CharityNo. 1113331 Company No. 5319765 COMMONWEAL HOUSING LIMITED (a company limited by guarantee) AUDITED REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2024 Page I
Cornmonweal Housing Limited REPORT AND FINANCIAL STATEMENTS For the year ended 31 December 2024 CONTENTS PAGE Legal and administrative details Report of the Trustees Independent auditors, report 12 Statement of fmancial tiVitIeS 15 Balance Sheet 16 Cash Flow Statement 17 Accounting Policies 18 Notes of the financial statements 20 Page 2
LEGAL AND ADMINISTRA TIVE DETAILS Company registration number.. 5319765 Chsrity registration number.. 1113331 Principal address.. Unit 521, SPACES 35 New Broad Street London Eam INH Registered office: 2 Babmaes Street London SWIY 6HD Patrons: Sir John MartJggart Bt The Rt.Hon. Baroness Jean Corston Th¢ Rt. Hon.Fiona Mactaggart Directors and Trustees: Jack Ma¢taggart (Chair until I1.12.24) Amarjlt Bains (Chalr ftom I1.12.24) Gary Medazoumian FCA Prof. Jonathan Portes Russ Edwards Sheldon Shillingford Dr Elanor Wanvick Aphra Mactaggart Gerald Kelly (appointed 13.3.24) Se¢reiary: Gary Medazoumian FCA Strategic l.eadership Team: CEO Deputy CEO Ashley Horsey Amy Doyle Bankers: BArelays Bank pl¢ 7th F'loor, 180 Oxford Street London BX3 2BB Sollcltors Broadficld LLP One Bartholomew Close, London ECI A 7BL Auditors.. Price Bailey LLP 24 Old Bond Street London WIS4AP Page 3
COMMONWEAL HOUSING LTD - REPORT OF THE TRUSTEES For the year ended 31 December 2024 INTRODU10 The TNstees, who act as directors for the PULposes of the company law. present their report and financial statements for the year ended 31 December 2024. Commonweal Housing is an independent action learning charity, working to investigate, pilot and champion housing-based solutions to social injustice. We provide experts and partner organisationg with the opporbjnity to trial and test new approaches designed io enhance housing equality and justice. We enable and facilitat¢ them to develop and test their new and imaginative housing-based services. We support project partners by seeking to provide the right housing in the right place to give their pilot proj¢rts the best chance of succeeding, In addition. Commonweal uses more of its charitable resources to fund early-stage research and feasibility sludies for emergtng areas of injustice or potential solutions. as well as commissioning independent evaluation to capture the leaming from our property based pilot projects. We then work to share the learning widely to influence future policy, practice, and delivery, Commonweal has developed and continues to deliver an innovative model of social inveslment leveraging the capacity and funding available to the charity through fiJnd$ se¢ured from a growing range of impact investors. By positioning ourselves at the heart of the social investment and pioject delivery relationship we are able to insulate both investors and front-line delivery partners for risk. The social investment deals and th¢ new ideas and pilot projects this funding supports would simply not occur if Commonw¢al were not there We aim to achieve impa¢t from the lesson5 learnt from the work we support. Commonweal will work with project parthers, national bodies, academics, campaigners, journalists, central and lo1 government directly and in partnership to do this. Whi]st a fvlty indeFendent chlty, the links to the philanthropic legacy and works of the Ma¢taggart family are a proud part of Commonweal's lineage and we are delighted that Aphrd Ma¢taggart wed to join the Boanl in 2023. Towards the end of2023, the Board undertooka round of extemal recrnitrnent to fither strengthen the Board and we are delighted that GeraId Kelly a h{sing andthvelopment speciajistlawracceptojthe Board's inviiation to join, Gerald was forn]ally appointed as a Trnst¢¢ of th¢ charity and Dir¢¢tor of ihe Company in March 2024. Ai the end of 2024 our Chair, Jack Macthggart announced he would step aside from that role, whilst remaining as a Trustee of Commonweal due to other work and family commitments. The Board is very grateful to Jack for all he has done during his tenur¢ as Chair of the Board and are delighted he will remain on the Board. The Board were unanimous in their decision to appoint Amarjit Bains, th¢ previous Vice Chair, to step up as the new Chair of thc Board of Trustccs a rolc she commenced in Dec¢mber 2024. Long standing Truste¢s, Russ Edwards has beei) appointed as the new Vice Chair, commencing his role in January 2025. The Board of Commonweal re¢ognise again the ongoing support and increased backing from rhe Directors of Grove End Housing, a not-for-profit property company, our principal ben¢factor. We appreciate the trust and faith they Continue to pui in Commonweal. The Board thank the staff of the Charity for their dedication in delivering Commonweal's work and especially thank our Finance Manager. Fredericka (Fred) Marquis for her hard Work in putting these accounts iog¢ther. 2024 Marked the mid-point of our Cent thrce-year business strategy which contains within in a focus on a smaller range of social policy and injustice are&8- raising our own knowledge and enabling the charity increasingly to become an infomjed commentator, influential partner and beneficial voice. The Board has set the following priority social justice themes.. Criminal justice system - focussed on specific groups such &8: youth justice, over-representation of BAME individuals, mental health issues Young adults? youlh homelessness and those faeing difficult transitions to adulthood Migration, Asylum and Traffieking- incorporating areas of work around asylum. migration, modern- day 51av¢ry a5 well a5 huvnan traffirking Commonweal will ¢oniinu¢ to use its voice, its resources, partn¢rships, and its energy to highlightthe importance to p¢opl¢'s lives of saf¢, 5tabl¢, s¢rur¢, and accessible housing. Comrnonweal is # social injustice housing-based action learning charity Page 4
COMMONWEAL HOUSNG LTD - REPORT OF THE TRUSTEES For the year ended 31 December 2024 STRUCTURE GOVERNANCE AND MANAGEMENT The Charity is a charitable company limited by guarantee and a registered charity. It is governed by its Memoiandum and Articles of Association (as amended). These provide for on¢ third of the Trustees to retire at each Annual General Meeting. The minimum number as set out in the Memorandum and Articles of Association is three and the quorum is sel at two Trnstees. For the four fornial Board meetings in 2024 Commonweal has been Chaired by Ja¢k Mactaggart. he did st¢p down at the end of the December 2024 meeting handing over the role to Arnarjit Bains. Commonweal continues to hold in person Board meetings to better facilitate discussion, engagement and build team relationships and dynamics amongst trustees and with the staff team. The Board has set out a skills matrix identifying the Cole skills, knowledge and competencies felt to be necessary to provide suitable oversight, governance, and guidance to the charity. The Charity has in place a program for the induction and training of new Tru8tccs as well as onguing training and confcrcnce opportunities for all Trustccs. In 2025. th¢ Board will commist*ion an ext¢rnal gov¢manc¢ rcvi¢w to provid¢ assurance the processes and gov¢rnanr¢ Structu wc hav¢ in plarr rcmains appT()priat¢ and fit ftir PUTPOSe. The Board is the administsztive and governing body and meets four times a year, ensuring and monitoring that the Charity is perfornling well, is solvent and complies with all its obligations. The Board has ensured that appropriate truslee indemnity insurance is in place. Organisational $trueture and deeislon-making The Board is responsible for the policy and strategy of the Charity, ensuring th¢ long-terni sustainability of the organisation along with its financial and legal probity. The Chief Executive, Ashley Horsey, IS responsible for implementing policies and strategies approved by the Board and for proeSsIng organisational objectives and leading operational delivery by the staff team. Th¢ Board ¢onsid¢r the strategic leadership team ofth¢ charity to consist of the Chief Executive and the Deputy Chief Executive, Amy Doyle, who under FRSI 02 constitute the key management along with the trust¢e5. The Board has established one committee the People & Governance Committee. The P&G Committee meets not 1¢sS than thr¢e time5 per annum; once in the spring focussing primarily on HR and employment matters: once in the summer looking at governance issues and once in the autumn as part of the budgct pr¢parntion ¢y¢l¢. This aurnn meeting reLomm¢nds any changes to remuneration for staff, including remunerated key management personnel, to the Board for their December budget-setting meeting for the forthcomiiig year. OWECTIVES AND ACTIVITIES The Charity's charitable objects are the provision of housing for those who are in conditioiis of need and the advancement of education and training (but without lirnitation) in relation to housing need. We deliver our objects Yia four corc Trvork strcams plus a growlng rol¢ as thought leaders, honest brokers, and a platform for discussion around housing and social injustiee: Property (acquisition) based medium to lon% term (5-10 year) aellon learning projects where the major investment by Commonweal 15 in the provision of the bespoke housing- using our existing capital or revenue funds as well as social investment funding. These cornerstone projects are aimed at thoroughly testing a new model or service. In 2024 we did not commence any new acquisition projects but took steps to line up a number of projects we hope to come to fruition in 2025, some using Commonweal own recycled capital funding from the sal¢ of ¢x-project properties and others from attracting further new social investment. These new property- based projects will be in the west Midlands, Belfast (two projects} and back in London. In 2024 we concluded the sale of the It of the Move on Up properties, a project initially started in 2017. and wrapped up the final redemption of all investment funds to our four social Investors in that project. Ptyge 5
COmMONMAL HOLSING LTD - REPORT OF THE TRUSTEES For th¢ year ended 31 December 2024 Independent evaluation ofthe propety based pilot projects we support capturing the learning whether the initial model succeeds or not. We, and our partners then share that learning widely to help others benefit from what 'orks to encourage replication and further expansion or. just as importantly, to clarify if or why pilot projects did not work as hoped to help others avoid making the same mistakes. Short term initial feasibility studies undertaken by others using Commonweal's revenue funding. Such early- stsge studies are desIed to give prospective partners the capacity and resources to explore a new or emerging idea they have where they feel it might lead to a housing-based solution and therefore may become a forn[ Commonweal property-based pilot project. In 2024 we undertook è Callfop New Ideas funding programme inviting feasibility study proposals specifically fussing on youth homeles5. Then later in the year we did the same for our final stralegic theme area of housing and social injustice issues associated wilh migration. asylum and trafficking, Each Call for New Ideas was shaped and guided by independent expert horizon wanning research undertaken on behalf of Commonweal. All these reports are shared on the Commonweal Housing website Short term re$ellr¢h - our research fimding progran]me. started An 2022. the major piece of work delivered in 2024 was an influential report entitled No Actiess," Nu Way Oul- by leading independent research Becky Rice. This report looking at the shortage of move-on accommodation for single people moving on from hostels or other supported housing settings. This important issue ha5 and continues to prompt debate and discussions across the sector. Commonweal will continue to enable and facilitate ongoing debate and promotion of the research recommendations. Inlluencing polity and praetiee through effective dissemination and promotion of the findings from our own projects and studies but also offering a platfonn and promoting the thoughts and ideas of practitioners and experts in the fields of housing and social injustice, In addition to these core work streams we will also consider fjjrther opportunities for small-scale direct socia investtnent where Ihis will help meet our charitable objectives. Coinmonweal cuentlY has one direct social investnient deal in place with Action Foundation a migrant and refugee support charity in Newcastle. Our 10- y¢ar investment t¢rni runs through to 2027. Dellvering our strapline'housiDg solutions to social injustlce,. The Commonweal: Theory of Change Commonweal will focus on those activities, proposals, issues, 0upS and injustices that are at the margins. overlooked or ignored by many mainstream funder5. Commonweal remains willing and able to use our independent, philanthropic charitable resources to support what are sometimes seen as difficult, unpopular or intractable issues- we are clear that if we are not willing and able to, then who will? We are fortunate in not being financially dependent upon public donations or public sector contracts. This giv¢s us freedoms and opportunities. We are financially robust and able to be brave in the decisions we take, the issues w¢ support and the projects we back. Success of the projects we support and the initiatives we enable to be teste(L whllst welcomed, is not our primary aim or metric of success. Capturing the learning that has delivered that success or understanding and sharing the lessons learnt if things do not deliver as exp¢¢t¢d is our main priority- shaping and inforniing future activity tackling social injustice is our key obje¢tiv¢. Commonweal Housing was estsblished with the aim of providing the housing to enable front line delivery organisations to develop and pilot new housing solutions to social injustice,. capturing the learning frorn those pilot projects and sharing it widely to help others learn from both the successes and the failures to shape future service delivery and poli¢y development. We will enable the provision of this housing in a range of ways including direct purchase, leasing and revenue support to partners or other investors. To support new housing projects, we also fund early stage feasibility studies and project related regearch to give n¢w ideas the best chance of succeeding as pilot projects. We also fund wider research to increase Page 6
COMMONWEAL HOUSING LTD - REPORT OF THE TRUSTEES For the year ended 31 December 2024 our knowledge base and crucially independent evaluation ofpilol projecis. capEuring the learning which we then share widely to shape future activity. In sharing the learning from projects, we will also build and share networks of interest. encouraging relationships and communications betw¢en those w¢ ar¢ ¢ngaged with where they may help each other. To encourage, support and enable project pftrlners to use their own expert voice to share learning, promote findings and campaign for change- Commonweal will aid and bring our expertise as required or as requested. We wanr, aim and expect to achieve impact from our charitable actLVity. We recognise that impact may take many forn]s from direct replication. to prnmotion of good practice. highlighting ongoing are&8 of injustice and lobbying for policy, operational or funding changes. Engaging evaluation of projects is fundamental to who Commonweal are; evaluating our own performance and input is a core part of that. At our heart we are a housing based social justice and action learning charity. Soclal Inveslment.. Commonweal has been at the for¢front of the innovative use of social investment funding for over 12 years now. With partners we have created an investment model to support our action learning projects. developin8 a social investment strucNre that gives investors the opportunity and comfort to invest in new pilot and untested initiatives, idea4 project5, and in front-line organisations that would not nonnally pass muster with their investment committees on their own merits. We are grate1 to those social investors that have tnjsted us with their money but have also given us their skills and expertise in providing strdtegic guidance to our action learning proje¢is. We remain grateful w the EsTnee Falrbatrn Foundatlon, Trust for London, Clty Bridge Trusr, Better Society Capital, Cheyne Capital, Quaker Social Action and The Monday Charitabl¢ Tnt, GEHL and the high net worth individuals for supportin8 US. ilst we were unable to conclude the Gateway.. Base for Success project rst muted in 2023 despite having positive response from investors, we continue to se¢k new social investment for delivery of our upcoming project pipeline. Our latest ventures we hope to come to fNition in 2025 including a fiher £1 M4 tnvegtment from long standing friends the Esmee Fairbairn Foundation. The key activities and projects for the year along with ddaiis and copies of any reports supported by Commonweal can b¢ found on our website.. www.commonw¢alhousi .or FINANCIALREVIEW We are very fortunate to have a long- standing partner and principal benefactor, Grove End Housing Limit¢d, who continue to provide our core revenue funding. In addition, Commonweal receiv¢s rental inwm¢ on its residential property portfolio which aligns with the increase in Lwal Housing Rates. In 2024 GEHL revenue funding accounted for 580/0 of income excluding a gain on disposal of tangible fixed &8sets ¢023 560/ts)' and rental income 400/0 (2023 350/0). In 2024 in addition to selling the final properties for the Move On Up project to redeem the social investment loan notes s¢¢ured against th¢rn, Commonweal commenced the agreed sal¢ of fonner Commonweal funded project properties to release the capital which is to be used for acquisition of new proje¢t property acquisition ov¢r th¢ ¢ours¢ of 2025. This is reflected in the fall in tangible fixed assets to £10,476,427 (2023 £12,540,188). The capital from sales is also ieflected in the year-end cash holding whilst we await new property Acquisitions in 2025 £2,198,865 (2023 £657,757) The Tnte¢S consider th¢ results of income from our residential prOty portfolio and the continued support from Grove End Housing and the overall reduced expenditure disclosed on the following pages to be satisfactory. Public benefjt statement The Board confirni that they have complied with th¢ duty in the Charities Act 201 I to have due regard to public benefitguidance publishedbythe Charitycommission. Further infornTrtionregardingthe Charity's activitie& public benefit and impact are presented in its Annual Impact Review, which is available on its website. htt .Ilwww.commonwealhou51T] -or Page 7
COMMONWEAL HOUStNG LTD - REPORT OF THE TRUSTEES For the year ended 31 December 2024 Riskmanagement and prineipal risks and uncertaiDtie$ The Trustees have assessed the major risks to which the Charity is exposed and are satisfied that systems are in place to mitigate exposure and consequenceg of keyrisks. The Trustees consider and review the core strategic and operational risks facing the charity regularly throughout the year at Board meetings including the controls and mitigations in plaGe to address or ameliorate these risks and note any new inforniation from the Executive. In addition, the Board hold an annual risk workshop in February to ensure approprAate oversight and consideration of this issue The Board, many of whom are relatively new to Commonweal over the last 3 years or so have taken tim¢ to on5idcr what thcy perceive as the core corporat¢ risks that if they were to rnateriali would mean Commonweal would potentially imperil the firture of the charity and l or would indicate our not delivering our ¢haritable aims and objectives. The 6 key risk areas are set out beIow: Key Risk Area Controls and mitigation Residual Risk Score 6 or more High and therefore warrants specific ongoing monilorin Risk Appetite: Averselnone - Minimavlow Cautious/limited -Openlhigh Hungrylsi8nifie4nt Key re8pon8ibility Arrativ¢ Comm¢nl Ongoing and positive engagejnent with GEHL by CEO and Chair. GEHL'S changc in their owil rules over recent years gives CWH further comfort on funding. Cautiousllimited Recognising the limited source of Ineome received (GEHL grant and rental income) and eongidering ODgoing eertalnty And txplorlng potentlal for further income diver51fieation BusSness Contfinul Prfimarlly foeused on Imall Staff tsam. but specifically Ineludlng loss of orgallisational memory or knowledge ir long- tcrm gtaff and colleagueg leave (need for knowledge trAD$fer protocols). Mf4lotalnlng IDdependent rinan¢ial seturlty is importAftt to give CWH freedoms to have a mor¢ open attltude to neiv project ri$ks. C'autiousllimited Board Offi¢¢ and technological processes and backups in place if ever needed. Coverage acro$$ the curnent staff team for short-tenn Covering of any vacancies or staff unavailability incIuding Deputy CEO Role and key personnel insuran¢¢ cov¢r in plac¢. Rcmotc workin8 protocols and arrangements in ple if ¢entral office not available. Close liaison between senior staff and extensive use of shaTed electronfic tlles. New appointments m4de against current Board Skills Matrix. R¢vi¢w¢d in 2024 to ensure it contains the correct mix of skills and experience needed. Induction for new Trustees and ongoing training and d¢velopment opportunities available. Board have limlted appetite for rl$ks that put business eontlnulty In perli and $upport mitigations V4nd controls accordlngly. CEO Board Ex erienee: Recognition that tbe Board bas changed over recent years and to eonsider against eurrent skll mix needed. Cautiousllimited Board b&ve commissioned an eiternal governance revieTF to provide guidance and assurance on thls and wider governanee oi'ersi bt Board Pagg 8
COMMONWEAL HOUSING LTD . REPORT OF THE TRUSTEES For the year ended 31 December 2024 Re ulatlon: SeeD as key for VdttractiDg new ¢141 InvLstmenL new projeet proposals and for Impact of messaglng and eommunieatlons of lessons learnt fro projects, research and 8valuatlon Regulat engag¢m¢nt wlth projecE investment and research partners to ensure Commonweal delivering against expectations. Openlhlgh The Board wish to use its relativ¢ financial freedoms to tske calculated risks on projecls nd pursuing issues others might be unwilling or unable to support. Core pgrt of CWH'S DNA ()PL'lliliigli High quality and regular comTns outputs. Board I CEO Dellverln Housln Projecl Team overseen by the Deputy CEO continues to ensure Close engagement with project partneTs. Additional staffing apacity in 2022 More proactive property inspection and oversight regime being reinstated by Consultant Surveyor and other Commonweal staff. Reaffirmed by the Board a$ thc k¢y purpose of the cbarity, th¢r¢fore failure to develop and delfver new projeets would be failure to deliver our cbaritable objecllves Desire to use fr¢¢doms to work imaglnatlvely to support new houslng-b*$ed project4 open appellte for working with n¢w gDd smaller organiJf4tlonJ where feaslble Board I CEO ¢hl¢vln Reairmed by the Board a$ the key ambltion of the charity. utilising the learnlng achleved from pllot proJeet$, feaslblllty studleg Increased ¢larlfi¢ation of evaluation expectations, and learning ambitions 8¢t out In new project parmer documentation. Minimalllow Nohvithstanding hlgh and open appetlte for the Jort of work we do or projeets we support, the Board are foeused on and hgve a low appetite for falllng to capture the new learning to be g&ined &Dd achieving maxlmum Impact with that learnlng to Influence future poIi¢yg practi¢¢ and servSce delive Early stage input frorn CWH Policy & Comms team to help shape likely policy route IIDd researeb to ¢b4nge aetiott$ and aetlvltles by others. No clear definition of what'lmpaet, eans AS tbis is eonsldered for ea¢b projeet Individually and may change as lellrnlng emerges Clarity that project delivery 'fallure' Is not of Itself fk1lU on the part of CWH or project parthers therefor¢ fostering open and p03ltive di08Ue throushout project phase and engagement with external experts to identify key learning targets and those that need to know to achieve positive impact. Board / CEO I DCEO Below these ¢ore strat¢gic risks, the Board, at their February 2025 risk workshop, also identified 15 key operational and ongoing business as usual risk areas which will be included in the regular risk monitoring by the Board. These include issues such as property valuation. cashflow. working with smaller and newer delivery partner charities. property maintenance and insurance cost escalation. mission drift and distraction. emerging legislation" through to emplo)rynent and properry compliance. These have also been assessed on a resithjal risk basis taking in to account current controls and mitigations along with an assessment of cwr¢nt RAG rating and th¢ Board's risk appetite in these are&8. Page g
COMMONWEAL HOLSING LTD - REPORT OF THE TRL'STEES For the y¢ar ¢ndcd 31 Deccmbcr 2024 Regerves Policy It is the policy of the Charity to maintain a proportion of its reserves in a readily realisabl¢ forni to engure that its core activity could continue during a period of unforeseen difficulty. The Trnstees consider readily realisable reserv¢s to be the amount of reserves that are easily converted into cash without the need for property disposals. The Trnstees assess the required level ofreserves on an annual basis alongside its opeiatingbudget. This assessment onsiders the risks associated with each stream of income and expenditure varying from budget, itsplanned activity level. Commitments to repay the loans secured on its properties and the need to keep sufficient bank balances to be able to manage the day-to-day fluctuations of receipts and payments In December2024. the reserve5 policy was reviewed by the TrLtstees who felt a continuation of a readily available cash reserve figure of a minimum of £250k to be appropriate. The actual cash reserves at the 31 December 2024 were £2.198.865. Th¢ g¢n¢rol r¢s¢rves level is wcll abovc the policy minimum giying a good sourc¢ ot"workins capital including headroom for acquisition of new project property in 2025. As at 3 1st December the Charity's total reserves stood at £1 0.39M (2023,. £10.15M) set out in detail in note 13. Of this total figure 86/0 (2023,. 94010) is included in the Designated Property Fund. represented by the nctional assets of the Charity, which can only be realised by disposing the Charity's freehold and long l¢as¢hold properties. Property Revaluatlon and Depreclotlon Policy In 2021 the Trustees agreed all fixed assets of the same class, (i.¢,, properties) to be revalued using external professional valuations each year. 2023 is the third year where the new property revaluation policy applied in the accounts for all propertles, The figures reflect these changes and the property markei at present. The Trustees also reviewed the policy on the treatment of depreciation on properties and agreed not to deprecia properties. Further dethils are stat¢d on the Notes section of the accounts on Fixed Assets and Depreciation. Commonweal Trustees regularly consider options available to it to utilise its general reserves to further the harity's aims and objective. This has in the past (and may do so again in the future where suitable schemes are identified) included undertaking direct mission related investment. Page lfj
COMMONWEAL HOUSING LTD - REPORT OF THE TRUSTEES For the year ended 31 December 2024 PLANS FOR FUTURE PERIODS Key priority in 2025 is to conclude the property acquisitions for the Servol, HAPANI and Depaul Northern Ireland projects utilising both recycled capital funds from sale of ex-project stock and new social investment. The charity also plans to bring back a number of other fonner project properties from current management agents who have been using them as temporary accommodation for households nominated by a range of London Boroughs - a very definite positive social use in line with our aims and objectives. The Board, however, wish to ensure these ar¢ used more directly for new action learning pilot projects so plans are progressing to make that happen over the next 12- 18 months. Trustees, Responsibilities for the Financial Statements The trustees (who are also directors of Commonweal Housing Limited for the purposes of company law) are responsible for preparing the Trustees, Annual Report and the financi21 statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice). Company law requires the trustees to prepare fmaneial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affair5 of the charitable company and of the incoming resources and application of resources, including the incojne and expenditure. of the charitabl¢ company for that period. In preparing these financial statements, the trustees are required to: select suitable accounting policies and then apply them consistently. observe the methods and principl¢s in the Charities SORP 2019 (FRS 102); state whether applicable UK Accounting Standards have been followed make judgeinents and estimates that are re&sonabl¢ and prudent,. and prepare the financial statements on the going concern basis, unless it is inappropriate to presume that the Charity will continue in operation. The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company's transactions and disclose with reasonable accuracy al any time the financial position of the charitable company and enabl¢ them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responqible for the m2ii)tcnance and inte8rity of the corpDr2te and financial inforn)ation includ¢d on the charitable company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. DistIliure nf Inform8lion to Auditors EaLh ofthe trustees h&s coiifinned that there is no infoTmation of which they are aware which ig relevanl to the audil, but of which the auditor 15 unaware. 'I'hey have further confimied that Ihey have tsken appropriate steps to idenlify such relevant information and to establish that the auditors are aware of such information. Auditors A resolution proposing the reappointment of Price Bailey LLP will be put to the next Annual General Meeting. Small eompani¢$ note In preparing this report the Trustees, who are also the directors, have taken advantage of the small companies, exemptions provided by section 415A of the Companics Act 2006. ON BEHALF OF THE BOARD OF TRUSTEES Trustee 18 June 2025 Page 11
INDEPENDENT AUDITORS. REPORT TO THE MEMBERS OF THE COMMONWEAL HOUSING LIMITED Opinion We have audited the financial statements of Commonweal Housing Lirnited for the year-ended 31 December 2024 which comprise the statement of financial activities, the balance sheet, the cash flow statement, and notes to the financial statements, including a summary of significant accounting polRcies. The fmancial ieporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financic¥l Reporting Srandordapplicable in the UK andRepublie oflreland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial stat¢ments: give a true and fair view of the state of the charitable company's affairs as at 31 December 2024 and of th¢ charitablc COTnpany's net rnovernent in funds, including the incomc and ¢xp¢nditure, for thc ycar thcn ended,. have be¢n properly pr¢pared in accordance with United Kingdom Generally Ace¢pted Accounting Prdctice; and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducled our audit in accordance with JnternatiOT]al Standards on Auditing (UK) (ISAS IUK)) and applicable law. Our responsibilities under those slandards are rther described in the Auditor's responsibilities for the audit ot-the financial staiements section ot. our r¢port, We are independent of the charity 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 requiremenls. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conelusion$ reloting to going ¢on¢ern In auditing the financial statements, we have concluded that Ihe trustees, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have perfornied, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve monihs from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the tnistees with respect to going concern are described in the relevant sections of this report. Other information The trustees are responsible for the other inforniation. The oiher inforniation comprises the inforn)ation included in the Report of the Trustees. Our opinion on the financial statements does not cover the other infomation and, except to the extent otherwise explicitly stated in our report, we do not express any forni of assurance conclusion thereon. In Connection with our audit of th¢ financial statements, our responsibility is to read the other inforn)ation and, in doing so. consider whether the other inforniation is inaterially inconsistent with the financial staternents, or our knowledge obtained in the audit or otherwise appears to be matsrially misstated. If we identify such material incon51St¢ncie5 Qr apparent material misstatement5, w¢ are required to deterniine whether there 15 a material misstatement in the financial statements or a material misslalement of the other information. If, based on the work we have perfornie(L we conclude that there is a nterIal misstatement of this other intonnation, we are Tequired to report that fact. W¢ 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 during the audit: the infoTmation given in the Report of the Trustees (which in¢lud¢s the directors, report prepared for the purposes of company law) for the financial year for which the fmancial statetn¢nts ar¢ prepared is onsistent with the fmanclal statements" and Pc¥ge 12
tNDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE COMMONWEAL HOUSING LIMITED the directors, report included within the Report of the Trustees has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the charitable company and its environment obtained during the audit, we have not identified material misstatements in the Report of the Trustees (which incorporates the director5, report). We have nothingto report in respect ofthe following matters in relation to which the Companies A¢t 2006 requires us to report to you if, in our opinion.. adequate accounting records have not been kept by the charitable company. or the charitable company fmancial statements are not in agreement with the ac¢ounting records atxl returns. or certain disclosures of trustees, remuneration specified by law are not mad¢. or we have not received all the infonnation and explanations we require for our audit. or the trustees were not entitled to prepare the financial statements in accordance with the small companies, rcgirn¢ and takc advanlagc of th¢ stnall companies, cKeTnptions in prcparing th¢ tru5t¢C3' r¢port and froln the requirement to prepare a strategic report. Responsibilities Df trustees for the finaneial stfitements As explained more fully in the trustees. responsibilities statement set out on page 12. the trustees (who are also the dlrectors of the charltable company for the purposes of company law) are respon51ble for the preparation of the financial statements and for being satisfied that ihey give a true and fair view, and for such internal control as the trustees detemine is nece8sary to enable the prepardtion of fmancial statements that are free from material misstatcment, whether due lo fraud or error. In pr¢paring th¢ financial statements, the trustees are responsible for assessing the charitable company's ability to continue as a going concern, disclosing, as applicable. matters reled 10 going concern and using the goii)g concern basis of accounting unless the trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative bur io do so. Audfitor's respongibi1Stles for the audit of the fillanclal statements Our objective8 are to obtain reasonable assurance about whetlier the financial statements as a whole are free from material misstaternent, 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 fmancial statements. Irregularities, including fraud, ar¢ instances of non-compliance with laws and regulations. We design proccdures in line with our responsibilities. outlined above, to detext material tnisstatements in respcci of irregularities. including fraud. The extent to which our procedures are capable of detecting irregulariti¢s, including fraud is detailed below.. We gained an understanding of the legal and regulatory framework applicable to the Charitable Company and the sector in whieh it operat¢s, and considered the risk of th¢ Charitable Company not eomplying with the applicable laws and regulations including fraud in particular those regulations directly related to the fmancial statements, including financial reporting, and t&x legislation. In relation lo Ihe operations of the Charitable Company this included compliance with the Cotnpanies Act 2006, Charities Act 201 l and SORP 2019. Th¢ risks w¢r¢ dis¢ussed with the audit team ond we r¢mained alert to any indications of non-eomplianee throughout the audit. We carried out specifjc procedures to addr¢sS the risks identified. These included the following: Reviewing minutes of Board meetings. reviewing any correspondence with the Chariry Commission, agreeing the financial statement disclosures to underlying supporting documentation, and making enquiries of management and officers of the Charitable Company. We procedures in place for the reporting of any incidents to the Trustee Board including serious incident reporting of these matters as necessary withthe Charity Commission and a review of legal fees during the period. Page 13
INDEPENDENT AUDITORS, REPORT TO THE MEMBERS OF THE COMMONWEAL HOUStNG LIMITED Management override: To address the risk of management override of controls, we carried out testing of journal entries and other adjustmeDt for 4)propriat¢n¢ss. We also asseysed management bias in relation to the accounting policies adopted and in deterniining silficant accounting estimates. Because of the inherent limitations of an audit, there is the risk that we will not det¢ct all irregularities. including those leading to a mafrrial misstatetnent in the financial statements or non-compliance with regulation. This risk increases the more that complianc¢ with a law or regulation is r¢moved frotn the cvcnts and transaction3 refl¢ct¢d in the financial statements, as we will be less likely to become aware of instances of non-cornpliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involved intentional concealment, for8ery* collusion, omission or misrepresentation. A further description of our responsibilities for the audit of the financial statemenL8 Is located on the Flnancfial Reporting Council's website at.. www.frc.or onsibilities. This description fornis part of our auditor's report. Use of our report This report is made solely to the charitable company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company's members those matters we are required to state to them in an Auditorfs report and for no other purpose. To the fullest extent pennitted by law, we do noi accept or assume responsibility to anyone other than thc charitiible company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have forned. P,- g4 LLe Michael Cooper-Davis FCCA ACA (Senior Statutory Auditor) for and on behalf of Price Bailey LLP Chartered Accountants Statutory Auditors 24 Old Bond Street London WIS 4AP Date: 16 July 2025 Page 14
Commonweal Housing Limited STATEMENT OF FtNANCIAL ACTIVITIES (Including Income and ExpenditUTe Account) For the year ended 31 December 2024 Note 2024 2023 Income from: Donation and legacies Charitable activity - rental income OtheT incorne Investment income (Loss) IGain on disposal of fixed assets Total 600,000 415,413 1,750 23,717 (40.275) 1.000.605 600,000 375,719 84,288 5,325 {505) 1,064,827 Expenditure on Charitable activities Total l.012,329 1.012,329 1,018,301 1.018,301 Net incomelexpendfiture before amortisxtion adjustments (11.724) 46,526 Amortisation charges on loan notes 13 Net expenditure (54,859) (25,948) Gain l (Loss) on revaluation of fixed assets Net movement in funds 290 375 253 000 235,516 10,155,578 10,391,094 227,052 9,928,526 10,155,578 Funds brought forward Funds Cvdrried ffjard The notes numbered I to 15 forni part of these fman¢ial statements. The statement of fman¢ial a¢tivities also ¢omplies with the requirements for an in¢ome and expenditure a¢¢ount under the Companies Act 2006. All of th¢ income and expenditure relates to continuing activities. Page IS
COMMONWEAL HOUSING LTD Balance Sheet as at 31 December 2024 2024 2023 Notes Fixed assets Tangible assets Programme relatsd investment Oth¢r unlisted investrn¢nt 10,476,427 82.116 12,540,188 80,366 10.558.544 12,620,555 Current assets Debtors Cash at bank and in hand 58,494 2,198,865 2.257,359 53,579 657,757 7ll,336 Curren¢ Llabllllles Creditors: amounts fallin8 due within one year io (788,649) (168,359) Loan notes,. amounts falling due within one year 12 1391012 Not ourrettt Il*biliti (1,468.710) (848.035) Total assets less ¢urrent Ilabllfitles 12,027,254 11,772,520 Credltors: amounts due more Ih8n on¢ year Loan notes Grants 12 (1.570,160) (60,000) (1,546,942) (70.000) Net assets 10,391,094 10,155,578 Income funds Unrestricted fimds: - DesIgned Property Fund - Programme related Investment - Qeneral Fund Total funds 13 8,900,267 82,116 1,408,711 10,391.094 9,602,234 80,366 472,978 10.155.578 The notes numbered I to 15 forni part of these fTnancial statements. The financial statements have been prepared in accordance with the provisions applicable to companies'subject to the small companies, regime. The accounts were approved and authorised for by the Board of Trustees 18 June 2025 and signed on their behalf by A BAINS G S MEDAZOUMIAN DirectorlTTUStee Direetor/Trugtee & Chair of the Board of Trustees Page 16
COMMONWEAL HOUSING LTD Cash Flow Statement For the year ended 31 December 2024 2024 2023 Iyet rnovement in fuJJds Deduct: investment income receivable Add backl(D¢duct); revaluation of fixed assets Add back: Amortisation adjustment Deduct: Interest paid Add back: gain on disposal of fixed assets Add back.. depreciation IncreaseldecTeage in debtors Increaseldecrease in creditors Decrease in grants Net easb provided by operating a¢tivitie5 235,516 (23,717) (290,375) 43,135 (37.426) 40,275 787 (4,916) 620,290 10.000) 573 569 227,052 (5,325) (253,000) 72,474 (106,525) 505 2,409 38,251 (589,146) 20,000 633 304 Cash flows from Investing aetivitles Investment in¢om¢ Te¥eived Proceeds from disposal of fixed assets Add back.. charges on property sale Cash paid in respect of tangible fixed assets 23,717 2,271,990 35.685 3,650 2,335,042 5.325 500,000 8,252 (1,663) 511,914 Cosh flows froDJ financillg a¢tivili Loan notes repaid in the year 1367 503 488 001 (Decrease) l increas¢ in cash and cash equiv4l¢nts in the yeAr 1,541,108 (609,391) Cash and cash equivalents at the start of the year 657 757 1267 148 Cash and cash equlvalents at the end of the year 2 198 865 657 757 Analysi$ of c&$h and cA8h ¢qUiVRlents and n¢t d¢bt Amortlsatlon and loan Interest movements 01-Jan Cash flows 2024 657,757 2 937 954 2 280 197 31-Dec 2024 2,198,865 576 160 622,705 Cash Loans notes 1,541,108 1367 503 2908,611 Page 17
COMMONWEAL HOUSING LTD NOTES TO THE FINANCIAL STATEMENTS- ACCOUNTING POLICIES For the year ended 31 December 2024 NOTE I - ACCOUNTING POLICIES BASIS OF AccouwfiNG The financial statements have been prepared in accordance with applicable law and Accounting and Reporting by Charit1¢5- Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (second edition, effective l January 2019) - (Cliarities SORP (FRS 102)), and with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The financial statements are presented in sterling and fJgur¢s are rounded to the nearest £. The charity meets the d¢finition of a public benefit entity under FRS 102, Assets and liabilities are initially recOlSed at historical cost or transaction value unless othenNise stated in the relevant accounting policy note(s). ENTITY STATUS Commonweal Ilousing Limited is a private charitable company limited by guarantee and meet the definition of a public benefit entity as defin¢d by FRS102. Further details of its company and charity registration are given on pag¢ 3. GOING CONCERN The Trustees have prepared cash flow forecast5 for the period of at least 12 Months from the date of approval of these financial statements which indicate thatthe charity will have sufficient funds, through continued fimding from its principal benefactor, Grove F.nd Tlousing, to meet its liabilities as they fall due for that period. A¢cordingly* the financial statements are prepared on a going concen) basis and the Trnstees do not consider there to be any matcrial uncertainty in connection with the chority's ability to eontii)ue to operate. ESTIMATION UNCERTAINY AND JUDGEMENTS The directors consider the principal areas of estimation uncertainty and judgement to be the valuation of property and the valuation of the related loan notes for socially funded properties. INCOME Income is recognised when the charity has entitlement to the funds, any perforn]ance conditions attached to the items of incom¢ have been m¢t. it is probable that the income will be received, and the amount ian be mcasured reliably. Properties transferred to the charity by way of gift are recognised at fair value at the date of transfer. EXPENDITURE All expenditure relates to Charitable activities and in¢ludes direct costs. indirect support costs and governance costs. Governance Costs. which ore the statutory and organi5ational costs of operating the charity as a legal entity. Grants payable in furtherance of the charity's objects are recognised as expenditure when payment is due to the partner organlsation. in accordance with the terms of the funding agreement. Standard funding agreements are typically for a year's duration or less, but can span several years. The funding agreements contain conditions, the fulfilment of which is under the control of Commonweal. For funding agreements in place at the year-end that include payments to be made in future years. where conditions attached to their payment limit their recognition as Cuent liability, these payments are disclosed in Note 12 to the financial statements as commitments. Page 18
COMMONWEAL HOUStNG LTD NOTES TO THE FINANCIAL STATEMENTS- ACCOUNTNG POLICIES For the year ended 31 December 2024 PENSION CONTRIBUTIONS Contributions in respect of personal pension sch¢m¢s ar¢ included in the statement of financial activities for the year in which they are payable to the scheme. FIXED ASSETS AND DEPRECIATION Assets with a useful economic life exceeding on¢ y¢ar arc initially re¢ognis¢d at costs wh¢re they are purchased or a fair vaiue at the time of transfer in respect of assets where they ar¢ donAted. The fair value of $u¢h assets is treated as a deemed cost. All property assets are restated at their fair value at the balance sheet date three montlL8 after acquisition. The fair value is detemiined by the Trustees with referenco to the 4veTag¢ of two differcnt eomparntivc medium ratjge desktop valuation along with professional valu&tions of certain pioperties and having regard lo any actual transa¢tions, The policy of revaluing all properties has applied since 2021. D¢pr¢¢iation is provid¢d on all iangibl¢ fixed assets, except prop¢ni¢s at rates calculated to HTite off the cost, less estimated resldual value. ofea¢h asset over It$ expected useful life. as follows.. A) Freehold and long leasehold buildings B) Socially fund¢d freehold and leasehold buildings C) Computer and oiher equipment - No depreciation from 2021 - No depreLialion from 2021 - 200/¢ per annum on a straight-line basis Expendiiure on refurbishment works and associated Coms on making the charity's freehold and leasehold properties project ready for QCCUPiltion is writt¢n-off &$ incurred. Th¢ trust¢¢s ¢on$ider that it appropriate not to charge depreciaiion as the property is maintained iii reasonable condition and valu¢d annually, PROGRAMME RELATED INVESTMENTS Programme related investments are stated at transaction value less any provision for impairnient required. In ac¢ordan¢e with rhe Chariri¢s SORP they are not resiated at fair value. LOAN NOTES Loan notes represent fii)ance obtained from Social Investors. Thc Social Investors, return includes not only a market rate of interest but an additional final paymenl ¥qudl lo an agreed pereeniage of tlle gain made on disposal of the r¢lated property, Thc loan nol¢s arc trcatcd accounted for under section 12 of FRS102 and the final contractual return io the leiiderlinvestor is neither a fixed Tate or amount, nor a vari&ble rdte linked to a single obscrvable interest rate or index of general price inflation, though the annual payments on some loans are Subjel to a CPI uplift. The loan notcs contain non-financial variables specific to A pty to the contract such as the potential future value and condition of the property which may affect the fmal contractual return. In accordance with section 12 the Tru$t¢es have therefore used the amortised ¢os¢ model to value thc loan notcs. This calculation considers the most r¢c¢nt expected cash-flows based on external valuations agreed payments to the lenders. The actual redemption values olthe loan notes arc likely lo differ from the eslimaled cashflows recorded at the preceding balance sheet date and this will result in a further amort15ation adjustmcnt in th¢ year of redemption. FUNDS Restricted ndS are lo be used for specific purposes as laid down by the donor. Expenditure, which meets th¢5¢ criteria, is Charged to the fund. There were no such funds in either year. Unrestricted funds are donations and other incom¢ r¢Gciv¢d or generated and are expendable at the discretion of the Trustees in furtherance of the charity's objectives. Designat¢d funds are unrestricted funds earn]arked by the Trustees. Page 19
COMMONWEAL HOUSING LTD NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024 DONATIOP4S AND LEGACIES 2024 2023 Donations Grove End Housing 600,000 600,000 EXPENDITURE Staff costs Other costs 2024 Totsl ChArltable ActlvItl- 2024 Direct and support costs R¢-allo¢ati¢Jn luan not¢ inteTe5t Governance costs 456,290 570,224 (43,135) 1,026.514 (43,135) 456.290 556 039 1,012329 Staff coÈts Other costs 2023 Total Charltoble Aetlvlties- 2023 Direct and SUPPLIrt costs Re-allocation loan note interest Governance costs 434.323 649,884 (103,106) 1,084,207 (103.106) 434 323 583 978 1018301 Direct and support costs represent the cost ofprovision ofthe core activities ofthe charity: delivering housing solutions and undcrslandiiig housiiig needs including the asso¢ial¢d Support costs lo deliver these activities. £570,314 (2023 £649,884) und¢r oih¢r cosls abovL relal¢s to ih¢ charities main core activitie8 as follows.. 2024 2023 Property relaied proje Costs Feasibility Studi¢s 8nd Grants to parin¢rs Learning and 8harin8 Offlce relat¢d operailonal cost5 230,573 440/ 147,552 280/ 321,643 590/0 148,548 270/ 6,508 10/0 70.079 130/• 148,904 28 / Governance eosL8 relate to the direet costs associated with the effective governance of the charity. These includ¢ audit fees und ac¢ountsncy £26,045 (2023- £33,954), Company Secretarial £81 (2023.. £26) and oth¢r governan¢¢ Gosts of £2.824 (2023.. £3,220). N¢t income is after charging d¢pre¢iation on the fixed assets of £787 (2023.. £2,409). Page 20
COMMONWEAL HOUSING LTD NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024 STAFF COSTS 2024 2023 Wages and salaries Pension contributions Social security ci>sts 379,960 38.323 38,007 456.290 363,103 36.491 34,729 434,323 2024 No. 2023 No. Particulars of employees: The average number of employees during the year, calculated on the basis of full-time equivalents, was as follows: Chief Executive Project and Coinmunieations Staff Finance and Administrative staff (FTE-. I.8. 2023- 1.8) The average monthly head count of employees, number during the year is 8 (2023.. 8). 2024.. one in thc rang¢ £IOO,000-£I 10.000 during the ycar. (2023.. One in the range of £90,000-£100.000) Key Senior Management Personnel of ihe charity Comprised dle Chief Executive and Ihc Deputy Chicf Executive Officer whose total remuneration including all benefits was £203,076 (2023.. £192,985). PA YMENTS TO TRUSTEES AND CONNECTED PERSONS No TTUSte¢ or person with a family or business connection with a Trustee received remuner10Th in the year directly or indircctly, or had any cxpenses rcimbursed (2023.. nil). Page 21
COMMONWEAL HOUSING LTD NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024 TANGIBLE FIXED ASSETS Land & Buildings Computer & other equipment Total Cost or Valuation At l January 2024 Additions Disposals Revaluation At 31 December 2024 12,535,625 12,118 3,650 12,547,743 3,650 (2,357,000) 290 375 10 484 768 (2.357.000) 290 375 10,469 000 D¢pre¢iation At l January 2024 Charge for the year Eliminated at Disposals At 31 December 2024 7,554 787 7,554 787 8,341 Net book value At 31 December 2024 AO 469 000 10 476 427 At 31 December 2023 12 535 625 12 540 187 The net book value includes £4.879,000 in respect of long leasehold properties (2023.. £6.224.625). PROGRAMME RELATED INVESTMENT In 2018 Commonweal provided in pursuance of its charitable objects loan funding of £70,000 on a l O year interest bearing arrangement to Aclion Foundation a regyistered charity based in Newcastleupon Tyne with a 2.50/0 fixed intere8t on outstanding balances. The balance shown relat¢s to the outstanding loan and accrued interest receivable. The loan is secured on property. UNLISTED INVESTMENT The unlisted investment of £1 represents the charity's interest in the share capital of its wholly- owned subsidiary undertaking Re-unite Limited. The subsidiary is registered in England and Wales and has not traded since it was incorporated on 28 October 2009. DEBTORS AND PREPAYMEIYTS 2024 2023 Prepayments and accrued income 58.494 58,494 53,579 53,579 Page 22
COMMONWEAL HOUSING LTD NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024 10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Other creditors Social security costs Accnlals and deferred income 36.411 12.108 740,130 788,649 35.571 11.147 121.641 168.359 £620K was received at the end of 2024 from GEHL foi inrome in 2025 GRANT COMMITTMENTS The long-terni creditor of £60,000 relates lo a grant commitment of £1 00,000 to the University of BirniTngham comprising l O equal payments of £1 0,000 from October 2022. 12. LOAN NOTES The tablc below illustrates the Loan notes values after amortisation adjustments: . Percentsge interest for yield ents Project Name Aquisitions date Loan notes maturity date Loan notes redeemed Balan¢e Left at 31.12.2024 Loan notes Comments Final 3 Properties sold und investors paid back in 2024 (I r¢deemed in 2023 Final payment will include 500/D uplift to investors Final payment will include I OOYO uplift to investors MOVE ON Up-QSA 2017 2023 £1,367,503 3.75f/io £1,367,503 DEPAUL- PL 2019 2026 £990,250 3.7596 1,076,712 EBM 2023 2029 £492,625 Nil 499,448 Page 25
COMMONWEAL HOUSING LTD NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024 2024 2023 Amortisation adjustments At the beginning of the year Loan notes redeemed in the year Loan notes issued in the year Amortisation charge Interest paid to investors 2.937,954 (1,367,503) 2,967,379 (488,001) 492.627 72,474 (106.525) 43,135 (37,426) Loan notes at amorttsed value 1,576,160 2,937.954 Loan notes split with amortised adjustments and cumulative movement5: 2024 2023 Amount due within one year Amount du¢ aft¢T rnor¢ than on¢ year Total 1,926,263 1041 116 2 937 954 1576,160 1576,160 13. UNRESTRICTED FUNDS Balance at 01 January 2024 Income and gains ExpendAture/ I,ossc8 Transfers between nds Balance at 31 December 2024 De51gnated Funds: Property Fund Programme related Investment 9,602,234 (658,832) (43,135) 8,900,267 80,366 1,750 82,116 General Fund 472 978 10 1.$5 578 1,988 337 1,331255 1052 604 1.095 739 1408711 10 391094 The Property Fund represents the total amount value of tangible red assets less loan notes. The PrograTnme related investrn¢nt is the money Commonweal advancedas a loan to Action Foundation a charity b&sed in Newcastle Upon Tyne to pursue its charitable objects on a l O-year interest bearing arrangement. The loan is secured on a propety (see note 7). The General Fund represents Undesiated monies retained to provide the working capital to enable the charity to cany out its activities as a provider of housing solutions to social injustice Page 24
COMMONWEAL HOUSING LTD NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024 14. RELATED PARTIES One of the Trustees of the charity Gary is a member of Grove End Housing Limited (GEHL), a company limited by guarantee. Duc to thL nalure of the charity's operations. transactions have taken place with GEHL at arni's lengthon nornial trdding t¢rms which, und¢r Financial Reponing Standard Nuinber 8, require disclosure in the charity's accounts. Th¢ following related paty transaction occurred between the charity and GEHL during the year.. (a) GEHL donated the sum of £600,000 (2023: £600,000) to the charity to fund its charitable activities. Jncome in advance of 620k received in 2024 from GEHL to the donations towards charitable activities for 2025. (b) Page 25
COMMONWEAL HOUSING LTD NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 December 2024 The following pages do not form part of the statutory finaneial ststements andare for the information of the Trustees only. Page 26
Commonweal Housing Limited DETAILED STATEMENT OF FINANCIAL ACTIVITIES For the year ended 31 December 2024 (Supplementary pages for the infonnation of the Trustees only) INCOME Voluntary income GEHL - Gift Aid 2024 2023 600,000 25,467 625,467 600,000 89.108 689,613 Other income Gainl(loss) on disposals of fixed assets (40,275) (505) Rental income Amari & Rhea Projects P¢¢r Landlord ProjectsfFR and Depaul Denhan International East Belfast Mission (EBM) (2023 included findeTS fees etc) QSA Move on Up Project Private rent¢d s¢ctorlDabora Conway 15,095 71,617 288,960 12,651 55,426 71.215 139,744 52,128 16,677 40,529 375,719 27.090 415.413 Total Income 1,012,329 1,064,827 EXPENDITURE ProJe¢t Expenditure Propety costs (Inc. refurbishment costs on handover) Feasibility cost and grants to partners Depreciation and Amortisation of leases Evaluators (inc, Projcct costs) Legal and professional (includes E.A agents & valuation fees on properties) 52,740 103,412 787 44,140 154,253 142,248 2,409 6.300 69,262 12,388 270,341 317,598 Chief Executive's Office CEO and staff salary Pension contributions Social security Costs Recruitment costs Travel and conferences Freelance/Retainer Fee Serviced office accommodation (Inc. telecoms) IT Support and maintenance Repairs and Renewals Printing. Postage and Stationery Insurance Subscriptions, magazines etc Miscellaneous (includes comms subg) 379,960 38,323 38,007 429 3,801 44,094 149.792 6,578 363,103 J6,491 34,729 3.481 43,946 103.518 6,172 1,849 21,342 2.853 9,190 696,218 2,166 14,458 10.931 713 619,708 Page 27
Commonweal Housing Limited DETAILED STATEMENT OF FANCIAL ACTIVITIES For the year ended 31 December 2024 (Supplementary pages for the inforniation of the Trustees only) 2024 2023 Support and Administration Consultancy and professional fees Accounting and Payroll software W¢b Design and consultancy (incl. Annual review & publieity material) 1,148 10,488 33.285 1.560 5,184 8,950 16,820 43,795 Governance Audit fee Non audit services Company secretarial Trustee Liability Insurdnce 17,070 8.975 81 2,824 28,950 17,070 16,884 26 3,220 37,200 Totsl expenditure Net Incomel{L05s) b¢for¢ amortisation I,012,329 1,018,301 Page 28