Charity Registration No. 1118922 Company Registration No. 06082488 (England and Wales) ZETETICK HOUSING ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 BUSINESS ADVISORS &ACtrOUNYANTS One Bell Lane Lewes East Sussex BN7 IJU
ZETETICK HOUSING LEGAL AND ADMINISTRATIVE INFORMATION Trustees G Scott M Hurst N Pendleton A Chequers C Linden N Hussain DIPage N S Pakeeree (Appointed 7 November 20231 (Appointed 8 Febnjary 20241 Secretary A Barker-Davies Charity number 1118922 Company number 06082488 Princtpal address Innovation Centre Highfield Drive Churchfrelds Industrial Estate St Leonards on Sea East Sussex TN38 9UH Registered office Innovation Centre Highfield Drive Churchfields Industrial Estate St Leonards on Sea East Sussex TN38 9UH Auditor TCGroup One Bell Lane Lewes East Sussex BN7 IJU Bankers Lloyds Bank PLC 24 Broad Street Reading RGI 28T
ZETETICK HOUSING CONTEKrs Page Chair's statement Trustees, report 2-13 Statement of Trustees, responsibilities 14 Independent auditor's report 15-18 Statement of linancial activities 19-20 Balance sheet 21 Statement of cash flows 22 Notes to the financial statements 23-36
ZEfETICK HOUSING CHAIR'S STATEMENT FOR THE YEAR ENDED 31 MARCH 2024 l am very happy to present this annual report, which reflects the profound impact Zetetick Housing IZHCI has continued to make in the lives of those we serve. Prior to finding refuge Under our roofs, many of cur tenants faced years of inadequate housing provision, which severely compromised their quality of life and placed undue strain on the NHS. We are tremendously proud of the stability and support we have been able to provide them, which in turn has offered many the opportunity to remain within their communities, rather than end the revolving doors of hospital care. A significant milestone was achieved in May 2022 when we expanded our portFolio with the purchase of a second property, made possible through NHS capital grants. These acquisitions have inspired us to begin to buy our own houses and we have two more at the point of completion. Buying property underscores our adaptability in meeting the housing needs of our tenants through ownership, alongside intensive housing management. We have also improved the quality of our core information, (while noting that this remains the core responsibility of our care partners) have embedded safeguarding more fully throughout our work. and have started to deliver improvements in our environmental footprint. We continue to enjoy healthy reservices, and indeed the value of such reserves is demonstrated by the freedom it ha5 given us to expand our housing ownership. Our new CEO and revamped senior leadership team have very much got their feet under the table. This has been mirrored by the changes to our non-executive team. I would like to thank our two departing trustees - lan and Gail - who leave after offering us real improvements in governance and Tenant engagement. In their place we have recruited new Trustees Debbie and Tasha who strengthen our experience of housing and senior leadership. While the private rental market remains competitive and broader economic conditions are tight, our commitment to building relationships and navigating obstacles has been enhanced and we have started to refocus the business towards the South cost, reducing our dependence on a few London local authorities, although the support of those authorities continues to be hugely appreciated. Despite a tight labour market. we have maintained strong staffing levels and capability. Looking ahead, we remain focused on growth, particularly in the southeast, and on elevating the quality of our offerings. We recognise the imperative of fostering stronger communication and trust to unite the dspersed Zetetick community - tenants, staff, volunteers, Execuiive, and Trustees. Our compelling quality proposition remains our strongest asset. captivating both our tenants and their families and drawing in new properties. As mentioned above, this year also heralds the inaugural year for Jonathan, as CEO, and his new team. Their development of and indeed 'living' our 'BEDROCK' values. has made Zetetick an exemplar of a value-based organisation. fkl, b¥ M Hurst Chair Date..
ZEfETICK HOUSING TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) FOR THE YEAR ENDED 31 MARCH 2024 The Trustees present their annual report and frnancial statements for the year ended 31 March 2024. The financial statements have been prepared in accordance with the accounting policies set out in note I to the financial statements and comply with the charity's Memorandum & Articles of Association. the Companies Act 2006 and Accounting and Reporting by Charities: Statement of Recommended Practice applicable to chwities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK arnl Republic of Ireland IFRS 1021" leffective l January 2019). Objectfves and activities Charitable Objectives The objectives of the charity are the relief of financia5 hardship among disadvantaged people by providing setvices, in particular but not exclusively, to disabled people living and working in London Boroughs and Southeast Counties, including through: the provision of supported Social Housing that enables disadvantaged people to live within the community; enabling them to financially meet housing costs- enabling fair access to private rental housing provision; access to interest free loans to fund housing deposits and home set-up costs; the provision of additional housing management services: the provision of facilities for recreation and other leisur&time occupation in the interests of social inclusion & welfare with the object of improving their conditions of life all of which they could not otherwise afford through lack of means. iv. vi. The Trustees are pleased to report that we continue to support vulnerable adults with the provisi of high- quality accommodation and housing support. who would otherwise not have a fair opportunity to secure their own homes during the continued high demand for social housing and the highly competitive private rental market. In many cases this will be the tenants, fi'rst home away from family and/or residential care, giving them true independence and opportunities to become valued members of the local community. Our Wision Empowering people with learning disabilities and autism to live as valued members of their community by finding them quality homes, not just housing. offering safety security and opportunity where care, friendshp and freedom can come fi'rst every day. Our Mission To provide and maintain specialised quality homes. not just housing. To empower choice and deliver dignity to those people, primarily with learning disabilities and autism, who need our offer of quality housing for supported living. To align our values and activities to work with a range of partners across housing, commissioning, and care, in the fulfilment of our charitable aims.
ZETETICK HOUSING TRUSTEES, REPORT {INCLUDING DIREcfoRS' REPORT) (CONTINUED} FOR THE YEAR ENDED 31 MARCH 2024 Our Aspiration Our aspiration is to harness the passion that each of our members of staff have and use it to give some of the most marginalised people in our society a home. To reach more families and give homes to more people with complex learning disabilities. Whilst our focus is to continue to establish ourselves as best practice thought leaders to other housing organisations and people in need, by continuing with high quality services and unique provision, we want to develop our procedures, processes, and resources so that they are always sensitive to the people we give homes to. In addition to this, by doing so, we also reaffirm our commitment to doing our best for our tent$, their families and the wider community. Our bottom line must be about delivering quality and honouring our promise to the people we support because from this will be able to help more people in a sustainable way. KEY ACHIEVEMENTS AND PERFORMANCE During the year 2023-24 we achieved the following: Housed 162 tenants over a total of 102 properties Rehomed 8 existing tenants to more suitable properhes Welcomed 13 new tenaFFts to Zetetick homes Secured agreement to purchase two properties in Croydon, providing long term security to 8 tenants Maintained a high level of repairs and inspections194% on timel Carried out 'Homeliness Checks, in addition to our formal &monthly housing inspections Offered a Hardship Fund to our tenants who might be feeling cost of living pressures Held 2 regional fun feedback events for our tenants 'How is Your Home?, Produced the Zetetick Magazine with collaboration from tenants Worked in partnership with our Head Landlords to improve EPC ratings and provider warmer homes. Collected stakeholder feedback from Landlords & Care Partners Provided training for all staff in Adult Safeguarding, Communication. Challenging Behaviour. Data Protection and Suicide Awareness Made progress on Digital Transformation; increasing transparency. improving record keeping and linking data sources Developed relationships with 3 new care company partners Increased our FTE headcount to 19 to ensure increased support to tenants Offered all staff welfare payment5 over the winter months to help with cost of living Supported 6 volunteers to work on our social media and outreach work Built on our five-year plan to give additional focus and measurement
ZEfETICK HOUSING TRUSTEES, REPORT IINCLUDING DIREcfoRS' REPORT) {CONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 VALUES AND WAYS OF WORKING BELONGING EMPATHY DETERMINATION RESPECT OPENP4ESS CARE KINI)NE55 Our values are equally important in reviewing our progress and in setting future targets. They are literally the 'BEDROCK' of all we do. Our tenants are people we all know, yet they are often those with a learning disability, autistic and/or mental health challenges and have vulnerabilities that impact on the way we work. We continue to gather feedback from our stakeholders to ensure we practice our values in all areas of the business. We employ staff that share our values and with the necessary knowledge, experience and skills to be able to represent the charity at the highest levels. We pay staff salaries at or above the London Living Wap and at a competitive level they would receive if they were undertaking a similar role in NHS social care or a comparable organisation. Relevant salaries are disclosed in our linancial statement. All our staff are trained in Safeguarding Awareness, Communicating with Adults with Learning Disalilities. Suicide Awareness, Data Protection. During the year managers received Insights Discovery training and bespoke Management Training courses. We undertake an annual Staff Survey and in November 2023 we also included a Health & Wellbeing Survey. From this we found that 83% of staff would recommend Zetetick as a good place to work. OPERATING MODEL We provide specified, exempt accommodation to our tenants. We fund our work through Government funding and good financial management to achieve operating surpluses to invest in our Objects. We operate a team of volunteers for some areas of our outreach, which provides an opportui)ity for our supporters to give their time in a way that benefits the charity and our beneficiaries, in addition it offers some valuable work experience that many have used to gain meaningful employment. Whilst understanding the desire for people to donate to a good cause and the positive impact thiscould have on the charity, the founder wanted to ensure the charity could operate independently without the need and reliance for constant fundraising, ensuring business planning was central to the administration of the charity. The charity also has a strong and regularly reviewed reseNes policy that ensures our reserves are of the strength and depth necessary to cover all eventualities in order to protect our tenants. TrLSStees acknowledge there are risk5 in housing vulnerable individuals and ensure our risk assessment and risk management are reviewed annually and are up to date. This year we continued with our plan to diversify the model, by proceeding with the purchase of 2 properttes in Croydon. The purchase was completed in June 2024. The downpayment has been paid using charitable reserves, the remainder was a secured loan from CAF Bank.
ZETETICK HOUSING TRUSTEES, REPORT IINCLUDING DIRECTORS. REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Financial review The charity's financial position remains very strong with sufficient reserves and liquidity to enable it to fulfil its objectives, meet its operational commitments and to allow for most foreseeable contingencies. Local Authorities continue to scrutinise our provision of Specialised, Exempt Accommodation. The Supported Housing Regulatory Oversight Act was brought in in 2023, although detailed guidance has not yet been produced. Zetetick welcome this scrutr'ny- as specialist providers we are able to claim the full amount of Housing Benefit for our Tenants which enables them to live in their own homes. We are building strong relationships with Local Authorities so that, through mutual trust, we can offer homes to more vulnerable adults who otherwise would not be able to live outside of a hospital or care home environment. The number of beneficiaries at 31 March 2024 was 16212023- 1631.we found new homes for 8 existing tenants whose current homes were no longer available and/or suitable for them. We welcomed 13 new tenants to Zetetick Homes. Oirect charitable activity (income & expenditure) increased year on year to £4.4m {2023 - £4.3ml. The main reasons for this increase are as follows: Inflationary increases on rental properties and staff costs Although unrestricted income grew by £115k from £4.4m to £4.5m, total incoming resources for the sear decreased from £5.2m in 2023 to £4.5m in 2024. This is because we retained our 2 NHS capital grants from rd previous years, but did not receive any additional funding. We are hopeful to take on a 3 NHS capital grant funded property in 2024-25. when the next round of funding is released. Support cost expenditure ratio was 3.5Yo of total income12023- 3.2%). Staff headcount grew from a full time equivalent of 16.5 to 19.3 (actual headcount as at March 2024 was 21, with 2 vacancies). The charity committed to investing further in staff resources over 2023-24. in particular with the introduction of a Business Development Manager and a Digital Support Officer, as well as moving more staff resources over to Procurement. The overall surplus Inet movement of fund5} on unrestricted funds before transfers was £lllk (2023 £112kl representing a surplus ratio of 3% of income. The health and safety of our tenants remained of paramount importance. The charity continued to provide essential maintenance support to all our tenants and resumed hakf-yearly inspections which increased the amount of non-urgent work. Restricted Funds As at 31 March 2024, our restricted fund balance was £1,352k. This is made up of 2 NHS Capital Grants which were used to purchase 2 properties for our tenants to live in. These properties will be revalued every 3 years, the next valuation will be at March 2026. Designated Funds The trustees have agreed on 2 designated funds, being: Hardship Fund - for tenants struggling to pay the Tenant Service Charge (balance at 31 March 2024 £9.3kl A balance of £61k was transferred Ibalance as 31 March 2024 £61.5kl to assist with the hardships of the tenants. End of Tenancy Dilapidations Fund to cover large repair bills at the end of a tenancy. At 31 March 2024 this was calculated at £206k.
ZETETICK HOUSING TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Reserves Pollcy The Purpose of the Reserves Policy is to ensure the Charity holds enough funds in general reserves lor the stability of the mission, programmes, employment and ongoing operations of the organisation. The Reserves Policy is intended to give a clear indication of internal funds required to provide a cushion against unexperted events, losses of income, and large unbudgeted expenses. Above all else, it serves as protection for those who we house, to ensure long term security of their homes. Actual Free Reserves a calculated as Total reserves, less Restricted and Designated Funds. Trustees are committed to maintaining balances in liquid funds (cash, plus debtors, less creditors) which cover the sum of the free reserves target, plus any designated and restricted funds. Compliance with SORP 2019 and proving a clear and positive explanation of the reasons why reservesare held will reduce the risk. It is Zetetick Housing policy to meet the requirements of SORP 2019 as set out at the end of this policy. The Trustees reguSarly review the variance of actual general reserves against target and are committed to the deployment of excess reserves in support of the Charity's objects. This will include the provision of facilities for beneficiaries for their recreation and other leisure-time occupation in the interests of social inclusion & welfare with the object of improving their condiknons of life, but may also include beneficiaries, financial subsidies, asset aCqUi5itions or development, as appropriate. The Board of Trustees will at times designate funds from free reseNes for significant project costs or replacement of major asset5. Trustees have reviewed the major risk5 facing the charity and deem that a suitable Reserves Target is £936k. Free Re5erve5 at 31 March 2024 were £1,663k. Any funds over the reserves target will be used for charitable purposes in line with Zetetick's objects. £OOOs 31 March 2024 31 March 2023 otal Funds Less: Restricted Funds Less: Designated Funds General {Free} Reserves 3,292 (1,3521 12771 1,663 3,16 (1,3521 12421 1,572 The Trustees have reviewed this position and are committed to maintaining balances in liquid funds (cash, plus debtors, less creditors) which cover the sum of the free reserves target, plus any designated and rstricted funds. At March 2024 liquid funds were £2,024k.
ZETEficK HOUSING TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORTI {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Prlnciple Risks The Board of Trustees remains extremely diligent in monitoring the changing situation within the sector with regularly reviews of our strategic aims and stress-testing of our financial viabilitv. During 2023 the Board undertook a full review of the Risk Register. adopting the NCVO guidelines and proforma. The result is a robust and thorough set of Risk Registers, covering the following areas: Governance Regulatory, Legal and Compliance Financial Housing Safeguarding HR Digital - ICT Engagement The resulting risks were mapped, and the highest strategic risks presented back to the Board. The Executive Dirertors regularly monitor the individual risk registers, and any new or emerging risks are highlithted to the Board quartefly. The ARFC will coordinate an annual thorough review ol risks. The ke risks identified b the Board at March 2024 are= Changes to Legislation; Increased Regulation through the Supported Housing Regulatory Oversight Act As Zetetick is registered by the Charity Commission rather than the Register of Social Housing, we expect the Supported Housing Regulatory Oversight Act to provide further clarity on exempt provision. This in turn will enable us to better protect our tenants from the risk that we will not meet the criteria of Specified, Exempt Accommodation. It 15, therefore, a risk only in that we may need to comply with new regulations such as local licensing. The Board of Trustee5 and the Executive Team are experienced and knowledgeable in this area, and welcome any clarity the Act will bring to Exempt Accommodation. We will keep up to date with any developments. and network with other Housing Associations and Exempt Providers that are facing the same changes. We will also work in partnership with Local Authorities to ensure our tenants continue to receive the benefits towhich they are entitled. Through the Act, the Department for Work & Pensions is clarifying the meaning of 'more than minimum support, which may impact on our status as an exempt provider. We have already seen an increase in the scrutiiy of our charges by Local Authorities. We welcome this scrutiny, as it will ensure our reputation as an exempt provider is upheld.
ZETETICK HOUSING TRusfEES' REPORT {INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Converging gap between income and core costs. The recent period of high inflation 15%+} continues, and higher interest rates are pushing up the prices of mortgages and rents. This means that the cost of providing our quality homes has increased. We are able to pass on some inflationary increases through uplifts in Housing Benefit once a year. This can leave us vulnerable to mid- year above inflationary increases. Local Authorities are under pressure to reduce costs, which in turn results in more scrutiny overthe cost of our provision. We have also seen more head landlords coming fOard to re-negotiate higher rents. Of particular concern is over the cost of utility bills going forwards. We have, to date, protected our tenants from large increases in weekly Tenant Service Charge through subsidising the costs and securing a long term low fixed rate. However, this contract will end in October 2024, and the full effect of the utility price increases will start to be felt by both the charity and the tenants. The Trustees have committed to allocating an additional £70k as a designated Hardship Fund to help tenants who may find payments difficult. We continue to adopt a clear full cost recovery (allocation and apportionment) approach to the Housing Benefit Claims submitted on behalf of our tenants. We carefully monitor voids so timely decisions can be made to minimise any losses. Mitigating aCn could see schemes merged, or, as a last resort, terminated. The Board makes careful informed decisions to subsidise some schemes as part of meeting its charitable objectives. Government Net Zero Polities / De-carbonisation Although the responsibility for EPC rating fa115 Wlth the owner-landlord. there is an inherent risk to us of not supporting them to achieve Minimum Energy Efficiency Standards {MEESI. Zetetick has commenced early conversations with property owners to work in partnership. The aim s to achieve compliance whilst securing appropriate leases for the security of our tenants. Safeguarding Zetetick has a zero tolerance safeguarding policy. Abuse or neglect in any form, of tenants, employees or anyone connected with the charity will be reported and acted upon. All staff are safeguarding trained and, where appropriate, DBS checked. Safeguarding is a standing item on weekly senior manager meetings and board meetings. Succession Planning The Trustees have recognised succession planning for key roles a5 a risk. This applies to both the Senior Management Team and the Trustees. The use of digital technology such as Sharepoint, and a central database, will help to ensure thegolden thread of information is transferable and useable by all. Retaining a healthy number of Trustees is paramount, and the charity will plan ahead for any expected vacancies due to resignation / end of term.
ZETETICK HOUSING TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) {CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Digital & Data Integrity Our increased reliance on Digital & Data means we are undergoing a digital transformation at present. All staff are receiving training on record keeping and the use of data. stress Testing The charity has undertaken multiple stress-testing that demonstrates that the organisation is fi'nancial resilient to the identilied risks. Strong links with Local Authorities and a track record of excellent performan with all referrals contribute positively towards the mitigation of risks. Development of the 5 Year Plan - Progress In 2022 we developed a 5-year plan to take us to 2027. This plan is helping us to develop our service provision, maintain quality and reach more people. putting them at the heart of our organisation. Zetetick Housing has progressed over the last years to meet the increasingly complex housing and housing management needs of people with learning disabilities, autism and mental health challenges, evidenced by: Our tenant engagement has been enhanced through the organisation of regular 'How is Your Home?, teedback events. Our Customer Committee has evolved into the Quality Committee, maintaining its focus on enhancing the tenant experience. We take pride in our core values and strive to integrate them into all facets of our decision-making and operations. Our current staff team comprises 23 individuals lequivalent to 20 Full-Time staff), and we have enhanced the training program for all employees, encompassing Communication, Safeguarding, Suicide Awareness, Dealing with Challenging Behaviour, and Handling Complaints. We conduct and act upon surveys to gather feedback from all stakeholders. Staff surveys conducted annually have led to the introduction of Cost-of-Living Support Payments during the winter season. Tenant feedback has been collected through video booths. user-friendly forms, and stickers. Landlords have been contacted via phone and written correspondence. We are committed to establishing connettions in challenging-to-reach areas. When necessary, we have advocated for meetings with our Local Authority partners to enhance their understanding of our operational model. It has been imperative that we continue to promote communication between Social Service5 and Housng teams to ensure adequate funding for the tenants under our care. Substantial progress has been made in our digital transformation efforts. Our database is now more comprehensive and accurate than ever before. with all staff accessing a centralized data source. Additionally. all staff members have received training on privacy, data protection, and GDPR compliance. In 2023. we initiated a significant project to collaborate with Head Landlords to enhance the EPC raiings of their properties. Several pilot projects are underway, with Landlords expressin8 interest in accessing grants to improve the energy efficiency of their properties. A comprehensive review of insulation and the implementation of energy-efficient measures such as Radflex and new showerheads have also been undertaken. We accommodate one tenant in a property provided by the NHS Capital Grant Fund, while another NHS property is currently vacant, awaiting a new occupant. We are optimistic about securing a third pro[rtY through the Capital Grant Fund scheme in 2024-25. We are on the verge of purchasing our lirst two properties, with the initial payment sourced from the harity's unrestricted reserves. During 2023-24, we have expanded our support to tenants in the Southeast by 18%. Three new Care Partners have been onboarded, and discussions are undetway with other potential partners, in additi¢ to Strengthening our ties with existing partners.
ZETETICK HOUSING TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORTI (corINUED) FOR THE YEAR ENDED 31 MARCH 2024 Future Outcomes As we propel foNard into the next phase of our five-year strategic plan, a cornerstone of our growth will be ensuring quality in all we do. By fostering the tenant voice we have already encouraged, we aim to iitegrate their insights and experiences at pivotal decision-making junctures ensuring that those we serve are heard and empowered within our organisation's governance. Sustaining Supportive Living and Maintenance Excellence Our pledge to provide supported living housing paired with intensive housing management persists as a key element of our operations. Through the dual service offering of management and maintenance, we will continue to forge strong connections with residents. facilitating pathways for greater engagement and enhancing the quality of life in our homes. This service delivery model, which doe5 not encompass social care promsion, remains fundamental in nurturing our community's fabric. Strategic Geographical Operation5 Zetetick's operational footprint will persist south of the river Thames, eastward into Kent, and west to the cusp of West Sussex and Hampshire. While these geographical bounds define our current focus, we remain agile, ready to evaluate and embrace exceptional opportunities that warrant investment beyond these borders, should they align with our organisational goals and demonstrate strong business rationale. Targeted Supportive Services With a clear focus, we will continue dedicating our resources and expertise to cater to individua15 With learning disabilities, autism, and those who challenge. By specializing, Zetetick can tailor its services, environment, and support systems to meet the nuanced needs of these communities, thus delivering a superior standardof housing and care. Unwavering Commitment to Quality Quality assessment will remain a hallmark of our operational excellence. Through spontaneous homeliness checks, structured quarterly property inspections and a commitment to sutainable living we pledge to maintan and elevate the living standards of our propertFe5. These measures will assure the continual upkeep and improvement of our housing stock, reflecting our dedication to providing exemplary living conditions, whilst limiting environmental impact through careful and controlled use of utilities. Expansion and Diversificatlon In anticipation of the future, Zetetick intends to diversify our charitable activities. This growth will be achieved through nurturing property partnerships with letting agents. developers, owners, care companies, and landlords. We are open to leases ranging from three to ten years, providing us with the flexibility to adapt to the dynamic property market while ensuring stability for our tenants. Housing Strategy: Rental Focus with Openness to Acquisition Our primary method for housing individuals will continue through the rental and lease market, from single units to small apartment complexes. We remain open to all viable property acquisition opportunities that align with regulatory frameworks, including grant funding avenues, ensuring we are prepared to respond to housing needs as they arise. Direct purchases will be judiciously considered, prioritizing situations where our tenants face immediate risks or market dynamics necessitate such actions. and always contin8ent upon the stability of our reserves. 10-
ZETETICK HOUSING TRusfEES' REPORT (INCLUDING DIRECTORS, REPORT) ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Enhanted Tenant and Community Engagement We are dedicated to cultivating stronger bonds with our tenants and their networks through improved outreach and engagement initiatives. A more transparent approach to handling compliments and complaints, alorEside regular surveys, and more personal community events, will ensure that tenants and their families fed valued and ntegral to Zetetick's community. Addressing the Challenge of Growth Our growth plans are contingent upon the availability of suitable properties to meet referral demands. Whilst this has had its challenges, our near 20% growth in the southeast sector is demonstrable evidence that our growth plans are realistic and achievable. While individual home searches are re50urce-intensive, the development of small apartment blocks may be another efficient route to housing individuals at scale. We recognise that such developments come with inherent risks, including potential void cost5. but our commitment to providing quality housing solutions compels ZHC to remain receptive to these opportunities. The Board maintains a medium appetite to risk and assesses each development on merit as well as potential overall impact. Our strategic vision encompasses growth and expansion proportional to our size and working with pvalling economic and financial challenges. Most importantly it contains a deep commitment to the people we See. Through enhanced engagement, specialised services. and an unwavering focus on quality, Zetetick is poised to embrace the opportunities and challenges of the coming years with diligence, compassion, and strategic foresight. Structure, governance and management The Charity is constituted as a limited company, limited by guarantee as defined by the Companies Act 2006. It is controlled by its Memorandum and Articles of Association dated 5th February 2007, amended March 2023. Management Committee The members of the Management Committee, who were also directors and trustees, during the year were: l Moore G Scott G Emerson M Hurst (Resigned 9 November 2023) {Resigned 9 November 20231 N Pendleton A Chequers C Linden N Hussain DIPage N S Pakeeree (Appointed 7 November 20231 (Appointed 8 February 20241 11
ZETETICK HOUSING TRUSTEES, REPORT (INCLUDING DIREcfoRS' REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Trustees Trustees ensure that the charity maintains its public benefit. The full Board of Trustees meet four times a year, with further sub-committees for Audit, Risk & Finance, Remuneration & Nominations and Tenant/Quality Engagement. The Board schedules an all-day or half day away day with senior executive staff each year. The Board will review all charity policies on a rolling three-year cycle and request an annual report from the Chief Executive Officer on how policies are adhered to within the charity's values and risk appetite. We currently meet the Charity Governance Code, but most recently the Board have confirmed that wewill adopt and seek compliance with the National Housing Federation's 2020 Governance code. Our website contains details of our Trustees and our staff team. Committees Zetetick has a comprehensive committee structure; Audit, Risk and Finance Committee An Audit, Risk and Finance Committee of minimum two Trustees and two Executive Directors, meet a ninimum of fourtimes a year to ensure these key areas are given appropriate scrutiny prior to each Board meeting. Quality Committee During the year, the Customer Committee became the Quality Committee. This committee is made up a minimum two Trustees and two Executive Directors and meets four times a year to focus on quality housing, data and tenant voice. Remunerations Commitee The Remunerations Committee, made up of the Chair of Trustees and one other Trustee, meet to discuss CEO salary and staff benefits. Task & Finish Groups During 2023-24 a Property Purchase Task and Finish Group met to further the purchase of 2 houses in Croydon. This was made up of 2 Executive Directors and 2 Trustees In February 2024, the Trustees agreed to create a Task & Finish Group to review Tenant Service Charges for 24125 and beyond. This is made up of 3 Trustees and l Executive Director. Recruitment and Induction of Trustees Our recruitment principles for Trustees and best practice, is ensured through the appointment of independent HR consultancy firm, who lead, shortlist against key skill mix criterion and present to the Board Sdection Panel recommendation for short-list interviews. A selection panel of three (being a mix of Trustees and Executive Directors) interview and make a final recommendation to the remaining Board members. All appointed Trustees are formally confirmed at the following AGM and undertake full induction and training to reflect their needs to fully understand and participate in business decisions. Executive Team The Charity is managed by a strong leadership team consisting of Chief Executive Officer {CEOI, Director of Housing, Director of Finance and Head of Business Development. Gary Scott stepped down from the role of part time Executive Consultant in June 2023, but remains a Trustee and active member of the Board of Trustees. 12-
ZETETICK HOUSING TRUSTEES, REPORT (INCLUDING DIRECTORS, REPORT) (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Remuneration of Key Personnel The Board undertake a full annual pay review of all staff. The Chair of Trustees plus one other Trustee forms the Remuneration Committee and set5 the remuneration for the Chief Executive Officer. Office Location Zetetick has three offices; Croydon, St Leonards and lewes, and an additional depot in Uckfield. This supports the regional model which is key to future growth strategy. Affiliations with Umbrella Groups Zetetick is a member of the National Housing Federdtion. Supplier payment policy The company's current policy concerning the payment of trade creditors is to follow the CBI'S Pronyt Payers Code (copies are available from the CBI, Centre Point, 103 New Oxford Street, London WCIA IDUI. The company's current policy concerning the payment of trade creditors is to: settle the terms of payment with suppliers when agreeing the terms of each transaction- ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in contracts- and pay in accordance with the company's contractual and other legal obligations. Auditor The auditor, TC Group, is deemed to be reappointed under section 487121 of the Companies Act 2006. Disclosure of information to auditor Each of the Trustees has confirmed that there is no information of which they are aware which is relevant to the audit, but of which the auditor is unaware. They have further confirmed that they have taken appropriate steps to identify such relevant information and to establish that the auditor is aware of such information. The Trustees, report was approved by the Board of Trustees. C Linden Trustee Date:
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ZETETICK HOUSING StATEMENT OF TRUSTEES, RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2024 The Trustees. who are also the directors of Zetetick Housing for the purpose of company law, are responsible for preparing the Trustees, Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), Company Law requires the Trustees to prepare financial statements for each financial year which Ewe a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that year. In preparing these financial statements, the Trustees are required to.. - select suitable accounting policies and then apply them consistently; observe the methods and principles in the Charities SORP- make judEements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed 3nd explained in the financial statements; and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charttable company will continue in operation. The Trustee5 are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the tinancial position of the charitable company and enable 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 forthe prevention and detection of fraud and other irregularities. 14-
ZETETICK HOUSING INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF ZETICK HOUSING Opinion We have audited the financial statements of Zetetick Housing (the 'charitable company'l for the year ended 31 March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Stondard applicable in the UK und Republic of Ireland Iunited Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements.. give a true and fair view of the state of the charitable company's affairs as at 31 March 2024 and of its incoming resources and application of resources, including its income and expenditure. for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practi. and have been prepared in accordance with the requirements of the Companies Act 2006. Basis for opinion We conducted our audit in accordance with International Standards on Auditing IUKI {ISAs IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the fv-nancial st(JtementS section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the fi-nancial 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 We have nothing to report in respect of the following matters in relation to which the ISAS (UK} rquire us to report to you where: the Tnjstees, use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or the Trustees have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the charitable company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. Other information The other information comprises the information included in the annual report other than the fi'nancial statements and our auditor's report thereon. The Trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other informatK)n 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 InconsisteleS 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 thi5 Other information, we are required to report that fact. We have nothing to report in this regard. 15
ZETETICK HOUSING INDEPENDENT AUDITOR'S REPORT {CONTINUED) TO THE MEMBERS OF ZETETICK HOUSING Opinions on other matters prescrlbed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of our audit.. the information given in the Trustees, report for the financial year for which the financial statements are prepared, which includes the directors, report prepared for the purposes of company law, is consistent with the flnancial statements,. and the directors, report included within the Trustees, report 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 obtsined in the course of the audit, we have not identified material misstatements in the directors, report included within the Trustees, report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2CK16 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns. or certain disclostjres of trustees, remuneration specified by law are not made; or we have not received all the information and explanations we require for our audit,. or the Trustees were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies, exemptions in preparing the Trustees, report and from the requirement to prepare a strategic report. Responsibilities of Trustees As explained more fully in the statement of Tru5tees' responsibilities, the Tru5tee5. who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the linancial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determine 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 Trustees are responsible for assessing the charitable 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 Trustees either intend to liquidate the charitable company or to cease operations, or have no realistic alternative but to do so. 16-
ZEfETICK HOUSING INDEPENDENT AUDITOR'S REPORT {CONTINUEDI TO THE MEMBERS OF ZETETICK HOUSING 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 IUKI will always detect a material misstatement when it exists. Misstatements (an arise from fraud or error and are considered material if, individually or in the aggregate, they could re&onably be expected to influence the economic decisions of users taken on the basis of these linancial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below. Extent to which the audit was considered capable of detecting irregularities. including fraud The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud. to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses- and to respond appropriately to fraud or suspected fraud identified during the audit. However. the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management. Our approach was as follow5= We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements f rom our general commercial and sector experience. and through discussion with the diiectors and other management (as required by auditing standard51, and discu55ed with the directors and other management the policies and procedures regarding compliance with laws and regulations: We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework {FRS 102, Charities SORP IFRS1021. Companies Act 2006 and the Charities Act 2011} and the relevant tax compliance regulations in the UK- We considered the nature of the industry, the control environment and business performance, including the key drivers for management's remuneration: We communicated identified laws and regulations throughout our team and remained alert to ani indications of non-compliance throughout the audit: We considered the procedures and controls that the company has established to address risks identh'ed. or that otherwise prevent, deter and detect fraud- and how senior management monitors those programmes and controls. Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation,. performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were fr from fraud or error. 17-
ZETETICK HOUSING INDEPENDENT AUDITOR'S REPORT (CONTINUED) TO THE MEMBERS OF ZETETICK HOUSING Owing 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, the further removed non-compliance with laws and regulations lirregularitiesl is from the events and transactions reflected in the financial statements. the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional c0ealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. A further description of our responsibilities is available on the Financial Reporring Council's website at: https:/l www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the charitable company's member5, 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 auditor's report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility to anyone other than the charitable company and the charitable company's members as a body, for our audit work, for this report, or for the opinions we have formed. rc G¥wp David Martin FCA (Senior Statutory Auditor) for and on behalf of TC Group Statutory Auditor OffTce: Lewes Date:.. 1A_
ZETETICK HOUSING STATEMENT OF FINANCIAL AcfiviTIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Current financial year Unrestricted Unrestricted fund5 funds general designated 2024 2024 Restricted funds Total Total 2024 2024 2023 Notes Income and endowments from.. Donations and legacies Charitable activities Investments Other income 127 4,422.902 35,545 18.225 127 842.209 4,339,642 7,484 15,600 4,422,902 35,545 79,726 61,501 Total income 4,476,799 61,501 4,538,300 5,204.935 Expenditure on: Charitable activities 4,365,542 46,329 4,411.871 4.255,979 Total expenditure 4,365,542 46,329 4,411,871 4,255,979 Net income 111,257 15,172 126.429 948,956 Transfers between funds {20,122} 20.122 Net movement in funds 91,135 35,294 126,429 948,956 Reconciliation of funds: Fund balances at l April 2023 1,572,120 241,529 1,352,068 3,165,717 2,216.761 Fund balances at 31 March 2024 1,663,255 276,823 1,352.068 3.292,146 3,165,717 The statement of financial activities includes all gains and losses recogni5ed in the year. All income and expenditure derive from continuing activities. 19-
ZETETICK HOUSING STATEMENT OF FINANCIAL ACTIVITIES ICONTINUEDI INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Prior financial year Unrestricted Unrestricted funds funds general designated 2023 2023 Restrlcted funds Total 2023 2023 Notes Income and endowments from: Donations and legacies Charitable activities Investments Other income 143 4,339,642 7,484 15,600 842,066 842,209 4,339,642 7,484 15,600 Total income 4,362,869 842,066 5,204,935 Expenditure on: Charitable acttvities 4.251.478 3.777 724 4,255.979 Total expenditure 4,251,478 3,777 724 4,255,979 Net income/{expenditure) 111,391 13,7771 841,342 948,956 Transfers between fund5 9.151 19,1511 Net movement in funds 120,542 112,9281 841,342 948,956 Reconciliation of funds: Fund balance5 at l April 2022 1,451,578 254,457 510,726 2,216.761 Fund balances at 31 March 2023 1,572,120 241,529 1,352,068 3.165.717
ZETETICK HOUSING BALANCE SHEET AS AT31 MARCH 2024 2024 2023 Notes Fixed assets Tangible assets 12 1,354,394 1,347,813 Current assets Debtors 14 400.135 510.146 1,248.548 360,576 Investments Cash at bank and in hand 15 1,864,541 2,158.829 2,225.117 Creditors: amounts falling due within one year 16 (135,0371 {407,213) Net current assets 2.023,792 1,817.904 Total assets less current Itabilities 3.378,186 3,165,717 Provision for other liabilities 17 186,040) Net assets 3,292,146 3,165,717 The funds of the charitable company Restricted income funds Unrestricted funds - general Unrestricted funds - designated 19 1,352,068 1,663,255 276,823 1,352,068 1,572,120 241,529 21 20 3.292,146 3,165,717 The financial statements were approved by the Trustees on . 7111. IL.4 M Hurst C Linden Trustee Trustee Company registration number 06082488 (England and Wales) 21
ZETETICK HOUSING sfATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 2024 2023 Notes Cash flows *rom operating activities Cash {absorbed byl/generated from operations 26 1132,5031 1,249.198 Investing activities Purchase of tangible fixed assets Proceeds from disposal of investments Investment income received {8,8891 1510.146} 35,545 (830,6781 7,484 Net cash used in investing activities {483,4901 {823,1941 Net cash used in financing activities Net (de¢rease)/increase in cash and cash equivalents {615,993} 426,004 Cash and cash equivalents at beginning of year 1,864,541 1,438,537 Cash and cash equivalents at end of year 1,248,548 1.864.541 -22-
ZETETICK HOUSING NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies Charity information Zetetick Housing is a private company limited by guarantee incorporated in England and Wales. The registered office is Innovation Centre Highlield Drive, Churchh'elds Industrial Estate, St Leonards on Sea, East Sussex, TN38 9UH. 1.1 Accounting ¢onvention The financial statements have been prepared in accordance with the charitable company's Memorandum and Articles of Association, the Companies Act 2006 and "Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Finwscial Reporting Standard applicable in the UK and Republic of Ireland (FRS 1021" (effective l January 20191. The charitable company is a Public Benefit Entity as defined by FRS 102. The financial statements are prepared in sterling. which is the functional currency of the charitable company. Monetary amounts in these financial statements are rounded to the nearest £. The tinancial statements have been prepared under the historical cost convention. The principal aOunting policies adopted are set out below. 1.2 Going concern At the time of approving the financial statements. the Trustees have a reasonable expectation that the charitable company has adequate resources to continue in operational existence for the foreseeable future. Thus the Trustees continue to adopt the going concern basis of accounting in preparing the financial statements. 1.3 Charitable funds U nrestricted funds are available for use at the discretion of the Trustees in furtherance of their charitable objectives. Restricted funds are subject to specific conditions by donors or grantors as to how they may be tjsed. The purposes and uses of the restricted funds are set out in the notes to the financial statements. Endowment fund5 are subject to specific conditions by donors that the capital must be maintained by the charitable company. 1.4 Income Income is recognised when the charitable company is legally entitled to it after any performance conditions have been met. the amounts can be measured reliably, and it is probable that income will be received. Cash donations are recognised on receipt. Other donations are recognised once the charitable company has been notified of the donation, unless performance conditions require deferral of the amount. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation. -23-
ZETEficK HOUSING NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies {Contlnued) 1.5 Expenditure Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required insettlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruas basis and has been classified under headings that aggregate cost related to the category. Where costs cannot be directly attributed to pariicular headings they have been allocated to activities on a basis consistent with the use of resources. 1.6 Tangible fixed assets Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses. Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Freehold land and buildings Plant and equipment Computer5 Motor vehicles Not depreciated 25% on the reducing balance 25% straight line 25% on the reducing balance The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the statement of financial activitres. 1.7 Impairment of fixed assets At each reporting end date. the charitable company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss lif any). 1.8 Cash and cash equivalents Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid inve5tmentS With original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities. 1.9 Financial instruments The charitable company has elected to apply the provisions of Section 11 'Basic Financial Instruments, and Section 12 '0ther Financial Instruments Issues, of FRS 102 to all of its fÉnancial instruments. Financial instruments are recognised in the charitable company's balance sheet when the charitable company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amount5 and there is an intention tosettle on a net basis or to realise the asset and settle the liability simultaneously. -24-
ZETETICK HOUSING NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Accounting policies (Continued) Bosicfinoncial assets Basic financial assets, which include debtors and cash and bank balances. are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amoriised. Basicfinoncial liobilities Basic flnancial liabilities, including creditors and bank loans are irFitially recogni5ed at transaction price unless the arrangement constitutes a linancing transaction, where the debt instrument is measured at the psent value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from supplier5. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at tfansaction price and subsequently measured at amorknsed cost Using the effective interest method. Derecognition offinanciol liabilitie5 Financial liabilities are derecognised when the charitable company's contractual obligations expire or are discharged or cancelled. 1.10 Provisions Provisions are recognised when the charitable company has a legal or constructive present obligati)n as a result of a past event, it is probable that the charitable company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date. taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in net income/lexpenditurel in the period in which it arises. 1.11 Employee benefits The cost of any unused holiday entitlement 15 recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the charitable company is demonstrably committed to terminate the employment of an employee or to provide termination benefits. 1.12 Retirement benefits Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due. 25-
ZETETICK HOUSING NOTES TO THE FINANCIAL STATEMENT5 (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Income from donations and legacies Unrestrirted Restrirted funds funds 2024 2024 Totsl Unrestricted Restricted funds funds 2023 2023 Total 2024 2023 Donations and gifts NHS Grant 127 127 143 143 842,066 842,066 127 127 143 842,066 842,209 Income Irom charitable activities Unrestricted funds 2024 unstriCted funds 2023 Rental activities Charitable rental income 4.422,902 4.339,642 Income from investments Unrestricted UnstrICted funds funds 2024 2023 Interest receivable 35.545 7,484 -?R_
ZETETICK HOUSING NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Other income Unrestricted Unrestricted funds funds general designated 2024 2024 Total Unrestricted Unrestricted funds funds general designated 2023 2023 Total 2024 2023 Other income Recharged services 61,501 61,501 18,225 18,225 15.600 15.600 18,225 61.501 79,726 15,600 15,600 Expenditure on charitable activities Rental activities Rental activitie5 2024 2023 Direct costs Staff costs Depreciation and impairment Charitable expenditure 709,044 2,308 3.529.378 656,237 2,793 3.425,659 4.240.730 4,084.689 Share of support and governance costs (see note 7) Support Governance 159,880 11,261 154,456 16.834 4,411,871 4.255,979 Analysis by fund Unrestricted funds - general Unrestricted funds- designated Restricted funds 4.365,542 46,329 4,251,478 3.777 724 4,411,871 4,255,979 27-
ZEfETICK HOUSING NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 Support costs allocated to activities 2024 2023 Staff costs Motor & travel Printing, postage and stationery IT costs Communications Insurance Gerneral expenses Bank charges Governance costs 124,589 8,980 4,049 14,403 717 2,420 3,409 1,313 11,261 115,807 6,837 6,368 16,983 812 5,297 1,513 839 16,834 171,141 171,290 Analysed between: Rental activities 171,141 171,290 2024 2023 Governance costs comprise: Audit fee5 Legal and professional 8.086 3,175 4.754 12,080 11,261 16,834 Governance costs includes payments to the auditors of £7,92012023- £7,194) for audit fees. Net movement in lunds 2024 2023 The net movement in funds is stated after charging/{creditingl: Fee5 payable for the audit of the charity's financial statements Depreciation of owned tangible fixed assets 8,086 2,308 4,754 2,793 Trustees During the year, 4 trustees {2023 - 3} were reimbursed expenses totalling £924 {2023- £427). -28-
ZETETICK HOUSING NOTES TO THE FINANCIAL sfATEMENTS ICONTINUEDI FOR THE YEAR ENDED 31 MARCH 2024 Trustee5 (Continued) As permitted by the Memorandum and Arttcles of Association, a trustee, Mr G Scott, fulfilled the executive role of CEO up until August 2022 when he stepped down from this position to become a consultant to the charity. He was remunerated under normal employee terms in the amount of £10,90412023 £89,637) plus pension contributions of £1,79012023 - £9,844). No trustee is remunerated for their role as trustee. 10 Employees The average monthly number of employees during the year was: 2024 2023 Number Number Office and administration 20 18 Employment COSts 2024 2023 Wages and salaries Social security costs Other pension costs 715,250 73,805 44,578 680,797 69,128 22,119 833,633 772,044 The number of employees whose annual remuneration was tnore than £60.000 is as follows= 2024 Number 2023 Number £60,001 to £70,000 £70,001 to £80.000 £90,001 to £lOO,000 £IOO.001 to £llO.OIX) Remuneration of key management personnel The remuneration of key management personnel was as follows: 2024 2023 Aggregate compensation 293,708 321,814 -29-
ZETETICK HOUSING NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 11 Taxatlon The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or sectron 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are appli&1 to its charitable objects. 12 Tangible fixed assets Freehold land a¥)d buildings Plant and equipment Computers Motor vehl¢les Totsl Cost At l April 2023 Additions 1,339,219 5,061 1,459 73,348 1,414,026 8,889 3.828 At 31 March 2024 1,344,280 1,459 3,828 73,348 1,422,915 Depreciation and impairment At l April 2023 Depreciation charged in the year 311 287 65,902 1,862 66,213 2,308 159 At 31 March 2024 598 159 67,764 68,521 Carrying amount At 31 March 2024 1.344,280 861 3,669 5,584 1,354,394 At 31 March 2023 1,339,219 1,148 7,446 1,347,813 13 Financial instruments 2024 2023 Carrying amount of financial assets Instruments measured at fair value through profit or loss 510,146 14 Debtors 2024 2023 Amounts falling due within one year: Trade debtors Other debtors Prepayments and accrued income 311,774 145 88,216 281,881 2,006 76,689 400,135 360,576
ZETETICK HOUSING NOTES TO THE FINANCIAL sfATEMENTS (COMflNUED) FOR THE YEAR ENDED 31 MARCH 2024 15 Current asset investments 2024 2023 Unlisted investments 510,146 16 Creditors: amounts falling due within one year 2024 2023 Other taxation and social security Trade creditors Other creditors Accruals and deferred income 23,642 25,661 16,322 76,433 3,834 310,624 85.734 135,037 407,213 17 Provisions for liabilities 2024 2023 Concierge charges 86,040 Movements on provisions". Concierge charges Additional provisions in the year 86,040 The provision is relation to concierge charges that have not been paid but are still outstanding. 18 Retirement benefit schemes 2024 2023 Defined contribution schemes Charge to profit or loss in respect of defined contribution schemes 44,578 22,119 The charitable company operates two defined contribution pension schemes for qualifying employees. The assets of the schemes are held separately from those of the charitable company in independently administered funds. 31
ZETICK HOUSING NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 19 Restricted funds The restricted funds of the charity comprise the unexpended balances of donations and grants held on trust subject to specific conditions by donors as to how they may be used. At l April 2023 Incoming resources Resources At 31 March expended 2024 NHS Property fund 1,352,068 1.352,068 Previous year: At l April 2022 Incoming resources Resources At 31 March expended 2023 Digital Inclusion fund NHS Property fund 724 510,002 17241 842,066 1,352,068 510.726 842,066 724 1,352,068 During the prior year, Zetetick completed with the Digital Inclusion project funded by Lambeth 80U8h Council. Two capital grants have been received from the NHS to purchase two properties for tenants. The grants are to be repaid on Sale of the property. or change of use.
ZEfETICK HOUSING NOTES TO THE FINANCIAL STATEMENTS ICONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 20 Unrestricted funds - designated These are unrestricted funds which are material to the charitable company's activities. At l April 2023 Incoming resources Resources expended Transfers At 31 March 2024 End of lease liability fund Hardship fund 231,529 io,oiJ) 145,6291 {700} 20,122 206.022 70,801 61,501 241,529 61,501 {46.329) 20,122 276,823 Previous year: At l April 2022 Incoming resources Resources expended Transfers At 31 March 2023 Grant giving End of lease liability fund Hardship fund 45,807 208,650 145,8071 26,656 10,000 13,7771 231,529 10.000 254,457 13,7771 19,151} 241.529 Grant giving During the prior year. the Trustees closed the designated fund for grant giving. This fund was created in response to the impact of Covid-19 on charities related to our aims. and it was felt that it was no longer needed. End of Lease Liabtlity Fund The Trustees recognise that there is potentially a need to spend large amounts on repairs and maintenance when handing back properties. The costs may exceed the standard 6-week amount calculated for the reserves target. This is especially true for some tenants who have highly complex needs, and where the property may have been adapted to meet the requirements of the tenant, At 31 March 2024, the Trustees calculated this amount to be £206,022. Hardship Fund The Trustees created a designated 'Hardship Fund, of £10,000 in the year ended 31 March 2023 to assist any tenants struggling to pay their Tenant Service Charge. One tenant was awarded £700 in the year. The balance at the year end is £9,300. In addition, the trustees has included a balance of £61.501 as part of the fund to assist with anytenants that are struggling to pay. The total Hardship fund at the year end is £70,801.
ZEfETICK HOUSING NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 21 Unrestricted funds The unrestricted funds of the charity comprise the unexpended balances of donations and grants which are not subject to specific conditions by donors and grantors as to how they may be used. These include designated funds which have been set aside out of unrestricted funds by the trustees for specific purposes. At l April 2023 Incoming resources Resources expended Transfers At 31 March 2024 General funds 1.572,120 4,476,799 14,365,542) 120,1221 1,663,255 Previous year: At l April 2022 Incoming resources Re50urce5 expended Transfer5 At 31 March 2023 General funds 1,451,578 4,362,869 (4,251,478) 9,151 1,572,120 22 Analysis of net assets between funds Unrestricted Unrestricted funds funds general designated 2024 2024 Restricted fund5 Total 20Z4 2024 At 31 March 2024: Tangible assets Current assets/{liabilities) Provisions 10,114 1,739,181 (86,0401 1,344,280 7,788 1,354,394 2,023,792 {86,0401 276,823 1,663,255 276,823 1,352,068 3,292,146 Unrestricted Unrestricted funds funds general designated 2023 2023 Restricted funds Total 2023 2023 At 31 March 2023: Tangible assets Current assets/{liabilitiesl 8,594 1,563,526 1,339,219 12,849 1,347,813 1,817,904 241,529 1,572,120 241,529 1,352,068 3,165,717
ZETETICK HOUSING NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2024 23 Operating lease commitments Lessee At the reporting end date the charitable company had outstanding commitment5 for future minimum lease payments under non-cancellable operating leases, which fall due as follows: 2024 2023 Within one year Between two and five years 504,065 629.937 449,321 283.364 1.134,002 732,685 The Trustees recognise the need to enter into longer lease commitments in order to source properties for our tenants and give them the security of a home for several years. 24 Events after the reporting date In June 2024, Zetetick Housing acquired another two properties. 25 Related party transactions Transactions with related parties G Scott, a trustee of Zetetick Housing, is a director and shareholder in Frontier Support Services Limited {FSSI which provides services to the charity. Included in these accounts under direct costs are concierge fees of £276,38512023 - £296.5751 which were incurred on normal trading terms. Rents receivable includes ts)ok- keeping services of £18,22512023 - £15.600} were charged to FSS during the year. An amount of £22.8A3 (2023- £40,411) was due to FSS at the year and and is included in trade creditors. 35-
ZETETICK HOUSING NOTES TO THE FINANCIAL sfATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH2024 26 Cash generated from operations 2024 2023 Surplus for the year 126,429 948,956 Adjustments for: Investment income recognised in statement of financial activities Depreciation and impairment of tangible fixed assets 135,545) 2,308 (7,4841 2,793 Movements in working capital.. Ilncrease}/decrease in debtors IDecrease)/increase in creditors (Decrease) in provisions 139,5591 1272.1761 86.040 177,023 127.910 Cash (ab50rbed by)/generated from operations 1132,5031 1,249,198 27 Analysis of changes in net funds The charitable company had no material debt during the year.