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2022-03-31-accounts

Registered number: 06593129 Charity numbers: 1125556 & SC040058

HAIG HOUSING TRUST

(A company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2022

CONTENTS

Page
Reference and administrative details of the Charity, its Trustees and advisers 1
Trustees' report 2
Statement of Trustees' responsibilities 8
Independent auditor's report on the financial statements 9
Statement of financial activities 12
Balance sheet 13
Statement of cash flows 14
Notes to the financial statements 15 - 30

HAIG HOUSING TRUST

(A company limited by guarantee)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2022

Trustees Mr D G Williams (Chairman) Lt Col I A Vere Nicoll (Vice Chairman) Mr J Colborne-Baber Mr S M Elliott Mrs S S Fernandes Mr P Findlay (Resigned 17 June 2022) Miss M D Green (Resigned 20 July 2021) Ms L M S Locke Mr R J Steele (Resigned 8 July 2021) Mr A B Weir Dr M J S Weir Mr N G White Mrs N McWhinney (Appointed 17 March 2022) Mrs K Connell (Appointed 17 March 2022)

Company registered number 06593129 Charity registered numbers 1125556 (England and Wales) and SC040058 (Scotland) Registered office Alban Dobson House Green Lane Morden Surrey SM4 5NS Company secretary Michael Robb Chief executive officer Tim Stockings Independent auditor Crowe U.K. LLP 55 Ludgate Hill London EC4M 7JW Bankers Barclays Bank Plc 50 Pall Mall London SW1A 1QF Solicitors Trowers & Hamlins LLP 3 Bunhill Row London EC1Y 8YZ Senior Tim Stockings (Chief Executive) Leadership team Michael Robb (Appointed 21 February 2022) William Lindsay (Appointed 17 November 2021) Klara Buzas Amanda Deakin Robert Williams (Appointed June 2021) Rakesh Gulati (Resigned June 2021) Patrick Horgan (Resigned March 2022) John Lau (Resigned December 2021)

1

HAIG HOUSING TRUST (A company limited by guarantee)

TRUSTEES' REPORT

FOR THE YEAR ENDED 31 MARCH 2022

The Trustees present their report and the financial statements of the company for the year ended 31 March 2022

CHAIRMAN’S STATEMENT

Haig’s trustees and leadership team remain committed to providing quality homes to improve the lives of veterans and their families, focusing on the three strategic objectives of beneficiary focus, quality service and sustainable homes.

Heightened economic difficulties and inflation levels not seen since the 1980’s have increased the pressure on Haig and its beneficiaries. Fortunately, Haig’s robust financial position has allowed it to continue to support veterans and their families throughout, including the decision not to increase rents in 2022, and invest in its properties, infrastructure and people.

Despite the restrictions imposed by Covid, the five-year estate improvement project saw roofs, kitchens and bathrooms replaced across a number of estates and the pace of this programme is expected to increase. Haig is also continuing its stock rationalisation programme, disposing of properties that no longer meet beneficiaries’ needs and reinvesting in existing and new properties.

Haig has continued to strengthen its links to other military charities (including as Co-Chair of the Cobseo Housing Cluster), focusing on improving the delivery of services to beneficiaries and avoiding duplication of activities.

A new digital and branding strategy was launched in 2021, which once fully rolled-out, will give current and future beneficiaries better access to Haig’s services and easier access to key information.

Haig’s staff, led by Tim Stocking and his Senior Leadership Team, have worked tirelessly through difficult times, transitioned to news ways of working and consistently rising to new challenges.

As well as the current economic headwinds, the Trustees and Senior Leadership Team are increasingly focused on the challenges of sustainability and an evolving regulatory landscape.

2022 will undoubtedly be a difficult year for many military charities and the Trustees are confident that, with its robust finances and outstanding staff, Haig is well positioned to meet the emerging challenges.

2

HAIG HOUSING TRUST (A company limited by guarantee)

Charitable Objects and Governing Document

The Charity is governed by its 2019 Memorandum and Articles of Association (MAoA), which outline its objects:

Public Benefit

The Trustees assess that the Charity’s principal activities in support of its MAoA are being delivered effectively and comply with the Charities Act and Charity Commission’s guidance, namely by provision of over 1500 properties for rent by veterans.

Governance

The Board comprises 11 independent non-executives trustees who elect a chair and vice-chair. Trustees are legally responsible for the overall management and control of The Trust and normally meet four times a year. Current Trustees bring a great depth of experience in charity work, housing, the Armed Forces, finance, investments and property. The Trustees receive no remuneration for their role with HHT. Any interests, such as contractual relationships with a related party, must be disclosed to the Board and recorded in the Register of Interests.

Campbell Tickell completed a governance review in January 2020, the recommendations of which have been implemented. The Board assess its effectiveness and performance annually and is mindful of the guidance issued by the Charity Commission, National Housing Federation and the Confederation of Service Charities (Cobseo).

Recent trustee recruitment conducted by an external agency strengthened Board diversity and targeted key skills identified as being required. New Trustees undertake an induction programme and the Board is kept up to date with developments through regular briefings and training. All Trustees sign and agree to adhere to Haig’s Trustee Code of Conduct.

Trustees met formally every quarter, delegating specific issues to three sub-committees that report to the full board. Due to Covid 19, Board and sub-committees were mainly held on line:

Oversight of the Trust’s properties in Scotland is by a local committee, consisting of volunteer members from the legal, housing, charity and ex-Service sectors and includes a beneficiary tenant from Scotland. It is chaired by a trustee and met three times.

Additionally, there is a Management Committee that meets quarterly comprising the Senior Leadership Team and beneficiaries, allowing for an exchange of information and ensuring that the tenants’ voice is heard at the top of the charity.

3

HAIG HOUSING TRUST

(A company limited by guarantee)

Remuneration Policy

The Trust’s remuneration policy was agreed by the Board in December 2019. Staff roles are benchmarked against a suite of measures with judgment applied to reflect market conditions. The pay award in 2022 comprised a flat rate increase and additional lump sum paid later in the year in order to help staff cope with the high cost of living. The scale of UK-wide inflation meant that a full CPI uplift was not possible but additional work was undertaken in order to ensure staff were fairly remunerated.

Linked charities and subsidiaries

Disabled Officer Garden Homes, Mitchell Flats and Clevedon Homes are linked charities with similar objects. In addition, the Trust holds all allotted shares in Haig Housing Trading Limited, a dormant limited trading company; see note 25 to the financial statements.

Investment Policy

The Trust’s investments comprise cash and funds administered by professional managers in a discretionary portfolio that reflects the Board’s investment objectives and risk appetite. The current objective is to achieve a 'growth' return with a ‘medium’ risk profile. They invest principally in investment grade fixed interest securities, “blue chip” equities and collective funds.

STRATEGIC REPORT

Haig maintains c.1500 homes for veterans on 60 estates across the UK. The estates vary in size from around 12 homes up to 345 properties in Morden . Beneficiaries are charged a charitable rent that is usually at a considerable discount to market rates. The Trust runs a Special Purchase scheme for disabled veterans under shared ownership agreements.

A strategic review was completed in 2021 that confirmed the Trust’s Purpose:

Providing quality homes to improve the lives of veterans and their families in need

In support of The Trust’s Purpose, three Strategic Objectives were identified, to deliver:

  1. Beneficiary focus

  2. Quality service

  3. Sustainable homes

Future plans

Haig’s future plans reflect its strategic objectives and purpose, by:

In doing so, the Trust aims to show the real value of living in a Haig home.

The Trust has initiated a significant five-year investment programme to improve and modernise existing stock based on an updated condition survey. This plan will deliver on the ambition to update, rebalance and refresh Haig’s offer to beneficiaries, as outlined in the recent strategic review. It is a critical part of the drive to enhance properties and deliver a quality service. The Trust will continue to buy and adapt homes for the wounded as required; demand is expected to be lower than the peak caused by recent conflicts. The Trust will seek to bid for new sources of funding, such as the Social Housing Decarbonisation Fund (SHDF).

4

(A company limited by guarantee)

HAIG HOUSING TRUST

REVIEW OF ACTIVITIES AND ACHIEVEMENTS

Principal Activities

The Trust’s principal activity was providing housing to beneficiaries, the rent from which provides its main income.

Haig works closely with a range of partners in the wider voluntary sector (for example Stoll, Combat Stress, RBL, ABF and SSAFA). By working collaboratively the Trust can deliver more, critical at a time of severe pressure during Covid, as well as imminent challenges around the cost of living. Effort is made to avoid duplicating services, concentrating on beneficiaries’ needs that can be addressed through better housing and signposting those who require more help to other sources of support.

The Trust also works in Veterans’ housing policy and public affairs. Haig’s CE co-chairs The Confederation of Service Charities (Cobseo) Housing Cluster that helps the nationwide effort of co-ordinating a sector-wide approach to veterans housing. Outreach work with Ministers, MPs, Councillors and the Service Community helps to broaden their understanding of Haig.

Haig celebrated its Patron’s Platinum Jubilee in June. A number of memorial markers were sited (benches and plaques) but the main focus was to help beneficiaries celebrate by giving every tenant a supermarket voucher. In a year ravaged by Covid, the Trust felt it was important that communities were able to celebrate together and that Her Majesty would be pleased to see our veterans enjoying themselves.

The strategic review catalysed an overhaul of management processes, for example revised operating policies and a robust Business Plan (BP) with delegated budgets, supported by improved delivery in four key areas:

The Trust has an ambitious five-year improvement programme that will raise property standards across the portfolio, spending considerably more on upkeep (repairs, maintenance, improvements and sustainability), drawing down cash reserves from sale proceeds to supplement income from other sources.

Improved engagement

Better tenant engagement is a priority for the coming years. An ambitious programme of visits to meet our beneficiaries was undertaken to listen to their views. In the last 12 months the Trustees and senior team have visited over 20 estates in all parts of the UK. This effort was supplemented with a brand refresh and new website, the start of a journey to being digitally enabled; traditional methods will need to be retained to maintain inclusion.

A beneficiaries’ charter is being written and a tenant survey undertaken to gain feedback and highlight areas for improvement, as well as benchmarking performance against the sector. Beneficiaries serve on the Management Committee, ensuring that their views are represented directly to the top of the organisation.

KPIs are being refined to help measure performance but there is some way to go before these are mature.

People

People are our single most important asset because they deliver Haig’s services. They represent years of experience and knowledge in the complex field of veterans’ housing. The Trust wants to attract, develop and retain their skills in a highly competitive market. Colleagues face a number of profound challenges and the Trust wants to support them through the impact of Covid 19, cost of living crisis and new ways of working so they can deliver for beneficiaries.

To help lead Haig through this change the executive and management teams have been strengthened, recruiting individuals with the skills needed for the future. Systems and processes are being modernised in order to support these changes. Our culture is changing to build continual improvement that reflects the Strategic Objectives, recognising that it is a multi-year task. Training has improved, complemented by a new HR system and better induction; an appraisal system is in train and the staff benefits package is under review.

The Trust is proud of what it has achieved and is grateful to the staff for their efforts in difficult circumstances.

5

HAIG HOUSING TRUST (A company limited by guarantee)

Fundraising Activities

Fundraising is not a major activity of the Trust (2022 £49k) nor relied upon to fund core operations. Income received is through unsolicited voluntary donations or small corporate events. The Trust does not employ a dedicated professional fundraiser or commercial body and all activities are overseen by the CE. The Charity is registered with the Fundraising Regulator and adheres to the Fundraising Code and good practice, including a commitment to protect vulnerable donors. The Trust complies with GDPR requirements and does not share data for the purposes of fundraising with third parties or data sharing schemes. The Trust received no complaints in relation to fundraising activities during the year.

Sector challenges

There are range of issues impacting the sector from which the Trust is not immune. The new team are working to provide solutions to these challenges, albeit many lie beyond Haig’s direct control:

Value for Money

The Trust continues to maintain and improve its stock through a cyclical plan for its properties. During the year approximately 6,500 separate works were completed, including bathroom and kitchen replacements, external redecorations and upgrading heating systems. Management is focussing on the turnaround of void properties, reducing rent loss and bringing a home to a new beneficiary applicant as quickly as possible. Major work includes:

FINANCIAL REVIEW AND RESULTS FOR THE YEAR

In line with the plan to use resources to improve the condition of our estates, the Trust generated a deficit of £1M. Cash reserves will be drawn down in the coming years to fund the 5-year improvement programme.

In line with our decision to freeze rents for 2022 to help tenants cope with the cost of living challenges, rental income was largely unchanged at £10.9M (last year £10.8M).

Total resources expended were £11.9M (2021: £10.3M). Key items were direct property costs including repairs of £6.6M (2021: £4.9M); staff costs £2.5M (2021: £2.3M); support costs £1.3M (2021: £1.8M) and depreciation £1.4M (2021: £1.3M). Total capital expenditure was £0.6M (2021: £0.5M). Total net assets were £90.3M (2021: £90.9M) .

The Trust holds £4.0 M (2021: £3.8M) of investments on long term cash deposits and as Accumulation Funds with Investec, who manage them on a discretionary basis to provide a balanced return within the ranges set out in the Investment Policy. The Finance and Risk Committee reviews investment performance quarterly.

Cash at bank was £22.1M (2021: £22M), the bulk of which arose from the sale of a substantial property. This money and future years’ generation of cash is being earmarked to invest in the five year improvement plan.

The Trust has made full provision for a pension liability of £405k (2021: £436K) in the Social Housing Pension scheme (SHPS – defined benefit) on the basis of the latest actuarial assessment; see note 22 to the financial statements. A strategic review and actuarial evaluation were carried out this year, which confirmed that SHPS remains the correct pension solution.

The majority of the Trust’s reserves are represented by investment in its housing properties. The Charity retains the capacity for further borrowing to meet future capital expenditure, growth or stock investment programmes as determined by the Trustees.

6

HAIG HOUSING TRUST

(A company limited by guarantee)

RESERVES

Sufficient operating reserves are held to enable the Trust to operate and meet its charitable objects. The amount held is reviewed regularly, with a minimum of three to four months operating expenditure held in cash or other liquid securities that can be realised within 60 days. At 31 Mar 2022, reserves equating to 9 months of cash operating expenses were held (£9.1M) with sufficient Unrestricted Funds to cover distribution of these reserves.

Reserves are valued at £90.3M (2021: £90.9M), of which £23.0M represents ‘free reserves (£22.6M ) comprised of unrestricted funds, less tangible fixed assets, pension reserve and other designated funds. These are expendable at the discretion of the Trustees in furtherance of the charity’s objects. The majority of free reserves arose from the recent sale of a large property. In line with its strategic intent to improve the overall condition of its properties, the Board has designated £10M of this money to be spent on estate upkeep over the next five years.

RISK MANAGEMENT

Trustees oversee the formal risk management process, as laid out in policy. The FRC reviews the risk register quarterly, reporting to Board who assess performance, risk appetite and the register annually. Day to day risk management is delivered by the executive. Assurance is also obtained around controls by means of internal audit. The continual improvement process started last year is leading to better performance and enhanced assurance. The Trust has plans to manage and mitigate the risks where possible.

Principal Risks and Uncertainties

Haig assesses its major risks to arise from its operational activities, including:

The majority of properties are between 60 and 90 years old, requiring additional maintenance to keep them safe and secure. Although structurally sound, many do not fit the concept of ‘modern living’ that is increasingly important as beneficiary expectations change. The Trust is assessing how best to address these issues and has decided to spend £10M from its cash balances to increase maintenance levels and property standards. Additional funding from a range of sources will be pursued where practicable to supplement this money.

Rental income, monitored by a dedicated team, has held up well despite Covid 19 and cost of living crisis. Early intervention to develop affordable payment plans is key. The Trust does not underestimate the scale of the challenge and expects next year to be even more challenging.

Regulatory change continues apace and is closely monitored by the executive team to ensure compliance, supported by membership of sector organisations and checked periodically by internal audit. The key development will be the removal of Section 21 no fault evictions, the impact of which is being assessed.

Some contractors have changed to improve the quality of delivery, investing to achieve value for money as part of building long term partnerships.

Reserves, cash balances and investments allows the Trust to weather the storm, as demonstrated by its ability to continue to operate during the unprecedented challenges of the last two years.

GOING CONCERN

The Trust has a robust business model, the durability of which has been confirmed during the last two years, despite challenges faced in its operating environment. The financial strength of the Trust is also confirmed by the increasing long term value of its substantial property portfolio.

The Trust has continued to be cash positive during the last financial year and to maintain its substantial cash balances. The Trusts five year forecasts indicate that it will continue to maintain a positive cash balance over this period, despite plans to considerably increase expenditure on its property portfolio. The Trustees and Directors are confident that this forecasted five year cash performance will be substantially achieved, and they are aware of the potential to extract further value from non-core elements of the property portfolio if necessary.

7

HAIG HOUSING TRUST

(A company limited by guarantee)

STATEMENT OF TRUSTEES' RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2022

The Trustees (who are also the directors of the Charity for the purposes of company law) are responsible for preparing the Trustees' report including the Strategic 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. Under company law the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Charity and of its incoming resources and application of resources, including its income and expenditure, for that period. In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the Charity's transactions and disclose with reasonable accuracy at any time the financial position of the Charity 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 Charity and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The Trustees’ Report, including the Strategic Report, was approved by order of the members of the board of Trustees on 29 September 2022 and signed on its behalf by:

Mr D G Williams Chairman

Lt Col I A Vere Nicoll Trustee

8

HAIG HOUSING TRUST

(A company limited by guarantee)

Independent Auditor’s Report to the Members and the Trustees of Haig Housing Trust

Opinion

We have audited the financial statements of Haig Housing Trust (‘the charitable company’) for the year ended 31 March 2022 which comprise of 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 Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the charitable company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the charitable company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

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

Other information

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

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

We have nothing to report in this regard.

9

HAIG HOUSING TRUST

(A company limited by guarantee)

Independent Auditor’s Report to the Members and the Trustees of Haig Housing Trust

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or 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 2006 and the Charities Accounts (Scotland) Regulations 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 8, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the 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.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and under the Companies Act 2006 and report in accordance with the Acts and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit

10

HAIG HOUSING TRUST

(A company limited by guarantee)

Independent Auditor’s Report to the Members and the Trustees of Haig Housing Trust

procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, the Charities Act 2011 and The Charities and Trustee Investment (Scotland) Act 2005], together with the Charities SORP (FRS 102). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statement items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were General Data Protection Regulations, Health and Safety legislation and Employment legislation.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Trustees and other management and inspection of regulatory and legal correspondence, if any.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be within the timing of recognition of repairs and maintenance expenditure and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management, internal audit and the Finance & Risk Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing accounting estimates for biases, reviewing regulatory correspondence with the Charity Commission, Companies House, OSCR and reading minutes of meetings of those charged with governance.

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 (irregularities) 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. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006, and to the charitable company’s trustees, as a body, in accordance with Regulation 10 of the Charities Accounts (Scotland) Regulations 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 and the charitable company’s trustees as a body, for our audit work, for this report, or for the opinions we have formed.

Tim Redwood Senior Statutory Auditor For and on behalf of Crowe U.K. LLP Statutory Auditor London

Date: 11 November 2022

11

HAIG HOUSING TRUST

(A company limited by guarantee)

STATEMENT OF FINANCIAL ACTIVITIES (INCORPORATING INCOME AND EXPENDITURE ACCOUNT) FOR THE YEAR ENDED 31 MARCH 2022

Note
Income from:
Donations and legacies
4
Charitable activities
5
Profit on sale of assets
Investments
Other income
Total income and
endowments
Expenditure on:
Raising funds
Charitable activities
6
Total expenditure
Net gains/(losses) on
investments
Net movement in
funds before other
recognised gains
Actuarial (losses) on
defined benefit pension
schemes
Transfers between
funds
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in funds
Total funds carried
forward		 Endowment
funds
2022
£000
-
-
-
-
-



Restricted
funds
2022
£000
-
231
-
5
-		 Unrestricted
funds
2022
£000

49

10,674

72

91

17



Total
funds
2022
£000
49
10,905
72
96
17



Total
funds
2021
£000
7
10,776
15,982
60
12
26,837
54
10,219
______10,273
581
17,145

(250)

-
16,895
74,022

16,895
90,917
-
236

280
10,903		 11,139
-
14
48

11,563


48
11,857
14
____280
11,611
______11,905
-
9


172		 181
(14)
(35)
(536)		 (585)

-
-
-
-

(55)

-


(55)
-
(14)

(35)
(640)

567
(14)
20,038
(35)

70,312

(591)

553 20,003
69,721		 90,277

The Statement of Financial Activities includes all gains and losses recognised in the year.

The notes on pages 15 to 30 form part of these financial statements.

12

HAIG HOUSING TRUST (A company limited by guarantee)

BALANCE SHEET AS AT 31 MARCH 2022

Note
Fixed assets
Tangible assets
11
Investments
12
Current assets
Debtors
13
Cash at bank and in hand
Creditors: due within one year
14
Net current assets
Total assets less current liabilities
Creditors: due after one year
15
Defined benefit pension scheme liability
22
Total net assets
Charity funds
Endowment funds
16
Restricted funds
16
Unrestricted funds
16
Total funds		 774
22,157		 2022
£000
66,884
4,022


308
21,958
 2021
£000
67,965
3,813
70,906

20,337		 71,778




20,309
22,931
(2,594)		 22,266
(1,957)









91,243
(561)
(405)		 92,087
(734)
(436)
90,277 90,917

553
20,003
69,721
567
20,038
70,312
90,277 90,917

The Trustees acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and preparation of financial statements.

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Mr D G Williams Chairman Date:

Lt Col I A Vere Nicoll Trustee

13

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

Note
Cash flows from operating activities
Net cash used in operating activities 18
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of tangible fixed assets
Net cash provided by investing activities
Cash flows from financing activities
Repayments of borrowing
Interest payable
Net cash used in financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year 19		 2022
£000
593
 2021
£000

1,800
96
374
(632)
18

16,382

(449)
(162)
15,951
(175)
(57)
(160)

(68)
(232)
(228)
199
21,958
17,523

4,435
22,157 21,958

The notes on the following pages form part of these financial statements

14

HAIG HOUSING TRUST

(A company limited by guarantee)

Notes to the financial statements

1. General information

Haig Housing Trust is a private company limited by guarantee (registered number 06593129) which is incorporated and domiciled in the UK and meets the definition of a public benefit entity under FRS102. The address of the registered office is Alban Dobson House, Green Lane, Morden, Surrey, SM4 5NS.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006.

2.2 Going concern

The Trust has a robust business model, the durability of which has been confirmed during the last two years, despite challenges faced in its operating environment. The financial strength of the Trust is also confirmed by the increasing long term value of its substantial property portfolio.

The Trust has continued to be cash positive during the last financial year and to maintain its substantial cash balances. The Trusts five year forecasts indicate that it will continue to maintain a positive cash balance over this period, despite plans to considerably increase expenditure on its property portfolio. The Trustees and Directors are confident that this forecasted five year cash performance will be substantially achieved, and they are aware of the potential to extract further value from non-core elements of the property portfolio if necessary. Accordingly they continue to adopt a going concern basis in preparing the financial statements.

2.3 Income

Income from rental and service charges is recognised in the financial statements in the period to which the rent or service charge relates and entitlement is earned. Investment income is accounted for on an accruals basis.

Donations received are accounted for through the income and expenditure account on a receipts basis. Donated properties are included at their open market value or their existing use value at the date of the donation.

Legacies are recognised in the financial statements only upon the granting of probate provided there is probability of legal entitlement and a reliable estimate can be obtained on notifications received before the year end. Non-performance related grants are accounted for as received.

2.4 Expenditure

Expenditure is recognised in the period in which it is incurred and includes attributable VAT which cannot be recovered. Support costs comprise of administration costs and are allocated to the various cost categories on the basis of an estimate of staff time attributable to each activity. Governance costs are the expenses incurred by the charity in meeting their statutory and constitutional requirements and include Trustees’ expenses and external audit fees.

2.5 Housing Properties

Depreciation is charged to write down the value of freehold housing properties to their estimated residual value on a straight line basis over their remaining expected useful economic lives. No housing properties are shown at a value exceeding their estimated recoverable amount. Impairment losses recognised are shown under operating costs.

Freehold land is not depreciated. Freehold properties are depreciated over 50 – 70 years depending on the property. Leasehold properties are depreciated over the shorter of the term of the lease or their estimated useful life.

15

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

Other Fixed Assets

Assets costing more than £1,000 are capitalised. Depreciation is charged on a straight line basis over the expected economic life of the assets at the following rates:

Freehold offices - 2% 50 years Motor vehicles - 33% 3 years Office equipment - 33% 3 years

2.6 Investments

Investments are stated at market value at the balance sheet date. Gains are calculated based on the movement in market value during the period. The investments in the subsidiary undertakings are stated at deemed cost less impairment.

2.7 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

2.8 Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

2.9 Liabilities

Liabilities and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably.

2.10 Financial instruments

Haig Housing Trust has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost using the effective interest method.

Financial assets held at cost comprise cash at bank and in hand, together with trade and other debtors (excludes prepayments). Financial liabilities held at cost comprise bank loans and overdrafts, trade and other creditors (excludes rent in advance).

Investments, held as part of an investment portfolio, are held at fair value at the Balance Sheet date, with gains and losses being recognised within income and expenditure. The value of these assets at 31 March 2022 was £4,022,000 (2021: £3,813,000).

2.11 Pensions

Haig Housing Trust participates in a defined benefit pension scheme (The Pensions Trust Social Housing Pension Scheme) and a defined contribution scheme. Costs in connection with both pension schemes are charged to the Statement of Financial Activities as contributions fall due.

2.12 Fund accounting

Restricted funds

Donations or legacies received which are earmarked by the donor for specific purposes. Such purposes are within the overall aims of the charity.

Designated funds

These funds have been designated by the trustees for specific purposes. The largest designated fund represents amounts invested in fixed assets for use by the charity.

16

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

General fund

The funds are available at any time for the use at the discretion of Trustees for furtherance of the charity’s activities and objectives.

3. Critical accounting estimates and areas of judgment

In the application of the Charity’s accounting policies, Trustees are required to make judgements, estimates, and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an on-going basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects the current and future periods.

In the view of the Trustees, no assumptions concerning the future or estimation uncertainty affecting assets and liabilities at the balance sheet date are likely to result in a material adjustment to their carrying amounts in the next financial year. The areas where judgments and estimates have been made include:

Pensions

The SHPS pension liability is based on the SHPS valuation as at 31 March 2022 and full details of this liability and the underlying assumptions are disclosed in note 22.

Useful economic life of assets

The estimation of the useful economic life of the properties within the portfolio means that depreciation is a judgment.

Impairment

Impairment of the properties is considered annually. In making the judgement management consider the condition and current use of the property, there have been no impairments in the current of prior year.

4. Income from donations and legacies

Donations
Legacies		 Unrestricted
funds
2022
£000
25
24		 Total
funds
2022
£000

25

24
 Total
funds
2021
£000

7

-
49
49		 7

5. Income from charitable activities

Provision of housing to beneficiaries Restricted
funds
2022
£000
231		 Unrestricted
funds
2022
£000
10,674,		 Total
funds
2022
£000

10,905		 Total
funds
2021
£000
10,776

17

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

6. Analysis of expenditure on charitable activities

Summary by fund type

Summary by fund type
Endowment Restricted Unrestricted Total
funds funds funds funds
2022 2022 2022 2022
£000 £000 £000 £000
Provision of housing to beneficiaries 14 280 11,563 11,857
7. Analysis of expenditure by activities
2022 2021
£000 £000
Staff costs 2,484 2,164
Property repair, serving and management 6,615 4,937
Interest payable 57 68
Bad debt expense 55 5
Return of grant to Help for Heroes and donations paid 50 --
Building depreciation 1,287 1,284
Support Costs 1,309
 1,761
11,857 10,219
Support costs as above include consultancy fees of £56,000, legal and professional fees of £35,000,
information technology costs of £256,000, staff costs of £425,000, telephone expenses of £86,000,
depreciation of £118,000 and other costs of £333,000.
8. Auditor's remuneration
2022 2021
£000 £000
Fees payable to the Charity's auditor for the audit of the Charity's annual
accounts 25 21
Fees payable to the Charity's auditor in respect of:
All non-audit services not included above - 3

18

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

9. Staff costs

Staff costs
Wages and salaries
Social security costs
Contribution to defined contribution pension schemes		 2022
£000
2,140
212
150
 2021
£000

1,854

174

136
2,502 2,164

The average number of persons employed by the Charity during the year was as follows:

Provision of housing
Support costs		 2022
No.
34
15
 2021
No.

36

10
49 46

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

£60,000 was:
2022 2021
No. No.
In the band £60,001 - £70,000 2 0
In the band £70,001 - £80,000 1 1
In the band £80,001 - £90,000 2 4
In the band £110,001 - £120,000 1 0

Several senior staff left the organisation over the year, which affects the above figures.

Employer’s pension contributions of £42,206 (2021: £32,720) were paid in respect of these higher paid employees. The total employee benefits of 9 key management personnel of the charity were £704,986 (2021: 7 key management personnel received £568,651).

10. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2021 - £NIL-) .

During the year ended 31 March 2022, no expenses were reimbursed or paid directly to Trustees (2021 – £37k) .

19

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

11. Tangible fixed assets

Housing
properties
£000
Cost or valuation
At 1 April 2021
81,839
Additions
523
Disposals
(331)
At 31 March 2022

82,031

Depreciation
At 1 April 2021
14,195
Charge for the year
1,287
On disposals
(33)
At 31 March 2022

15,449

Net book value
At 31 March 2022
66,582
At 31 March 2021
67,644
Investments
Market Value at 1 April
Additions
Disposals
Gain / (losses) on investments
Market value at 31 March
Historic Cost		 Housing
properties
£000
81,839
523
(331)

Work in
progress
£000
-
-
-		 Freehold
office
£000

307

-

-

Motor
vehicles
£000
18
-
-		 Motor
vehicles
£000
18
-
-		 Office
equipment
£000

1,526

109

(4)
 Office
equipment
£000

1,526

109

(4)
 Total
£000

83,690

632

(335)
82,031
 -
307		 18
1,631
83,987
14,195
1,287
(33)

-
-
-
144

6

-

18
-
1,368

119
(1)
15,725

1,412

(34)
15,449
 -
150		 18
1,486
17,103
66,582 -
157
- 145 66,884

67,644		 -
163		 - 158
67,965
2022
£000
3,813
53
(26)
182



2021
£000
3,212
41
(21)
581
3,813
3,108
4,022

3,238

12. Investments

Investments comprise £4.0m under management with Investec and are represented by holdings in UK and overseas fixed interest, equities and property funds.

20

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

13. Debtors

Debtors
Rent debtors
Prepayments
Accrued income and other debtors		 2022
£000
210
422
142
 2021
£000

149

85

74
774 308

14. Creditors: Amounts falling due within one year

Creditors: Amounts falling due within one year
Bank loans
Trade creditors
Other creditors
Accruals and deferred income		 2022
£000
173
292
77
2,052
 2021
£000

166

125

3

1,663
2,594 1,957

The above includes £383k (2021: £383k) of deferred income which relates to rental income received in advance, the amount bought forward was recognised fully within the year.

15. Creditors: Amounts falling due after more than one year

Bank loans 2022
£000
561		 2021
£000
734

Bank loans consist of two fixed rate loans with a rate of 6.8% expiring during 2025/26. The loans are secured on five of the estates owned by Haig Housing Trust. These make up a small proportion of overall housing stock and have a net book value of £6,721,584 at the year end.

21

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

16. Statement of funds – current year

Unrestricted funds
Designated funds
Fixed asset fund
Leasehold liability fund
Community chest reserve
Pension reserve
General funds
General Funds - all funds
Total Unrestricted funds
Endowment funds
Permanent Endowment
Restricted funds
Veterans Accommodation
Colchester Borough Council
DSSHF
Disabled Officer Garden
Homes
Help for Heroes (coming home)
Other
Mrs Willie James Fund
Total of funds		 Balance at
1 April 2021
£000
48,034
117
(436)


Income
£000
-
-
-		 Expenditure
£000
(1362)

-


86		 Expenditure
£000
(1362)

-


86



Gains/
(Losses)
£000
309
-
72
(55)
 Balance at
31 March
2022
£000
46,981

117
72

(405)
46,765

22,956

69,721
553

14,580

450

2,753

75

1,710

104

331

20,003
90,277
47,715

-
(1,276) 326

22,597
70,312		 10,903
10,903
(10,335)
(11,611)







(209)
117

567








-






(14)		 -
14,580
450
2,728
97

1,760
104
319		 -
-
116
115
-
-
5
-
-
(91)
(137)
(50)
-
(2)		 -
-
-
-
-
-
9
20,038
236
(280)
9

90,917		 11,139
(11,905)		 126

22

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

Statement of funds - prior year

Unrestricted funds
Designated funds
Fixed asset fund
Leasehold liability fund
Pension reserve
General funds
General Funds - all funds
Total Unrestricted funds
Endowment funds
Permanent Endowment
Restricted funds
Veterans Accommodation
Colchester Borough Council
DSSHF
Disabled Officer Garden
Homes
Help for Heroes (coming home)
Gulf War Fund
Other
Mrs Willie James Fund
Total of funds		 Balance at
1 April 2020
£000
49,783
117
(272)

Income
£000
-
-
-		 Expenditure
£000

(1,378)

-

86		 Expenditure
£000

(1,378)

-

86



Gains/
(Losses)
£000
(371)
-
(250)
 Balance at
31 March
2021
£000

48,034

117

(436)
47,715

22,597

70,312
567

14,580
450
2,728

97

1,760

-

104

319

20,038

90,917
49,628 -

(1,292) (621)

3,709
53,337


26,600
26,600
(8,642)
(9,934)











930
309

581










-









(14)		 -
14,580
450
2,761
68
1,835
20
104
286		 -
-
111
119
-
-
-
7
-
-
(144)
(90)
(75)
(7)
-
(9)		 -
-
-
-
-
(13)
-
35


(325)
22
20,104
237

(10,273)		 331

74,022		 26,837

Permanent Endowment

Relates to properties originally gifted to Disabled Officer Garden Homes.

Restricted Funds / Reserves

Veterans Accommodation Fund

This fund was created with monies from the Ministry of Defence and is to be used to develop /purchase properties in Morden, Scotland, Aldershot and Colchester. At 31 March 2022 the balance of the fund included properties purchased. There is a 15 year covenant on assets purchased with these funds. Colchester Borough Council Fund

This restricted fund was created with monies from Colchester Borough Council to provide affordable homes for ex-service men and women.

Disabled Soldier and Sailors (Hackney) Foundation (DSSHF)

This restricted fund was created on the gift of the assets and liabilities of the above charity to Haig Housing Trust. Further details are included in note 25.

Disabled Officer Garden Homes

This fund (along with the permanent endowment fund) represents funds in respect of Disabled Officer Garden Homes administered by Haig Housing Trust. Further details are included in Note 25.

23

HAIG HOUSING TRUST

(A company limited by guarantee)

Notes to the financial statements

Help for Heroes (Coming Home)

These funds comprise amounts donated to provide housing to injured service men and women.

Mrs Willie James Charity

Administered by Haig Housing Trust, the funds are used to support a variety of purposes for needy tenants.

Designated funds / reserves

Fixed asset fund

This represents the net book value of Tangible Fixed Assets held in unrestricted funds which are not available in the short term to fund the Trust’s activities. Transfers represent net additions to fixed assets.

Leasehold liability fund

An accumulation fund created to retain funds for the renewal and extension of leases on short and medium term leasehold properties.

Pension reserve

This represents funds set aside for the potential future costs arising from the Trust’s commitment to the Social Housing Pension Scheme.

Community Chest Reserve

This new fund was created during the year to hold individual donations in order to ensure that the amounts donated are subsequently spent on charitable purposes in dedication to these donors.

17. Analysis of net assets between funds – current period

Tangible fixed assets
Fixed asset investments
Current assets
Creditors due within one year
Creditors due in more than one year
Provisions for liabilities and charges
Total		 Endowment
funds
2022
£000
553
-
-
-
-
-		 Restricted
funds
2022
£000

19,061

305

637

-

-

-		 Unrestricted
funds
2022
£000

47,270

3,717

22,294

(2,594)

(561)

(405)
 Total
funds
2022
£000

66,884

4,022

22,931

(2,594)

(561)

(405)
553
20,003
69,721		 90,277

24

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

Analysis of net assets between funds - prior period

Endowment
funds
2021
Restricted
funds
2021
Unrestricted
funds
2021
£000
£000
£000
Tangible fixed assets
567
19,061
48,337
Fixed asset investments
-
296
3,517
Current assets
-
681
21,585
Creditors due within one year
-
-
(1,957)
Creditors due in more than one year
-
-
(734)
Provisions for liabilities and charges
-
-
(436)
Total
567
20,038

70,312
18.
Reconciliation of net movement in funds to net cash flow from operating activities
2022
£000
Net income for the period (as per Statement of Financial Activities)
(766)
Adjustments for:
Depreciation charges
1,412
Dividends, interests and rents from investments
(96)
Profit on the sale of fixed assets
(72)
Movement in pension deficit liability
(103)
(Increase) /Decrease in debtors
(466)
(Decrease) in creditors
637
Interest payable
47
Net cash provided by operating activities

593
19.
Analysis of cash and cash equivalents
2022
£000
Cash in hand
22,157
Total cash and cash equivalents

22,157		 Endowment
funds
2021
£000
567
-
-
-
-
-		 Restricted
funds
2021
£000

19,061

296

681

-

-

-		 Unrestricted
funds
2021
£000

48,337

3,517

21,585

(1,957)

(734)

(436)
 Total
funds
2021
£000

67,965

3,813

22,266

(1,957)

(734)

(436)
90,917
2021
£000

16,564

1,428

(60)

(15,982)
(86)

188

(320)

68


1,800
2021
£000

21,958
21,958
567
20,038
70,312
593
2022
£000
22,157
22,157

25

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

20. Analysis of Net Debt

Analysis of Net Debt
Cash at bank and in hand
Debt due after 1 year
Debt due within 1 year
Capital commitments
Contracted for but not provided in these financial statements		 At 1 April
2021
£000
21,958
(734)
(166)		 Cash flows
£000

199

173

(7)
 At 31 March
2022
£000

22,157

(561)

(173)
21,058
365		 21,423

2022
£000
-
2021
£000
-

21. Capital commitments

22. Pension commitments

Defined benefit scheme

The Trust participates in the Social Housing Pension Scheme (the scheme), a multi- employer scheme which provides benefits to some 500 non-associated employers. The scheme is defined benefit scheme in the UK.

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

The last completed triennial valuation of the scheme for funding purposes was carried out as at 30 September 2020. The valuation revealed a deficit of £1,560m. A recovery plan has been put in place with the aim of removing this deficit by 31 March 2028.

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

For financial years ending on or before 28 February 2019, it was not possible for the Trust to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore the Trust has accounted for the Scheme as a defined contribution scheme. For financial years ending on or after 31 March 2019, it is possible to obtain sufficient information to enable the Trust to account for the scheme as a defined benefit scheme.

For accounting purposes, a valuation of the scheme is carried out with an effective date of 30 September each year. The liability figures from this valuation are rolled forward for accounting yearends from the following 31 March to 28 February inclusive. The latest accounting valuation was carried out with an effective date of 30 September 2021. The liability figures from this valuation were rolled forward for accounting year-ends from 31 March 2022 to 28 February 2023 inclusive.

The liabilities are compared, at the relevant accounting date, with the Trust’s fair share of the Schemes total assets to calculate the Trust’s net deficit or surplus.

26

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

Notes to the financial statements
Fair value of plan assets, present value of defined benefit obligation, and
defined benefit asset 2022 2021
(£000s) (£000s)
Fair value of plan assets 2,413 2,485
Present value of defined benefit obligation 2,818 2,921
Surplus (deficit) in plan (405) (436)
Defined benefit asset (liability) to be recognised (405) (436)
Reconciliation of opening and closing balances of the defined benefit obligation
2022 2021
(£000s) (£000s)
Defined benefit obligation at start of period 2921 2635
Interest and other expenses 63 64
Actuarial losses (gains) due to changes in financial assumptions (66) 457
Benefits paid and expenses (100) (235)
Defined benefit obligation at end of period 2,818 2,921
Reconciliation of opening and closing balances of the fair value of plan
assets
2022 2021
(£000s) (£000s)
Fair value of plan assets at start of period 2,485 2,363
Interest income 52 55
Losses / gains on plan assets (121) 207
Employer contributions 97 95
Benefits paid and expenses (100) (235)
Fair value of plan assets at end of period 2,413 2,485
Reconciliation of opening and closing balances of the fair value of plan assets
Expenses 3
3
Net interest expense 8
6
Defined benefit costs recognised in Statement of Financial Activities 11
9
Defined benefit costs recognised in Statement of Financial Activities
Experience on plan assets (excluding amounts included in net interest cost) -
gain (loss)		 (121)
207
Experience gains and losses arising on the plan liabilities - gain (loss) (140)
66
Effects of changes in the demographic assumptions underlying the present
value of the defined benefit obligation - gain (loss)		 54
(12)
Effects of changes in the financial assumptions underlying the present value of
the defined benefit obligation - gain (loss)
152
(511)
Total actuarial gains and losses (before restriction due to some of the surplus
not being recognisable) - gain (loss)		 (55)
(250)
Total amount recognised in Other Comprehensive Income - gain (loss) (55)
(250)

27

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

Assets 2022 2021
(£000s) (£000s)
Global Equity
463
396
Absolute Return 97
137
Distressed Opportunities 86
72
Credit Relative Value 80
78
Alternative Risk Prem c
94
Emerging Markets Debt 70
100
Risk Sharing 79
90
Property 65
52
Insurance linked securities
56		 60
Infrastructure 172
166
Private Debt 62
59
Opportunistic Illiquid Credit 81
63
High Yield 21
74
Opportunistic Credit 9
68
Corporate Bond Fund 161
147
Liquid Credit -
30
Long Lease Property 62
49
Secured Income 90
103
Liability Driven Investment 673
632
Net Current Assets 7
15
Total assets 2,413
2,485
None of the fair values of the assets shown above include any direct investments in the employer’s
own financial instruments or any property occupied by, or other assets used by the employer.
Key Assumptions 2022 2021
% per % per
annum annum
Discount Rate 2.78% 2.09%
Inflation (RPI) 3.73% 3.33%
Inflation (CPI) 3.26% 2.84%
Salary Growth 4.26% 3.84%
75% of 75% of
Allowance for commutation of pension for cash at retirement maximum maximum
allowance allowance

28

HAIG HOUSING TRUST (A company limited by guarantee)

Notes to the financial statements

Life expectancy
at age 65
Male retiring in 2022 21.1
Female retiring in 2022 23.7
Male retiring in 2042 22.4
Female retiring in 2042 25.2

23. Operating leases - Lessor

Properties owned by Haig Housing Trust are occupied under various tenancy agreements. The committed rental income generated under these agreements over the next 12 months is estimated to be £913,000 (2021: £913,000).

The Charity had no commitments under non-cancellable operating leases at 31 March 2022.

24. Related party transactions

There have been no related party transactions that require disclosure.

25. Linked charities and subsidiaries

Disabled Officer Garden Homes, Mitchell Flats and Clevedon Homes have in the past been subject to a uniting direction granted by Charity Commission schemes. The objects of the linked charities below are generally the provision of housing accommodation for people in need, hardship or distress with preference given to ex-service men and women and other charitable purposes for the benefit of the residents as the trustees shall decide. However, in respect of Disabled Officer Garden Homes (DOGH) accommodation is for disabled former officers who are married or in a relationship analogous to marriage.

In addition, the Trust holds all allotted shares in Haig Housing Trading Limited (formerly Coming Home Campaign Limited, name changed on 11 June 2019), a limited company (registered in England and Wales 09331680) that carries out trading activities on behalf of the charity. This entity was dormant for the year ended 31 March 2022.

A summary of the results of each are shown below:

Mitchell Clevedon
DOGH Flats Homes
£’000 £’000 £’000
Income 115 14 13
Expenditure (137) (15) (26)
(Deficit) / Surplus (22) (1) (13)
Net assets 683 (32) 566

29

HAIG HOUSING TRUST (A company limited by guarantee) Notes to the financial statements

26. Statement of Financial Activities – Comparatives

Note
Income from:
Donations and legacies
4
Charitable activities
5
Profit on sale of assets
Investments
Other income
Total income and
endowments
Expenditure on:
Raising funds
Charitable activities
6
Total expenditure
Net gains/(losses) on
investments
Net movement in
funds before other
recognised gains
Actuarial gains/(losses)
on defined benefit
pension schemes
Transfers between
funds
Net movement in
funds
Reconciliation of
funds:
Total funds brought
forward
Net movement in funds
Total funds carried
forward		 Endowment
funds
2021
£000
-
-
-
-
-



Restricted
funds
2021
£000
-
230
-
7
-		 Unrestricted
funds
2021
£000

7

10,546

15,982

53

12		 Total
funds
2021
£000

7

10,776

15,982

60

12
 Total
funds
2020
£000

60

10,334

1,778

89

15
-
237
26,600
26,837		 12,276
-
14		 325
54

9,86


54

10,219
40

9,935
14

_____325
9,934
______10,273

581
 9,975
-
35


546
(154)
(14)
(53)
17,212
17,145		 2,147

-
-
-
(13)

(250)

13


(250)

-
386

-
(14)

(66)
16,975
16,895		 2,533

581
(14)
20,104
(66)


53,337

16,975


74,022

16,895

71,489

2,533
567 20,038
70,312
90,917		 74,022

The Statement of Financial Activities includes all gains and losses recognised in the year.

30