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2022-03-31-accounts

Board
Members
Date Joined/
Resigned
Other
Committee
Membershi
Other
Committee
Membershi
Board Meeting Attendance
Attended Total
attendance
No. No.
S Funnell Chair Apr 17 ARC 8t OC 10 10 100%
P Lunio Vice Chair Sep 17 OC 10 90%
A Fury Sep 12/ Jun21 ARC (Chair) N/A N/A N/A
A Stone Jun 16/ Sep 21 OC N/A N/A N/A
V Robb Sep 18/ Jun 21 N/A N/A N/A
L Dulson Sep 19/ Jun21 N/A N/A N/A
A Milroy Oct 18 OC (Chair) 8 10 80%
J Powell TM Nov 20 OC 10 20%
R Emery LA May 20 OC 10 90%
P Turner Co-opted Sep 17/May 21 N/A N/A N/A
R Kent Mar 20 ARC 7 70 100%
N Leggett Mar 20 ARC 10 50%
R Challinor Co-opted Oct 21 83%
A Jhawar Co-opted Nov 21 67%
D Newmarch Co-opted Oct 21 83%
C Small Co-opted Nov 21 83%

Chief Executive Chief Executive L Gibbs Appointed 01.04.98
Finance Director R Fullwood Appointed 22.08.16
Finance Director S Kellock Appointed 14.06.21
Interim Chief Executive S Kellock Appointed 15.06.21
Operations
Director
3 Plant Appointed 29.07.19
Interim Finance Director D Glass Appointed 01.06.21
Interim CEO —Consultant R Rance Appointed 07.10.21
Interim Housing
Director
—Consultant L Clayton Appointed 02.11.21
Interim Asset Director —Consultant 3 Cannon Appointed 02.11.21
Interim Asset Director —Consultant 3 Mitchell Appointed 09.02.21
Changes
Chief Executive L Gibbs Resigned 30.6.21
Finance Director R Fullwood Res igned 31.5.21
Operations
Director
3 Plant Resigned 26.11.21
Interim
Director
Chief Executive/ Finance S Kellock Passed away 23.9.21
Interim Asset Director —Consultant 3 Cannon Resigned 10.02.22

Empowering
People Inspiring
Communities
Limited
Financial Statements
for the year ended 31 March 2022
epIrc epIrc epIrc
Strategic Report
Value for Money
The Regulator of Social Housing
Value for Money Standard
and Code requires
providers to report
in their statutory
accounts against the metrics defined
by the Regulator. These
metrics are defined
in the 'Value for Money Metrics' document
issued
by the Regulator.
The table below details
EPIC's performance
against
both the Value for Money
Metrics as well as
the Sector Scorecard indicators.
~ .-:Se stol'
=—-=;— .—:-:=====-'-:; =—
===:===.' .;:
'—':-42020/21=:= =:2021/22;".:,Mediad(al))
2021
Reinvestment%
This metric looks at investmentin
properties
including
existing stock and new stock. This is calculated as apercentage ofvalue of 6 6% 240% 58%
total properties.
New supply delivered
(social housing)
as a /o of total stock This sets out the
number ofnew social housing
units that have been acquired or developed
in
09/0 12.2% 13%
theyeoras a proportion
oftotal units.
New supply delivered
(Non social housing)
as a %oftotal stock This sets out
the
number of new
Non social housing
units that have been
acquired
or
N/A N/A N/A
developed in the year as a proportion oftotol units.
Geadng% This shows the proportion
ofour borrowing
compared to our
assets. A high gearing could indicate that we have taken on too much
borrowing
however low gearing could indicate that we have capacity to
14.9% 293% 439%
borrow more.
EBITOA-MRI (InterestCover)
Thisshowshowmuchcash
theorganisationis
generating
compared tointerest payments.
Any result obove 100%means
772.9% 337.3'Yo 1830%
that we are generating
surplus cash over and above interest payments
Headline
social housing
cost per unit (f) The unit cost metric assesses the
headline
social housing
cost per unit as defined
by the Regulator of Social
2,342 2,626 3,730
Housing
Operating
Margin %Social Housing
This is an indicator ofoperating
efficiency
and
business
health as it measures
the amount
ofsurplus
generated
from
334% 18.1% 26.3%
turnover on our day to day activities
Operating
Margin % Overall
This is an indicator of operating
efficiency and
business
health
as it measures
the omount
of surplus
generated
from
32 9% 17.8% 23.9%
turnover on our day to day activities
Return
on capital
employed
(ROCE) /o
This metric compares
the operating
surplus
to total
assets
less
current
liabilities
and
assesses
the
efficient
3 6% 2.0% 3 30/
investment ofcapital resources
2020/21 2021/22
Voids
This measure illustrates
the %rent lost though
empty (void) stock %
0.91 1.49
Management cost per unit
This metricshows
the costper unitincurred
in managing
f.
1,270 1,460
Service charge cost per unit This metric shows the service charge costper unitf 107 103
Maintenance cost per unit This metric shows the average maintenance
costper unit
892
Rent Arrears This shows how %of rent arrears compared to rent charged
%
2.11 3.59
Rent Receivable
This shows how effective we are at collecting rents due%
98.8 97.6%

Year Ended 31 Year Ended 31
March March
2022 2021
Note 6 E
Turnover 1,2 5,422,580 4,657,118
Operating costs (414571983) (3,125,189)
Gain
on
disposal
equipment
of property, plant and 21 104303 17700
Operating
surplus
1,068,900 1,549,629
Interest receivable (415) 47
Interest and financing costs 529817 291 626
Surplus before taxation 538,668 1,258,050
Taxation
Surplus for the year after taxation 538,668 1,258,050
Other comprehensive income
Actuarial
scheme
gain/(loss) in respect of pension 16 450,436 (644,906)
Total comprehensive income for the year 989 104 613 144

Revenue Revaluation
Reserve Reserve Tot.al
6 F.
Balance at 31 March 2020 17,003,200 9,825,099 26,828,299
Surplus 2020/21 613,144 613,144
Right to Acquire
Property
Disposals
(Reversal of Revaluation) 35,247 35,247
Transfer
between
reserves
(excess
depreciation) 157,000 (157,000)
Balance at 31 March 2021 17,773,344 9,703,346 27,476,690
Surplus 2021/22 989,104 989/104
Right to Acquire Property Disposals
(Reversal of Revaluation) (1/000) (1/000)
Transfer Between reserves
(excess depreciation) 276/000 (276/000)
Balance at 31March 2022 19038448 9426 346 28 464 794
Year ended Year ended
31March 31March
Note 2022 2021
E E
Net cash generated
from
(see below)
operating activities 3,361,292 1,085,378
Cash flow from investing activities
Purchase oftangible
fixed assets
(12~242~440) (2 229 216)
Proceeds from sale fixed assets 400,000 90,710
Grants received 21/572 618I897
Interest
received
118 47
Cash flow from investing activities (11~8201750) (I 519562)
Cash flow from financing activities
Interest
paid
(529,817) (291,626)
New secured
loans
10I30OI000 0
Repayment
of borrowing
447 296 279 444
Subtotal 9 322 887 571 070
Net change
in cash and cash
equivalents 863429 1 005 254
Cash and cash equivalents at beginning ofthe year 2I462I447 3467 701
Cash and cash equivalents at end ofthe year 12 3 325 876 2 462 447
Cash flow from operating activities
Surplus
before taxation
538,668 1,258,051
Adjustments
for non-cash
items:
Depreciation
of tangible
fixed
assets 1,065,851 843,269
Movement
in bad debt provision
71,289 27,966
Movement
in trade and other
Movement
in trade and other
debtors
creditors
1,212,240
204,574
(1,309,908)
144,808
Pension costs less contributions payable (84,564) (82,906)
Adjustments
for investing
or financing activities:
Surplus
from the sale of tangible
fixed assets (108,041) (18,341)
Government
grants
utilised
Interest
payable
in the year (68,956)
529,816
(69,140)
291,626
Interest
received
415 47
Net cash generated
from
operating activities 3361292 1 085 378
At the
Reconciliation
of Net Debt
Beginning of At the End
the Year Cashflows ofthe Year
f E
Cash and Cash Equivalents
Housing
Loans Due in I Year
2,462,447
(286,315)
863,429
(171,062)
3,325,876
(457,377)
Housing
Loans Due After I Year
8 068 759 9,681 640 17,750,399
(5~892~627) (8~989/273) (14I8811900)

Years
Housing Structure 100
Roof 60
Windows 25
Bathrooms 30
Kitchens 20
Boilers 15
Heating Distribution Systems 30
Electrical Rewires 30
Solar panels 25
Years
Freehold
Offices
50
Office furniture 10
Office equipment 4
Tools and equipment 2
Computer
equipment
2
Capital computer equipment 5

Operating Operating
Turnover
f
Cost ofsales
f
expenditure
f
surplus
Social housing lettings (note 2) 5,422,580 41457~983 964~597
Activities other than social housing
Total 5422 580 4457983 964 597
2021
Operating Operating
Turnover Cost ofsales expenditure surplus
E E E
Social housing lettings (note 2) 4,657,118 3 125I189 1 531929
Activities other than social housing
Total 4 657 118 3 125 189 1 531929
2
Turnover
and operating
expenditure
2
Turnover
and operating
expenditure
2
Turnover
and operating
expenditure
2
Turnover
and operating
expenditure
2
Turnover
and operating
expenditure
2022 2021
Income 6
Rent receivable
net of identifiable
service charges 5,198,283 4,463,818
Service charges
income
157806 119705
Net rental income 5~356r089 4 583 523
Sundry
income
2 465 4 455
Total turnover
from social housing
lettings
Amortised
government
grants
(Note 15)
5I353I624
68,956
4 587 978
69,140
Turnover
from social
housing lettings 5422 580 4 657 118
Operating
expenditure
Management
1,998,135 1,554,363
Service charge costs 141,636 130,367
Routine
maintenance
486,171 441,108
Major repairs expenditure 753,353 155,309
Bad debts 68,232 54,947
Depreciation
of housing
properties 1010456 789 095
Operating
expenditure
on social housing
lettings 41457~983 3 125 189
Operating
surplus
from social
housing lettings 964 597 1 531929
Void rental losses 80,945 41,751
Accommodation owned, managed and in development
No. of properties No. of properties
Owned Managed Owned Managed
2022 2022 2021 2021
Social Housing
Under Management
at
General
needs housing
the end ofthe year:
—Social Rent
1,106 953
—Affordable
Rent
170 173
—Intermediate 89 85
—Leasehold 20 20
—Shared Ownership 3
General
needs housing
—Under Construction 1
1389 1 236
5
Interest and financing
costs
2022 2021
Deferred
benefit pension
charge
20,000 8,000
Amortisation
of Loan arrangement
fees
24,212 62,914
Loan interest
payable
485,605 220,712
529817 291 626
6
Surplus
on ordinary
activities
The operating
surplus
is stated after charging/(crediting):-
2022 2021
f
Annual
audit of the Association's
financial
statements 19,152 13,324
Fees payable to the auditor for other services to the Association:
Taxation
compliance
services
540
Operating
lease rentals —Office equipment
Depreciation
of housing
properties
978,734 744,650
Depreciation
of other fixed assets
55,395 54,173
Amortisation
of grant
(68,956) (69,140)
7
Key Management
Personnel
2022 2021
6 6
The aggregate
emoluments
paid to or receivable
by Directors and the 398,345 388,834
executive
management
team
The pension
contributions
paid to the
The emoluments
paid to the highest
key
paid
management
personnel
Director excluding
pension
13,461
116,482
18,463
120,339
contributions

8
Employee
info
rmation
2022 2021
No. No.
The average
number
of persons employed during the year expressed in
full time equivalents (35 hours per week) was:
Office staff 18 21
Wardens,
caretakers
and cleaners 1
Total employees 19 21
Staff costs
Wages and salaries 639,903 774,574
Social security costs 62,752 75,521
Other pension
costs
(Defined benefit lk defined contribution treated as
defined
benefit)
37879 46 321
Total Employee Costs 740 534 896416
No. No.
Aggregate
number
of full-time equivalent staff whose remuneration
exceeded E60,000 in the year
E60,00ito E70,000
E80,001to E90,000
E110,001 to E120,000
E120,001 to E130,000
E230,001 to E240,000

Social
Social Housing Office
Housing Properties Furniture
Properties Not Freehold and
Completed
f
Completed Land
6
offices equipment
6
Total
Cost or
valuation
At 31.3.21 46,996,247 487,041 26,000 109,604 527,178 48,146,070
Revaluation 24,000 24,000
Additions
Properties 11,945,768 78,442 12,024,210
Additions
Components 218,231 218,231
Component
Replacements (70,624) (70,624)
Property
Disposals (323,704) (323,704)
Transfer to
Completed 411804 411804
At 31.3.22 Sgg 177I722 75/237 50/000 188046 527I178 60I018183
Depreciation /
impairment
At 31.3.21 7,565,663 14,783 413,345 7,993,791
Charge for year 978,734 3,402 51~993 11034~129
Components
replaced (39,274) (39,274)
Property
Disposals
31374 31374
At 31.3.22 8 473 749 18185 465 338 8957 272
NBV 313 22 50~703~973 75I237 50I000 169~861 61~840 51~060~911
NBV 31.3.21 39,430,584 487,041 26,000 94,821 113,833 40,152,279
2022 2021
6 6
Components capitalised 218,231 538,263
Amounts
charged
expenditure
to 753,353 155,309

2022
f
2021
6
At 31.3.21 1 1
Additions in the year
At 31.3.22 1 1
Net book value 31.3.22 1 1
Net book value 31.3.21 1 1
2022
f
2021
E
Rent arrears 192,435 118,354
Less: provision
Other debtors
for bad debts (169,695)
113,105
(100,677)
97,308
Prepayments and accrued income 353220 1 657 609
Total 489 065 1 772 594
2022 2021
6 6
Money market investments 13,608 13,601
Cash at bank and in hand 3I312268 2 448 846
Total 3325 876 2 462 447

2022 2021
6 E
Trade creditors 221,470 127,601
Deferred
capital grant
(Note 15) 68,956 69,140
Rents and service charges paid in advance 234,452 201,106
Service charge balances held on behalf of leaseholders 103,135 102,443
Accruals and deferred income 467,574 409,969
Loans and overdrafts 457,378 286,315
Other creditors 937
Total 1552965 1 197511

2022 2021
f'000 E'000
Fair value of plan assets 3,552 3,143
Present value of defined benefit obligation 4,003 4,109
(Deficit)/ surplus
in plan
(451) (966)
Unrecognised surplus
Defined benefit (liability)/ asset to be recognised (451) (966)
Defined benefit (liability)/ a sset sset to be re to be re cognised cognised cognised (451) (966)
Reconciliation
of opening
and closing balances ofthe defined benefit obligation
2022 2021
E'000 E'000
Defined
benefit obligation
at start of period 4,109 3,083
Current service cost
Expenses 4 4
Interest expense 90 72
Member contributions
Actuarial
losses (gains) due
to scheme experience 272 (66)
Actuarial
losses
(gains)
assumptions
due to
changes
in demographic (58) 13
Actuarial
losses
(gains)
assumptions
due to changes in
financial
(360) 1,022
Benefits paid and expenses (54) (19)
Liabilities
acquired
in a business
combination
Liabilities
extinguished
on
settlements
I osses (gains) on curtailments
Losses (gains) due to benefit changes
Exchange
rate changes
Defined
benefit obligation
at end of period 4,003 4,109
Reconciliation
of opening
and closing balances ofthe fair value of plan assets
2022 2021
f'000 E'000
Fair value of plan assets at start of period 3,143 2,687
Interest
income
70 64
Experience
on
plan
assets
interest
income) - gain (loss)
(excluding amounts included in 305 324
Employer
contributions
88 87
Member contributions
Benefits paid and expenses (54) (19)
Assets acquired
in a business
combination
Assets distributed
on settlements
Exchange
rate changes
Fair value of plan assets at end of period 3,552 3,143


y
Notes to the Financial Statements

y
Notes to the Financial Statements
E
p
9 pppppp
I~i '~ C
pal
Defined benefit costs recognised
in the statement
of comprehensive income (SOCI)
2022 2021
f'000 E'000
Current
service cost
Expenses 4
Net interest expense 20
Losses (gains) on business
combinations
Losses (gains) on settlements
Losses (gains) on curtailments
Losses (gains) due to benefit changes
Defined benefit costs recognised
in Statement ofComprehensive
Income (SOCI)
24 12
Defined benefit costs recognised
in other comprehensive
income (OCI)
2022 2021
f'000 f'000
Experience
on plan assets (excluding
amounts
included
interest cost) - gain (loss)
in net 305 324
Experience
gains and losses arising
on the plan liabilities
(loss)
- gain (272) 66
Effects of changes
in the demographic
assumptions
the present value of the defined
benefit obligation
underlying
- gain (loss)
58 (13)
Effects of changes
in the financial
assumptions
underlying
present
value ofthe defined
benefit obligation
- gain (loss)
the 360 (1,022)
Total actuarial
gains and losses (before restriction
ofthe surplus
not being recognisable)
- gain (loss)
due to some 451 (645)
Effects of changes
in the amount
of surplus
that is
not
recoverable
(excluding
amounts
included
in net interest
cost)-
gain (loss)
Total amount
recognised
in Other Comprehensive
gain (loss)
Income- 451 (645)

2022 2021
f'000 E'000
Global Equity 682 501
Absolute
Return
143 173
Distressed
Opportunities
127 91
Credit Relative Value 118 99
Alternative
Risk Premia
117 118
Fund of Hedge Funds
Emerging
Markets
Debt
103 127
Risk Sharing 117 114
Insurance-Linked
Securities
83 75
Property 96 65
Infrastructure 253 210
Private Debt 91 75
Opportunistic
Illiquid
Credit 119 80
High Yield 31 94
Opportunistic
Credit
13 86
Cash 12
Corporate
Bond Fund
237 186
Liquid Credit 38
Long Lease Property 91 62
Secured Income 132 131
Liability
Driven Investment
991 799
Net Current Assets 10 19
Currency
Hedging
14
Total assets 3,552 3 143
Key Assumptions Key Assumptions 2022 2021
Discount Rate a/o per annum
2.78o/o
% per annum
2.21%
Inflation (RPI) 3.47~/o 3.22%
Inflation (CPI) 3 14o/o 2.87%
Salary Growth 4.140/o 3.87%
75a/o of 75% of
Allowance for commutation ofpension for cash at retirement maximum maximum
allowance allowance
he mortality as sumptions
adopted at 31 Mar
ch 2022 imply the following
life ex
pectancies:
2022 2021
Life Life
expectancy
at age 65
expectancy
age 65
at
Years Years
Male retiring in 2022 21.1 21.6
Female retiring in 2022 23.7 23.5
Male retiring in 2042 22.4 22.9
Female retiring in 2042 25.2 25.1

The table
below
shows
the
financial
The table
below
shows
the
financial
implications implications implications and sources sources of funding to deliver to deliver the signed
contracts
with
Homes England.
2022 2021
6 E
Capital
expenditure
that
has been contracted
for but has not
been provided
for in the financial
statements
10,773,433
Capital
expenditure
that has been authorised
by the Board but
has not yet been contracted
for
Capital commitment 10773 433
EPIC expects these commitments to be financed with:
Triodos loan facilities 10,300,000
Social housing
grant (In line with spend)
Internally
generated
resources
(Revenue reserve) 473 433
Total 10773 433
18
Contingent
liability
IfEPIC were to withdraw
from all forms ofthe Social Housing
that our debt on withdrawal
as at 31"March 2021 would
be
Pension Scheme,
E3,316,108.We
it has been calculated
have no plans to exit
from the scheme at the present time.
19
Grant and financial assistance
2022 2021
E E
Total accumulated
SHG received
or receivable at 31 March:
Held as deferred
capital grant
6895614 6 914041
Total 6895614 6 914041
) and one final staircasing
took place on a ho
use.
2022 2021
E
Sale Proceeds 400,000 90,710
Less:
Associated
selling fees
Write off cost (NBV)
(3,738)
291959
(641)
72 369
Surplus on disposal 104303 17700