cost savings.

We continue to be committed to providing good levels of customer service in, what continues to be, a challenging environment. Economic and political uncertainty are set to continue for the coming year and Teign Housing has modelled and planned for further potential issues through the business planning process as well as creating a new organisational structure to better support the service offered to tenants as well as to help reduce costs over the long term and generating efficiencies.

Value for Money underpins all business activities at Teign Housing, and it is driven by the Board. VFM is about reviewing what we do and how we do it in order to make informed choices about how resources are effectively channelled towards the delivery of services and corporate priorities. The aim is to make the best use of our customers’ money whilst balancing the cost and time with quality as well as stakeholder benefit, reasonable customer expectations, organisational benefits and business survival.

The Board’s focus on VFM allows the company to continue to deliver great services and grow through developing new homes. The current business plan including the financial position after refinancing, includes the delivery of 259 homes over the next 5 years.

The Board scrutinise financial and service delivery performance at each meeting, through the management accounts and balanced scorecard, and any areas of poor performance are supported by a detailed narrative identifying the issues and the steps being taken to deliver improvements. These include:

An evaluation of our costs in comparison to the global accounts is presented below and the figures for Teign Housing have been re-stated in line with the current global accounts format (based on SW & SE Peer Group). The latest figures available as a sector comparative are the year ending March 2022.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

RSH Global Accounts Comparison

----- Start of picture text -----
Teign Housing RSH Global accounts
Area
2022-23 2021-22 2020-21 2022 2021 2020
£ £ £ £ £ £
Expenditure – per Social Housing Property
Management 1,495 1,684 1,257 1,053 1,169 1,169
Routine & Planned Maintenance 1,013 942 1,017 1,182 1,125 1,072
Major repairs – Total 1,770 1,656 1,182 1,038 677 855
Major repairs – Revenue 759 666 512 390 240 378
Major repairs – Capital 1,011 990 670 648 438 477
----- End of picture text -----

South West Peer Group Housemark Comparison

Teign Housing Cost Per Property **Teign Housing ** Teign Housing Comparison
Group
Median		 Comparison
Group
Upper
2022-23 2021-22 2021-22 2021-22
Department £ £ £ £
Major and Cyclical Maintenance 1,545 1,530 1,836 1,480
Responsive and Void Repairs 937 758 1,088 992
HousingManagement 825 700 593 546
Estate Services 249 230 202 145
No of Properties 3,787 3,743 3,626 2,281

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

----- Start of picture text -----
HOUSEMARK SOUTH WEST COST PER
PROPERTY
£2,000
£1,800
£1,600
£1,400
£1,200 2023
£1,000
2022
£800
£600 Median Comparison
£400 Upper Comparison
£200
£0
MA JOR A ND RE S P ONS IVE A ND H OUS ING E S T A T E S E RVIC E S
C Y C LIC A L VOID RE P A IRS MA NA GE ME NT
MA INT E NA NC E
£1,836
£1,545 £1,530
£1,480
£1,088
£992
£937
£825
£758
£700
£593
£546
£249 £230 £202
£145
----- End of picture text -----

As expected, these two comparisons against RSH (SW & SE) global accounts and the Housemark South West Housing peer group show similar findings. The global accounts figures show costs per unit in 2022-23 were above that for 2021-22 by an average of 4.0% and the Housemark cost per property shows a 13.0% increase, with there being slight differences in how these are calculated.

Management cost per unit has seen a decrease from last year. This is due to the costs for the pension cessation event accrued for in 2021-22. This was a one-off event and the management costs have returned to expected levels. Continued scrutiny of management costs and tight budgetary control will ensure the overall efficiency of the organisation.

Routine and Cyclical Maintenance have increased marginally from last year and towards the sector average. Again, this finding is similar to the Housemark data, with Teign responsive and void costs increasing but below that of the comparative. This is in part due to the increased number of high cost voids that are being seen across the sector and inflationary cost pressures on materials and labour. We are continually working to ensure we receive the best quality for the best price for our purchases to mitigate the increases as much as possible. We are also driving efficiencies where possible by planning similar works in areas and by type.

Major repairs, both capital and revenue remain above the RSH sector average. Both revenue and capital expenditure has increased over the last year. Similar figures are shown in the Housemark data. The major revenue cost per unit includes regeneration spend at the Laurel Kingsway block. Although this element of the spend is treated as a revenue cost, it relates to the project as a whole and therefore contributes to the longer-term improved stock quality. In addition to this is there has been continued expenditure on compliance, including asbestos and health and safety works. It is important to spend in these areas, in part to avoid longer term more expensive non-conformance related costs and to keep our residents safe.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

This year has seen an increase to capital major repairs cost per unit. There is some fluctuation in capital expenditure year on year due to the planning of the maintenance programme in order to make the most efficient use of resources.

We will ensure that we maintain tight budgetary control going forward to provide optimum value to our tenants. We have a strong commitment to invest in our housing stock for the future and we have embarked on a stock condition survey to be completed by the end of 2024-25 to ensure that the investment in our stock is focused in the right areas and maintains the longevity and desirability of our homes including a focus on damp and mould. We continue to look for opportunities to invest in renewable and efficient energy solutions for both our new build and existing homes.

With the acknowledgement that the results of the stock condition survey results will have an impact on the future strategy, the Asset Management Strategy was reviewed and updated for a 12-month period and approved by the Board in April 2023. A further updated Asset Management and Carbon Reduction Strategy will be developed when the results are known and will provide us with a clear focus and direction about the future use and energy efficiency of our assets such as continued use, redesignation, redevelopment or disposal. It defines the Teign Standard which continues to be above the current Decent Homes Standard whilst we await the publication of Decent Homes 2 and Awaab’s Law, it allows us to proactively manage our planned maintenance programme to drive out maximum cost efficiency and value for money. When we dispose of properties that have been assessed as not suitable or unsustainable as affordable housing, the proceeds are used to support the development of new homes.

We continue to:

Below is an extract from the scorecard which presents the company’s performance against targets set internally and against targets taken from Housemark data in for the year ended 31 March 2023. Areas have been selected which we believe represents current VFM significance.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Area 2022-23 2021-22 2020-21 2019-20 Housemark
2021-22
Benchmark

Target
2022-23
Customer satisfaction
Repairs 97.9% 97.6% 96.1% 96.4% 80.4% 96.0%
Standard of property at re-let 99.0% 94.0% 91.0% - - 100.0%
Satisfaction with complaints process 95.0% 95.0% 50.0% 71.0% 76.2% 85.0%
Rent collection & arrears
Rent collection 99.3% 100.1% 100.9% 99.6% 101.6% 100.0%
Rent arrears (% of annual debit) 2.7% 2.3% 2.5% 2.9% 2.3% 3.2%
Void loss & turnaround
Void losses 0.56% 0.50% 0.38% 0.33% 1.43% 0.50%
Void turnaround time (days) 25.1 22.6 25.5 days 20.5 days 24.08 25
Digital agenda
Total
number
of
tenant
portal
registrations		 650 603 487 295 - 1500
Inbound communication by Webchat 1.1% 1.6% 7.7% 1.5% - -

Although customer satisfaction with repairs has increased slightly against last year, we do continue to exceed our target for the year and against the Housemark average. Satisfaction with standard of property at relet has increased from 94.0% to 99.0%. We have increased our target to 100.0% this year and have only narrowly missed this. Satisfaction of the complaints process has been maintained at 95.0% and we continue to receive an increased number of complaints and respondents to this metric as a result of continued awareness regarding Tenant Satisfaction Measures and ability to complain. We have a dedicated resolutions manager to help manage and oversee the complaints process. With greater emphasis in this area across the organisation, it is hoped that further investigation and analysis of complaints can lead to improving systems in place, ways of doing things and dealing with the root causes.

Rent collection decreased and arrears increased from the prior year. In light of the economic climate and cost of living crisis this is not unexpected as households feel their budgets further tightened each month. We do perform less favourably against the 2021-22 benchmark however this does not take the current economic climate into account and therefore is not a fair comparison. We have continued to support tenants over the last year, through the process of applying for universal credit and working with them where possible to manage their rent payments. This has helped us to improve performance from last year and exceed our internal targets. Through our Head Start team we have sign posted and assisted tenants in securing additional financial support available to them. We have also distributed over £29,000 of financial support in the form of a hardship fund to tenants in greater need.

Void losses have increased marginally. Likely as a result of an increased void turnaround time due material and labour shortages as well as the large number of high cost void rectifications.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Across the organisation we have a strong focus on VFM, and many departments have specific VFM targets. An updated VFM report was presented to the Board for approval in July 2022. In 2022-23 our VFM focus was on:

Digital

The opportunity to further enhance the digital offering to customers and staff continues to be a vital part our approach to Value for Money into the future. Our Corporate plan has a digital focus and the Digital Strategy approved by the Board in March 2021 sets out our plans and ambitions for the next 3 years.

We have continued with our agile working policy; this has been well received by employees and enables to maintain the continued quality of service to our tenants.

In September the last of the remaining physical servers were decommissioned and removed from the server room at Millwood House, replaced by migrating services to Microsoft Azure (Cloud based) This was the final step in the Microsoft Modernisation Programme which has supported the move to agile working and increased security for working over a disparate area.

During the year have successfully upgraded the Civica Cx housing management system software to a more recent version (21.4). We are looking to take a further upgrade during 2023-24 which will provide additional features to assist in providing a better service to our tenants.

We have moved to an electronic expense processing system. This allows receipts to be digitally scanned saving the need for paper to be received and processed and for authorisation to follow the correct procedures before submission. This helps reduce errors and inefficiencies and supports our agile working environment.

During November 2022 the new resident portal and app were launched. This provides tenants with a self-service function to contact Teign Housing, manage their rent accounts and personal details, as well as a very useful personal budgeting tool to assist with managing their home and personal finances. The ability to access rent accounts and details at any time of day will increase the accuracy of the information held such as contact details, this will make the data more accurate. This was Phase 1, there is further functionality planned for release in Phase 2 & 3 in the new financial year. There continues to be a drive to enhance use of the CX tenant portal. Registrations have increased by 8% from last year.

Digital Notebooks were launched to the Customers & Communities Directorate in March 2023. This provides all customer facing staff with a notebook that can be written in during meetings or visits. The pages of this notebook can then be photographed, and the text uploaded as photo or converted to text to enable the swift and accurate recording of details. The page in the notebook can then be wiped down and used again for the next meeting. This will greatly improve data accuracy in our Housing

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Management Software and enable the latest updates and changes to be visible in a much more timely fashion.

In September 2022 we introduced Civica Involve, changing the way the company conducts surveys and consultations, consolidating them all in to one piece of software. This will mean all data is in one place and the results can easily be accessed by a wider number of employees and enable us to conduct more customer satisfaction surveys on a monthly basis by undertaking them online for those who have internet access. The first survey conducted was the Repair Satisfaction Survey. We will be rolling this out for further surveys during the year and this will help to support the work that we are doing on the new Tenant satisfaction measures

Improve skills and behaviours of staff

Through learning and development, we will continue to facilitate a culture of respect and exceptional customer service, including Mary Gober training and Training delivered by Chris Gross.

Welfare Reform

We continue to work with our customers to support them with issues surrounding Universal Credit. We have a team of 5 in the Head Start Team who support our customers with issues such as Universal Credit claims and any grants that they may be entitled to. With a clear focus on tenancy sustainment, they consider affordability assessments and checks prior to sign up and then continue to monitor the tenant’s payment behaviours during the first 12 months of their tenancy, offering additional support as and when required. During 2022-23 the Hardship fund was launched which provided over £29,000 of financial to help to those experiencing real financial difficulty. In its first year this scheme has supported 234 households and 652 individuals have benefitted from the grants available in the fund. For 2023-24 this commitment has continued with a Hardship fund of over £37,000 available. Providing this level of support improves not only the financial situation of our tenants but also their mental stress and worry and leads to better engagement in managing tenancies.

Asset Management

We have recently commissioned the first part of our full housing stock survey. This will give us valuable insight into the condition of our housing stock to undertake any necessary remedial action but also better plan our cyclical and planned maintenance cycle and highlight any issues before they become too serious. Whilst a financial outlay in the short term, this will provide efficiency savings over the long term and also allow us to identify any problem stock where it may be beneficial to dispose and replace with newly developed housing.

Procurement

We continue to be a member of the Advantage South West Procurement Consortium. This organisation exists to improve lives and homes through innovation and collaboration and improves value for money for its members. In 2022-23 the savings delivered through the membership of this consortium total £185,469 bringing the total savings since we joined in 2010 to £2,019,008.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Templer HomeBuild

The wholly owned subsidiary, Templer HomeBuild continues to provide us with greater control over service delivery and cost efficiencies. There is a strong emphasis on ‘right first time’ generating progressive efficiencies and cost savings. The VAT savings to be realised from Templer HomeBuild in 2022-23 were £486,200. The 2023-24 budget includes a further VAT saving of £655,432.

Voids

In 2022-23 we continued to see a rise in the number properties that are being returned to us in a very poor state of repair or that need extensive clearance work. The Void standard introduced 3 years ago has led to a fall in void costs when these properties are re-let however, we are still experiencing a significant rise in those property requiring considerable repair work, including structural damage. We are continuing to investigate the reasons for this and trialling earlier intervention and support to help minimise these cases.

Tenants

Our outsourced repairs reporting service has been brought in-house into our Customer First team in Devon. As part of our journey mapping process with tenants, it was requested that we do this to improve the service level given. We have seen improvements in the scheduling and planning of operative’s days, giving better efficiencies and it now means that with one call into Teign Housing, tenants can resolve a number of different queries across departments.

The Customer First Team continued to be engaged in Call Quality and Monitoring Coaching to improve the way we interact with our customers.

Our Customer First Team Advisors are scored on set criteria centered around tone of voice and active listening. This process has increased baseline scores which significantly improves our customers experience and, hopefully, improves their expectations of our service.

A journey mapping session involving tenants, Neighbourhood Policing Team and Teignbridge District Council was held in March to co-design improvements to managing ASB (Anti-Social Behaviours) within our communities. There will be a follow up session in early 2023-24. This direct involvement helps shape effective processes and forging links between the partner agencies to achieve better outcomes with best use of our resources for our residents.

The ASB Respect Line was launched during Q4 of 2022-23. This gives residents access to Out of Hours services to report Anti-Social Behaviour and access to welfare calls and services. This increased focus and investment on improving the service and satisfaction for resolving ASB issues will address and reduce the amount of complaints received regarding this area.

EMT approval has been given to allow tenants to pay by recurring card payment. Most of our tenants now pay by direct debit but we keen to support other means of payment that may be better suited to individuals. The service will go live in the new financial year and this assist the Income Team in collecting rent and other payments.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Homemaker South West support people with debt problems across the region. We have been working alongside them since 2019 at a cost of £24,500 since that time. They continue to support our tenants to maximise their income with total gains, with some tenants receiving over £15,000 of support they were entitled to. Some of this income supports tenants to ensure they are paying their rent which inturn benefits the company. We see this as an efficient service, directly benefiting our tenants.

We have worked tenaciously, in partnership with THB, to continue to achieve 100% compliance on gas and electrical safety testing this year, employing various strategies, resulting in us not incurring legal costs.

Rents and Tenancy Sustainment teams have completed more DHP applications on behalf of tenants, which whilst initially it takes more time this does prove VFM when the applications are awarded as the debt is cleared quicker than us chasing a tenant for payment and the cost of the tenant making payments to us

Independence and Wellbeing

The Independent Living service was overhauled with the introduction of a new Independence and Wellbeing service during 2021-22 the full benefits of this have been felt in 2022-23. The team continued to offer the community events launched last year. The Winters Warmer campaign provided information as to how to reduce fuel consumption and understand benefit entitlements and avoiding fuel poverty. The company provided a hot meal to residents every 2 weeks and took place in our community rooms and continued as the Spring Kitchen and Summer Sizzlers and will be also expanding into other community rooms in the area. These all encourage the community to get together, aiming to build relationships and combat loneliness and improve wellbeing and have been very well received. The feedback has been positive about the new service, as to how this has made a difference to them, to have someone knock at their door on a regular basis is appreciated.

We have continued to capture the needs of our most vulnerable customers by setting goal plans and during the year and a further 56 customers living in our sheltered accommodation have received a plan.

ALRT (Assisted Lifting Response Team)

The company has continued to work in partnership with Torbay and South Devon NHS and Appello to offer this service. Customers who benefit from this service will get the Torbay ALRT team to attend to assist a non-injured faller with lifting. The team has specialist lifting equipment and training, meaning they can get customers up quickly and help advise on preventing further accidents.

It also means a shorter wait time than if they were waiting for an ambulance, as paramedics have to prioritise emergency cases over someone who is unable to get up, but unhurt.

This service has benefited 50 customers this year which has prevented them not waiting for the ambulance and then being admitted into hospital unnecessarily thus helping to reduce the time that emergency services attend to much higher priority cases.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Teigncare

With the digitalisation of telephone systems significant investment was needed to upgrade the alarm system. After financially modelling this, it was found that the service would no longer be financially viable to provide going forwards, so the decision was made at Board to cease the service by seeking a buyer to continue the provision. During the year negotiations were entered with Appello Careline Ltd and the sale was agreed for April 2023. This has ensured continuity of service for the existing customers.

Tenant Involvement

We continue to actively engage with our tenants and the wider community. We have a Resident Involvement Manager who co-ordinates this and helps us to gauge what it is that tenants’ value and what they expect from us. We have a Tenants’ Forum which during the year have meet via Zoom every 6 weeks. During the year we have reintroduced in person meetings but Zoom remains the preferred method due to convenience for Forum members. We continue to consult on changes to services and processes as well as tenant related policies, procedures, and strategies. We also have a Scrutiny Panel who undertake regular reviews of our services, from a tenant point of view and provide critical feedback and recommendations for service improvement. Thirdly, a tenant Service Board supports our strong ethos towards co-regulation and at their quarterly meetings they focus on areas in relation to the Regulator of Social Housing’s Consumer Standards. These all help to keep Teign Housing connected with its tenants.

Reduce our carbon emissions, improve the environment, and reduce the costs of living in our homes

We have completed work on 26 properties in that were in bands E & F and are awaiting inspection to confirm they are now at Band C. A further 60 properties have been surveyed to confirm the work required to bring them up to EPC C. This work is budgeted for in 2023-24. 20 properties were identified as being suitable for becoming EWI pilots, this work has been successfully completed in the year and we continue to identify properties as they become void to continue this carbon reduction investment.

Provide quality repairs

During the year there was 97.9% satisfaction with repairs carried out.

Provide quality repairs and minimise return visits

During the year 99.3% of all repairs were resolved on the first visit

Work efficiently and respectfully in customers’ homes

During the year 96.37% of all planned work was completed on time

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

In 2023-24 as well as the projects above which will continue, our focus will also be on:

Reduce our carbon emissions, improve the environment, and reduce the costs of living in our

homes

The stock condition data from the stock surveys will provide better and more accurate data to inform our investment plans for carbon reduction. Using this data along with EPC information we can cost effectively target properties due for planned maintenance to both maintain decent homes standards and focus on the least energy efficient properties first to maximise the return on investment. Surveys have identified 60 properties currently at EPC band E & F to be brought up to band C in 2023-24.

Working on target of achieving a minimum EPC C across all stock by 2030, careful planning will be used to coordinate the work so that carbon zero plans integrate with EPC improvements. This will allow Social Housing Decarbonisation Fund applications to be submitted efficiently and effectively.

Damp and Mould

We are taking a proactive approach to this including looking at property trends, in the coming year monitors will be installed in homes where there is a greater probability of damp and mould occurring to allow us to monitor the situation, we have a damp and mould group established to focus on this issue as well as regular mould washing when applicable and advise to tenants as to how to prevent it occurring.

Further Improve our complaints process

The aim of the investment in a dedicated Resolutions Manager is for the organisation to be able to deliver a better service to our customers. We will continue to enhance our approach to complaints with increased training opportunities for all employees and co-develop processes with our customers. Full results are published quarterly to the Board and Tenants’ Forum.

Ensure our property assets remain sustainable

We will continue our investment work on our less efficient properties with the aim that every home will reach a minimum of EPC band C by 2030. We have begun to trail suitable void properties to invest in, to act as a pilot and monitor these to determine if they are less costly to maintain and reduce fuel bills for customers. The detailed information regarding the condition of our stock emanating from the Stock Condition Survey will further support this.

Develop more affordable homes

We will continue to develop affordable homes, whilst ensuring that homes remain affordable for people living in our local communities. This may be through the purchase of section 106 developments or through smaller land led schemes. In the business plan, we have a target of delivering 140 new homes in 2023-24. We continue to review our land and properties for redevelopment opportunities. Ultimately this will lead to an increase in rental income, which in turn can be re-invested in our existing stock or to build more new homes.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Improve cash flow by increasing the collection of non-rent debt

As part of the restructure rechargeable repairs will be invoiced through our housing management system and the balance will show on Tenant records, the debt will be managed by the Income Team who will have sight of both rent account and non-rent charges. This holistic view will increase the success rate of the debt chasing process.

Tenants

The letting process will be launched in the Resident app during 2023. Parts of the lettings process have already been mapped into the app and having a dedicated place for all the pre-tenancy inspection and affordability checks has already reduced the time taken to process new applications. The app build is well underway with a target launch date of August 2023.

The Customer First Team will relaunch the Call Quality and Monitoring Coaching to improve the way we interact with our customers. Team leaders will be included in the relaunched programmed and subject matter experts will be invited to provide coaching and feedback on specific call types. This will give a wider and improved quality of response to callers by enhancing the advisor’s detailed knowledge of the call subject matter.

Mary Gober Training is scheduled in June for the Customer and Communities Team Leaders and Managers as well as the full Customer First Team. This training is focused on Customer Service but also a wider remit of matching personal skills to technical skills to best equip employees to achieve full potential and improve service levels across the directorate.

Independence and Wellbeing

Tenancy sustainment plans are now being created with all new tenants as part of the sign-up process. This allows goals to be set for their outcomes of moving into the sheltered schemes and also to identify any needs for support and assistance prior to moving in. This could be assistance with registering at a doctor’s surgery or other medical and social requirements. This helps the team best plan for the support needed and have it in place on the day the tenancy begins.

The Board has approved the investment in the Dispersed Alarms to be installed over the next two years, at a cost of £320,000 in line with the digitalisation project and move from analogue technology. We are currently consulting with a group of residents on the type of alarm that would best suit and have demonstrations lined up with a number of providers in the coming weeks. This promotes the engagement with the residents especially when introducing a new piece of technology. It is critical that the users feel comfortable and able to use the alarm units for their safety and peace of mind.

The community events with Winter Warmers, Spring Kitchen and Summer Sizzlers will continue as well as the craft sessions to promote relationships and contact and reduce any feelings of loneliness. At these sessions we are inviting partner agencies to demonstrate the support offered.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Engaging with our community

The neighbourhood team over the next year we will continue to focus on engaging with our communities over the digital platforms that we have available to us. During 2022-23 we trained frontline staff in mediation and develop a specialist inhouse mediator to save the cost of outsourcing this service, we will continue to use these skills and training in improving conflict mediation across our communities.

Digital

In 2023-24 we plan to complete the implementation of the GIS (Geographic Information System) and web mapping software so that we can benefit from full utilisation of its capabilities. This software will allow us to overlay details such as tree maps and grounds maintenance maps to a map of our housing stock, from this we can better plan resources and scheduling of services.

Implementation of a new purchase order and invoice matching software will be rolled out in the summer 2023. The new software allows for better workflows for authorising purchase orders and invoices as well as improved interface for entering details and raising orders. This will help reduce errors, enable matching of invoices to be a much more seamless process to assist the supplier payment process and provide a more efficient system for our users.

We will continue working on improvements and exploring new functionality for Civica Cx housing management system. The aim is to continue to improve both the user experience for employees and tenants including better data accuracy, increased options for repairs diagnosis and mobile functionality.

Health and Safety

During the year we redesigned our Health & Safety Service and are working towards aligning our practices with HSG65. The team now forms part of our overall Assurance team working collectively towards promoting a positive and impartial culture in which we can continually improve our performance. The Health & Safety Team ensure where possible and applicable that the physical environments and assets that protect our employees and customers are safe, secure and for purpose.

Increase financial Capacity

The RCF has been extended to 2028 and we look to make best use of our unencumbered stock by securing further funding against this to enable the continued expansion of our development capacity and capital investment in improvements for our existing stock. This project will begin in the Autumn.

Improve our complaints process

We continue to fully roll-out “Lessons Learned” and in 2023-24 we aim to achieve improve resident satisfaction with the complaints process.

Ensure our residents are happy with their repairs

Next year we aim to continue to exceed 96% satisfaction with repairs carried out.

Provide quality repairs and minimise return visits

Next year we aim to exceed 99% of repairs requiring only one visit.

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Work efficiently and respectfully in customers’ homes

Next year we plan to complete 100% of all planned works on time.

Remain Financially Strong

In 2023-24 our operating margin is budgeted to be 20.0%

The Consumer Standards and the Social Housing White Paper

We have delivered training for the whole company on these subjects in 2022-23 and will continue with refreshers during 2023-24 to provide updates and reinforce the importance of these crucial topics. The consumer standards working group meets regularly to discuss new initiatives to improve the service standard for our tenants, monitor current performance and review any new regulatory developments. This is important information given the heightened importance now placed on the customer and the new standards which are being put in place.

All of this continues to allow us to have a strong business plan that can manage the impact of costs increases which have resulted from the strategic decisions made to improve the quality of our homes and services and to keep our customers safe. We also continue to deliver new homes and improve the overall capacity of the plan whilst still delivering the aims and aspirations of the company.

Assurance and Internal Control

The Board of Teign Housing has overall responsibility for establishing and maintaining an effective system of internal control. The systems of internal control are the measures designed to ensure that Teign Housing is successfully working toward its objectives, and that the risks which threaten the achievement of the company’s objectives are identified and properly managed. Such a system can provide reasonable but not absolute assurance and cannot eliminate risk.

The Board reviews the system of internal controls, assesses its effectiveness and takes any steps it considers necessary to maintain or improve their effectiveness.

Teign Housing’s system of internal controls includes the measures set out below

Policy and strategy – there are a range of policies and strategies in place that determine and guide the activities and arrangements of the company.

Prevention and detection of fraud

The system of internal control includes measures designed to prevent or detect fraud.

The Board has established a policy on the prevention, detection and investigation of fraud which includes a whistle blowing procedure and an anti-money laundering policy. The company uses different measures to prevent and detect fraud which include but are not limited to:

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Board’s assessment of assurance and internal control

The Board has conducted a review and made enquiries of the Executive and Senior Management Team to inform its view on the effectiveness of Teign Housing’s internal controls. A full report on Internal Controls Assurance was provided to the Audit Committee on 29 June 2023. The results of the Board’s review are the basis of this statement.

Teign Housing has assessed its compliance with the Regulator of Social Housing’s Governance and Financial Viability Standard and considers itself to be compliant.

The Board confirms that an effective system of internal control has been in place throughout the year ending 31 March 2023 and up to the date of signing this report.

The Strategic Report, incorporating the Value for Money Statement, was approved by the Board of Directors on 29 June 2023 and signed on its behalf by:

Maureen Robinson Chair of the Board

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Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Directors Report

The Directors present their report for the year ending 31 March 2023.

Directors

The directors who served the company during the year are shown on page 1.

Information for auditors

The directors who held office at the date of approval of this Board Report confirm that, so far as they are each aware, there is no relevant audit information of which the company’s auditors are unaware; and each director has taken all the steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company’s auditors are aware of that information.

Statement of Compliance

The company has chosen in accordance with section 414C(11) of the Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 to set out in the company's strategic report information required by schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008. This includes information that would have been included in the business review and the principal risks and uncertainties.

Statement of Directors Responsibilities

The directors are responsible for preparing the Board Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the surplus or deficit of the company for that period.

In preparing these financial statements the directors are required to:

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial

30

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

position of the company and enable them to ensure that the accounts comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. They are also responsible for the maintenance and integrity of the Company’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions .

This report was approved by the Board of Directors on 29 June 2023 and signed on its behalf by:

Maureen Robinson Chair of the Board

31

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Independent Auditor’s Report to the Members of Teign Housing

Opinion

We have audited the financial statements of Teign Housing (the ‘parent Company’) and its subsidiary (the ‘Group’) for the year ended 31 March 2023 which comprise the Consolidated and parent Company Statement of Comprehensive Income, the Consolidated and parent Company Statement of Financial Position, the Consolidated and parent Company Statement of Changes in Reserves, the Consolidated Statement of Cash Flows and the notes to the financial statements, 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:

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 and parent Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 Group’s or the

32

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

parent Company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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 or the directors’ report.

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:

33

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

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:

Responsibilities of directors

As explained more fully in the Statement of Directors’ Responsibilities set out on page 30, 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 has 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.

34

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

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:

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 non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

35

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

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.

Lee Cartwright (Senior Statutory Auditor) For and on behalf of Beever and Struthers Statutory Auditor 150 Minories London EC3N 1LS

Date: 23 August 2023

36

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Statement of Comprehensive Income

Note
Turnover
2
Cost of sales
2
Operating expenditure
2
Gain on disposal of property, plant and
equipment
2
Movement of investments property value
2
Operating surplus
2
Interest receivable
4
Interest and financing costs
5
Surplus/(Deficit) before tax
Taxation
7
Surplus/(Deficit) before tax
Other Comprehensive Income
SHPS - Actuarial gain/(loss) in respect of
pension schemes
19
LGPS - Actuarial gain in respect of
pension schemes
19
Total
Total comprehensive income for the year		 Group
2023
£’000
21,390
(1,137)
(15,941)
142
-
4,453
73
(1,977)
2,549
-
2,549
2,549
(133)
-
(133)
2,416		 Group
2022
£’000
20,479
(994)
(15,467)
225
(10)
4,233
6
(5,900)
(1,661)
-
(1,661)
(1,661)
637
796
1,433
(228)		 Association
Association
2023
2022
£’000
£’000
21,505
20,567
(1,137)
(994)
(16,074)
(15,566)
142
225
-
(10)
4,436
4,222
89
17
(1,977)
(5,900)
2,549
(1,661)
-
-
2,549
(1,661)
2,549
(1,661)
(133)
637
-
796
(133)
1,433
2,416
(228)

The financial statements on pages 37 to 79 were approved and authorised for issue by the Board on 29 June 2023 and were signed on its behalf by:

Helen Hilditch Company Secretary

Maureen Robinson Stephen Cook Chair of the Board Chair of Audit Committee

The results relate wholly to continuing activities and the notes on pages 41 to 79 form an integral part of these accounts.

37

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Statement of Financial Position

Note
Fixed Assets
Intangible Assets
8
Tangible Assets
9
Investment Properties
10
Current Assets
Stock
11
Debtors due in less than one year
12
Debtors due in greater than one year
Cash and cash equivalents
13
Less creditors: amounts falling due
within one year
14
Net Current Assets
Total assets less current liabilities
Creditors: amounts falling due after
more than one year
15
Provisions for Liabilities
Pension Liability
19
Total Net Assets
Reserves
Income and Expenditure reserve
Revaluation reserve
Total Reserves		 Group
At
31-Mar-23
£’000
201
160,232
570
161,003
1,580
1,533
965
5,319
9,396
(2,699)
6,697
167,700
(68,384)
(574)
98,742
66,895
31,847
98,742		 Group
At
31-Mar-22
£’000
337
149,113
570
150,020
788
801
965
16,373
18,927
(3,968)
14,959
164,979
(68,081)
(572)
96,326
64,397
31,929
96,326		 Association
Association
At
At
31-Mar-23
31-Mar-22
£’000
£’000
201
337
160,232
149,113
570
570
161,003
150,020
1,580
788
2,056
1,319
965
965
4,992
16,011
9,592
19,083
(2,895)
(4,124)
6,697
14,959
167,700
164,979
(68,384)
(68,081)
(574)
(572)
98,742
96,326
66,895
64,397
31,847
31,929
98,742
96,326

These financial statements on pages 37 to 79 were approved and authorised for issue by the Board 29 June 2023 and were signed on its behalf by:

Helen Hilditch Maureen Robinson Stephen Cook Company Secretary Chair of the Board Chair of Audit Committee

The notes on pages 41 to 79 form an integral part of these accounts.

38

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Statement of Changes in Reserves

Group:

Group:
Income and
expenditure
Revaluation		 Total
reserve
reserve
£’000 £’000 £’000
Balance at 1st April 2021 Restated 64,507 32,047 96,554
Surplus from Statement of Comprehensive Income (1,661) - (1,661)
Actuarial (loss) relating to the year 1,433 - 1,433
Transfer from revaluation reserve to income and
expenditure reserve restated		 118 (118) -
Balance at 31st March 2022 64,397 31,929 96,326
Deficit from Statement of Comprehensive Income 2,549 - 2,549
Actuarial gain relating to the year (133) - (133)
Transfer from income and expenditure reserve to
revaluation reserve		 82 (82) -
Balance at 31st March 2023 66,895 31,847 98,742

Association:

Income and Income and
expenditure
Revaluation		 Total
reserve
reserve
£’000 £’000 £’000
Balance at 1st April 2021 restated 64,507 32,047 96,554
Deficit from Statement of Comprehensive Income (1,661) - (1,661)
Actuarial gain relating to the year 1,433 - 1,433
Transfer from revaluation reserve to income and
expenditure reserve restated		 118 (118) -
Balance at 31st March 2022 64,397 31,929 96,326
Surplue/(Deficit) from Statement of Comprehensive Incom 2,549 - 2,549
Actuarial gain/(loss) relating to the year (133) - (133)
Transfer from income and expenditure reserve to
revaluation reserve		 82 (82) -
Balance at 31st March 2023 66,895 31,847 98,742

The notes on pages 41 to 79 form an integral part of these accounts

39

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Consolidated Statement of Cash Flows

Consolidated Statement of Cash Flows
Group Group
2022
£’000
(1,661)
Cash flows from operating activities 2023
£’000
(Deficit)/Surplus for the year after tax 2,549
Adjustments for investing or financing activities (225)
(6)
5,900
(Gain) on sale of fixed assets
Interest receivable
Interest and financing costs		 (142)
(73)
1,977
1,762
5,669
Adjustments for non-cash items: 2,566
-
(70)
(45)
10
(290)
(1,064)
25
Depreciation
Impairment of Fixed assets
Government grant utilised in the year
(Decrease)/Increase in stock
Decrease/(Increase) in Investment properties
(Increase)/Decrease in trade and other debtors
(Increase)/Decrease in trade and other creditors
Pension costs less contributions payable		 2,565
-
(83)
(792)
-
(732)
(1,289)
(145)
(476) 1,133
5,141
Net cash generated from operating activities 3,836
Cash flow from investing activities (9,523)
1,003
(116)
92
6
Capital expenditure on housing properties
Net proceeds on sale of housing properties
Purchase of other fixed assets and intangible assets
Government grant received
Interest received		 (13,393)
486
(109)
500
73
Net cash used in investing activities
Cashflow from financing activities		 (12,443) (8,538)
(2,355)
(4,219)
-
36,423
(21,500)
Interest paid
Loan Break Fees
Interest element of finance lease rental payment
Loans received
Loans repaid
Net cash used in financing activities		 (2,448)
-
-
-
-
(2,448)
8,349
Net change in cash and cash equivalents (11,055) 4,952
11,421
Cash and cash equivalents at beginning of year 16,373
Cash and cash equivalents at year end 5,319 16,373

The notes on pages 41 to 79 form an integral part of these accounts.

40

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Notes to the financial statements

Legal Status

Teign Housing is a company limited by guarantee incorporated in England and Wales under the Companies Act 2006, it is a registered charity under the Charities Act 2011 and is registered with the Regulator of Social Housing as a Private Registered Provider of Social Housing. The registered office is Millwood House, Collett Way, Newton Abbot, Devon TQ12 4PH.

1 Principal Accounting Policies

Basis of Accounting

The Group’s financial statements have been prepared in accordance with applicable United Kingdom Generally Accepted Accounting Practice (UK GAAP) and the Statement of Recommended Practice for registered social housing providers (2018). The Group is required under the Companies Act (Group Accounts) Regulations 2006 to prepare consolidated Group accounts.

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 2022. The financial statements have been prepared in compliance with FRS102. The financial statements are prepared on the historical cost basis of accounting as modified by the valuation of the transferred rented housing stock to deemed cost on transition to FRS 102 and are presented in £000’s. Investment properties are included in the financial statements at valuation.

As a public benefit entity, Teign Housing has applied the public benefit entity ‘PBE’ prefixed paragraphs of FRS 102.

The Group financial statements consolidate the financial statements of Teign Housing (the parent) and its subsidiary undertaking Templer HomeBuild for the year ended 31 March 2023.

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:

41

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Basis of Consolidation

The consolidated financial statements incorporate the financial statements of Teign Housing and entities controlled by the Group (its subsidiary). Control is achieved where the Group has the power to govern the financial and operating policies of an entity to obtain benefits from its activities. Intercompany transactions and balances between group entities are eliminated in full upon consolidation.

Going Concern

The company’s financial statements have been prepared on a going concern basis which assumes an ability to continue operating for the foreseeable future. The impact of the Covid-19 pandemic continues to be monitored and the company has adapted to various new ways of working. The future budget and business plans have been constructed with this in mind and no significant concerns were noted.

The business plan was stress tested and assessed for any imminent or likely future breach in borrowing covenants. No significant concerns have been noted, we consider it appropriate to continue to prepare the financial statements on a going concern basis.

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:

42

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

technological innovation, product life cycles and maintenance programmes are considered. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

d. Pension and other post-employment benefits. The cost of defined benefit pension plans and other post-employment benefits are determined using actuarial valuations, and these valuations involve making assumptions. The critical underlying assumptions in relation to the estimate of the pension defined benefit scheme obligation are standard rates of inflation, property valuations, mortality, discount rate and anticipated future salary increases. Variations in these assumptions have the ability to significantly influence the value of the liability recorded and annual defined benefit expense. 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. Further details are given in note 19.

A review of void losses in the year has been carried out and no properties have been identified as impaired.

A review of the schemes in development has been carried out and no properties have been identified as impaired.

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

43

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Turnover and revenue recognition

Turnover comprises primarily of rental income receivable from tenants and leaseholders. The following items are also included within the Turnover figure:

Income is recognised in relation to the period when the goods or 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.

Service charges

Service charge income and costs are recognised on an accruals basis. The company operates variable service charges on a scheme by scheme basis in full consultation with residents.

Operating Leases

Rentals paid under operating leases are charged to the Statement of Comprehensive Income on a straight-line basis over the term of the lease.

Loan interest costs

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

Capitalised Interest

Interest on our development schemes is capitalised from the point the Board approves the project and the company begins to incur development costs.

Categorisation of Debt

The Group’s debt has been treated as “basic” in accordance with paragraphs 11.8 and 11.9 of FRS 102.

Corporation Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in the statement of comprehensive income, except that a change attributable to an item of income or expense recognised as other comprehensive income or to an item recognised directly in equity, respectively.

Deferred balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date except:

44

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Value Added Tax

The company charges VAT on some of its income and can recover part of the VAT it incurs on expenditure. All amounts disclosed in the accounts are inclusive of VAT to the extent that it is suffered by the company and not recoverable.

Intangible Assets

Intangible assets are for IT software. They are stated at cost less accumulated depreciation. The useful economic life is 3 to 5 years.

Tangible Assets

Properties for social rent transferred from the Local Authority are stated at deemed cost less accumulated depreciation, all other properties and tangible fixed assets are stated at historic cost less accumulated depreciation. Donated land/assets or assets acquired at below market value from a government source, i.e., local authority, are included as a liability in the Statement of Financial Position at the fair value less consideration paid. Housing properties under construction are stated at cost and are not depreciated. These are reclassified as housing properties, on practical completion of construction. Cost includes the cost of acquiring land and buildings, development costs, and interest charges incurred during the development period. Staff costs and overheads directly attributable to bringing housing properties into working condition for their intended use are capitalised.

Freehold land is not depreciated.

Where a housing property comprises two or more major components with substantially different useful economic lives (UELs), each component is accounted for separately and depreciated over its individual UEL. Expenditure relating to subsequent replacement or renewal of components is capitalised as incurred.

The company depreciates freehold housing properties by component on a straight-line basis over the estimated UELs of the component categories.

UELs for identified components are as follows:

Structure
 100 Years
Cornish Units 50 Years
Kitchens 20 Years
Bathrooms 30 Years
Wiring 30 Years

45

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Heating/boilers 15 Years
Windows and Doors 30 Years
Pitched Roof 70 Years
Flat Roof 20 Years
Disabled adaptations 10 Years

Low Cost Home Ownership

The costs of low-cost home ownership properties are split between current and fixed assets based on the first tranche portion. The first tranche portion is accounted for as a current asset and the sale proceeds shown in turnover. The remaining element of the shared ownership property is accounted for as a fixed asset and subsequent sales treated as sales of fixed assets. Interest on loans used to finance the development of new housing properties is capitalised during the construction period.

Finance Leases

Where assets are financed by leasing arrangements that give rights approximating to ownership, they are treated as if they had been purchased outright. The amount capitalised is the present value of the minimum lease payments payable during the lease term, this is generally equivalent to the original cost of the assets. The corresponding leasing commitments are shown as obligations to the lessor. Lease payments are treated as consisting of capital and finance cost elements and the finance costs are charged to the Statement of Comprehensive Income.

Other Tangible Fixed Assets

Other tangible fixed assets are stated at cost less accumulated depreciation. Leased assets are depreciated over the life of the lease if this is shorter than their useful economic life. Depreciation is provided on a straight-line basis, at rates considered appropriate to write off the assets over their useful economic lives as follows:

ul economic lives as follows:
IT equipment 3 to 5 years
Leasehold Improvements 5 to 10 years
Office premises 90 years
Office fixtures and fittings 3 to 5 years
Teigncare Alarm Equipment 3 to 10 years
Motor Vehicles 4 years
Electrical works 40 years
New technology 15 years
Gas installations 25 years

46

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Investment Property

Investment property includes commercial properties not held for the social benefit of the company. Investment property is measured at cost on initial recognition, which includes purchase cost and any directly attributable expenditure, and subsequently at fair value at the reporting date. Fair value is determined annually and derived from the current market rents and investment property yields for comparable real estate, adjusted, if necessary, for any difference in the nature, location, or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in the Statement of Comprehensive income.

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.

Social Housing Grant (SHG)

Where developments have been financed wholly or partly by social housing and other grants, the amount of the grant received has been included as deferred income and recognised in Turnover over the estimated useful life of the associated asset structure (excluding land), under the accruals model.

When 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.

SHG must be recycled by the company 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 Homes England. 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.

Revaluation Reserve

The revaluation reserve represents the difference on transition between the fair value of transfer rented social housing properties and their historical cost carrying value, where deemed cost transitional relief was taken.

47

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

2 Turnover, cost of sales, operating expenditure, and operating surplus

Group Turnover
Cost of
sales
Operating
expenditure
2023
Operating
surplus
£’000
£’000
£’000
£’000		 Turnover
Cost of
sales
Operating
expenditure
2023
Operating
surplus
£’000
£’000
£’000
£’000		 Turnover
Cost of
sales
Operating
expenditure
2022
Operating
surplus
£’000
£’000
£’000
£’000
Social housing lettings (note 2a)
Other social housing activities
Teigncare alarm services
Other services
First tranche low cost home
ownership sales
Activities other than social
housing
Other activities (note 2b)		 19,338
-
(15,431)
3,907
187
-
(145)
42
103
-
(122)
(19)
1,408
(1,137)
-
271
354
-
(243)
111		 18,505
-
(14,962)
3,543
193
-
(176)
17
177
-
(189)
(12)
1,251
(994)
-
257
353
-
(140)
213
Total
Gain on disposal of property, plant
and equipment (note 2c)
(Decrease)/Increase in value of
investment properties
Operating surplus		 21,390
(1,137)
(15,941)
4,311
20,479
(994)
(15,467)
4,018
142
-
4,453
225
(10)
4,233

48

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

2 Turnover, cost of sales, operating expenditure, and operating surplus cont’d.

Association Turnover
Cost of
sales
Operating
expenditure
2023
Operating
surplus
£’000
£’000
£’000
£’000		 Turnover
Cost of
sales
Operating
expenditure
2023
Operating
surplus
£’000
£’000
£’000
£’000		 Turnover
Cost of
sales
Operating
expenditure
2022
Operating
surplus
£’000
£’000
£’000
£’000
18,506
-
(15,073)
3,433		 Turnover
Cost of
sales
Operating
expenditure
2022
Operating
surplus
£’000
£’000
£’000
£’000
18,506
-
(15,073)
3,433
Social housing lettings (note 2a)
Other social housing activities		 19,338
-
(15,565)
3,773
187
-
(145)
43
150
-
(121)
28
1,408
(1,137)
-
271
423
-
(243)
180
21,505
(1,137)
(16,074)
4,295
142
-
193
-
(176)
17
208
-
(177)
31
1,251
(994)
-
257
409
-
(140)
269
Teigncare alarm services
Other services
First tranche low cost home
ownership sales
Activities other than social
housing
Other activities (note 2b)
Total
Gain on disposal of property, plant
and equipment (note 2c)
(Decrease)/Increase in value of
investment properties
20,567
(994)
(15,565)
4,007
225
(10)
Operating surplus 4,437 4,222

49

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

2a Income and expenditure from social housing lettings

Group
Income
Rent receivable, net of identifiable
service charge and voids
Service charge income
Amortised government grants
Furlough income
Other income from social housing lettings
Turnover from social housing lettings
Operating expenditure
Management
Service charge costs
Routine maintenance
Planned maintenance
Major repairs expenditure
Bad debts
Depreciation of housing properties
Amortisation
Impairment of housing properties
Operating
expenditure
on
social
housing lettings
Operating surplus on social housing
lettings
Void losses		 General needs
Housing for
older people
Low cost home
ownership
Other
Total 2023
Total 2022
£’000
£’000
£’000
£’000
£’000
£’000
13,051
4,431
454
9
17,945
17,090
430
597
20
58
1,105
1,087
83
-
-
-
83
70
-
-
-
-
-
-
64
140
-
-
205
258
13,628
5,168
474
67
19,338
18,505
(3,853)
(1,773)
(14)
(22)
(5,662)
(6,252)
(368)
(237)
(12)
(13)
(630)
(495)
(2,239)
(856)
(7)
(18)
(3,120)
(2,901)
(466)
(181)
(2)
(2)
(651)
(519)
(1,932)
(855)
(6)
(45)
(2,838)
(2,444)
(67)
(25)
-
-
(92)
(43)
(1,503)
(583)
(60)
(118)
(2,264)
(2,148)
(115)
(45)
(5)
(9)
(174)
(160)
-
-
-
-
-
-
(10,543)
(4,555)
(106)
(227)
(15,431)
(14,962)
3,085
613
368
(160)
3,907
3,543
(75)
(29)
-
-
(104)
(86)

50

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

2a Income and expenditure from social housing lettings cont’d.

Association
Income
Rent receivable, net of identifiable
service charge and voids
Service charge income
Amortised government grants
Other income from social housing lettings
Turnover from social housing lettings
Operating expenditure
Management
Service charge costs
Routine maintenance
Planned maintenance
Major repairs expenditure
Bad debts
Depreciation of housing properties
Amortisation
Impairment of housing properties
Operating
expenditure
on
social
housing lettings
Operating surplus on social housing
lettings
Void losses		 General needs
Housing for
older people
Low cost home
ownership
Other
Total 2023
Total 2022
£’000
£’000
£’000
£’000
£’000
£’000
13,051
4,431
454
9
17,946
17,090
430
597
20
58
1,105
1,087
83
-
-
-
83
70
64
140
-
-
205
259
13,628
5,168
474
68
19,338
18,506
(3,853)
(1,773)
(14)
(22)
(5,662)
(6,252)
(369)
(237)
(12)
(13)
(631)
(496)
(2,295)
(878)
(8)
(22)
(3,204)
(2,970)
(475)
(184)
(2)
(3)
(663)
(530)
(1,963)
(858)
(6)
(46)
(2,873)
(2,474)
(67)
(25)
-
-
(93)
(43)
(1,503)
(583)
(60)
(118)
(2,264)
(2,148)
(115)
(45)
(5)
(9)
(174)
(160)
-
-
-
-
-
-
(10,641)
(4,584)
(106)
(234)
(15,565)
(15,073)
2,987
584
367
(166)
3,773
3,430
(75)
(29)
-
-
(105)
(86)

51

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

2b Turnover from activities other than social housing

Garage lettings
Commercial property lettings
Gift Aid Donation		 Group
2023
£’000
314
39
-
354		 Group Association
Association
2022
2023
2022
£’000
£’000
£’000
311
314
311
42
39
42
-
69
57
353
423
410

2c Gain on disposal of assets

Proceeds of sales
Less: Costs of sales
Amount payable to Teignbridge District
Council
Gain/(Loss)
Group and Association		 Total
Total
2023
2022
£’000
£’000
£’000
£’000
£’000
£’000
606
91
-
3
700
1,892
(323)
(78)
-
-
(400)
(862)
(158)
-
-
-
(158)
(805)
Right to
Buy/Acquire
Sales
Open
Market
Sales
Low Cost
Home
Ownership
Other
Disposals
125
13
-
3
142
225

52

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

3 Directors’ emoluments, key management personnel & employee information

2023 2022
£’000 £’000
The aggregate emoluments paid to or receivable by
executive Directors and former Directors		 non 38 32
The aggregate emoluments paid to or receivable by
executive Directors and former Directors		 156 141
193 173
The emoluments paid to the highest paid Director
excluding pension contributions		 137 133
The aggregate amount of Directors or past
Directors’ pensions, excluding amounts payable - -
under a property funded pension scheme
The number of full time equivalent staff whose Group Group Association Association
remuneration payable fell within bands of: 2023 2022 2023 2022
£’000 £’000 £’000 £’000
£70,000 to £79,999 - 4 - 3
£80,000 to £89,999 2 1 2 1
£90,000 to £99,999 2 - 1 -
£100,000 to £109,999 - - - -
£110,000 to £119,999 - - - -
£120,000 to £129,999 - - - -
£130,000 to £139,999 - - - -
£140,000 to £149,999 - 1 - 1
£150,000 to £159,000 1 - 1 -

The Chief Executive is an ordinary member of the pension scheme. In April 2022, the Chief Executive moved from a final salary scheme to a defined benefit scheme funded by annual contributions by the employee, and the employer. No enhanced or special terms apply. There are no additional pension arrangements. A contribution by the company of £18,489 (2021-22: £7,742) was paid in addition to the personal contributions of the Chief Executive. Directors (key management personnel) are defined as the members of the Board and the Chief Executive.

53

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Employee information
The average number of persons employed during
the year expressed in full time equivalents (37
hours per week) was:
Office staff
Wardens, caretakers and cleaners
Maintenance staff
Staff costs (for the above employees)
Wages and salaries
Social Security costs
Other Pension costs
LGPS Cessation Event
Non Executive Director Wages and salaries
Holiday Pay Accrual		 Group
2023
92
17
51
160
Group
2023
£’000
5,205
535
423
-
38
55
6,255		 Group
Association
Association
2022
2023
2022
92
77
80
17
17
17
46
-
-
155
94
97
Group
Association
Association
2022
2023
2022
£’000
£’000
£’000
4,847
3,065
3,070
457
304
283
298
362
249
1,178
-
1,178
-
38
-
33
18
33
6,813
3,788
4,813

4 Finance income and other income

Bank finance income
Interest received from Group entities		 Group
2023
£’000
73
-
73		 Group
2022
£’000
6
-
6		 Association
Association
2023
2022
£’000
£’000
73
6
16
11
89
17

54

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

5 Finance costs and similar charges

Lease finance costs
On loans wholly or partly repayable in more than
five years
FRS 102 fair value adjustment
Costs associated with financing
Refinancing break away costs
Net interest on the defined liability
Less finance costs capitalised on housing
properties under construction
Other interest charges
Charged to income and expenditure account		 Group
2023
£’000
-
2,327
-
27
-
14
(391)
-
1,977		 Group Association
Association
2022
2023
2022
£’000
£’000
£’000
5
-
5
2,397
2,327
2,397
(584)
-
(584)
15
27
15
4,219
-
4,219
37
14
37
(190)
(391)
(190)
1
-
1
5,900
1,977
5,900

55

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

6 Surplus on ordinary activities before taxation

Group Group Association Association
Is stated after charging/(crediting) 2023 2022 2023 2022
£’000 £’000 £’000 £’000
Depreciation of housing properties 2,211 2,271 2,211 2,271
Depreciation of other fixed assets 128 121 128 121
Amortisation of intangible fixed assets 174 161 174 161
Operating lease rentals (land and buildings) - - - -
Operating lease rentals (other) - - - -
Auditors remuneration (excluding VAT)
- Audit of the Group financial statements 32 22 32 22
- Audit of subsidiaries - 2 - -
- Other service 1 - - -
Amortisation of government grant (83) (70) (83) (70)

56

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

7 Taxation on surplus on ordinary activities

Teign Housing is a registered charity. Charitable activities of the Company are exempt from United Kingdom Corporation Tax.

Analysis of charge/(credit) for the year
Current tax
UK corporation tax at 19% (2021/22: 19%)
Adjustment in respect of prior years
Total current tax charge/(credit)
Deferred tax
Total deferred tax charge/(credit)
Tax on surplus on ordinary activities
Reconciliation of tax charge
Surplus on ordinary activities before taxation
Tax on surplus/(deficit) at standard corporation
tax rate of 19% (2021/22: 19%)
Effects of:
Non-taxable surplus on charitable activities
Expenses not deductible for tax purposes
Non trade charges utilised in period
Tax charge/(credit) for the year		 Group
2023
£’000
-
-
-
-
-
2,549
484
(484)
-
-
-		 Group
2022
£’000
-
-
-
-
-
(1,661)
(316)
316
-
-
-		 Association
Association
2023
2022
£’000
£’000
-
-
-
-
-
-
-
-
-
-
2,549
(1,661)
484
(316)
(484)
316
-
-
-
-
-
-

57

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

8 Intangible assets – IT software

Of the £201,000 NBV, £145,000 relates to the Housing Management Software.

58

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

9 Tangible fixed assets

Cost
At 1st April 2022
Additions
AUC Transfers
Transfer to Current Assets
Disposals
At 31st March 2023
Depreciation &
Impairment
At 1st April 2022
Charge for the year
Disposals
At 31st March 2023
Net book Value
At 31st March 2023
At 1st April 2022		 Social
Housing
Properties
for Letting
Completed
Social
Housing
Properties
for Letting
Under
Construction
Low Cost
Home
Ownership
Properties
Completed
Low Cost
Home
Ownership
Properties
Under
Construction
Total
Housing
Properties
Land
IT
Equipment
Office
Supported
Housing
Equipment
Fixtures &
Fittings
Motor
Vehicles
Total Fixed
Assets
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
£’000
145,065
5,747
9,318
1,124
161,254
65
199
1,176
234
285
107
163,320
3,829
7,664
(281)
3,908
15,120
-
31
-
4
4
32
15,191
4,645
(4,645)
1,741
(1,741)
-
-
-
-
-
-
-
-
-
-
-
(1,336)
(1,336)
-
-
-
-
-
-
(1,336)
(397)
-
-
-
(397)
-
(11)
-
-
-
(15)
(423)
153,142
8,765
10,778
1,956
174,641
65
219
1,176
238
289
123
176,752
(13,069)
(139)
(306)
-
(13,514)
-
(102)
(122)
(199)
(208)
(62)
(14,207)
(2,184)
-
(80)
-
(2,264)
-
(52)
(15)
(19)
(20)
(22)
(2,391)
53
-
-
-
53
-
10
-
-
-
15
79
(15,200)
(139)
(386)
-
(15,725)
-
(144)
(137)
(218)
(228)
(69)
(16,520)
137,942
8,626
10,392
1,956
158,916
65
75
1,039
21
61
55
160,232
131,996
5,608
9,012
1,124
147,740
65
97
1,054
35
77
45
149,113

59

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

9 Tangible fixed assets cont’d

Number of units owned and managed

----- Start of picture text -----
Group and Association
Opening Started in Property Completed Closing
Social Housing Accommodation Balance Year Reclassifed in Year Balance
Under development
General needs housing 90 42 - 35 97
Social Rent 28 17 - 4 41
Affordable Rent 62 25 - 31 56
- - - - -
Supported housing and housing for older people
Low cost home ownership 37 10 - 13 34
127 52 - 48 131
----- End of picture text -----

----- Start of picture text -----
Opening Completed Property Disposed Closing
Balance in Year Reclassifed in Year Balance
Under managemement at end of year
General needs housing 2,627 35 2 6 2,658
Social Rent 2,376 4 2 6 2,376
Affordable Rent 251 31 - - 282
Supported housing and housing for older people 999 - (2) - 997
Low cost home ownership 114 13 - - 127
3,740 48 - 6 3,782
3,867 3,913
Opening Taken on in Property Removed Closing
Balance Year Reclassifed in Year Balance
Social Housing Accommodation
Managed for others at end of year 32 2 - 5 29
32 29
----- End of picture text -----

The value of property additions includes £391,000 of capitalised finance costs (2021-22: £189,000). Finance costs are charged on all schemes during the development stage. The total cumulative value of capitalised finance costs is £1,643,000 (2021-22: £1,252,000). The average rate of finance costs is 4.06% (2021-22: 4.06%).

Housing properties were valued by Jones Lang LaSalle in accordance with Royal Institute of Chartered Surveyors procedures. Properties valued annually for funding commitments at 31 March 2023 equated to £71.9m (1,533 properties) and properties valued triennially for funding commitments at 31 March 2023 equated to £61.7m (1,916 properties) in total 3,449 properties. There are 265 properties that have not been valued for funding commitments.

60

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

The total expenditure on repairs and maintenance to existing properties in the year was £9,278,000 (2021-22: £8,979,000). Of this £3,203,000 was capitalised under the SORP 2018 (2021-22 £3,025,000).

The residual value of the housing property assets represents land which is not depreciated. The cost of land at 31 March 2023 was £34,861,400 (2021-22: £34,561,400).

10 Investment properties held for letting

Investment properties were re-valued at 31 March 2023 by Jones Lang Lasalle, professionally qualified external valuers. The valuation of properties was undertaken in accordance with the Royal Institute of Chartered Surveyors Valuation Global Standards. These properties were part of the original stock transfer from Teignbridge District Council and transferred with a nil value. The shops have been valued on the basis of Market Value. The total valuation remains unchanged as £570,000 (£570,000 31 March 2022).

11 Stock

Group and Association
Properties held for sale
Low cost home ownership properties
Completed
Under construction		 2023
2022
£’000
£’000
181
95
1,399
693
1,580
788

There are 34 low cost home ownership properties under construction and 2 properties completed and available for sale at 31 March 2023.

61

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

12 Trade and other debtors
13 Cash and cash equivalents
Amounts falling due in less than one year
Arrears of rent and service charges
Provision for bad and doubtful debts
Prepayments and accrued income
Other trade receivables
VAT receivables
Amounts owed by subsidiary undertakings
Amounts due in less than one year
Amounts falling due in greater than one year
THFC loan interest paid in advance
Amounts due in greater than one year
Short term deposits
Cash at bank		 12 Trade and other debtors
13 Cash and cash equivalents
Amounts falling due in less than one year
Arrears of rent and service charges
Provision for bad and doubtful debts
Prepayments and accrued income
Other trade receivables
VAT receivables
Amounts owed by subsidiary undertakings
Amounts due in less than one year
Amounts falling due in greater than one year
THFC loan interest paid in advance
Amounts due in greater than one year
Short term deposits
Cash at bank		 Group
2023
£’000
593
(341)
252
374
906
1
-
1,533
Group
2023
£’000
965
965
Group
2023
£’000
1,013
4,306
5,319		 Group
2023
£’000
593
(341)
252
374
906
1
-
1,533
Group
2023
£’000
965
965
Group
2023
£’000
1,013
4,306
5,319		 Group
Association
Association
2022
2023
2022
£’000
£’000
£’000
579
593
579
(304)
(341)
(304)
275
252
275
239
491
354
287
912
290
-
1
-
-
400
400
801
2,056
1,319
Group
Association
Association
2022
2,023
2022
£’000
£’000
£’000
965
965
965
965
965
965
Group
Association
Association
2022
2023
2022
£’000
£’000
£’000
1,013
1,013
1,013
15,360
3,979
14,998
16,373
4,992
16,011
Group
2023
£’000
1,013
4,306
5,319

The Cash at bank figure includes £355k restricted funds that are held as a pension bond. These funds are held in a separate bank account and are not available as working capital for the company.

62

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

14 Creditors: amounts falling due within one year

Trade payables
Accruals and deferred income
Rent and service charges paid in advance
Right to Buy sharing agreement (see below)
Amounts owed to subsidiary
Other creditors
Deferred capital grant (note 15b)
VAT creditor
Income Tax (PAYE) and National Insurance
Lease obligations		 Group
Group
Association
2023
2022
2023
£’000
£’000
£’000
376
301
423
645
1,478
645
848
842
848
157
957
156
-
-
237
449
190
427
81
70
81
-
5
-
143
125
77
-
-
-
2,699
3,968
2,895		 Association
2022
£’000
346
1,478
842
957
184
170
70
5
72
-
4,124

The Right to Buy sharing agreement is part of the inventory transfer agreement and requires Teign Housing to pay a share of the proceeds from property sales to Teignbridge District Council.

15 Creditors: amounts falling due after more than one year

Bank loans (note 15a)
Loan Premium
Lease obligations
Deferred capital grant (note 15b)
Recycled Capital Grant Fund (note 15c)
Sinking Fund (Haldon)		 Group
2023
£’000
57,491
3,597
-
7,230
43
23
68,384		 Group
2022
£’000
57,471
3,711
-
6,824
43
32
68,081		 Association
Association
2023
2022
£’000
£’000
57,491
57,471
3,597
3,711
-
-
7,230
6,824
43
43
23
32
68,384
68,081

63

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

15a Bank loans

The Group and Association loans are repayable in the following periods:

Fixed rate loans
Within one year
2 to 5 years
In 5 years or more
Variable rate loans		 Group
2023
£’000
-
-
57,491
-
-
-
57,491		 Group
2023
£’000
-
-
57,491
-
-
-
57,491		 Group
2022
£’000
-
-
57,471
-
-
-
57,471		 Association
Association
2023
2022
£’000
£’000
-
-
-
-
57,491
57,471
-
-
-
-
-
-
57,491
57,471
Within one year
2 to 5 years
In 5 years or more
57,491

The £25m loan from GBSH and £33m loan from bLEND PLC, resulting in a total drawn debt of £58m. remain in place.

A revolving credit facility was put in place with Nationwide for £20m, for 5 years, which has since been extended to 7 years, so currently comes to an end in 2028 and this remains undrawn.

All loans are secured by specific charges on the Company's housing properties and are repayable at varying rates of finance costs, from 2.92% to 5.39%.

The average rates of finance costs on the loans outstanding at 31 March 2023 were:

Fixed rate loans 3.98% (2021-22: 3.98%)

At 31 March 2023, the Group and Association also had the following undrawn loan facilities:

Undrawn facilities (Barclays)
Undrawn facilities (Nationwide)		 2023
2022
£’000
£’000
-
-
20,000
20,000
20,000
20,000

64

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

15b Deferred capital grant

At start of the year
Received during the year
Grants recycled on disposals to RCGF
Released to income during the year
Amount due to be released < 1 year
Amount due to be released > 1 year		 Group
2023
£’000
6,894
499
-
(83)
7,311
(81)
7,230		 Group
2022
£’000
6,909
92
(37)
(70)
6,894
(70)
6,824		 Association
Association
2023
2022
£’000
£’000
6,894
6,909
499
92
-
(37)
(83)
(70)
7,311
6,894
(81)
(70)
7,230
6,824

The total accumulated government grant and financial assistance received or receivable at 31 March 2023 is £8,112k (2021-22: £7,569k), of which, £7,311k (2021-22: £6,894k) is included as deferred capital grant and £802k (2021-22: £720k) has been recognised as income through the Statement of Comprehensive Income to date.

15c Recycled capital grant fund

Group
2023
£’000
43
-
43
43
43		 Group
2022
£’000
6		 Association
Association
2023
2022
£’000
£’000
43
6
-
37
43
43
43
43
43
43
At 1 April 2022
Inputs to RCGF:
Grants recycled
At 31 March 2023
Due in more than one year
37
43
43
43

All balances relate to Homes England.

16 Operating leases

The Group and Association no longer have any operating leases.

65

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

17 Share Capital

Teign Housing is a company limited by guarantee and as such does not have share capital. At 31 March 2023, the company’s guarantors were its Company/Board members and the extent of the guarantee was £1 each.

18 Capital commitments

Capital expenditure that has been contracted for but has not
been provided for in the financial statements
Capital expenditure that has been authorised by the Board but
has not yet been contracted for		 2023
£’000
15,431

4,270
19,701		 2022
£’000
18,405
2,990
21,395

The company expects these commitments to be financed over the life of the committed development program over a period of 3 years with:

----- Start of picture text -----
2023 2022
£’000 £’000
Proceeds from sale of shared ownership properties 1,746 1,947
Uncommitted loan facilities 17,955 19,448
19,701 21,395
----- End of picture text -----

The revolving credit facility provided by Nationwide (£20,000,000) will fund £17,955,000 of committed expenditure.

66

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

19 Pensions Liability

Total Pensions Liability
SHPS
LGPS
Total		 2023
£’000
574
-
574		 2022
£’000
572
-
572

(a) Social Housing Pension Scheme

During the year, the company participated in the scheme, a multi-employer scheme which provides benefits to some 500 non-associated employers. The scheme is a defined benefit scheme in the UK and is accounted for as such.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

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

The scheme was closed to new members and on 31[st] March 2022 the company closed the scheme to the remaining two members.

We have been notified by the Trustee of the Scheme that it has performed a review of the changes made to the Scheme’s benefits over the years and the result is that there is uncertainty surrounding some of these changes. The Trustee has been advised to seek clarification from the Court on these items. This process is ongoing and the matter is unlikely to be resolved before the end of 2024 at the earliest. It is recognised that this could potentially impact the value of Scheme liabilities, but until Court directions are received, it is not possible to calculate the impact of this issue, particularly on an individual employer basis, with any accuracy at this time. No adjustment has been made in these financial statements in respect of this potential issue.

67

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Fair value of plan assets, present value of defined benefit obligation, and defined benefit asset (liability)

Fair value of plan assets
Present value of defined benefit obligation
(Deficit) in plan
Unrecognised surplus
Defined benefit (liability)		 2023
2022
£’000
£’000
2,808
4,661
(3,382)
(5,233)
(574)
(572)
-
-
(574)
(572)

Reconciliation of opening and closing balances of the defined benefit obligation

Defined benefit obligation at start of period
Current service cost
Expenses
Interest expense
Member contributions
Actuarial (gains) losses due to scheme experience
Actuarial losses (gains) due to changes in demographic
assumptions
Actuarial losses (gains) due to changes in financial assumptions
Benefits paid and expenses
Defined benefit obligation at end of period		 2023
2022
£’000
£’000
5,234
5,362
-
28
5
4
145
118
-
23
(207)
315
(7)
(78)
(1,723)
(477)
(65)
(62)
3,382
5,233

68

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Reconciliation of opening and closing balances of the fair value of plan assets

Fair value of plan assets at start of period
Interest income
Experience on plan assets (excluding amounts included in
interest income) - gain
Employer contributions
Member contributions
Benefits paid and expenses
Fair value of plan assets at end of period		 2023
£’000
4,662
131
(2,070)
150
-
(65)
2,808		 2022
£’000
4,094
91
398
118
23
(62)
4,662

The actual return on plan assets (including any changes in share of assets) over the period from 31 March 2022 to 31 March 2023 was £1,939,000 (2022: £489,000).

Defined benefit costs recognised in statement of comprehensive income (SOCI)

Current service cost
Expenses
Net interest expense
Defined benefit costs recognised in Statement of Comprehensive
Income (SoCI)		 2023
£’000
-
5
14
19		 2022
£’000
28
4
27
59

Defined benefit costs recognised in other comprehensive income (OCI)

Experience on plan assets (excluding amounts included in net
interest cost) - gain
Experience gains and losses arising on the plan liabilities - gain
(loss)
Effects of changes in the demographic assumptions underlying
the present value of the defined benefit obligation - (loss) gain
Effects of changes in the financial assumptions underlying the
present value of the defined benefit obligation - (loss) gain
Total actuarial gains and losses (before restriction due to some of
the surplus not being recognisable) - (loss) gain
Total amount recognised in Other Comprehensive Income - (loss)
gain		 2023
2022
£’000
£’000
(2,070)
398
207
(316)
7
78
1,723
477
(133)
637
(133)
637

69

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Global Equity
Absolute Return
Distressed Opportunities
Credit Relative Value
Alternative Risk Premia
Fund of Hedge Funds
Emerging Markets Debt
Risk Sharing
Insurance-Linked Securities
Property
Infrastructure
Private Debt
Opportunistic Illiquid Credit
High Yield
Opportunistic Credit
Cash
Corporate Bond Fund
Liquid Credit
Long Lease Property
Secured Income
Liability Driven Investment
Currency Hedging
Net Current Assets
Total assets
Assets		 2023
2022
£’000
£’000
52
894
30
187
85
167
106
155
5
154
-
-
15
136
207
153
71
109
121
126
321
332
125
119
120
157
10
40
-
17
20
16
-
311
-
-
85
120
129
174
1,294
1,300
5
(18)
7
13
2,808
4,662

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.

70

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Key assumptions

2023 2022
£’000 £’000
Discount Rate 4.84% 2.78%
Inflation (RPI) 3.17% 3.47%
Inflation (CPI) 2.79% 3.14%
Salary Growth 3.79% 4.14%
75% of 75% of
Allowance for commutation of pension for cash at retirement maximum maximum
allowance allowance

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

2023 2022
Life Life
expectancy expectancy
at age 65 at age 65
(Years) (Years)
Male retiring in 2023 (2022) 21.0 21.1
Female retiring in 2023 (2022) 23.4 23.7
Male retiring in 2043 (2042) 22.2 22.4
Female retiring in 2043 (2042) 24.9 25.2

71

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

(b) Local Government Pension Scheme (LGPS)

The company withdrew from the LGPS on 31st March 2022, this triggered a cessation event and the liability of this, accounted for in 2021-22 was £1,178,000. This was the final settlement for all liabilities.

Principal Actuarial Assumptions

The following information is based upon a full actuarial valuation of the fund at 31 March 2019 updated to 31 March 2022 by a qualified independent actuary.

to 31 March 2022 by a qualified independent actuary.
At 31 March 2022
Rate of increase in salaries 4.35%
Rate of increase for pensions in payment / inflation 3.35%
Discount rate for scheme liabilities 2.60%
Inflation assumption (CPI) 3.35%

The current mortality assumptions include sufficient allowance for future improvements in mortality

The current mortality assumptions include sufficient allowance for future improvements in mortality
At 31 March 2022
Years
Retiring today
Males 22.7
Females 24.0
Retiring in 20 years
Males 24.0
Females 25.4

72

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Analysis of the amount charged to operating expenditure in the Statement of Total

2023 2022
£’000 £’000
Employer service cost (net of employee contributions) - (142)
Administration expenses - (5)
Total operating charge - (147)
Analysis of pension finance costs
Net Interest on the defined liability - (9)
Amounts charged to financing costs - (9)
Amount of gains and losses recognised in the Statement of
Comprehensive Income
Total loss / (profit) - 156
2023 2022
£’000 £’000
Return on Fund Assets - 484
Change in financial assumptions - 325
Change in demographic assumptions - -
Experience gain / (loss) on defined benefit obligation - (13)
Changes in effect of asset ceiling - -
Actuarial gain / (loss) - 796

73

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Movement in (deficit) during year
Deficit in scheme at 1 April
Movement in year:
Employer service cost (net of employee contributions)
Employer contributions
Net interest/return on assets
Re-measurements
Change in demographic assumptions
Other actuarial gains
Administration expenses
Movement on Cessation
Deficit in scheme at 31 March		 2023
2022
£’000
£’000
-
(511)
-
(142)
-
35
-
475
-
325
-
-
-
(13)
-
(5)
-
(1,342)
-
(1,178)

74

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

Asset and Liability Reconciliation
Reconciliation of liabilities
Liabilities at start of period
Service cost
Interest cost
Employee contributions
Re-measurements
Change in demographic assumptions
Experience gains on defined benefit obligation
Past Service costs including curtailments
Benefits paid
Movement on Cessation
Liabilities at end of period
Reconciliation of assets
Assets at start of period
Return on plan assets less interest
Interest on Assets
Other actuarial gains
Administration expenses
Employer contributions
Employee contributions
Benefits paid
Movement on cessation
Assets at end of period		 2023
2022
£’000
£’000
-
8,928
-
68
-
171
-
10
-
(325)
-
-
-
13
-
74
-
(301)
-
1,302
-
9,940
2023
2022
£’000
£’000
-
8,417
-
484
-
162
-
-
-
(5)
-
35
-
10
-
(301)
-
(40)
-
8,762

75

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

20 Related parties

Transactions with regulated and non-regulated elements of the business

The company provides management services, other services, and loans to its subsidiary.

The company also receives charges from its subsidiary for labour services provided for property maintenance and compliance.

Gift aid from the subsidiary is recognised at year end on receivable basis and is calculated based on the profit for the year end.

Payable to the company from non-regulated subsidiaries

Transactions with Templer HomeBuild Limited
Gift aid distribution
Management & administration
Loan interest
Loan repayments received
Payable to non-regulated subsidiaries from the company
Transactions with Templer HomeBuild Limited
Property services provided
Loans to Subsidiary		 2023
£’000
69
49
16
800
934
2023
£’000
2,575
800
3,375		 2022
£’000
57
38
11
800
906
2022
£’000
2,150
800
2,950

Statement of Financial Position balances between Parent and Subsidiary

Teign Housing
Templer HomeBuild		 Creditors
Debtors
£'000
£'000
167
965
475
167
643
1132

Balances held in respect of the Parent/Subsidiary relationship are eliminated on consolidation.

76

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

21 Consolidated structure and investment

On 17 October 2005 Teign Development Limited was formed as a wholly owned subsidiary of Teign Housing. Teign Development Limited changed its name to Templer HomeBuild Limited on 11 April 2017 and commenced trading on the 1 July 2017. The principal activity of Templer HomeBuild is the provision of property maintenance and construction services to the Social Housing sector, including properties for rent and sale. Templer HomeBuild profit for the year was £69,000 (2021-22: £57,000) and had net assets of nil (2021-22: nil).

22 Low cost home ownership – buyback liability

Teign Housing has two low cost home ownership properties that have mandatory buy back clauses, this means that in the event of the owner being unable to sell their property we are obliged to purchase their share. These will be noted as contingent liabilities in the accounts. A contingent liability is one where the outcome of an existing situation is uncertain, and this uncertainty will be resolved by a future event.

10 Lonsee Gardens

Sale date – 23[rd] November 2010 Share percentage bought – 35% Price of percentage bought - £53,235 Original 100% market value as stated in the Lease - £152,100 The property/shares were transferred to a new shared owner on 21[st] November 2013. The 100% market value on 21[st] November 2013 was £145,000

12 Lonsee Gardens

Sale date – 1[st] October 2010 Share percentage bought – 25% Price of percentage bought - £37,537.50 Original 100% market value as stated in the Lease – £150,150

77

TeiTgn HousiTng Registar8d company number 04619035 Ragistèrao chérity n￿rnb￿r l 112196 Year 8nd8d31 March 2023 23 Change In Net Debl Group At Beginning ofthe year Cash Flow5 Non-cash Movements Ai End of the year Cash and Cash Equwalents Housing Loans Due in One Year Housing Loans Due After One Year 16.373 {11.0541 5,319 {57.4711 {201 157,4911 141.098) 111.054} 152,1721 Association At Beginning ofthe year Cash Flows Non-cash Movements At End of the year Cash and Cash EquNalents Housing Loans Due in One Year Housing Loans Due After One Year 16.011 (11.0191 4,992 (57.4711 (201 157.4911 141,4601 111,019} 152,4991 78

Teign Housing Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2023

24 Discontinuation of Teigncare Service

Due to the future investment required Teign Housing will no longer be providing the Teigncare alarm service to private individuals. The service will be acquired and operated by Appello Careline Ltd from 3rd April 2023.

Detailed below are the figures included in the 2023 accounts that relate to the Teigncare service.

Turnover
Operating Expenses
Operating Margin
Cost
At 31 March 2023
Depreciation & Impairment
At 31 March 2023
Net book Value
At 31 March 2023		 Group
2023
£’000
187
(145)
42
191
(174)
17

79