## **Teign Housing**
Report and financial statements Reporting date 31 March 2024
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|41-75|
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Teign Housing – Company information**
**Board of Management**
## **Non-Executive Directors**
Maureen Robinson (Chair of Board)
Rebecca Harwood-Lincoln (Resident Voice Champion)
Sean Palka (Board Member) Stephen Cook (Chair of Audit Committee) Stuart Davies (Chair of Templer HomeBuild) Stephen Higginson (Chair of Remuneration) Joanna Davoile (Board Member) **Co-opted Advisor to the Board** Richard Gammage (Chair-elect, co-opted 1 November 2023)
## **Co-opted Advisor to the Board**
## **Executive Directors**
Jo Reece (Chief Executive, retired on 31 March 2024) Helen Hilditch (Acting Chief Executive 01 April 2024 – 11 April 2024) Tom Woodman (Chief Executive, appointed on 12 April 2024) **Independent Audit Committee** Colin McDonald (Independent Audit Committee Member)
## **Independent Audit Committee**
For the year ending 31 March 2024, the Board met on 8 occasions. There was 88% attendance at Board meetings.
## **Executive Management Team**
Jo Reece (Chief Executive, retired on 31 March 2024)
Helen Hilditch (Director of Finance and Investment & Deputy Chief Executive) Amanda Nicholls (Director of Customer and Communities) Justin Glue (Director of Operations Templer HomeBuild) (Director of People & Technology & Deputy of Chief Executive Karen Johnson resigned on 31 October 2023) (Director of People & Technology appointed on 1 November Marcus Taylor 2023 resigned on 31 January 2024)
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
**Auditors** _**External Auditor Internal Auditor**_ Beever and Struthers Bishop Fleming LLP 150 Minories Emperor Way London Exeter EC3N 1LS EX1 3QS **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
_**Nationwide Building Society**_ Public Sector Team Kings Park Road Moulton Park Northampton NN3 6NW
**Company Secretary** Helen Hilditch (non-Board member)
**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 2024_
## **Strategic Report**
The Directors present their Strategic Report incorporating the Value for Money Statement for the year ending 31 March 2024.
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 and Housing SORP guidance note 2022.
## **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 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 2024_
## **Governance**
The Articles stipulate that there can be up to 10 Board Members, including 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, there has been one exception this year. The Chair of the Board has served just over 9 years, which is over the prescribed 9 year maximum. However, she stands down in July 2024, and the new Chair-elect is to take up their position. The 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.
The Chief Executive retired on 31 March 2024, and a new Chief Executive started on 12 April 2024. The Chair of the Board is due to retire in July 2024, and the Board agreed to a retirement date of 24 July 2024.
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 two-yearly 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 executive management team. Our three-yearly external governance review is taking place in early 2024-25.
The Board is supported in its governance by two committees:
- Audit Committee
- Remuneration Committee
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 non-executive Board members are paid a fee for their services. Payments during the year (including expenses) were:
|expenses) were:|||
|---|---|---|
|Maureen Robinson|Chair of Board|£9,854|
|Stephen Cook|Chair of Audit|£5,595|
|Steve Higginson|Chair of Remuneration|£4,317|
|Stuart Davies|Chair of Templer HomeBuild|£6,422|
|Joanna Davoile|Board Member|£2,333|
|Colin McDonald|Independent Audit Committee Member|£1,812|
|Rebecca Harwood-Lincoln|Resident Voice Champion|£4,510|
|Sean Palka|Board Member|£3,901|
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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.
## **Financial Performance**
Teign Housing Group has made a surplus after tax for the year of £2,665,000 (2022-23: £2,549,000). Full details of our financial results can be found on pages 37 - 75.
Financial performance is monitored through the annual budget, which is set by the Board. The 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 the Board in March 2024. 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 this quarterly through the Balanced Scorecard, Management Accounts and Financial 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 have been identified, and appropriate mitigation arrangements are in place.
## **Treasury Management**
At 31 March 2024, Teign Housing was funded by a £33m bond from The Housing Finance Corporation (THFC), a £25m bond from GB Social Housing (GBSH) and a £20m revolving credit facility (RCF) from Nationwide. We have fully drawn the £33m from THFC and £25m from GBSH. We have also drawn £8m of the RCF from Nationwide and have an undrawn RCF of £12m (2022-23: £20m). During the year, a new financing project was started with Nationwide, and a new tranche credit facility of £30m was signed in April 2024 with a 10-year term. The funding agreements all contain three financial covenants. Finance costs on loans were £2.614m (2022-23: £2.354m), which equates to an average rate of 4.59% (2022-23: 4.06%). Finance costs of £620,000 were capitalised during the year (2022-23: £391,000). At 31 March 2024, Templer HomeBuild had a loan balance with Teign Housing of £400,000 (2022-23: £400,000). This
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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 £14.972m of capital committed to the development programme, which was in contract at 31 March 2024 (2022-23: £15.431m), and there was a cash and cash equivalents balance of £2.662m (2022-23: £5.319m). 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 2024 was £69,401,000 (2022-23 £66,895,000), and in the revaluation reserves £31,781,000 (2022-23 £31,847,000).
Unrestricted reserves, excluding tangible fixed assets net of grant, were £-98,347,000 at 31 March 2024 (2022-23 £-86,797,000) and can only be released by disposing of tangible fixed assets.
## **Property Sales**
During the year, three properties were sold (2022-23: 6 properties), of which no property was under the Right to Acquire scheme (2022-23: 1 property), three properties were under the Right to Buy Scheme (2022-23: 5 properties), no properties were fully stair cased (2022-23: Nil properties) or sold on the open market (2022-23: Nil property). Teign Housing received proceeds of £339,000, all from right to buy sales (2022-23: £700,300). Under the terms of the transfer agreement, £161,964 (2022-23: £157,956) 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.
## **Staff**
The average number of employees for the year ending 31 March 2024 was 178 (2022-23: 160 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 £90,100 on staff training and development (2022-23: £106,000).
## **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
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
these buildings. We have just one property, Douglas House in Teignmouth, which falls into this high-rise 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 planned 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 started consultation on the project in 2023-24, and £165,567 has been incurred in legal and professional advice in 2023-24. It is estimated that £2m will be needed for this project.
## **Damp and Mould**
In 2023 Teign Housing and Templer HomeBuild collaborated to create a new Damp and Mould Policy and Procedure to set out and improve on the approach to dealing with these issues. We aim to 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 mandatory training has been delivered with a view to continue this annually and to new starters. In 202324, we paid £38,700 to tenants in compensation relating to damp and mould. We dedicated five of our homes as decant properties to provide temporary accommodations to the tenants whilst their homes were being rectified. In spring 2024 our resident scrutiny panel conducted a review of our approach to damp and mould, making recommendations to the Board that will subsequently have their implementation monitored by the Audit Committee.
## **Development**
During 2023-24, we entered into 4 new contracts with a total value of £12,323,554 to purchase 4 section 106 schemes, which will deliver 51 rented and 19 shared ownership homes over the coming years.
We were successful in bidding on 3 section 106 schemes, Challabrook in Bovey Tracey, Collaton St Mary in Paignton and Gatehouse Farm in Dawlish. These schemes will deliver 7 social rent, 62 affordable rent, and 30 shared ownership properties. However, due to the current refinancing process, they are not guaranteed to proceed to contract at this stage.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
_*The opening balances for Under Construction have been restated in the 2022-23 report due to a double counting error, and the restatement has no impact on the Financial Statements._
122 new affordable homes were completed in 2023-24. This was less than anticipated because of delays associated with labour and material shortages.
In 2024-25, we plan to develop 43 homes over the next 12 months and 74 homes in 2025-26.
## **Shared Ownership**
During 2023-24, we brought the Shared Ownership sales process in house. Within the year, we sold 32 homes with a combined share value of £3,435,675, nine of which were sold via our previous sales agent.
## **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:
- Excellent Services – We will deliver high quality services to all our customers and partners. We will provide considerate customer services, empowering housing services and effective repairs.
- Quality Homes – We will invest in new and existing homes by maintaining high standards of repairs and improvements to our current homes and develop new homes to meet the needs of the local people.
- Sustainable Business – We will strengthen our business by continually improving our governance, increasing the value of our work, seeking ways of working jointly with our partners, and investing in our staff.
Performance against these aims was monitored as part of a three-year Corporate Plan for 2021 to 2024. This has now been updated to be our Corporate Plan for 2024-27.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 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 a capacity for 297 homes over the next 5 years. The regeneration strategy sets out plans for longer term regeneration, and £649,000 has been included in the business plan for 2024-25, and it has been reduced to £305,000 in 2025-26, £530,000 for 2026-24, and £305,000 in 2027-28.
The carbon reduction strategy sets out plans for the business to reduce its carbon footprint, and the first stage is to invest in homes with lower energy performance ratings. In order to meet the government’s target of all homes having a minimum EPC (energy performance certificate) rating of C by 2035, in 202425, the business plan makes provision for £524,000 of investment in our homes to improve their energy performance rating, and it has been increased to £750,000 in 2025-26, £700,000 in 2026-27 for two years and then £750,000, thereafter, until 2030. There is new funding for carbon zero investment schemes available, and these are currently being pursued.
To maintain a sustainable business, we follow several policies which ensure our governance is continually reviewed and improved. In October 2023, Teign Housing proudly retained Investors in People Platinum accreditation in recognition of our continued investment in employee engagement, learning and development, leadership, management, and wellbeing. We continue the agile working policy, empowering our staff to work flexibly from the office and home to support the wellbeing of our people and to promote a healthy work-life balance. The value for money strategy sets out how we continually seek to improve quality and performance and, where possible, reduce costs and create efficiencies.
## **Risk Management**
We recognise that risks are inevitable, 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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
Any changes to our strategic risks are reported to our Audit Committee, Board and THB 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, During the year, we added emerging risks around AI and digital technology, changes in shared ownership rent basis and changes in government to our emerging risk register. In May 2024, the Board completed a full review of our risk appetite.
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 is in place to
support them throughout the life of the
tenancy.
The Board has reviewed the Independent
Housing Ombudsman report on vulnerability
and considered actions arising from it.|
|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 customers first.|We have a Customer Insight &
Resolutions Manager dedicated to helping
residents resolve complaints and
dissatisfaction.
We have a group of involved residents
who help shape our services. We
complete journey mapping exercises with
our residents to help us understand how
ourserviceswork forthem.|
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_ Risk Direction of Why is this a risk? How we manage this risk movement during year Rental Rental income provides us We closely monitor our rent collection income is with the resources to performance. less than deliver our services and to forecast provide new homes. We have a well-established rents team, and a team of Head Start advisors who The current risk Is the costhave a good relationship with our of-living crisis which sees residents and are able to provide support many of our residents at all stages of a tenancy. struggling financially which may impact on their choices / ability to pay their rent, service charges or alarm charges ~~=~~ Risk Direction of Why is this a risk? How we manage this risk movement during year Douglas Remedial works identified to Enhanced fire detection systems are in House meet standards identified in place within property. remedial Building Safety Act. works 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. ~~ca~~ Risk Direction Why is this a risk? How we manage this risk of movement during year Failure to This risk We are currently undertaking a stock condition manage encompasses both survey to help us get to know our property stock property our aims to meet better, and we have surveyed almost half of our assets environmental stock in 2023-24. The remainder is due to be appropriately targets and also surveyed in 2024/25. maintain high levels of service We maintain high levels of Health & Safety throughout the compliance. pandemic We have a multi discipline group monitoring cases of Damp, Mould and Condensation. ~~AL~~ 11
|||||**_Teign Housing_**|**_Teign Housing_**|
|---|---|---|---|---|---|
|||||_Registered company number 04619035_||
|||||_Registered charity number 1112196_||
|||||_Year ended 31 March 2024_||
|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
key roles.
Recruitment has
been challenging
this year, and
there has been a
high staff turnover
We are committed to investing in continued staff
development and providing career growth.
We have been promoting mental health awareness
to safeguard staff well-being, and we will carry out
more surveys to measure employee satisfaction
and motivation.
We have regular staff forum meetings to encourage
employees to voice their concerns and to create a
more inclusive workplace.
~~oO~~||||||
|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 the
Board level whilst
being
representative of
our residents
We have recruited a new Chair of the Board who
will take over in the summer of 2024 and has
already begun working with us to ensure we have a
smooth transition.
One of the Board members holds the role of
Resident Voice Champion, providing insight to the
Board on complaint handling and feedback from the
residents. In 2024-25, we are creating a new
Customer Experience Committee to lead in this
area.
We agreed on a new three-year Corporate plan this
year.
~~Lia~~||||||
|||||12||
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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.
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 10.8% is below our target but increased compared to last year and significantly above the sector metrics of 6.7%, despite developments being delayed at the start of the year due to materials and labour shortages. Nevertheless, it does reflect our continued investment in our properties. The latest sector metrics relate to 2022-23, and as such, it is difficult to compare with this benchmark as this is nearly one year behind. Despite initial delays and shortages, the development and capital improvement programmes have performed well with significant investment. In 2023-24, we bid on 3 section 106 schemes and successfully secured 3 schemes with a total of 99 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 next year from financing an additional £30m of Revolving Credit Facility. However, due to the increased inflation above the Consumer Price Index on materials and labour, which has increased the cost of building new homes and other costs, the re-investment forecast will be decreased to 8.1% from the 10.8% achieved this year.
The new supply delivered is calculated based on units completed in 2023-24. We have achieved 3.1% new supply by delivering 122 units, compared to a target of 3.7%. This difference is due to the delivery of 14 homes slipping into next year. We are still well above the sector average of 1.3% on this metric; however, as the benchmark relates to 2022-23 data, it does not show the delays that have been felt across the building sector.
New supply is forecasted to be 43 units in 2024-25, including 15 affordable rent, 18 social rent and 10 shared ownership properties, 33 of which have been committed. We will continue to seek new
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
opportunities to achieve our development aspirations, and we now have the capacity to deliver 297 homes over the next 5 years.
Gearing remains the same at 32.9% compared to 2022-23. We are now utilising the Revolving Credit Facility and cash reserves to fund our increased investment into new homes and regeneration. At 32.9%, this remains well below the sector average, giving us scope to increase this. We started our refinancing project in 2023-24 to increase the funding by £30m through the Revolving Credit Facility, which will be available from 2024-25 for ten years. This will allow us to further invest in new homes and regeneration, give us the financial capacity to meet any requirements from the Decent Homes 2 Standard and stock condition surveys. All of this aims to improve the quality of our homes and the 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) is 134.4%, which is above the target and the sector metrics. Although our funders do not use EBITDA MRI as one of their covenants, we remain within the historical targets. As a result of continued investment next year, 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 £4,418 last year to £4,809 this year. This has been due to an increase in planned maintenance compliance spending, continued regeneration works during 2023-24, and the effect of high inflation across all materials and labour. Overall, we have seen an increase in the cost per property compared to the prior year, and it is an overall increase within the sector.
The operating margin overall is 20.4%, which is just above the sector’s average and our targeted margin, and a slight increase from last year. In 2024-25, a reduction in operating surplus is anticipated with the drive to improve the service we deliver to tenants and to increase the investment in decarbonisation.
The return on capital employed remains static at 2.7% due to a marginal increase in operating surplus compared to last year and asset base. This metric is slightly over the target but in line with the sector. It is forecasted to reduce to 2.4% in 2024-25, as the operating surplus is forecasted to reduce due to increases in operating expenses.
We continue to be committed to providing good levels of customer service in what continues to be a challenging environment. Economic and political uncertainty is set to continue for the coming year, and Teign Housing has modelled and planned for further potential issues through the business planning process.
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 to make informed choices about how resources are effectively channelled towards delivering 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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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 297 homes over the next 5 years.
The Board scrutinises 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:
- Value for Money Metrics – full details of value for money achievements
- The balanced scorecard, including Housemark Benchmarking Results – comparative figures with our peers in the sector
- Quarterly Financial Report
- Annual report – report sent annually to our tenants
- Interim annual review of the business plan against actual progress
- Regular reforecasting as part of the management accounts review
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 for the year ending March 2023, which is one year behind our year end.
## **RSH Global Accounts Comparison**
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **South West Peer Group Housemark Comparison**
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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 202324 were above that for 2022-23 by an average of 10.3% and the Housemark cost per property shows a 6.5% increase, with there being slight differences in how these are calculated.
Management cost per unit has been increased from last year, and over the sector average due factors outside of our control, in particular, the increase in insurance premiums, Douglas House legal and professional costs, and the earlier than anticipated commencement of the financing project. Continued scrutiny of management costs and tight budgetary control will ensure the overall efficiency of the organisation.
Routine and Cyclical Maintenance has increased slightly from last year and is lower than the sector average. However, it is slightly over the Housemark data, again due to the different calculation methods. 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. The revenue expenditure has decreased, but the capital has increased over the last year. Both RSH and Housemark have shown similar trends. The major revenue cost per unit includes regeneration spend at the Magnolia block, which has started ahead of the planned timetable. 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, there has been continued expenditure on compliance, including asbestos and health and safety works. It is important to spend in these areas to avoid longer term, more expensive nonconformance 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 2024_
This year, we have seen an increase in capital and major repair costs per unit. Capital expenditures fluctuate year on year due to the planning of the maintenance programme 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 stock condition survey results will impact the future strategy, the Asset Management Strategy was reviewed, updated and approved by the Board in April 2023. A further updated Asset Management and Carbon Reduction Strategy will be developed, along with a review of our Acquisitions and Disposals Policy, when the survey is largely completed 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 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:
- Review our own land, housing stock and garage sites for development opportunities – where suitable, these are now included within the future development programme.
- Review key assets for potential opportunities.
- Assess the requirements and resources needed for progress towards EPC Band C by 2030 and Net Zero Carbon by 2050.
- The asset management viability tool continues to assist us with knowledge of our housing stock. This includes neighbourhood mapping and allows us to consider various options to determine the future of the asset. We are looking at alternative options to improve on this.
Below is an extract from the scorecard, which presents the company’s performance against targets set internally and against targets taken from Housemark data for the year ended 31 March 2024. We have selected areas that we believe represent current VFM significance.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
**----- Start of picture text -----**
Housemark
Target
Area 2023-24 2022-23 2021-22 2020-21 2022-23
2023-24
Benchmark
Customer satisfaction
Repairs 98.2% 97.9% 97.6% 96.1% 77.9% 96.0%
Standard of property at re-let 96.6% 99.0% 94.0% 91.0% - 100.0%
Satisfaction with complaints process 50.0% 95.0% 95.0% 50.0% 76.2% 85.0%
Rent collection & arrears
Rent collection 100.4% 99.3% 100.1% 100.9% 101.6% 100.0%
Rent arrears (% of annual debit) 2.7% 2.7% 2.3% 2.5% 3.2% 3.2%
Void loss & turnaround
Void losses 1.10% 0.56% 0.50% 0.38% 1.40% 0.50%
Void turnaround time (days) 33.9 25.1 22.6 25.5 days 42 25
Digital agenda
Total number of tenant portal 901 650 603 487 - 1250
registrations
Inbound communication by Webchat 1.3% 1.1% 1.6% 7.7% - -
**----- End of picture text -----**
Customer satisfaction with repairs has increased slightly against last year, and we continue to exceed our target for the year and against the Housemark average. Satisfaction with the standard of property at relet has decreased slightly from last year, and we have narrowly missed the 100% target. Satisfaction with the complaints process has fallen to 50%. However, this is based on a sample of just 2 respondents; therefore, it is an unreliable indicator. We continue to receive an increased number of complaints and respondents to this metric, in common with trends across the sector. We have strengthened our staffing by overseeing the complaints process and learning for the future, and improving our performance on this area is a key priority for us.
Rent collection increased and reached our target of 100%, and it is in line with the Housemark Benchmark. The rent arrears remain the same at 2.7% compared to the prior year and performed better than the benchmark. 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 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 our performance from last year and exceed our internal targets. Through our Head Start team, we have signposted and assisted tenants in securing the additional financial support they need. We have also distributed over £37,500 (2022-23: £29,000) of financial support in the form of a hardship fund to tenants in greater need.
Void losses have increased compared to last year and are below the benchmark due to the delays in letting new properties. We temporarily increased resources to address this pinch-point, and this resulted in improved performance towards the year end.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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 2023. In 2023-24 our VFM focus was on:
## **Digital**
We have been implementing GIS (Geographic Information System) to benefit from the full utilisation of its capabilities. This software will allow us to overlay details such as tree data and grounds maintenance areas to a map of our housing stock, and from this, we can better plan resources and schedule services.
We have enhanced the offering of our tenant portal and app by adding push notifications to alert our residents of important updates such as arrears and to update their contact details. We are also working through a process for applicants to streamline the process of onboarding residents into our systems digitally.
Void inspections have been digitised by our staff using tablets to carry out our voids checklists, moving away from paper-based forms, and reducing administrative resources to upload these into our systems.
Estate Inspections can now be carried out using our housing management system (Cx) whilst onsite, using a tablet rather than paper forms, reducing the administrative overhead of inputting these after the inspections have been completed.
Our alarm service is being migrated away from analogue telephony and devices to digital with a phased approach, in line with the government and British Telecoms (BT) plans for the Digital Switchover by 2025. The contact centre system (NICE Cx One) has been upgraded, and we have migrated our webchat and email solutions in, for call handlers to better support our residents all in one place. It also provides the ability to report on the communication channels to monitor our performance. This has resulted in the previous solutions for email and webchat to be decommissioned.
## **Improve skills and behaviours of staff**
We recognise that motivated staff create satisfied customers. We continue to develop our managers through our Teign Academy programmes so that they can support their teams to better performance. We will maintain Investors in People (IIP) Platinum status, and our staff will expect and embrace change as we seek to improve as an organisation continually.
## **Welfare reform and cost of living impact**
We continue to work with our customers to support them with issues surrounding Universal Credit and the Cost of Living crisis. Our Head Start Team is made of 3 Coordinators and 1 Team Leader with a clear focus on tenancy sustainment. Whilst not limited to, their work and support will consider trial calculations for our customers to ensure they are claiming everything they are entitled to, carrying out affordability assessments during the pre-tenancy allocation process to ensure their new property will be affordable, and delivering our Assisted Lettings Scheme where customers who qualify can benefit from white goods or carpets to reduce the costs associated with moving to a new property.
With the pressures of the Cost of Living, our team often finds themselves working with customers to increase their financial resilience and support them to manage the impact this may have on the individual
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
and/or household. Our support does extend further to help improve Health and Wellbeing, Digital Inclusion, and Positive Participation.
In 2022-23, we launched a Hardship Grant with a core purpose to support customers impacted by the Cost of Living and rent increases. The support offered via the Hardship Grant has continued in 2023-24, supporting over 459 households to date, with a total grant spending of £66,500. We are pleased that for 2024-25, a further amount of funding has been made available of over £50,200. The level of support provided not only provides customers benefiting from the grant immediate financial respite but can be beneficial in reducing other pressures such as stress and anxiety, and as a result, this has led to better engagement in managing tenancies.
## **Asset Management**
We have commissioned our full housing stock survey since last financial year and surveyed 44% of the stock at the end of this financial year (with a near 100% survey expected by March 2025 subject to access issues). 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 carbon reduction work 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 of 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 to improve value for money for its members. In 2023-24, the savings delivered through the membership of this consortium total £198,116, bringing the total savings since we joined in 2010 to £2,217,124.
## **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 2023-24 were £614,617. The 2024-25 budget includes a further VAT saving of £591,085.
## **Voids**
In 2023-24, we have seen a fall in void property repair costs due to the number of void properties falling from 175 to 158, and most of these relate to the decrease in major voids. The void cost per property remains the same as last year.
## **Tenants**
Our outsourced repairs reporting service has been brought in-house into our Customer First team. As part of our journey mapping process with tenants, it was suggested that we do this to improve the service level. We have seen improvements in the scheduling and planning of operatives’ days, creating efficiencies, and it now means that with one call into Teign Housing, tenants can resolve a number of different queries across departments.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
During the year:
- there was 98.2% satisfaction with repairs carried out
- 97.0% of all planned work was completed on time
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, the 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 2024-25. This direct involvement helps shape effective processes and forge links between the partner agencies to achieve better outcomes with best use of our resources for our residents.
The Anti-Social Behaviour (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 in improving the service and satisfaction for resolving ASB issues will address and reduce the number of complaints received regarding this area.
Tenants can now pay by recurring card payment. Most of our tenants now pay by direct debit, but we are keen to support other means of payment that may be better suited to individuals. The service has been live since this financial year, and this assists the Income Team in collecting rent and other payments.
Homemaker South West supports people with debt problems across the region. We have been working alongside them since 2019. In 2023-24, at a cost of £7,250, they supported our tenants to maximise their income with total gains, with our tenants receiving a total of £73,000 of support they were entitled to. Some of this income helps tenants ensure they are paying their rent, which in turn 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 Discretionary Housing Payment 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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Independence and Wellbeing**
The Winter Warmer events continue to provide information on how to reduce fuel consumption, understand benefit entitlements, and avoid fuel poverty. Hot meals continue to be prepared and the activities take place in our community rooms. These have continued as the Spring Kitchen and Summer Sizzlers and bringing scheme communities together, aiming to build relationships, 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. In 2023-24, the total number of activities taking place is 112 with 751 attendees. These events include a mixture of drop-in sessions for tenants to discuss housing and support related issues, celebrations events such as the King’s Coronation, monthly meals prepared by Hub Coordinators and wellness events.
We have continued to capture the needs of our most vulnerable customers by setting goal plans. During the year, 55% of our 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 unable to get up but unhurt.
This service has benefited 55 customers this year, preventing them from waiting for the ambulance and then being admitted to the hospital unnecessarily. Thus, it helps to reduce the time waiting for emergency services.
## **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 forward, so the decision was made by the Board to cease the service by seeking a buyer to continue the provision. Appello Careline Ltd bought the service, and the sale was in April 2023. This has ensured continuity of service for the existing customers.
The Board has approved the investment in the Dispersed Alarms to be installed by 2024-25, and this project is to move from analogue technology to digitalise alarms at an estimated cost of £320,000. We have consulted with a group of residents on the type of alarm that would best suit them. This promotes 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.
## **Tenant Involvement**
We continue to engage with our tenants and the wider community actively. We have a Resident Involvement Manager who coordinates this and helps us gauge what it is that tenants value and what
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
they expect from us. We have a Tenants’ Forum, which holds a hybrid meeting every six weeks. 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 undertakes regular reviews of our services from a tenant point of view and provides 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 stay connected with its tenants.
## **Reduce our carbon emissions, improve the environment, and reduce the costs of living in our homes**
We completed work on a block containing 16 properties that were in band D and are now at Band C with the addition of external wall insulation amongst other works. We instructed new assessments on 200 properties where the EPC had expired and were anticipated to be below EPC band C to inform our future work and investment.
We are currently formulating the best ways to retrofit our homes, have run a pilot scheme on a row of homes, and will learn from the project. We are also exploring grant funding, which will enable us to accelerate the programme in the next 12 -24 months.
## **In 2024-25, as well as the projects above, which will continue, our focus will also be o** n:
## **Reduce our carbon emissions, improve the environment, and reduce the costs of living in our homes**
The additional 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 home standards and focus on the least energy efficient properties first to maximise the return on investment.
Working towards our target of achieving a minimum EPC C across all stock by 2030, careful planning and coordination of the work will allow Social Housing Decarbonisation Funding to be utilised efficiently and effectively.
## **Damp and Mould**
We are taking a proactive approach to this, including looking at property trends. In 2023-24, monitors were installed in homes where there is a greater probability of damp and mould occurring to allow us to monitor the situation. We have established a damp and mould group to focus on this issue, as well as regular mould washing when applicable, and advise tenants as to how to prevent it from occurring.
## **Further Improve our complaints process**
The aim of the investment in a dedicated new Customer Insight & Resolutions Manager is for the organisation to be able to deliver a better service to our customers. We will continue to enhance our
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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.
## **Develop more affordable homes**
We will continue to develop affordable homes while 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 43 new homes in 202425. 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 used to build more new homes.
## **Improve cash flow by increasing the collection of non-rent debt**
Our housing management system will continue to monitor the rechargeable repairs, and the balance will show on Tenant records. The Income team will continue to manage the debts, as the team will have sight of both rent and non-rent charges. This holistic view will increase the success rate of the debt chasing process.
## **Tenants**
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 programme and subject matter experts will be invited to provide coaching and feedback on specific call types. This will improve the quality of response to callers by enhancing the advisor’s detailed knowledge of the call subject matter.
We will continue to deliver the Omnichannel project, which brings together all the communications channels into one area to enable us to manage demand for our service better.
Mary Gober Training was delivered in June 2023 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 their full potential and improve service levels across the directorate.
The Contact Centre Management Association highly commended the team in June 2023. To improve our service delivery, we will build upon the recommendations in the Contract Centre Accreditation report.
## **Independence and Wellbeing**
Preparation for the digital switchover will continue with the hard-wired replacement programme. It will be completed by December 2025 and result in a far quicker response to emergency calls.
Tenancy sustainment plans continue 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 for 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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
This promotes 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 invite partner agencies to demonstrate the support offered.
All Independence and Wellbeing team members will enrol on training in health coaching to enable them to carry out their roles effectively and allow tenants to get the most of out the independence and wellbeing services. Health coaching involves a holistic, person-centred approach, where our advisors have the knowledge to empower tenants to build realistic and achievable goals, where we can continue to increase our number of goal plans with the aim of having 60-65% of tenants with goal plans by 2025.
## **Aids and Adaptations**
We will complete the journey mapping process that commenced in Q4 of 2023-24, and the aids and adaptations (A & A) policy and procedure will be reviewed – the review will reflect the co-development work that was done with beneficiaries of the A & A service and the associated service improvements. We will introduce a quarterly performance report which will reflect the value that the service offers to our customers as well as our stakeholders.
## **Engaging with our community**
Over the next year, the neighbourhood team will continue to focus on engaging with our communities through the digital platforms that we have available to us. During 2023-24, we trained frontline staff in mediation and developed a specialist in-house mediator to save the cost of outsourcing this service. We will continue to use these skills and training to improve conflict mediation across our communities.
A consultation was held with the tenants at one of our Shelter Schemes to install Wi-Fi in the community room to increase digital use and reduce isolation. This installation will be available from July 2024 for 33 households to use and will benefit over 40 tenants at Bradley Court. This will allow us to offer further courses in digital skills, decrease social isolation and make the internet inclusive and available to all, where some may be unable to access it due to financial difficulties. This project is being installed by Social Telecoms at a cost of £2,397.
## **Digital**
In July, we will upgrade our housing management system to the latest version, providing enhanced functionality and security for staff and benefiting the customer experience.
A new Teign Housing and Templer HomeBuild website will be introduced, providing a better resident and key stakeholder experience. We will be moving to Windows 11 for all of our staff laptops, introducing the latest operating system from Microsoft and enhancing the user experience for staff to support our residents effectively.
We have introduced a new card payment system which complies with the Payment Card Industry Standards (PCI DSS) for taking card payments over the telephone and online. This new system allows the residents to make payments using their telephone handset rather than our staff members taking their
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
details and making the payment on their behalf. It also introduces extra security measures to keep card payment details safe and secure.
Our Electronic Document Management System (EDMS) is being migrated into our SharePoint environment, allowing staff to view documents all in one place and reducing the costs of having documents in a separate system.
We are reviewing the repairs diagnostic reporting solution to enhance the functionality and streamline the process of reporting repairs for our customers and staff. We are working in partnership with Ian Williams to enhance the repair interface with our repair subsidiary company, Templer HomeBuild. This will improve the performance of the interface, allowing our staff to book repairs for our residents quickly.
We will introduce self-service appointment bookings for repairs where our customers can book a repair slot that suits them, as can our contact centre staff on their behalf, freeing up resources within the Customer First Team.
We will issue tablets for front-line staff to input data at source whilst out in the field directly into our Housing Management System, Civica Cx, further reducing administrative time and resources. Review how resident consultation online can be used more widely, giving residents the opportunity to be more involved in decision-making.
We will expand our use of the Geographical Information System (GIS) solution to have real-time data pulled from our housing management system and open-source data repositories so that we can better plan resources and scheduling services. We will also enhance our CCTV digital capabilities, providing remote access to camera footage with electronic audit trails.
We will increase our use of Power BI by training our Business Intelligence Leads and staff so they can create an interactive, personalised dashboard and reports to empower decision-making.
We will procure and implement a new cloud-based asset management system, which will centralise data and provide real-time tracking and monitoring of assets.
## **Health and Safety**
During the year, our Board approved our Health & Safety Strategy for the next three years, and we continue to work towards aligning our practices with HSG65, which is the Health and Safety Executive’s Guide to managing health and safety. The guide follows the Plan, Do, Act approach which has H&S an integral part of good management rather than a stand-alone system. We are currently following HSG65 system rather ISO 45001 (International Organisation for Standardisation) as it provides a suitable management framework for our area of operation. The team is 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 fit for purpose.
## **Increase financial capacity**
The current RCF of £20m remains available until 2028. In the autumn of 2023-24, we started a new refinancing project to best use our unencumbered stock by securing further funding against it. This would
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
enable the continued expansion of our development capacity and capital investment in improvements for our existing stock. The refinancing project was finalised in June 2024, and we have secured a new RCF of £30m until 2034.
## **Improve our complaints process**
We continue to fully roll-out “Lessons Learned,” and in 2024-25, we aim to stop making the same mistakes again and prevent mistakes.
## **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.
## **Work efficiently and respectfully in customers’ homes**
Next year, we plan to complete 96% of all planned works on time.
## **Remain Financially Strong**
In 2024-25, our operating margin is budgeted to be 18.0%, which is declining yearly due to the inflation rate on repairs and maintenance costs having increased more than the rate of rent increase.
## **The Consumer Standards and the Social Housing White Paper**
We have delivered training for the whole company on these subjects in 2023-24 and will continue with refreshers during 2024-25 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 cost 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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
The Board reviews the system of internal controls, assesses its effectiveness and takes any steps it considers necessary to maintain or improve its 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:
- A Risk Management Framework
- Policies on staff conduct
- Declarations of interest
- Key reconciliations
- Authorisation controls
- Access controls
- Exception reports
- Financial Regulations
## **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 27 June 2024. 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 2024 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 27 June 2024 and signed on its behalf by
## **Maureen Robinson**
## **Chair of the Board**
Mere Sem
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Directors Report**
The Directors present their report for the year ending 31 March 2024.
## **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:
- Select suitable accounting policies and then apply them consistently
- Make judgements and accounting estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business
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 2024_
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 27 June 2024 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 2024_
## **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 2024 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:
- give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at 31 March 2024 and of the Group’s income and expenditure and the parent Company’s income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (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 parent
32
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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:
- the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the 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 2024_
- adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent Company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:
- a satisfactory system of control over transactions has not been maintained.
## **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.
## **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.
34
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We obtained an understanding of laws, regulations and guidance that affect the Group and parent Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws, regulations and guidance that we identified included the Companies Act 2006, the Statement of Recommended Practice for registered housing providers: Housing SORP 2018, the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2022, NHF Code of Governance 2020, tax legislation, health and safety legislation, and employment legislation.
- We enquired of the Board and reviewed correspondence and Board meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the Board have in place, where necessary, to ensure compliance.
- We gained an understanding of the controls that the Board have in place to prevent and detect fraud. We enquired of the Board about any incidences of fraud that had taken place during the accounting period.
- The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: laws related to the construction and provision of social housing recognising the regulated nature of the Group’s activities.
- We reviewed financial statements disclosures and supporting documentation to assess compliance with relevant laws and regulations discussed above.
- We enquired of the Board about actual and potential litigation and claims.
- We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
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 noncompliance with laws and regulations.
## **Use of our report**
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other
35
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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: 8 August 2024
36
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Statement of Comprehensive Income**
The financial statements on pages 37 to 75 were approved and authorised for issue by the Board on 27 June 2024 and were signed on its behalf by:
## Lotteries
**Helen Hilditch Company Secretary**
**Maureen Robinson Chair of the Board**
**Stephen Cook Chair of Audit Committee**
37
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
The results relate wholly to continuing activities and the notes on pages 41 to 75 form an integral part of these accounts.
## **Statement of Financial Position**
These financial statements on pages 37 to 75 were approved and authorised for issue by the Board 27 June 2024 and were signed on its behalf by:
**Helen Hilditch Company Secretary**
**Maureen Robinson Chair of the Board**
**Stephen Cook Chair of Audit Committee**
38
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
The notes on pages 41 to 75 form an integral part of these accounts **Statement of Changes in Reserves**
## **Group:**
## **Association:**
The notes on pages 41 to 75 form an integral part of these accounts
39
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Consolidated Statement of Cash Flows**
40
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
The notes on pages 41 to 75 form an integral part of these accounts. **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 the 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 2024.
## **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:
- No cash flow statement has been presented for the parent company.
- No disclosure has been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the group as a whole.
## **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
41
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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 the ability to continue operating in the foreseeable future. The impact of the war in Ukraine and the ongoing situation in Gaza continue 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 have been 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, and 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:
- **a. Development expenditure.** The company capitalises development expenditure when the Board approve the agreement for contract. Initial capitalisation of costs is based on management’s judgement that the development scheme is confirmed, usually when Board approval has taken place including access to the appropriate funding. In determining whether a project is likely to cease, management monitors the development and considers if changes have occurred that result in impairment.
- **b. Categorisation of housing properties.** The company has undertaken a detailed review of the intended use of all housing properties. In determining the intended use, the company has considered if the asset is held for social benefit or to earn commercial rentals.
- **c. Tangible fixed assets.** Other than investment properties, tangible fixed assets are depreciated over their useful lives considering residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on several factors. In re-assessing asset lives, factors such as 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.
42
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
- **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.
**e. Impairment of non-financial assets.** Reviews for impairment of housing properties are carried out when a trigger has occurred and any impairment loss in a cash generating unit is recognised by a charge to the Statement of Comprehensive Income. Impairment is recognised where the carrying value of a cash generating unit exceeds the higher of its net realisable value or its value in use. A cash generating unit is normally a group of properties at scheme level whose cash income can be separately identified.
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.
- **f. Provision for bad debts.** A provision is made for bad debts based on the age of the debt. The rates of the provision increase from 10% for debts over 13 weeks to 50% for debts over 52 weeks. Former tenant arrears are provided for at 100%.
- **g. Valuation of investment properties.** Investment properties are included at the fair value each year, and a professional revaluation has been undertaken. The revaluation has shown a decrease of £45k in the market value. This decrease has been reflected in the value of the fixed assets and the reserves balance.
## **Turnover and revenue recognition**
Turnover represents rental income receivable from tenants and leaseholders, amortised capital grants, revenue grants from Local Authorities and Homes England, income from the sale of shared ownership properties and income from other services suppliers excluding VAT. 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.
43
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Service charges**
Service charge income and costs are recognised on an accrual 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 the 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:
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
- Any deferred tax balances are reversed when all conditions for retaining associated tax allowances have been met; and
- Where timing differences relate to interests in subsidiaries, the Group can control their reversal and such reversal is not considered probable in the foreseeable future.
## **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.
44
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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|
|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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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:
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
## **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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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 2024_
## **2 Turnover, cost of sales, operating expenditure, and operating surplus**
48
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **2 Turnover, cost of sales, operating expenditure, and operating surplus cont’d.**
49
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **2a Income and expenditure from social housing lettings**
50
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **2a Income and expenditure from social housing lettings cont’d.**
51
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **2b Turnover from activities other than social housing**
## **2c Gain on disposal of assets**
52
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **3 Directors’ emoluments, key management personnel & employee information**
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 £20,093 (2022-23: £18,489) 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 2024_
## **4 Finance income and other income**
54
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **5 Finance costs and similar charges**
|**6 Surplus on ordinary activities before taxation**
**Group**
**2024**
**£’000**
On loans repayable within 5 years
**269**
On loans wholly or partly repayable in more than
five years
**2,325**
Costs associated with financing
**20**
Net interest on the defined liability
**24**
Less finance costs capitalised on housing
properties under construction
**(620)**
Other interest charges
**3**
Charged to income and expenditure account
**2,021**
**Group**
**Is stated after charging/(crediting)**
**2024**
**£’000**
Depreciation of housing properties
**2,526**
Depreciation of other fixed assets
**127**
Amortisation of intangible fixed assets
**155**
Operating lease rentals (land and buildings)
**-**
Operating lease rentals (other)
**-**
Auditors remuneration (excluding VAT)
- Audit of the Group financial statements
**28**
- Audit of subsidiaries
**-**
- Other service
**2**
Amortisation of government grant
**(82)**|Group **Association**
Association
2023
**2024**
2023
£’000
**£’000**
£’000
-
**269**
-
2,327
**2,325**
2,327
27
**20**
27
14
**24**
14
(391)
**(620)**
(391)
-
**3**
-
1,977
**2,021**
1,977
Group
**Association**
Association
2023
**2024**
2023
£’000
**£’000**
£’000
2,211
**2,526**
2,211
128
**127**
128
174
**155**
174
-
**-**
-
-
**-**
-
26
**28**
26
-
**-**
-
2
**2**
2
(83)
**(82)**
(83)|
|---|---|
55
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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 25% (2022/23: 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 corporation tax rate of
25% with profits over £250,000 (2022/23: 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**
**2024**
**£’000**
**-**
**-**
**-**
**-**
**-**
**2,665**
**666**
**(666)**
**-**
**-**
**-**|Group
2023
£’000
-
-
-
-
-
2,549
484
(484)
-
-
-|**Association**
Association
**2024**
2023
**£’000**
£’000
**-**
-
**-**
-
**-**
-
**-**
-
**-**
-
**2,665**
2,549
**666**
**484**
**(666)**
**(484)**
**-**
-
**-**
-
**-**
-|
|---|---|---|---|
56
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **8 Intangible assets – IT software**
Of the £73,000 NBV, £28,000 relates to the Housing Management Software.
57
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **9 Tangible fixed assets**
58
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## _**9 Tangible fixed assets cont’d**_
## **Number of units owned and managed**
## **Group and Association**
|**Group and Association**|||||
|---|---|---|---|---|
|**Social Housing Accommodation**|**Opening**
**Balance**|**Started in**
**Year**|**Completed**
**in Year**|**Closing**
**Balance**|
|**Under development**|||||
|General needs housing|**97**|72|88|**81**|
|_Social rent_|_41_|_12_|_37_|_16_|
|_Affordable rent_|_56_|_60_|_51_|_65_|
|Supported housing and housing for older people|**-**|-|-|**-**|
|Low cost home ownership|**34**|31|34|**31**|
||**131**|103|122|**112**|
||||||
|**Group and Association**||||
|---|---|---|---|
|**Social Housing Accommodation**
**Under development**|**Opening**
**Balance**|**Started in**
**Year**
**Completed**
**in Year**
**Closing**
**Balance**||
|General needs housing|**97**
_41_
_56_
**-**
**34**|72
88
**81**||
|_Social rent_
_Affordable rent_||_12_
_37_
_16_
_60_
_51_
_65_||
|Supported housing and housing for older people||-
-
**-**||
|Low cost home ownership||31
34
**31**||
||**131**|103
122
**112**||
|||||
||**Opening**
**Balance**
_*Restated_
**2,658**
_2,376_
_282_
**997**
**131**
**3**
**3,789**|**Completed**
**in Year**
**Disposed**
**in Year**|**Closing**
**Balance**|
|**Under managemement at end of year**||||
|General needs housing||88
3|**2,743**|
|_Social rent_||_36_
_3_
_52_
-|_2,409_
_334_
**997**
**165**
**3**|
|_Affordable rent_||||
|Supported housing and housing for older people||-
-||
|Low cost home ownership *
Market rent *||34
-
-
-
122
3||
|||||
||||**3,908**|
|||||
||**3,920**
**Opening**
**Balance**
_*Restated_
**40**||**4,020**|
|||||
|||**Taken on in**
**Year**
**Removed**
**in Year**|**Closing**
**Balance**|
|**Social Housing Accommodation**||||
|Managed for others at end of year *||17
-|**57**|
||**40**||**57**|
|||||
_*The Opening Balance of Low cost home ownership has been restated from 127 to 131 to include 4_
_restricted equity properties being misreported in 2022-23. This restatement will have no impact beyond note 9._
_*There are 3 Market rent properties have been included. This restatement will have no impact beyond note 9._
_*The Opening Balance of Managed for others has been restated from 29 to 40 to include 11 units managed for Teign District Council since 2021-22. This restatement will have no impact beyond note 9._
59
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
The value of property additions includes £621,000 of capitalised finance costs (2022-23: £391,000). Finance costs are charged on all schemes during the development stage. The total cumulative value of capitalised finance costs is £2,264,000 (2022-23: £1,643,000). The average rate of finance costs is 4.59% (2022-23: 4.06%).
Housing properties were valued by Jones Lang LaSalle in accordance with Royal Institute of Chartered Surveyors procedures. Based on the commitments to the funders, some properties are valued at EUV-SH (existing use value), and some are at MV-ST (market value subject to tenancy). Properties valued annually for funding commitments at 31 March 2024 equated to £126.5m (1,434 properties); Properties valued triennially for funding commitments at 31 March 2024 equated to £30.7m (413 properties), and unencumbered properties valued at 31 March 2023 equated to £101.2m (1,493 properties), in total 3,340 properties. There are 564 properties that have not been valued for funding commitments.
The total expenditure on repairs and maintenance to existing properties in the year was £11,032,000 (2022-23: £9,278,000). Of this £3,818,000 was capitalised under the SORP 2018 (2022-23 £3,203,000).
The residual value of the housing property assets represents land which is not depreciated. The cost of land at 31 March 2024 was £35,501,400 (2022-23: £34,861,400).
## **10 Investment properties held for letting**
Investment properties were re-valued at 31 March 2024 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 has been decreased to £525,000 (£570,000, 31 March 2023).
60
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **11 Stock**
There are 34 low-cost home ownership properties under construction and 4 properties completed and available for sale at 31 March 2024.
61
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **12 Trade and other debtors**
## **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|**Group**
**2024**
**£’000**
**611**
**(353)**
**258**
**514**
**209**
**-**
**-**
**981**
**Group**
**2024**
**£’000**
**964**
**964**|Group
**Association**
Association
2023
**2024**
2023
£’000
**£’000**
£’000
593
**611**
593
(341)
**(353)**
(341)
252
**258**
252
374
**577**
491
905
**203**
911
1
**-**
1
-
**400**
400
1,532
**1,438**
2,055
Group
**Association**
Association
2023
**2024**
2023
£’000
**£’000**
£’000
965
**964**
965
965
**964**
965|
|---|---|---|
62
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **13 Cash and cash equivalents**
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 company working capital.
## **14 Creditors: amounts falling due within one year**
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. This agreement ceased in February 2024.
63
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **15 Creditors: amounts falling due after more than one year**
## **15a Bank loans**
The Group and Association loans are repayable in the following periods:
The £25m loan from GBSH and £33m loan from bLEND PLC are fixed long-term loans, which remain in place, resulting in a total drawn debt of £58m.
The £20m revolving credit facility remains in place with Nationwide, and £8m was withdrawn at the end of March 2024 (2023-24: nil).
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 SONIA plus 1.18%.
The average rates of finance costs on the long-term loans outstanding at 31 March 2024 were: Fixed rate loans 3.98% (2022-23: 3.98%)
64
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
At 31 March 2024, the Group and Association also had the following undrawn loan facilities:
## **15b Deferred capital grant**
|**15b Deferred capital grant**|||||
|---|---|---|---|---|
||**Group**|Group|**Association**|Association|
||**2024**|2023|**2024**|2023|
||**£’000**|£’000|**£’000**|£’000|
|At start of the year|**7,311**|6,894|**7,311**|6,894|
|Received during the year|**214**|500|**214**|500|
|Grants recycled on disposals to RCGF|**(56)**|-|**(56)**|-|
|Released to income during the year|**(82)**|(83)|**(82)**|(83)|
||**7,387**|7,311|**7,387**|7,311|
|Amount due to be released < 1 year|**(84)**|(81)|**(84)**|(81)|
|Amount due to be released > 1 year|**7,303**|7,230|**7,303**|7,230|
The total accumulated government grant and financial assistance received or receivable at 31 March 2024 is £8,272k (2022-23: £8,112k), of which, £7,387k (2022-23: £7,311k) is included as deferred capital grant and £884k (2022-23: £802k) has been recognised as income through the Statement of Comprehensive Income to date.
## **15c Recycled capital grant fund**
All balances relate to Homes England.
65
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **16 Operating leases**
The Group and Association no longer have any operating leases.
## **17 Share Capital**
Teign Housing is a company limited by guarantee and as such does not have share capital. At 31 March 2024, the company’s guarantors were its Company/Board members and the extent of the guarantee was £1 each.
66
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **18 Capital commitments**
The company expects these commitments to be financed over the life of the committed development program over a period of 3 years with:
The revolving credit facility provided by Nationwide (£20,000,000) will fund £15,646,000 of committed expenditure.
67
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **19 Pensions Liability**
## **(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 2025 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 accurately calculate the impact of this issue, but we have had an indication that our maximum liability would be £68,000. No adjustment has been made in these financial statements in respect of this potential issue.
68
_**Teign Housing**_
_Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
69
_**Teign Housing**_
_Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
70
## _**Teign Housing**_
_Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
71
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Key assumptions**
||**2024**|2023|
|---|---|---|
||**£’000**|£’000|
|Discount Rate|4.92%|4.84%|
|Inflation (RPI)|3.11%|3.17%|
|Inflation (CPI)|2.79%|2.79%|
|Salary Growth|3.79%|3.79%|
|Allowance for commutation of pension for cash at retirement|75% of
maximum
allowance|75% of maximum
allowance|
The mortality assumptions adopted at 31 March 2024 imply the following life expectancies:
||**2024**|2023|
|---|---|---|
||**Life**
**expectancy**
**at age 65**|Life expectancy at
age 65|
||**(Years)**|(Years)|
|Male retiring in 2024 (2023)|20.5|21|
|Female retiring in 2024 (2023)|23.0|23.4|
|Male retiring in 2044 (2043)|21.8|22.2|
|Female retiring in 2044 (2043)|24.4|24.9|
72
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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 a 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|**2024**
**£’000**
**52**
**58**
**29**
**400**
**539**
**2024**
**£’000**
**3,073**
**400**
**3,473**|2023
£’000
69
49
16
800|
|---|---|---|
|||934|
|||2023
£’000
2,575
800|
|||3,375|
## **Statement of Financial Position balances between Parent and Subsidiary**
|Teign Housing
Templer HomeBuild|**Creditors**
**Debtors**
**£'000**
**£'000**
259
964
456
259|
|---|---|
||715
1,223|
Balances held in respect of the Parent/Subsidiary relationship are eliminated on consolidation.
73
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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 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 £52,000 (2022-23: £69,000) and had net assets of nil (2022-23: 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
74
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **23 Change in Net Debt**
## **24 Discontinuation of Teigncare Service**
The Teigncare alarm service to private individuals was acquired and has been operated by Appello Careline Ltd since 3rd April 2023.
75
## **Teign Housing**
Report and financial statements Reporting date 31 March 2024
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|41-75|
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Teign Housing – Company information**
**Board of Management**
## **Non-Executive Directors**
Maureen Robinson (Chair of Board)
Rebecca Harwood-Lincoln (Resident Voice Champion)
Sean Palka (Board Member) Stephen Cook (Chair of Audit Committee) Stuart Davies (Chair of Templer HomeBuild) Stephen Higginson (Chair of Remuneration) Joanna Davoile (Board Member) **Co-opted Advisor to the Board** Richard Gammage (Chair-elect, co-opted 1 November 2023)
## **Co-opted Advisor to the Board**
## **Executive Directors**
Jo Reece (Chief Executive, retired on 31 March 2024) Helen Hilditch (Acting Chief Executive 01 April 2024 – 11 April 2024) Tom Woodman (Chief Executive, appointed on 12 April 2024) **Independent Audit Committee** Colin McDonald (Independent Audit Committee Member)
## **Independent Audit Committee**
For the year ending 31 March 2024, the Board met on 8 occasions. There was 88% attendance at Board meetings.
## **Executive Management Team**
Jo Reece (Chief Executive, retired on 31 March 2024)
Helen Hilditch (Director of Finance and Investment & Deputy Chief Executive) Amanda Nicholls (Director of Customer and Communities) Justin Glue (Director of Operations Templer HomeBuild) (Director of People & Technology & Deputy of Chief Executive Karen Johnson resigned on 31 October 2023) (Director of People & Technology appointed on 1 November Marcus Taylor 2023 resigned on 31 January 2024)
1
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
**Auditors** _**External Auditor Internal Auditor**_ Beever and Struthers Bishop Fleming LLP 150 Minories Emperor Way London Exeter EC3N 1LS EX1 3QS **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
_**Nationwide Building Society**_ Public Sector Team Kings Park Road Moulton Park Northampton NN3 6NW
**Company Secretary** Helen Hilditch (non-Board member)
**Registered Office** Millwood House Collett Way Newton Abbot Devon TQ12 4PH
2
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Strategic Report**
The Directors present their Strategic Report incorporating the Value for Money Statement for the year ending 31 March 2024.
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 and Housing SORP guidance note 2022.
## **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 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.
3
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Governance**
The Articles stipulate that there can be up to 10 Board Members, including 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, there has been one exception this year. The Chair of the Board has served just over 9 years, which is over the prescribed 9 year maximum. However, she stands down in July 2024, and the new Chair-elect is to take up their position. The 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.
The Chief Executive retired on 31 March 2024, and a new Chief Executive started on 12 April 2024. The Chair of the Board is due to retire in July 2024, and the Board agreed to a retirement date of 24 July 2024.
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 two-yearly 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 executive management team. Our three-yearly external governance review is taking place in early 2024-25.
The Board is supported in its governance by two committees:
- Audit Committee
- Remuneration Committee
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 non-executive Board members are paid a fee for their services. Payments during the year (including expenses) were:
|expenses) were:|||
|---|---|---|
|Maureen Robinson|Chair of Board|£9,854|
|Stephen Cook|Chair of Audit|£5,595|
|Steve Higginson|Chair of Remuneration|£4,317|
|Stuart Davies|Chair of Templer HomeBuild|£6,422|
|Joanna Davoile|Board Member|£2,333|
|Colin McDonald|Independent Audit Committee Member|£1,812|
|Rebecca Harwood-Lincoln|Resident Voice Champion|£4,510|
|Sean Palka|Board Member|£3,901|
4
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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.
## **Financial Performance**
Teign Housing Group has made a surplus after tax for the year of £2,665,000 (2022-23: £2,549,000). Full details of our financial results can be found on pages 37 - 75.
Financial performance is monitored through the annual budget, which is set by the Board. The 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 the Board in March 2024. 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 this quarterly through the Balanced Scorecard, Management Accounts and Financial 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 have been identified, and appropriate mitigation arrangements are in place.
## **Treasury Management**
At 31 March 2024, Teign Housing was funded by a £33m bond from The Housing Finance Corporation (THFC), a £25m bond from GB Social Housing (GBSH) and a £20m revolving credit facility (RCF) from Nationwide. We have fully drawn the £33m from THFC and £25m from GBSH. We have also drawn £8m of the RCF from Nationwide and have an undrawn RCF of £12m (2022-23: £20m). During the year, a new financing project was started with Nationwide, and a new tranche credit facility of £30m was signed in April 2024 with a 10-year term. The funding agreements all contain three financial covenants. Finance costs on loans were £2.614m (2022-23: £2.354m), which equates to an average rate of 4.59% (2022-23: 4.06%). Finance costs of £620,000 were capitalised during the year (2022-23: £391,000). At 31 March 2024, Templer HomeBuild had a loan balance with Teign Housing of £400,000 (2022-23: £400,000). This
5
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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 £14.972m of capital committed to the development programme, which was in contract at 31 March 2024 (2022-23: £15.431m), and there was a cash and cash equivalents balance of £2.662m (2022-23: £5.319m). 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 2024 was £69,401,000 (2022-23 £66,895,000), and in the revaluation reserves £31,781,000 (2022-23 £31,847,000).
Unrestricted reserves, excluding tangible fixed assets net of grant, were £-98,347,000 at 31 March 2024 (2022-23 £-86,797,000) and can only be released by disposing of tangible fixed assets.
## **Property Sales**
During the year, three properties were sold (2022-23: 6 properties), of which no property was under the Right to Acquire scheme (2022-23: 1 property), three properties were under the Right to Buy Scheme (2022-23: 5 properties), no properties were fully stair cased (2022-23: Nil properties) or sold on the open market (2022-23: Nil property). Teign Housing received proceeds of £339,000, all from right to buy sales (2022-23: £700,300). Under the terms of the transfer agreement, £161,964 (2022-23: £157,956) 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.
## **Staff**
The average number of employees for the year ending 31 March 2024 was 178 (2022-23: 160 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 £90,100 on staff training and development (2022-23: £106,000).
## **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
6
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
these buildings. We have just one property, Douglas House in Teignmouth, which falls into this high-rise 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 planned 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 started consultation on the project in 2023-24, and £165,567 has been incurred in legal and professional advice in 2023-24. It is estimated that £2m will be needed for this project.
## **Damp and Mould**
In 2023 Teign Housing and Templer HomeBuild collaborated to create a new Damp and Mould Policy and Procedure to set out and improve on the approach to dealing with these issues. We aim to 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 mandatory training has been delivered with a view to continue this annually and to new starters. In 202324, we paid £38,700 to tenants in compensation relating to damp and mould. We dedicated five of our homes as decant properties to provide temporary accommodations to the tenants whilst their homes were being rectified. In spring 2024 our resident scrutiny panel conducted a review of our approach to damp and mould, making recommendations to the Board that will subsequently have their implementation monitored by the Audit Committee.
## **Development**
During 2023-24, we entered into 4 new contracts with a total value of £12,323,554 to purchase 4 section 106 schemes, which will deliver 51 rented and 19 shared ownership homes over the coming years.
We were successful in bidding on 3 section 106 schemes, Challabrook in Bovey Tracey, Collaton St Mary in Paignton and Gatehouse Farm in Dawlish. These schemes will deliver 7 social rent, 62 affordable rent, and 30 shared ownership properties. However, due to the current refinancing process, they are not guaranteed to proceed to contract at this stage.
7
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
_*The opening balances for Under Construction have been restated in the 2022-23 report due to a double counting error, and the restatement has no impact on the Financial Statements._
122 new affordable homes were completed in 2023-24. This was less than anticipated because of delays associated with labour and material shortages.
In 2024-25, we plan to develop 43 homes over the next 12 months and 74 homes in 2025-26.
## **Shared Ownership**
During 2023-24, we brought the Shared Ownership sales process in house. Within the year, we sold 32 homes with a combined share value of £3,435,675, nine of which were sold via our previous sales agent.
## **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:
- Excellent Services – We will deliver high quality services to all our customers and partners. We will provide considerate customer services, empowering housing services and effective repairs.
- Quality Homes – We will invest in new and existing homes by maintaining high standards of repairs and improvements to our current homes and develop new homes to meet the needs of the local people.
- Sustainable Business – We will strengthen our business by continually improving our governance, increasing the value of our work, seeking ways of working jointly with our partners, and investing in our staff.
Performance against these aims was monitored as part of a three-year Corporate Plan for 2021 to 2024. This has now been updated to be our Corporate Plan for 2024-27.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 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 a capacity for 297 homes over the next 5 years. The regeneration strategy sets out plans for longer term regeneration, and £649,000 has been included in the business plan for 2024-25, and it has been reduced to £305,000 in 2025-26, £530,000 for 2026-24, and £305,000 in 2027-28.
The carbon reduction strategy sets out plans for the business to reduce its carbon footprint, and the first stage is to invest in homes with lower energy performance ratings. In order to meet the government’s target of all homes having a minimum EPC (energy performance certificate) rating of C by 2035, in 202425, the business plan makes provision for £524,000 of investment in our homes to improve their energy performance rating, and it has been increased to £750,000 in 2025-26, £700,000 in 2026-27 for two years and then £750,000, thereafter, until 2030. There is new funding for carbon zero investment schemes available, and these are currently being pursued.
To maintain a sustainable business, we follow several policies which ensure our governance is continually reviewed and improved. In October 2023, Teign Housing proudly retained Investors in People Platinum accreditation in recognition of our continued investment in employee engagement, learning and development, leadership, management, and wellbeing. We continue the agile working policy, empowering our staff to work flexibly from the office and home to support the wellbeing of our people and to promote a healthy work-life balance. The value for money strategy sets out how we continually seek to improve quality and performance and, where possible, reduce costs and create efficiencies.
## **Risk Management**
We recognise that risks are inevitable, 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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
Any changes to our strategic risks are reported to our Audit Committee, Board and THB 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, During the year, we added emerging risks around AI and digital technology, changes in shared ownership rent basis and changes in government to our emerging risk register. In May 2024, the Board completed a full review of our risk appetite.
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 is in place to
support them throughout the life of the
tenancy.
The Board has reviewed the Independent
Housing Ombudsman report on vulnerability
and considered actions arising from it.|
|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 customers first.|We have a Customer Insight &
Resolutions Manager dedicated to helping
residents resolve complaints and
dissatisfaction.
We have a group of involved residents
who help shape our services. We
complete journey mapping exercises with
our residents to help us understand how
ourserviceswork forthem.|
10
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_ Risk Direction of Why is this a risk? How we manage this risk movement during year Rental Rental income provides us We closely monitor our rent collection income is with the resources to performance. less than deliver our services and to forecast provide new homes. We have a well-established rents team, and a team of Head Start advisors who The current risk Is the costhave a good relationship with our of-living crisis which sees residents and are able to provide support many of our residents at all stages of a tenancy. struggling financially which may impact on their choices / ability to pay their rent, service charges or alarm charges ~~=~~ Risk Direction of Why is this a risk? How we manage this risk movement during year Douglas Remedial works identified to Enhanced fire detection systems are in House meet standards identified in place within property. remedial Building Safety Act. works 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. ~~ca~~ Risk Direction Why is this a risk? How we manage this risk of movement during year Failure to This risk We are currently undertaking a stock condition manage encompasses both survey to help us get to know our property stock property our aims to meet better, and we have surveyed almost half of our assets environmental stock in 2023-24. The remainder is due to be appropriately targets and also surveyed in 2024/25. maintain high levels of service We maintain high levels of Health & Safety throughout the compliance. pandemic We have a multi discipline group monitoring cases of Damp, Mould and Condensation. ~~AL~~ 11
|||||**_Teign Housing_**|**_Teign Housing_**|
|---|---|---|---|---|---|
|||||_Registered company number 04619035_||
|||||_Registered charity number 1112196_||
|||||_Year ended 31 March 2024_||
|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
key roles.
Recruitment has
been challenging
this year, and
there has been a
high staff turnover
We are committed to investing in continued staff
development and providing career growth.
We have been promoting mental health awareness
to safeguard staff well-being, and we will carry out
more surveys to measure employee satisfaction
and motivation.
We have regular staff forum meetings to encourage
employees to voice their concerns and to create a
more inclusive workplace.
~~oO~~||||||
|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 the
Board level whilst
being
representative of
our residents
We have recruited a new Chair of the Board who
will take over in the summer of 2024 and has
already begun working with us to ensure we have a
smooth transition.
One of the Board members holds the role of
Resident Voice Champion, providing insight to the
Board on complaint handling and feedback from the
residents. In 2024-25, we are creating a new
Customer Experience Committee to lead in this
area.
We agreed on a new three-year Corporate plan this
year.
~~Lia~~||||||
|||||12||
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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.
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 10.8% is below our target but increased compared to last year and significantly above the sector metrics of 6.7%, despite developments being delayed at the start of the year due to materials and labour shortages. Nevertheless, it does reflect our continued investment in our properties. The latest sector metrics relate to 2022-23, and as such, it is difficult to compare with this benchmark as this is nearly one year behind. Despite initial delays and shortages, the development and capital improvement programmes have performed well with significant investment. In 2023-24, we bid on 3 section 106 schemes and successfully secured 3 schemes with a total of 99 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 next year from financing an additional £30m of Revolving Credit Facility. However, due to the increased inflation above the Consumer Price Index on materials and labour, which has increased the cost of building new homes and other costs, the re-investment forecast will be decreased to 8.1% from the 10.8% achieved this year.
The new supply delivered is calculated based on units completed in 2023-24. We have achieved 3.1% new supply by delivering 122 units, compared to a target of 3.7%. This difference is due to the delivery of 14 homes slipping into next year. We are still well above the sector average of 1.3% on this metric; however, as the benchmark relates to 2022-23 data, it does not show the delays that have been felt across the building sector.
New supply is forecasted to be 43 units in 2024-25, including 15 affordable rent, 18 social rent and 10 shared ownership properties, 33 of which have been committed. We will continue to seek new
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
opportunities to achieve our development aspirations, and we now have the capacity to deliver 297 homes over the next 5 years.
Gearing remains the same at 32.9% compared to 2022-23. We are now utilising the Revolving Credit Facility and cash reserves to fund our increased investment into new homes and regeneration. At 32.9%, this remains well below the sector average, giving us scope to increase this. We started our refinancing project in 2023-24 to increase the funding by £30m through the Revolving Credit Facility, which will be available from 2024-25 for ten years. This will allow us to further invest in new homes and regeneration, give us the financial capacity to meet any requirements from the Decent Homes 2 Standard and stock condition surveys. All of this aims to improve the quality of our homes and the 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) is 134.4%, which is above the target and the sector metrics. Although our funders do not use EBITDA MRI as one of their covenants, we remain within the historical targets. As a result of continued investment next year, 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 £4,418 last year to £4,809 this year. This has been due to an increase in planned maintenance compliance spending, continued regeneration works during 2023-24, and the effect of high inflation across all materials and labour. Overall, we have seen an increase in the cost per property compared to the prior year, and it is an overall increase within the sector.
The operating margin overall is 20.4%, which is just above the sector’s average and our targeted margin, and a slight increase from last year. In 2024-25, a reduction in operating surplus is anticipated with the drive to improve the service we deliver to tenants and to increase the investment in decarbonisation.
The return on capital employed remains static at 2.7% due to a marginal increase in operating surplus compared to last year and asset base. This metric is slightly over the target but in line with the sector. It is forecasted to reduce to 2.4% in 2024-25, as the operating surplus is forecasted to reduce due to increases in operating expenses.
We continue to be committed to providing good levels of customer service in what continues to be a challenging environment. Economic and political uncertainty is set to continue for the coming year, and Teign Housing has modelled and planned for further potential issues through the business planning process.
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 to make informed choices about how resources are effectively channelled towards delivering 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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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 297 homes over the next 5 years.
The Board scrutinises 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:
- Value for Money Metrics – full details of value for money achievements
- The balanced scorecard, including Housemark Benchmarking Results – comparative figures with our peers in the sector
- Quarterly Financial Report
- Annual report – report sent annually to our tenants
- Interim annual review of the business plan against actual progress
- Regular reforecasting as part of the management accounts review
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 for the year ending March 2023, which is one year behind our year end.
## **RSH Global Accounts Comparison**
15
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **South West Peer Group Housemark Comparison**
16
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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 202324 were above that for 2022-23 by an average of 10.3% and the Housemark cost per property shows a 6.5% increase, with there being slight differences in how these are calculated.
Management cost per unit has been increased from last year, and over the sector average due factors outside of our control, in particular, the increase in insurance premiums, Douglas House legal and professional costs, and the earlier than anticipated commencement of the financing project. Continued scrutiny of management costs and tight budgetary control will ensure the overall efficiency of the organisation.
Routine and Cyclical Maintenance has increased slightly from last year and is lower than the sector average. However, it is slightly over the Housemark data, again due to the different calculation methods. 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. The revenue expenditure has decreased, but the capital has increased over the last year. Both RSH and Housemark have shown similar trends. The major revenue cost per unit includes regeneration spend at the Magnolia block, which has started ahead of the planned timetable. 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, there has been continued expenditure on compliance, including asbestos and health and safety works. It is important to spend in these areas to avoid longer term, more expensive nonconformance related costs and to keep our residents safe.
17
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
This year, we have seen an increase in capital and major repair costs per unit. Capital expenditures fluctuate year on year due to the planning of the maintenance programme 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 stock condition survey results will impact the future strategy, the Asset Management Strategy was reviewed, updated and approved by the Board in April 2023. A further updated Asset Management and Carbon Reduction Strategy will be developed, along with a review of our Acquisitions and Disposals Policy, when the survey is largely completed 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 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:
- Review our own land, housing stock and garage sites for development opportunities – where suitable, these are now included within the future development programme.
- Review key assets for potential opportunities.
- Assess the requirements and resources needed for progress towards EPC Band C by 2030 and Net Zero Carbon by 2050.
- The asset management viability tool continues to assist us with knowledge of our housing stock. This includes neighbourhood mapping and allows us to consider various options to determine the future of the asset. We are looking at alternative options to improve on this.
Below is an extract from the scorecard, which presents the company’s performance against targets set internally and against targets taken from Housemark data for the year ended 31 March 2024. We have selected areas that we believe represent current VFM significance.
18
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
**----- Start of picture text -----**
Housemark
Target
Area 2023-24 2022-23 2021-22 2020-21 2022-23
2023-24
Benchmark
Customer satisfaction
Repairs 98.2% 97.9% 97.6% 96.1% 77.9% 96.0%
Standard of property at re-let 96.6% 99.0% 94.0% 91.0% - 100.0%
Satisfaction with complaints process 50.0% 95.0% 95.0% 50.0% 76.2% 85.0%
Rent collection & arrears
Rent collection 100.4% 99.3% 100.1% 100.9% 101.6% 100.0%
Rent arrears (% of annual debit) 2.7% 2.7% 2.3% 2.5% 3.2% 3.2%
Void loss & turnaround
Void losses 1.10% 0.56% 0.50% 0.38% 1.40% 0.50%
Void turnaround time (days) 33.9 25.1 22.6 25.5 days 42 25
Digital agenda
Total number of tenant portal 901 650 603 487 - 1250
registrations
Inbound communication by Webchat 1.3% 1.1% 1.6% 7.7% - -
**----- End of picture text -----**
Customer satisfaction with repairs has increased slightly against last year, and we continue to exceed our target for the year and against the Housemark average. Satisfaction with the standard of property at relet has decreased slightly from last year, and we have narrowly missed the 100% target. Satisfaction with the complaints process has fallen to 50%. However, this is based on a sample of just 2 respondents; therefore, it is an unreliable indicator. We continue to receive an increased number of complaints and respondents to this metric, in common with trends across the sector. We have strengthened our staffing by overseeing the complaints process and learning for the future, and improving our performance on this area is a key priority for us.
Rent collection increased and reached our target of 100%, and it is in line with the Housemark Benchmark. The rent arrears remain the same at 2.7% compared to the prior year and performed better than the benchmark. 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 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 our performance from last year and exceed our internal targets. Through our Head Start team, we have signposted and assisted tenants in securing the additional financial support they need. We have also distributed over £37,500 (2022-23: £29,000) of financial support in the form of a hardship fund to tenants in greater need.
Void losses have increased compared to last year and are below the benchmark due to the delays in letting new properties. We temporarily increased resources to address this pinch-point, and this resulted in improved performance towards the year end.
19
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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 2023. In 2023-24 our VFM focus was on:
## **Digital**
We have been implementing GIS (Geographic Information System) to benefit from the full utilisation of its capabilities. This software will allow us to overlay details such as tree data and grounds maintenance areas to a map of our housing stock, and from this, we can better plan resources and schedule services.
We have enhanced the offering of our tenant portal and app by adding push notifications to alert our residents of important updates such as arrears and to update their contact details. We are also working through a process for applicants to streamline the process of onboarding residents into our systems digitally.
Void inspections have been digitised by our staff using tablets to carry out our voids checklists, moving away from paper-based forms, and reducing administrative resources to upload these into our systems.
Estate Inspections can now be carried out using our housing management system (Cx) whilst onsite, using a tablet rather than paper forms, reducing the administrative overhead of inputting these after the inspections have been completed.
Our alarm service is being migrated away from analogue telephony and devices to digital with a phased approach, in line with the government and British Telecoms (BT) plans for the Digital Switchover by 2025. The contact centre system (NICE Cx One) has been upgraded, and we have migrated our webchat and email solutions in, for call handlers to better support our residents all in one place. It also provides the ability to report on the communication channels to monitor our performance. This has resulted in the previous solutions for email and webchat to be decommissioned.
## **Improve skills and behaviours of staff**
We recognise that motivated staff create satisfied customers. We continue to develop our managers through our Teign Academy programmes so that they can support their teams to better performance. We will maintain Investors in People (IIP) Platinum status, and our staff will expect and embrace change as we seek to improve as an organisation continually.
## **Welfare reform and cost of living impact**
We continue to work with our customers to support them with issues surrounding Universal Credit and the Cost of Living crisis. Our Head Start Team is made of 3 Coordinators and 1 Team Leader with a clear focus on tenancy sustainment. Whilst not limited to, their work and support will consider trial calculations for our customers to ensure they are claiming everything they are entitled to, carrying out affordability assessments during the pre-tenancy allocation process to ensure their new property will be affordable, and delivering our Assisted Lettings Scheme where customers who qualify can benefit from white goods or carpets to reduce the costs associated with moving to a new property.
With the pressures of the Cost of Living, our team often finds themselves working with customers to increase their financial resilience and support them to manage the impact this may have on the individual
20
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
and/or household. Our support does extend further to help improve Health and Wellbeing, Digital Inclusion, and Positive Participation.
In 2022-23, we launched a Hardship Grant with a core purpose to support customers impacted by the Cost of Living and rent increases. The support offered via the Hardship Grant has continued in 2023-24, supporting over 459 households to date, with a total grant spending of £66,500. We are pleased that for 2024-25, a further amount of funding has been made available of over £50,200. The level of support provided not only provides customers benefiting from the grant immediate financial respite but can be beneficial in reducing other pressures such as stress and anxiety, and as a result, this has led to better engagement in managing tenancies.
## **Asset Management**
We have commissioned our full housing stock survey since last financial year and surveyed 44% of the stock at the end of this financial year (with a near 100% survey expected by March 2025 subject to access issues). 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 carbon reduction work 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 of 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 to improve value for money for its members. In 2023-24, the savings delivered through the membership of this consortium total £198,116, bringing the total savings since we joined in 2010 to £2,217,124.
## **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 2023-24 were £614,617. The 2024-25 budget includes a further VAT saving of £591,085.
## **Voids**
In 2023-24, we have seen a fall in void property repair costs due to the number of void properties falling from 175 to 158, and most of these relate to the decrease in major voids. The void cost per property remains the same as last year.
## **Tenants**
Our outsourced repairs reporting service has been brought in-house into our Customer First team. As part of our journey mapping process with tenants, it was suggested that we do this to improve the service level. We have seen improvements in the scheduling and planning of operatives’ days, creating efficiencies, and it now means that with one call into Teign Housing, tenants can resolve a number of different queries across departments.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
During the year:
- there was 98.2% satisfaction with repairs carried out
- 97.0% of all planned work was completed on time
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, the 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 2024-25. This direct involvement helps shape effective processes and forge links between the partner agencies to achieve better outcomes with best use of our resources for our residents.
The Anti-Social Behaviour (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 in improving the service and satisfaction for resolving ASB issues will address and reduce the number of complaints received regarding this area.
Tenants can now pay by recurring card payment. Most of our tenants now pay by direct debit, but we are keen to support other means of payment that may be better suited to individuals. The service has been live since this financial year, and this assists the Income Team in collecting rent and other payments.
Homemaker South West supports people with debt problems across the region. We have been working alongside them since 2019. In 2023-24, at a cost of £7,250, they supported our tenants to maximise their income with total gains, with our tenants receiving a total of £73,000 of support they were entitled to. Some of this income helps tenants ensure they are paying their rent, which in turn 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 Discretionary Housing Payment 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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Independence and Wellbeing**
The Winter Warmer events continue to provide information on how to reduce fuel consumption, understand benefit entitlements, and avoid fuel poverty. Hot meals continue to be prepared and the activities take place in our community rooms. These have continued as the Spring Kitchen and Summer Sizzlers and bringing scheme communities together, aiming to build relationships, 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. In 2023-24, the total number of activities taking place is 112 with 751 attendees. These events include a mixture of drop-in sessions for tenants to discuss housing and support related issues, celebrations events such as the King’s Coronation, monthly meals prepared by Hub Coordinators and wellness events.
We have continued to capture the needs of our most vulnerable customers by setting goal plans. During the year, 55% of our 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 unable to get up but unhurt.
This service has benefited 55 customers this year, preventing them from waiting for the ambulance and then being admitted to the hospital unnecessarily. Thus, it helps to reduce the time waiting for emergency services.
## **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 forward, so the decision was made by the Board to cease the service by seeking a buyer to continue the provision. Appello Careline Ltd bought the service, and the sale was in April 2023. This has ensured continuity of service for the existing customers.
The Board has approved the investment in the Dispersed Alarms to be installed by 2024-25, and this project is to move from analogue technology to digitalise alarms at an estimated cost of £320,000. We have consulted with a group of residents on the type of alarm that would best suit them. This promotes 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.
## **Tenant Involvement**
We continue to engage with our tenants and the wider community actively. We have a Resident Involvement Manager who coordinates this and helps us gauge what it is that tenants value and what
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
they expect from us. We have a Tenants’ Forum, which holds a hybrid meeting every six weeks. 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 undertakes regular reviews of our services from a tenant point of view and provides 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 stay connected with its tenants.
## **Reduce our carbon emissions, improve the environment, and reduce the costs of living in our homes**
We completed work on a block containing 16 properties that were in band D and are now at Band C with the addition of external wall insulation amongst other works. We instructed new assessments on 200 properties where the EPC had expired and were anticipated to be below EPC band C to inform our future work and investment.
We are currently formulating the best ways to retrofit our homes, have run a pilot scheme on a row of homes, and will learn from the project. We are also exploring grant funding, which will enable us to accelerate the programme in the next 12 -24 months.
## **In 2024-25, as well as the projects above, which will continue, our focus will also be o** n:
## **Reduce our carbon emissions, improve the environment, and reduce the costs of living in our homes**
The additional 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 home standards and focus on the least energy efficient properties first to maximise the return on investment.
Working towards our target of achieving a minimum EPC C across all stock by 2030, careful planning and coordination of the work will allow Social Housing Decarbonisation Funding to be utilised efficiently and effectively.
## **Damp and Mould**
We are taking a proactive approach to this, including looking at property trends. In 2023-24, monitors were installed in homes where there is a greater probability of damp and mould occurring to allow us to monitor the situation. We have established a damp and mould group to focus on this issue, as well as regular mould washing when applicable, and advise tenants as to how to prevent it from occurring.
## **Further Improve our complaints process**
The aim of the investment in a dedicated new Customer Insight & Resolutions Manager is for the organisation to be able to deliver a better service to our customers. We will continue to enhance our
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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.
## **Develop more affordable homes**
We will continue to develop affordable homes while 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 43 new homes in 202425. 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 used to build more new homes.
## **Improve cash flow by increasing the collection of non-rent debt**
Our housing management system will continue to monitor the rechargeable repairs, and the balance will show on Tenant records. The Income team will continue to manage the debts, as the team will have sight of both rent and non-rent charges. This holistic view will increase the success rate of the debt chasing process.
## **Tenants**
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 programme and subject matter experts will be invited to provide coaching and feedback on specific call types. This will improve the quality of response to callers by enhancing the advisor’s detailed knowledge of the call subject matter.
We will continue to deliver the Omnichannel project, which brings together all the communications channels into one area to enable us to manage demand for our service better.
Mary Gober Training was delivered in June 2023 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 their full potential and improve service levels across the directorate.
The Contact Centre Management Association highly commended the team in June 2023. To improve our service delivery, we will build upon the recommendations in the Contract Centre Accreditation report.
## **Independence and Wellbeing**
Preparation for the digital switchover will continue with the hard-wired replacement programme. It will be completed by December 2025 and result in a far quicker response to emergency calls.
Tenancy sustainment plans continue 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 for 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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
This promotes 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 invite partner agencies to demonstrate the support offered.
All Independence and Wellbeing team members will enrol on training in health coaching to enable them to carry out their roles effectively and allow tenants to get the most of out the independence and wellbeing services. Health coaching involves a holistic, person-centred approach, where our advisors have the knowledge to empower tenants to build realistic and achievable goals, where we can continue to increase our number of goal plans with the aim of having 60-65% of tenants with goal plans by 2025.
## **Aids and Adaptations**
We will complete the journey mapping process that commenced in Q4 of 2023-24, and the aids and adaptations (A & A) policy and procedure will be reviewed – the review will reflect the co-development work that was done with beneficiaries of the A & A service and the associated service improvements. We will introduce a quarterly performance report which will reflect the value that the service offers to our customers as well as our stakeholders.
## **Engaging with our community**
Over the next year, the neighbourhood team will continue to focus on engaging with our communities through the digital platforms that we have available to us. During 2023-24, we trained frontline staff in mediation and developed a specialist in-house mediator to save the cost of outsourcing this service. We will continue to use these skills and training to improve conflict mediation across our communities.
A consultation was held with the tenants at one of our Shelter Schemes to install Wi-Fi in the community room to increase digital use and reduce isolation. This installation will be available from July 2024 for 33 households to use and will benefit over 40 tenants at Bradley Court. This will allow us to offer further courses in digital skills, decrease social isolation and make the internet inclusive and available to all, where some may be unable to access it due to financial difficulties. This project is being installed by Social Telecoms at a cost of £2,397.
## **Digital**
In July, we will upgrade our housing management system to the latest version, providing enhanced functionality and security for staff and benefiting the customer experience.
A new Teign Housing and Templer HomeBuild website will be introduced, providing a better resident and key stakeholder experience. We will be moving to Windows 11 for all of our staff laptops, introducing the latest operating system from Microsoft and enhancing the user experience for staff to support our residents effectively.
We have introduced a new card payment system which complies with the Payment Card Industry Standards (PCI DSS) for taking card payments over the telephone and online. This new system allows the residents to make payments using their telephone handset rather than our staff members taking their
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
details and making the payment on their behalf. It also introduces extra security measures to keep card payment details safe and secure.
Our Electronic Document Management System (EDMS) is being migrated into our SharePoint environment, allowing staff to view documents all in one place and reducing the costs of having documents in a separate system.
We are reviewing the repairs diagnostic reporting solution to enhance the functionality and streamline the process of reporting repairs for our customers and staff. We are working in partnership with Ian Williams to enhance the repair interface with our repair subsidiary company, Templer HomeBuild. This will improve the performance of the interface, allowing our staff to book repairs for our residents quickly.
We will introduce self-service appointment bookings for repairs where our customers can book a repair slot that suits them, as can our contact centre staff on their behalf, freeing up resources within the Customer First Team.
We will issue tablets for front-line staff to input data at source whilst out in the field directly into our Housing Management System, Civica Cx, further reducing administrative time and resources. Review how resident consultation online can be used more widely, giving residents the opportunity to be more involved in decision-making.
We will expand our use of the Geographical Information System (GIS) solution to have real-time data pulled from our housing management system and open-source data repositories so that we can better plan resources and scheduling services. We will also enhance our CCTV digital capabilities, providing remote access to camera footage with electronic audit trails.
We will increase our use of Power BI by training our Business Intelligence Leads and staff so they can create an interactive, personalised dashboard and reports to empower decision-making.
We will procure and implement a new cloud-based asset management system, which will centralise data and provide real-time tracking and monitoring of assets.
## **Health and Safety**
During the year, our Board approved our Health & Safety Strategy for the next three years, and we continue to work towards aligning our practices with HSG65, which is the Health and Safety Executive’s Guide to managing health and safety. The guide follows the Plan, Do, Act approach which has H&S an integral part of good management rather than a stand-alone system. We are currently following HSG65 system rather ISO 45001 (International Organisation for Standardisation) as it provides a suitable management framework for our area of operation. The team is 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 fit for purpose.
## **Increase financial capacity**
The current RCF of £20m remains available until 2028. In the autumn of 2023-24, we started a new refinancing project to best use our unencumbered stock by securing further funding against it. This would
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
enable the continued expansion of our development capacity and capital investment in improvements for our existing stock. The refinancing project was finalised in June 2024, and we have secured a new RCF of £30m until 2034.
## **Improve our complaints process**
We continue to fully roll-out “Lessons Learned,” and in 2024-25, we aim to stop making the same mistakes again and prevent mistakes.
## **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.
## **Work efficiently and respectfully in customers’ homes**
Next year, we plan to complete 96% of all planned works on time.
## **Remain Financially Strong**
In 2024-25, our operating margin is budgeted to be 18.0%, which is declining yearly due to the inflation rate on repairs and maintenance costs having increased more than the rate of rent increase.
## **The Consumer Standards and the Social Housing White Paper**
We have delivered training for the whole company on these subjects in 2023-24 and will continue with refreshers during 2024-25 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 cost 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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
The Board reviews the system of internal controls, assesses its effectiveness and takes any steps it considers necessary to maintain or improve its 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:
- A Risk Management Framework
- Policies on staff conduct
- Declarations of interest
- Key reconciliations
- Authorisation controls
- Access controls
- Exception reports
- Financial Regulations
## **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 27 June 2024. 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 2024 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 27 June 2024 and signed on its behalf by
## **Maureen Robinson**
## **Chair of the Board**
Mere Sem
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Directors Report**
The Directors present their report for the year ending 31 March 2024.
## **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:
- Select suitable accounting policies and then apply them consistently
- Make judgements and accounting estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business
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
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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 27 June 2024 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 2024_
## **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 2024 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:
- give a true and fair view of the state of the Group’s and of the parent Company’s affairs as at 31 March 2024 and of the Group’s income and expenditure and the parent Company’s income and expenditure for the year then ended;
- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
- have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022.
## **Basis for opinion**
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (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 parent
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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:
- the information given in the strategic report and the directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
## **Matters on which we are required to report by exception**
In the light of the knowledge and understanding of the 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:
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
- adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent Company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors’ remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.
In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:
- a satisfactory system of control over transactions has not been maintained.
## **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.
## **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.
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We obtained an understanding of laws, regulations and guidance that affect the Group and parent Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws, regulations and guidance that we identified included the Companies Act 2006, the Statement of Recommended Practice for registered housing providers: Housing SORP 2018, the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2022, NHF Code of Governance 2020, tax legislation, health and safety legislation, and employment legislation.
- We enquired of the Board and reviewed correspondence and Board meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the Board have in place, where necessary, to ensure compliance.
- We gained an understanding of the controls that the Board have in place to prevent and detect fraud. We enquired of the Board about any incidences of fraud that had taken place during the accounting period.
- The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: laws related to the construction and provision of social housing recognising the regulated nature of the Group’s activities.
- We reviewed financial statements disclosures and supporting documentation to assess compliance with relevant laws and regulations discussed above.
- We enquired of the Board about actual and potential litigation and claims.
- We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounting estimates were indicative of a potential bias.
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 noncompliance with laws and regulations.
## **Use of our report**
This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to state to them in an auditor’s report and for no other
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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: 8 August 2024
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_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Statement of Comprehensive Income**
The financial statements on pages 37 to 75 were approved and authorised for issue by the Board on 27 June 2024 and were signed on its behalf by:
## Lotteries
**Helen Hilditch Company Secretary**
**Maureen Robinson Chair of the Board**
**Stephen Cook Chair of Audit Committee**
37
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
The results relate wholly to continuing activities and the notes on pages 41 to 75 form an integral part of these accounts.
## **Statement of Financial Position**
These financial statements on pages 37 to 75 were approved and authorised for issue by the Board 27 June 2024 and were signed on its behalf by:
**Helen Hilditch Company Secretary**
**Maureen Robinson Chair of the Board**
**Stephen Cook Chair of Audit Committee**
38
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
The notes on pages 41 to 75 form an integral part of these accounts **Statement of Changes in Reserves**
## **Group:**
## **Association:**
The notes on pages 41 to 75 form an integral part of these accounts
39
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Consolidated Statement of Cash Flows**
40
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
The notes on pages 41 to 75 form an integral part of these accounts. **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 the 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 2024.
## **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:
- No cash flow statement has been presented for the parent company.
- No disclosure has been given for the aggregate remuneration of the key management personnel of the parent company as their remuneration is included in the totals for the group as a whole.
## **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
41
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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 the ability to continue operating in the foreseeable future. The impact of the war in Ukraine and the ongoing situation in Gaza continue 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 have been 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, and 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:
- **a. Development expenditure.** The company capitalises development expenditure when the Board approve the agreement for contract. Initial capitalisation of costs is based on management’s judgement that the development scheme is confirmed, usually when Board approval has taken place including access to the appropriate funding. In determining whether a project is likely to cease, management monitors the development and considers if changes have occurred that result in impairment.
- **b. Categorisation of housing properties.** The company has undertaken a detailed review of the intended use of all housing properties. In determining the intended use, the company has considered if the asset is held for social benefit or to earn commercial rentals.
- **c. Tangible fixed assets.** Other than investment properties, tangible fixed assets are depreciated over their useful lives considering residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on several factors. In re-assessing asset lives, factors such as 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.
42
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
- **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.
**e. Impairment of non-financial assets.** Reviews for impairment of housing properties are carried out when a trigger has occurred and any impairment loss in a cash generating unit is recognised by a charge to the Statement of Comprehensive Income. Impairment is recognised where the carrying value of a cash generating unit exceeds the higher of its net realisable value or its value in use. A cash generating unit is normally a group of properties at scheme level whose cash income can be separately identified.
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.
- **f. Provision for bad debts.** A provision is made for bad debts based on the age of the debt. The rates of the provision increase from 10% for debts over 13 weeks to 50% for debts over 52 weeks. Former tenant arrears are provided for at 100%.
- **g. Valuation of investment properties.** Investment properties are included at the fair value each year, and a professional revaluation has been undertaken. The revaluation has shown a decrease of £45k in the market value. This decrease has been reflected in the value of the fixed assets and the reserves balance.
## **Turnover and revenue recognition**
Turnover represents rental income receivable from tenants and leaseholders, amortised capital grants, revenue grants from Local Authorities and Homes England, income from the sale of shared ownership properties and income from other services suppliers excluding VAT. 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.
43
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Service charges**
Service charge income and costs are recognised on an accrual 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 the 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:
- The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
- Any deferred tax balances are reversed when all conditions for retaining associated tax allowances have been met; and
- Where timing differences relate to interests in subsidiaries, the Group can control their reversal and such reversal is not considered probable in the foreseeable future.
## **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.
44
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
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|
|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.
45
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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:
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
## **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.
46
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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 2024_
## **2 Turnover, cost of sales, operating expenditure, and operating surplus**
48
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **2 Turnover, cost of sales, operating expenditure, and operating surplus cont’d.**
49
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **2a Income and expenditure from social housing lettings**
50
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **2a Income and expenditure from social housing lettings cont’d.**
51
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **2b Turnover from activities other than social housing**
## **2c Gain on disposal of assets**
52
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **3 Directors’ emoluments, key management personnel & employee information**
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 £20,093 (2022-23: £18,489) 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 2024_
## **4 Finance income and other income**
54
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **5 Finance costs and similar charges**
|**6 Surplus on ordinary activities before taxation**
**Group**
**2024**
**£’000**
On loans repayable within 5 years
**269**
On loans wholly or partly repayable in more than
five years
**2,325**
Costs associated with financing
**20**
Net interest on the defined liability
**24**
Less finance costs capitalised on housing
properties under construction
**(620)**
Other interest charges
**3**
Charged to income and expenditure account
**2,021**
**Group**
**Is stated after charging/(crediting)**
**2024**
**£’000**
Depreciation of housing properties
**2,526**
Depreciation of other fixed assets
**127**
Amortisation of intangible fixed assets
**155**
Operating lease rentals (land and buildings)
**-**
Operating lease rentals (other)
**-**
Auditors remuneration (excluding VAT)
- Audit of the Group financial statements
**28**
- Audit of subsidiaries
**-**
- Other service
**2**
Amortisation of government grant
**(82)**|Group **Association**
Association
2023
**2024**
2023
£’000
**£’000**
£’000
-
**269**
-
2,327
**2,325**
2,327
27
**20**
27
14
**24**
14
(391)
**(620)**
(391)
-
**3**
-
1,977
**2,021**
1,977
Group
**Association**
Association
2023
**2024**
2023
£’000
**£’000**
£’000
2,211
**2,526**
2,211
128
**127**
128
174
**155**
174
-
**-**
-
-
**-**
-
26
**28**
26
-
**-**
-
2
**2**
2
(83)
**(82)**
(83)|
|---|---|
55
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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 25% (2022/23: 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 corporation tax rate of
25% with profits over £250,000 (2022/23: 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**
**2024**
**£’000**
**-**
**-**
**-**
**-**
**-**
**2,665**
**666**
**(666)**
**-**
**-**
**-**|Group
2023
£’000
-
-
-
-
-
2,549
484
(484)
-
-
-|**Association**
Association
**2024**
2023
**£’000**
£’000
**-**
-
**-**
-
**-**
-
**-**
-
**-**
-
**2,665**
2,549
**666**
**484**
**(666)**
**(484)**
**-**
-
**-**
-
**-**
-|
|---|---|---|---|
56
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **8 Intangible assets – IT software**
Of the £73,000 NBV, £28,000 relates to the Housing Management Software.
57
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **9 Tangible fixed assets**
58
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## _**9 Tangible fixed assets cont’d**_
## **Number of units owned and managed**
## **Group and Association**
|**Group and Association**|||||
|---|---|---|---|---|
|**Social Housing Accommodation**|**Opening**
**Balance**|**Started in**
**Year**|**Completed**
**in Year**|**Closing**
**Balance**|
|**Under development**|||||
|General needs housing|**97**|72|88|**81**|
|_Social rent_|_41_|_12_|_37_|_16_|
|_Affordable rent_|_56_|_60_|_51_|_65_|
|Supported housing and housing for older people|**-**|-|-|**-**|
|Low cost home ownership|**34**|31|34|**31**|
||**131**|103|122|**112**|
||||||
|**Group and Association**||||
|---|---|---|---|
|**Social Housing Accommodation**
**Under development**|**Opening**
**Balance**|**Started in**
**Year**
**Completed**
**in Year**
**Closing**
**Balance**||
|General needs housing|**97**
_41_
_56_
**-**
**34**|72
88
**81**||
|_Social rent_
_Affordable rent_||_12_
_37_
_16_
_60_
_51_
_65_||
|Supported housing and housing for older people||-
-
**-**||
|Low cost home ownership||31
34
**31**||
||**131**|103
122
**112**||
|||||
||**Opening**
**Balance**
_*Restated_
**2,658**
_2,376_
_282_
**997**
**131**
**3**
**3,789**|**Completed**
**in Year**
**Disposed**
**in Year**|**Closing**
**Balance**|
|**Under managemement at end of year**||||
|General needs housing||88
3|**2,743**|
|_Social rent_||_36_
_3_
_52_
-|_2,409_
_334_
**997**
**165**
**3**|
|_Affordable rent_||||
|Supported housing and housing for older people||-
-||
|Low cost home ownership *
Market rent *||34
-
-
-
122
3||
|||||
||||**3,908**|
|||||
||**3,920**
**Opening**
**Balance**
_*Restated_
**40**||**4,020**|
|||||
|||**Taken on in**
**Year**
**Removed**
**in Year**|**Closing**
**Balance**|
|**Social Housing Accommodation**||||
|Managed for others at end of year *||17
-|**57**|
||**40**||**57**|
|||||
_*The Opening Balance of Low cost home ownership has been restated from 127 to 131 to include 4_
_restricted equity properties being misreported in 2022-23. This restatement will have no impact beyond note 9._
_*There are 3 Market rent properties have been included. This restatement will have no impact beyond note 9._
_*The Opening Balance of Managed for others has been restated from 29 to 40 to include 11 units managed for Teign District Council since 2021-22. This restatement will have no impact beyond note 9._
59
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
The value of property additions includes £621,000 of capitalised finance costs (2022-23: £391,000). Finance costs are charged on all schemes during the development stage. The total cumulative value of capitalised finance costs is £2,264,000 (2022-23: £1,643,000). The average rate of finance costs is 4.59% (2022-23: 4.06%).
Housing properties were valued by Jones Lang LaSalle in accordance with Royal Institute of Chartered Surveyors procedures. Based on the commitments to the funders, some properties are valued at EUV-SH (existing use value), and some are at MV-ST (market value subject to tenancy). Properties valued annually for funding commitments at 31 March 2024 equated to £126.5m (1,434 properties); Properties valued triennially for funding commitments at 31 March 2024 equated to £30.7m (413 properties), and unencumbered properties valued at 31 March 2023 equated to £101.2m (1,493 properties), in total 3,340 properties. There are 564 properties that have not been valued for funding commitments.
The total expenditure on repairs and maintenance to existing properties in the year was £11,032,000 (2022-23: £9,278,000). Of this £3,818,000 was capitalised under the SORP 2018 (2022-23 £3,203,000).
The residual value of the housing property assets represents land which is not depreciated. The cost of land at 31 March 2024 was £35,501,400 (2022-23: £34,861,400).
## **10 Investment properties held for letting**
Investment properties were re-valued at 31 March 2024 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 has been decreased to £525,000 (£570,000, 31 March 2023).
60
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **11 Stock**
There are 34 low-cost home ownership properties under construction and 4 properties completed and available for sale at 31 March 2024.
61
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **12 Trade and other debtors**
## **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|**Group**
**2024**
**£’000**
**611**
**(353)**
**258**
**514**
**209**
**-**
**-**
**981**
**Group**
**2024**
**£’000**
**964**
**964**|Group
**Association**
Association
2023
**2024**
2023
£’000
**£’000**
£’000
593
**611**
593
(341)
**(353)**
(341)
252
**258**
252
374
**577**
491
905
**203**
911
1
**-**
1
-
**400**
400
1,532
**1,438**
2,055
Group
**Association**
Association
2023
**2024**
2023
£’000
**£’000**
£’000
965
**964**
965
965
**964**
965|
|---|---|---|
62
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **13 Cash and cash equivalents**
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 company working capital.
## **14 Creditors: amounts falling due within one year**
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. This agreement ceased in February 2024.
63
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **15 Creditors: amounts falling due after more than one year**
## **15a Bank loans**
The Group and Association loans are repayable in the following periods:
The £25m loan from GBSH and £33m loan from bLEND PLC are fixed long-term loans, which remain in place, resulting in a total drawn debt of £58m.
The £20m revolving credit facility remains in place with Nationwide, and £8m was withdrawn at the end of March 2024 (2023-24: nil).
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 SONIA plus 1.18%.
The average rates of finance costs on the long-term loans outstanding at 31 March 2024 were: Fixed rate loans 3.98% (2022-23: 3.98%)
64
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
At 31 March 2024, the Group and Association also had the following undrawn loan facilities:
## **15b Deferred capital grant**
|**15b Deferred capital grant**|||||
|---|---|---|---|---|
||**Group**|Group|**Association**|Association|
||**2024**|2023|**2024**|2023|
||**£’000**|£’000|**£’000**|£’000|
|At start of the year|**7,311**|6,894|**7,311**|6,894|
|Received during the year|**214**|500|**214**|500|
|Grants recycled on disposals to RCGF|**(56)**|-|**(56)**|-|
|Released to income during the year|**(82)**|(83)|**(82)**|(83)|
||**7,387**|7,311|**7,387**|7,311|
|Amount due to be released < 1 year|**(84)**|(81)|**(84)**|(81)|
|Amount due to be released > 1 year|**7,303**|7,230|**7,303**|7,230|
The total accumulated government grant and financial assistance received or receivable at 31 March 2024 is £8,272k (2022-23: £8,112k), of which, £7,387k (2022-23: £7,311k) is included as deferred capital grant and £884k (2022-23: £802k) has been recognised as income through the Statement of Comprehensive Income to date.
## **15c Recycled capital grant fund**
All balances relate to Homes England.
65
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **16 Operating leases**
The Group and Association no longer have any operating leases.
## **17 Share Capital**
Teign Housing is a company limited by guarantee and as such does not have share capital. At 31 March 2024, the company’s guarantors were its Company/Board members and the extent of the guarantee was £1 each.
66
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **18 Capital commitments**
The company expects these commitments to be financed over the life of the committed development program over a period of 3 years with:
The revolving credit facility provided by Nationwide (£20,000,000) will fund £15,646,000 of committed expenditure.
67
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **19 Pensions Liability**
## **(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 2025 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 accurately calculate the impact of this issue, but we have had an indication that our maximum liability would be £68,000. No adjustment has been made in these financial statements in respect of this potential issue.
68
_**Teign Housing**_
_Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
69
_**Teign Housing**_
_Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
70
## _**Teign Housing**_
_Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
71
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **Key assumptions**
||**2024**|2023|
|---|---|---|
||**£’000**|£’000|
|Discount Rate|4.92%|4.84%|
|Inflation (RPI)|3.11%|3.17%|
|Inflation (CPI)|2.79%|2.79%|
|Salary Growth|3.79%|3.79%|
|Allowance for commutation of pension for cash at retirement|75% of
maximum
allowance|75% of maximum
allowance|
The mortality assumptions adopted at 31 March 2024 imply the following life expectancies:
||**2024**|2023|
|---|---|---|
||**Life**
**expectancy**
**at age 65**|Life expectancy at
age 65|
||**(Years)**|(Years)|
|Male retiring in 2024 (2023)|20.5|21|
|Female retiring in 2024 (2023)|23.0|23.4|
|Male retiring in 2044 (2043)|21.8|22.2|
|Female retiring in 2044 (2043)|24.4|24.9|
72
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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 a 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|**2024**
**£’000**
**52**
**58**
**29**
**400**
**539**
**2024**
**£’000**
**3,073**
**400**
**3,473**|2023
£’000
69
49
16
800|
|---|---|---|
|||934|
|||2023
£’000
2,575
800|
|||3,375|
## **Statement of Financial Position balances between Parent and Subsidiary**
|Teign Housing
Templer HomeBuild|**Creditors**
**Debtors**
**£'000**
**£'000**
259
964
456
259|
|---|---|
||715
1,223|
Balances held in respect of the Parent/Subsidiary relationship are eliminated on consolidation.
73
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **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 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 £52,000 (2022-23: £69,000) and had net assets of nil (2022-23: 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
74
_**Teign Housing** Registered company number 04619035 Registered charity number 1112196 Year ended 31 March 2024_
## **23 Change in Net Debt**
## **24 Discontinuation of Teigncare Service**
The Teigncare alarm service to private individuals was acquired and has been operated by Appello Careline Ltd since 3rd April 2023.
75
Audit Management Letter
**Teign Housing** Year ending 31 March 2024
## Contents
|Introduction|3|
|---|---|
|Audit Progress and Status|4|
|Ethics and Independence|5|
|Key Audit Issues|6|
|Audit Differences|14|
|Appendix 1: Adjusted/Unadjusted Audit Differences|15|
|Appendix 2: Audit Observations|16|
|Appendix 3: Letter of Representations|17|
2
MANAGEMENT LETTER
## Introduction
## **Our Audit Memorandum sets out the results of the audit of Teign Housing for the year ending 31 March 2024.**
We will issue an unqualified audit opinion that the financial statements give a true and fair view, subject to the completion of the outstanding matters as set out later in this report.
## **The Purpose of this Report**
On an annual basis we present a summary of the result of our external audit to the Audit Committee of Teign Housing (‘the Committee’). This document is intended to provide clarity over the audit process by:
- Outlining the audit strategy implemented for Teign Housing (the Association) and its subsidiary (the Group);
- Noting the resolution of the key elements and issues upon which we focus our work.
Our audit strategy is under continual review to ensure it encompasses issues which arise between now and the conclusion of the audit cycle. We welcome any feedback, particularly on any key issues identified by the Committee and omitted in this document.
## **Respective Responsibilities of the Board and the Auditor**
The Board are responsible for the preparation of financial statements which give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements.
Our audit is carried out in accordance with International Standards on Auditing.
Whilst we as auditors are responsible for forming and expressing an opinion on the financial statements it remains management’s responsibility to prepare the financial statements with the oversight of those charged with governance. The audit of the financial statements does not relieve management or those charged with governance of their responsibilities.
## **Objectives of Our Audit**
Our audit work is designed to consider whether:
- The financial statements of the Group and Association give a true and fair view of the state of affairs at 31 March 2024 and of its results for the year under review taking into account the requirements of:
- The Housing SORP 2018 – The Statement of Recommended Practice for social housing providers;
- The Accounting Direction for Private Registered Providers of Social Housing in England 2022;
- The Housing Act 1996 and the Housing and Regeneration Act 2008; and
- UK Generally Accepted Accounting Practice FRS 102;
- `o` The Companies Act 2006: and `o` The Charities Act 2011.
You will appreciate that our routine audit work is designed to enable us to form an audit opinion on the annual financial statements of the Group and Association and should not be relied upon to disclose errors or irregularities which are not material in relation to those financial statements.
## **Technical Information Service**
In addition to our audit, during the year we provide technical updates on the housing sector, charities, VAT, tax, PAYE and OMB issues. If you would like to receive these electronic newsletters, please email london@beeverstruthers.co.uk stating your name, position and an email address.
3
MANAGEMENT LETTER
## Audit Progress and Status
## **We are grateful for the assistance and support received from officers throughout our audit and confirm we have had full and free access to information and records during our work.**
We note that at the outset of our audit commencing May 2024, we were provided with draft financial statements for the Group and Subsidiary. There was one adjusted audit difference identified, however no unadjusted audit differences to the financial statements, as shown in Appendix 1.
Our audit is substantially complete. Outstanding items are:
- Post year end management accounts and minutes up to point of signing.
MANAGEMENT LETTER
4
## Ethics and Independence
## **We confirm that we have implemented policies and procedures to meet the Ethical Standard.**
International Standard on Auditing (ISA) 260 (Communication with those Charged with Governance) and good practice require us to outline the following in our audit strategy:
- Details of all relationships between the auditor and the client;
- Total fees charged for the provision of other services;
- Related safeguards in place to eliminate identified threats to independence;
- Confirmation that the auditor complies with the Ethical Standard.
The Committee should take an active role in considering whether the external auditor’s independence might be impaired by the provision of non-audit services.
We confirm that:
- We are not aware of any personal or professional relationships between Beever and Struthers and the Group of all relationships between the auditor and the client;
- In addition to our work as the Group’s external auditors, we also provide other services to the Group including taxation services and RTB certification. In our opinion the level of fees charged for these non-audit services does not constitute, and will not be perceived as constituting, a self-interest threat. This is permitted in the Ethical Standard where the client has ‘informed management’ and appropriate safeguards are applied to reduce the selfreview threat to an acceptable level.
We therefore conclude that we comply with the FRC’s Ethical Standard and in our opinion the firm is independent within the meaning of regulatory and professional requirements and the objectivity of the Engagement Partner and the audit staff is not impaired.
## **Audit Fees**
We propose an audit fee of £28,009 excluding VAT for the year ending 31 March 2024 for the statutory audit of the Group.
||**Approximate Fees 2024**|**Actual Fees 2023**|
|---|---|---|
|**Teign Housing**|**£28,009**|£26,250|
## **Fees for Other Services**
The proposed fees, excluding VAT, for non-audit services for 2023/24 are set out below:
||**Approximate Fees 2024**|**Actual Fees 2023**|
|---|---|---|
|Taxation compliance:|||
|Teign Housing|**£734**|£688|
|Templer HomeBuild Limited|**£605**|£567|
|Right to Buy sharing agreement certificate|**£928**|£870|
|**Total non-audit fees (excluding VAT)**|**£2,267**|£2,125|
MANAGEMENT LETTER
5
## Key Audit Issues
**We identified the following key auditing and accounting issues at the planning stage, which was the main focus of our audit. We have set out our detailed audit work and any other issues that we wish to bring to your attention.**
|**Audit issue per audit plan overview**|**Audit procedures and results**|
|---|---|
|**Macroeconomic Conditions**
**(Significant audit risk)**
The wider economic environment is providing
several challenges which are both directly and
indirectly impacting the Group.
Consumer Prices Index (CPI) has decreased
from 10.5% (December 2022) to 4% (December
2023) though it continues to remain high.
Moreover, the Bank Rate has increased from
2.25% to 5.25% over the past 12 months. This
will have an effect on the Group’s direct costs.
As
a
result
of
on-going
geo-political
uncertainties, there may be further impacts in the
coming months on financial markets and also on
the supply of materials resulting in delayed void
works and developments.
This introduces additional audit risks in us
arriving at our audit opinion. These include:
•Going concern including reduced future
cash flows;
•Potential impairment of carrying values on
assets held for sale such as first-tranche
shared-ownership as a result of property
market transactions decreasing;
•Potential impairment of development works
in progress as well as carrying values of
housing properties;
•Fall in values in assets as part of the net
pension liability recognised as well as
potential increases in cash flow demands
from pension providers;
•Increase in arrears as benefit claims
requiring processing by local authorities in
the current situation increase; and
•Impact in performance in voids as filling
void properties is more difficult in the
current situation.|We have not identified any issues with going
concern over the course of our audit. Teign
experienced a healthy surplus in 2024 and
retains strong cash and reserves.
There are no indications of any impairment
issues in the year.
There has been an increase in rental debtors
in
2024.
We
have
considered
the
recoverability
of
debtor
balances
and
reviewed the actions taken by the Group to
receive these amounts. It appears that
reasonable steps are being taken to manage
debtor balances and the bad debt provision
in place is sufficiently prudent.
There has also been an increase in void
losses in the year, although there are no
indications that this is a significant issue.
We will review the latest performance and
forecasts up to the point of signing the
financial statements.|
MANAGEMENT LETTER
6
## Key Audit Issues
## **Audit issue per audit plan overview**
## **Audit procedures and results**
**Assessment of Fraud Risk (Significant audit risk)**
ISA 240 “The Auditor’s responsibility to consider fraud” requires us to consider the risk of fraud and the impact that this has on our audit approach. In addition, ISA 700 “Forming an Opinion and Reporting on Financial Statements”, means auditors are required to explain in the auditor’s report to what extent the audit was considered capable of detecting irregularities, including fraud. There is a presumed significant risk of fraud in two areas:
We have reviewed the validity of year end journals as part of our consideration of the completeness of the accounting records and no issues were identified with regards to fraud.
## **Revenue Recognition**
Material misstatements due to fraudulent reporting often result from an overstatement of revenues, for example through premature revenue recognition or recording fictitious revenues. The auditor therefore presumes that there are risks of fraud in revenue recognition and considers which types of revenue may give rise to fraud risks.
We have reviewed the process and controls over income and conducted walkthrough reviews of the system. We have not identified any material misstatement of income during our testing.
## **Management Override**
Under ISA 240 there is a presumed risk of management override of the system of internal controls.
We have reviewed the assessment and calculation of accounting estimates and found no issues.
Material misstatements can arise from management overriding the controls which are in place or by manipulating the results to achieve targets and the expectations of the stakeholders.
MANAGEMENT LETTER
7
## Key Audit Issues
## **Audit issue per audit plan overview**
## **Loan Covenants and Treasury Management (Other area of audit risk)**
All loans are held in the Association.
Borrowings at March 2023 were £57.5m (Group and Association). In addition, Teign Housing provides a working capital loan to Templer HomeBuild Limited on a six monthly basis.
Per the management accounts to 30 September 2023, the surplus reported was £1.17m compared to a budget of £0.94m due partly to lower than budgeted interest payable.
## **Audit procedures and results**
Borrowings at 31 March 2024 were £65.5m, consisting of loans with GBSH, THFC and Nationwide.
We have reviewed loan arrangements and recalculated covenants at year end and were satisfied that the Group has not breached any of these.
The Group operating surplus in the year is £4.6m and therefore there is sufficient headroom in place to meet the covenants.
Per the management accounts to 30 September 2023, covenants are being comfortably met. The interest cover ratio is 263% compared to the tightest minimum covenant of 110%, the income cover ratio is 267.31% compared to the tightest minimum covenant of 105%, and the gearing ratio is 35.5% against the tightest maximum covenant of 55%.
8
MANAGEMENT LETTER
## Key Audit Issues
## **Audit issue per audit plan overview**
## **Audit procedures and results**
**Key Judgements and Estimates (Significant audit risk)**
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the year-end and the amounts reported for revenues and expenses during the year. Given its nature, this area is a key audit focus.
ISA 540 “Auditing Accounting Estimates and Related Disclosures” also places additional emphasis on scepticism in the audit process, with its importance increasing when accounting estimates are subject to a greater degree of estimation uncertainty or are affected to a greater degree by complexity, subjectivity, or other inherent risk factors.
On review of a sample of items capitalised as fixed assets totalling £19,200k, we identified that all cases were appropriate treated as capital.
We recalculated the depreciation charge on fixed assets and identified no significant differences or concerns.
We have reviewed the basis and calculations for the bad debt provision and are satisfied that arrears are adequately provided for. Appropriate consideration has been given to the age of debts and the level of risk in each individual case.
We have reviewed the possibility of impairment and found no particular triggers, and this has included reviewing the most up to date appraisals for ongoing investments. We understand that works are needed at Douglas House in order to bring it to a lettable condition, however its retained value in use prevents the need for an impairment charge.
The Group’s investment properties were valued at 31 March 2024 by Jones Lang Laselle Chartered Surveyors at £525K. We have reviewed the valuation report provided by JLL for Investment Properties. Our assessment of the assumptions and methodology used identified no material concerns with the downwards revaluation.
9
MANAGEMENT LETTER
## Key Audit Issues
**Audit issue per audit plan overview Audit procedures and results Asset Management and Development (Significant audit risk)** Asset Management is of significance in terms We have reviewed the treatment and of planning future works to ensure that tenant capitalisation of components as well as the homes are adequately maintained. write off of any residual asset balances on replacement. During the year the Group As at 31 March 2023 Teign had £163.9m in incurred expenditure of £12.2M on properties completed properties and £10.7m in properties under construction, with £7.7M being in under construction, split between social relation to social housing properties and the housing and low cost home ownership remaining £4.5M on shared ownership properties. We expect significant development properties. A further £7M was incurred on spend again in the current financial year and replacement components. by 30 September 2023 total assets under construction have increased to £17.2m. There The annual depreciation charge on were eight first tranche sales to the end of completed housing properties was £2.5M. September with a full year budget for 24 The useful economic lives of housing completions. There have been no RTB or RTA components appear to be reasonable. We disposals however there are three sales in the are satisfied that housing properties have pipeline. been appropriately treated in the financial statements. The Group also has a portfolio of investment properties which are rented out at market The difference between the depreciation rent. A RICS qualified valuer will be appointed charge calculated on the revaluation of to value the investment properties at the housing properties less the depreciation Statement of Financial Position date in line charge calculated on the historical cost with the requirements of FRS 102. should be transferred from the revaluation reserve to the income expenditure reserve. This has been correctly accounted for within the year ended 31 March 2024.
We have reviewed development scheme costs against supporting documentation as well as against records held by the development team. Amounts paid to date were authorised in line with delegated authorities. Cut-off on costs and accruals was treated appropriately. We tested a sample of additions to developments and all payments were authorised in line with delegated authorities.
We have considered the carrying amount of unsold shared ownership schemes to ensure they are stated at lower of cost and net realisable value.
10
MANAGEMENT LETTER
## Key Audit Issues
**Audit issue per audit plan overview Audit procedures and results Social Housing Pension Scheme (Significant audit risk)**
The Association participates in the Social Housing Pension Scheme (SHPS) which is a multi-employer, defined benefit scheme.
The total provision as at 31 March 2023 was £574k and the impact on the actuarial gains and losses for the year was a loss of £133k.
The actuaries of the schemes will value the pension assets and liabilities for Section 28 of FRS 102 purposes, and these will be included in the financial statements at 31 March 2023.
We The actuarial loss (being the movement in the difference between the fair value of the scheme’s assets and the net present value of the actuarial liability) of £225k has been disclosed as a movement in the current financial year in Other Comprehensive Income.
We have reviewed the actuarial valuations and the reasonableness of the assumptions made by the actuaries, including a review of the assumption made in respect of the valuations of the scheme assets and the net present value of the liabilities.
We agreed the SHPS pension disclosures to appropriate third party documentation provided, reviewed the accuracy of the journals processed at the year end, and reviewed the disclosures including the notes to the financial statements. We are satisfied with the figures as disclosed in the financial statements.
MANAGEMENT LETTER
11
## Key Audit Issues
## **Audit issue per audit plan overview**
## **Audit procedures and results**
## **Templer HomeBuild Limited (Other audit area of focus)**
Templer HomeBuild Limited is a 100% owned subsidiary which commenced trading in July 2017.
The principal activity of Templer HomeBuild Limited is the provision of property maintenance and construction services to the Social Housing sector, including properties for rent and sale.
Templer HomeBuild Limited experience a surplus of £52k in 2023/24, with income comprising of labour recharged to Teign Housing with an uplift and administrative charges.
Teign Housing provides a working capital loan to Templer HomeBuild Limited on a six monthly basis. The balance at 31 March 2024 was £400K.
We are satisfied that appropriate disclosures have been for intercompany and related party transactions.
12
MANAGEMENT LETTER
## Key Audit Issues
## **Audit issue per audit plan overview**
## **Audit procedures and results**
## **Additional work around IT controls (Other audit area of focus)**
One of the International Standards on Auditing, ISA 315 Identifying and Assessing the Risks of Material Misstatement, has been updated for periods commencing on or after 15 December 2021, so applies to the Group for the second time this year. The standard has significantly enhanced auditors’ approach to understanding entities, their environment and risk assessment activities to promote a more consistent and robust risk assessment process. Although auditors were previously required to consider IT controls, the revised ISA incudes further considerations in relation to understanding the IT environment and IT general controls. Auditors are required to identify the IT applications and other aspects of the IT environment (such as databases, operating system and network) that are subject to risks arising from the use of IT, as well as to gain an understanding of information processing activities and identify risks arising from the use of IT.
We identified the key IT Risks and assessed the overall effectiveness to the IT environment.
We have gained insight into how information is processed including how data flows through various IT systems and how it is transformed and reported in the financial statements.
13
MANAGEMENT LETTER
## Audit Differences
## **International Standards on Auditing (UK and Ireland) require us to communicate relevant matters relating to the audit of the financial statements to those charged with governance.**
## **Audit Differences**
Under the requirements of ISA 260 “Communication of audit matters with those charged with governance”, we are required to report any adjusted and unadjusted audit differences arising from our work.
We are also required to report any unadjusted audit differences unless they are “clearly trivial” (if there are any) to the Committee.
There was one adjusted audit difference identified, however no unadjusted audit differences, as set out in Appendix 1.
## **Management Letter**
International Standards on Auditing 260 on the external audit of charities require auditors to communicate matters of concern to those charged with governance. Such matters normally cover:
- expected modifications to the auditor’s report;
- unadjusted misstatements;
- material weaknesses in the accounting and internal control systems;
- views about qualitative aspects of the Group’s accounting practices and financial reporting;
- matters specifically required by other Auditing Standards to be communicated to those charged with governance (such as fraud and error); and
- any other relevant and material matters relating to the audit.
There are no management letter issues under the above criteria that we wish to bring to your attention. We have raised no audit observations, as shown in Appendix 2.
MANAGEMENT LETTER
14
## Appendix 1: Adjusted/Unadjusted Audit Differences
## **Adjusted Audit Differences**
|**Narrative**|**Balance Sheet**|**Balance Sheet**|**SoFA**|**SoFA**|
|---|---|---|---|---|
||**Debit**
**£’000**|**Credit**
**£’000**|**Debit**
**£’000**|**Credit**
**£’000**|
|First Tranche Sales Income
First Tranche COS
Debtors
Stock|**530**|**1,213**|**1,213**|**530**|
|**Total **|**530**|**1,213**|**1,213**|**530**|
## **Unadjusted Audit Differences**
|**Narrative**|**Balance Sheet**|**Balance Sheet**|**SoFA**|**SoFA**|
|---|---|---|---|---|
||**Debit**
**£’000**|**Credit**
**£’000**|**Debit**
**£’000**|**Credit**
**£’000**|
|There were no adjusted audit differences|||||
|**Total**|**-**|**-**|**-**|**-**|
MANAGEMENT LETTER
15
## Appendix 2: Audit Observations
## **Audit Observations**
There were no observations raised for the year.
MANAGEMENT LETTER
16
## Appendix 3: Letter of Representations
**BEEVER AND STRUTHERS CLIENT: TEIGN HOUSING 150 Minories London EC3N 1LS Chartered Accountants Date of Accounts 31 March 2024**
## **REPRESENTATIONS REGARDING LIABILITIES AND CERTAIN MATTERS**
## **[Date of Accounts Approval]**
Dear Beever and Struthers
This representation letter is provided in connection with your audit of the financial statements of Teign Housing for the year ending 31 March 2024 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view of the results and financial position of Teign Housing in accordance with the Companies Act 2006, the Housing and Regeneration Act 2008, the Statement of Recommended Practice for social housing providers 2018, the Accounting Direction for Private Registered Providers of Social Housing in England 2022 and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102).
## **Financial Statements**
1. We have fulfilled our responsibilities as Board members, as set out in the terms of your engagement letter dated 23 January 2023 for preparing financial statements in accordance with the Companies Act 2006, the Statement of Recommended Practice for social housing providers 2018, the Accounting Direction for Private Registered Providers of Social Housing in England 2022 and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102) which give a true and fair view of the financial position of Teign Housing as of 31 March 2024 and of the results of its operations for the year then ended and for making accurate representations to you.
2. We have reviewed our accounting policies for compliance with FRS 102. We are satisfied that the financial statements have been prepared in accordance with FRS 102.
3. We have disclosed all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements and these have been disclosed in accordance with the requirements of accounting standards.
4. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of FRS 102 related party disclosures and the Accounting Direction for Private Registered Providers of Social Housing in England 2022.
5. All events since the Statement of Financial Position date which require disclosure or which would materially affect the amounts in the financial statements have been adjusted or disclosed in the financial statements.
6. We confirm the financial statements are free of material misstatements, including omissions. No uncorrected misstatements were identified during the audit.
MANAGEMENT LETTER
17
## Appendix 3: Letter of Representations
**BEEVER AND STRUTHERS CLIENT: TEIGN HOUSING 150 Minories London EC3N 1LS**
## **Chartered Accountants Date of Accounts 31 March 2024**
7. We confirm that, having considered our expectations and intentions for the next twelve months, and the availability of working capital, Teign Housing is a going concern. We confirm that the disclosures in the accounting policies are an accurate reflection of the reasons for our consideration that the financial statements should be drawn up on a going concern basis.
8. All accounting records and relevant information have been made available to you for the purpose of your audit of the financial statements. We have provided to you all other information requested and given unrestricted access to persons within the entity from whom you have deemed it necessary to obtain audit evidence. All other records and related information including minutes of all management and shareholders meetings have been made available to you.
9. We confirm that we have considered whether the value of any of the assets held on the Statement of Financial Position have been impaired, and where this is the case the asset carrying value has been written down to the lower of cost less depreciation and the higher of its value in use and its net realisable value at 31 March 2024.
10. All transactions undertaken by the Group and Association have been properly reflected in the accounting records and are reflected in the financial statements.
11. We confirm that Templer HomeBuild Limited have been appropriate consolidated into the reported Group financial statements.
12. We acknowledge our responsibility for the design, implementation and maintenance of controls to prevent and detect fraud. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.
## **Information Provided**
13. We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves, management, employees who have significant roles in internal control, or others, where fraud could have a material effect on the financial statements.
14. We have disclosed to you all information in relation to allegations of fraud, or suspected fraud affecting the entity’s financial statements communicated by employees, former employees, analysts, regulators or others.
15. We confirm that we are not aware of any possible or actual instance of noncompliance with those laws and regulations which provide a legal framework within which the Group and Association conducts its business and which could affect the financial statements. The Group and Association have complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of non-compliance.
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MANAGEMENT LETTER
## Appendix 3: Letter of Representations
**BEEVER AND STRUTHERS CLIENT: TEIGN HOUSING 150 Minories London EC3N 1LS**
## **Chartered Accountants Date of Accounts 31 March 2024**
16. We confirm that we have disclosed to you the identity of the entity’s related parties and all related party relationships and transactions relevant to the Group and Association that we are aware of.
17. The Group and Association has satisfactory title to all assets, and there are no liens or encumbrances on the assets except for those disclosed in the financial statements.
18. There are no liabilities, contingent liabilities or guarantees to third parties other than those disclosed in the financial statements.
19. The Group and Association has at no time during the year entered into any arrangement, transaction or agreement to provide credit facilities (including loans, quasi loans or credit transactions) for directors, nor to guarantee or provide security for such matters, except as disclosed in the financial statements.
We confirm to the best of our knowledge and belief that the above representations are made on the basis of enquiries of management and staff with relevant knowledge and experience and, where appropriate, of inspection of supporting documentation sufficient to satisfy ourselves that we can properly make each of the above representations to you.
We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. The Board have taken all the steps that they ought to have taken as Board members in order to make themselves aware of any relevant audit information and to establish that you are aware of that information.
________________________ __ __________________ ___________________ **Signature Name & Title Date** ________________________ __ __________________ ___________________ **Signature Name & Title Date**
_Note: this document should be on the letter head of the organisation and be signed by the Chair and Chief Executive. It should be dated the same day as the approved and signed annual financial statements._
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MANAGEMENT LETTER
## Appendix 3: Letter of Representations
**BEEVER AND STRUTHERS CLIENT: TEMPLER HOMEBUILD LIMITED 150 Minories London EC3N 1LS Chartered Accountants Date of Accounts 31 March 2024**
## **REPRESENTATIONS REGARDING LIABILITIES AND CERTAIN MATTERS**
## **[Date of Accounts Approval]**
Dear Beever and Struthers
This representation letter is provided in connection with your audit of the financial statements of Templer HomeBuild Limited for the year ending 31 March 2024 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view of the results and financial position of Templer HomeBuild Limited in accordance with the Companies Act 2006 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”.
## **Financial Statements**
1. We have fulfilled our responsibilities as Board members, as set out in the terms of your engagement letter dated 23 January 2023 for preparing financial statements in accordance with the Companies Act 2006 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” which give a true and fair view of the financial position of Templer HomeBuild Limited as of 31 March 2024 and of the results of its operations for the year then ended and for making accurate representations to you.
2. We have reviewed our accounting policies for compliance with FRS 102. We are satisfied that the financial statements have been prepared in accordance with FRS 102.
3. We have disclosed all known actual or possible litigation and claims whose effects should be considered when preparing the financial statements and these have been disclosed in accordance with the requirements of accounting standards.
4. Related party relationships and transactions have been appropriately accounted for and disclosed in accordance with the requirements of FRS 102 related party disclosures.
5. All events since the Statement of Financial Position date which require disclosure or which would materially affect the amounts in the financial statements have been adjusted or disclosed in the financial statements.
6. We confirm the financial statements are free of material misstatements, including omissions. No uncorrected misstatements were identified during the audit.
7. We confirm that, having considered our expectations and intentions for the next twelve months, and the availability of working capital, Templer HomeBuild Limited is a going concern. We confirm that the disclosures in the accounting policies are an accurate reflection of the reasons for our consideration that the financial statements should be drawn up on a going concern basis.
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MANAGEMENT LETTER
## Appendix 3: Letter of Representations
**BEEVER AND STRUTHERS CLIENT: TEMPLER HOMEBUILD LIMITED 150 Minories London EC3N 1LS**
**Chartered Accountants Date of Accounts 31 March 2024**
8. All accounting records and relevant information have been made available to you for the purpose of your audit of the financial statements. We have provided to you all other information requested and given unrestricted access to persons within the entity from whom you have deemed it necessary to obtain audit evidence. All other records and related information including minutes of all management and shareholders meetings have been made available to you.
9. We confirm that we have considered whether the value of any of the assets held on the Statement of Financial Position have been impaired, and where this is the case the asset carrying value has been written down to the lower of cost less depreciation and the higher of its value in use and its net realisable value at 31 March 2024.
10. All transactions undertaken by the Company have been properly reflected in the accounting records and are reflected in the financial statements.
11. We confirm that Templer HomeBuild Limited has been appropriately consolidated into the reported Group financial statements.
12. We acknowledge our responsibility for the design, implementation and maintenance of controls to prevent and detect fraud. We have disclosed to you the results of our assessment of the risk that the financial statements may be materially misstated as a result of fraud.
## **Information Provided**
13. We have disclosed to you all information in relation to fraud or suspected fraud that we are aware of and that affects the entity and involves, management, employees who have significant roles in internal control, or others, where fraud could have a material effect on the financial statements.
14. We have disclosed to you all information in relation to allegations of fraud, or suspected fraud affecting the entity’s financial statements communicated by employees, former employees, analysts, regulators or others.
15. We confirm that we are not aware of any possible or actual instance of noncompliance with those laws and regulations which provide a legal framework within which the Company conducts its business and which could affect the financial statements. The Company have complied with all aspects of contractual agreements that could have a material effect on the financial statements in the event of noncompliance.
16. We confirm that we have disclosed to you the identity of the entity’s related parties and all related party relationships and transactions relevant to the Company that we are aware of.
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MANAGEMENT LETTER
## Appendix 3: Letter of Representations
**BEEVER AND STRUTHERS CLIENT: TEMPLER HOMEBUILD LIMITED 150 Minories London EC3N 1LS**
**Chartered Accountants Date of Accounts 31 March 2024**
17. The Company has satisfactory title to all assets, and there are no liens or encumbrances on the assets except for those disclosed in the financial statements.
18. There are no liabilities, contingent liabilities or guarantees to third parties other than those disclosed in the financial statements.
19. The Company has at no time during the year entered into any arrangement, transaction or agreement to provide credit facilities (including loans, quasi loans or credit transactions) for directors, nor to guarantee or provide security for such matters, except as disclosed in the financial statements.
We confirm to the best of our knowledge and belief that the above representations are made on the basis of enquiries of management and staff with relevant knowledge and experience and, where appropriate, of inspection of supporting documentation sufficient to satisfy ourselves that we can properly make each of the above representations to you.
We acknowledge our legal responsibilities regarding disclosure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you in connection with preparing your audit report of which you are unaware. The Board have taken all the steps that they ought to have taken as Board members in order to make themselves aware of any relevant audit information and to establish that you are aware of that information.
________________________ __ __________________ ___________________ **Signature Name & Title Date** ________________________ __ __________________ ___________________ **Signature Name & Title Date**
_Note: this document should be on the letter head of the organisation and be signed by the Chair and Chief Executive. It should be dated the same day as the approved and signed annual financial statements._
_._
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MANAGEMENT LETTER
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