LAINGLEY HOUSETRUST NNUAL REPO ND CONSOLI FINANCIAL STATEMENTS ED For the 12 months ended 31st March 2022 lèngleyhouletiLiSLW CortlpAtyNo..078 Charity440.U46304 INVESTORS. IN PE()PLE NATIONAL HOUSING ORS 01)LE FEDERATION Finalist
Key Individuals PATRONS EXECUTIVE DIRECTORS Chief ExKullv• The Rt Rev. arid Rt Hon. the Lord William5 of Oystermouth The Lord Ramsbotham GCB CBE Tracy Wild MA Bsc (Hon51. Pgc. CIH Corporthte S¢Nl¢u Dlr¢clor David Wm, Reynolds FCMA, CGMA luntil 31st December 20211 DlrKtor of People Olukemi Jeboda, Chartered FCIPD. MBA MS (appointed from Isl March 20221 DlY¢¢t•r ot firkince and Bu$ln•M S•rvlces Simon Herbert ACA (appointed from 1st April. 20221 Corporat• Op•r•tlons Dlrector Chris Metcalfe Cèipornte Dlr•cl•r-Qu•llty •nd Compl1•• Stella Wint Natlonal Chapl•ln Rev. Andy Rider MA, BTH Mr Jonathan Aitken AMBASSADORS Ademola Oshodi Prolessor Chris Lewis FELLOWS Mrs Elfrida Calvocoressi SRN, SCM Mr Colin Honey Mr Anthony Howlett-Bolton BA (Honsl. FCMI. FSYI Mr David Lane MrTony Pearson CBE. BA (Honsl, DPSA TRUSTEE BOARD MEMBERS. Chalr COMPANY SECRETARY David Wm. Reynold5 FCMI CGMA luntil 31st October 20211 Richard Floy 8Sc, FCCA Ifrom 1st November 2021 to 3tst March 20221 Simon Herbert ACA (from 1st April 20221 Malcolm Hayes BSC (Honsl F.1. Chem.E, FCII. C.Eng. c.dip A.F (until Ilth June 20221 Ruth Williams R.N. DipN (Lonl. Msc (from 12th June 20221 Wic• Ch4lr ID•vdopmentl Ruth William5 R.N. DipN (Lonl. MSC (until Ilth June 20221 REGISTERED OFFICE 3-4 The Square, Manfteld Avenue. Coventry. CV2 20J Oth•rTru$t••s REGISTERED NUMBERS Andrew Newell MBA, FCIB Registered Company number.. 07888191 Philip Hilton. MA Icantabl PhD (until 21st October 20211 Registered Charity number, 1146304 Michael Maiden BA, DMS Registered Social Housing Provider number., 4693 Sandra Keene CBE, BSC. DSW, CQSW Amanda Coyle MSC, MBrt TksA Stephen CooperACIB Stephen L3wes BA. ACA Folasade Odupelu PGDip. MCIPD. Msc Linda Faith Trew PGDip, CIOF Icertl PRINCIPAL ADVISORS Ext•rn•l StatOry Audltors- Crowe U.IL LLP 4th Floor. St Jame5 House, St James. Square, Cheltenham, GL50 3PR B•nk•rs Bank of kotland, 33 Old Broad Street, London, BX2 ILB Co-opted Members ol lh• Bo•rd Lynn Weston BA IHonsl (from 26th January, 20221 Richard Montgomery MBA. Bsc (from 26th January. 20221 Soll¢ltors Blake Morgan. Seacourt Tower West Way, Oxford. OX2 OFB Langley Hwse Tru5t- AnThL Report 2021 2022
Contents Chair's review Strategic report Our partners & funders 15 Board's responsibility Statement 22 Trustees, report 23 Independent auditors, report to the members of Langley House Trust 30 Statement of comprehensive income 33 Statement of financial position 34 Statement of changes in reserves 35 Cash flow statement 36 Notes to the financial statements 37 TheTrustees are Diieciois and Members of the Company within the meaning of the Comp8nEs Act. The Executive Directors are neither Directors nor Members of the Ctsftw3ny under the definityon ol the Companies Act. Langky House Trust Annual Report 2021- 2022
Chair's Review As I look back over the past year at Langley I am struck by both the extent of change our staff and clients have endured and at the other extreme. the considerable aspects of our work and the way in which we deliver services that have remained unchanged. Independent Approved Premises IIAP) which we are delivering on behalf of Her Majesty's Prison and Probation Service IHMPPSI. For HMPPS this represents the first new male AP in over 30 years and l am absolutely delighted that the delivery sits within Langley House Trust. Change has been thrust upon us at every turn by the pandemic and at times weekly adjustments to government guidance which has had an enormous impact on our people. Delivering safe services has continued to mark us out as different to many in this sector and once again l am in awe of the calibre of our staff here at Langley. Qur people are resilient and fiercely committed to caring for our clients, whether in care services, supported housing or through the provision of finance. benefit and debt as well as accommodation advice. Clients who find themselves being looked after by a Langley member of staff cannot help but notice the difference and l am proud to say that the outcomes we deliver demonstrate the effectiveness of that care as well. There is a lot of confidence in Langley and as I reach the end of my tenure as Chair of the Board of Trustees in June thi5 year l am proud to be handing over the reins at such a time as this.. it is a time where Strategic partners are engaging strongly with us and where we need more bed spaces for care client5 because we are oversubscribed. Our ongoing response to the pandemic has been consistent and remarkable, and l am confident. as is the Board, that we have learned how to navigate our way through the rise and fall of Covid. which may well continue for some time yet. Our staff are adaptable and continue to take responsibility for their own safety and that of their colleague5 and clients- l am immensely grateful. Our values remain at the heart of Langley. are part of our legacy and keep us anchored to what matters most. We have developed a stronger. clearer voice in the Equality, Diversity. and Inclusion space, which is valued by clients and staff alike, and well supported by our Communications and Chaplaincy teams. I have seen examples of real organisational culture being developed and championed by Langley this year, through our engagement with staff, the online carol service and a greater presence on social media. Within our services too I can see evidence of clients and staff being offered opportunities to learn about and reflect on range of EDI topics as well as faith-based matters. all of which help them to grow. Thi5 past year has seen changes to the way we have structured our executive team as we have introduced the People Directorate and Chaplaincy Directorate. recognising the need to respond to these growth areas within our business and ensure appropriate leadership within these specialisms. We have expanded our reach with the introduction of our Shaw Trust partnership across 7 activity hubs. where linance. benefit and debt services and accommodation advice are delivered within easy reach of the client. We have made the decision to purchase a new care home and ring-fenced the money to do so. and we have opened our doors at Box Tree Cottage to the provision of a new service. an LanoLey House Trust- Annual Report 2021- 2022
l am committed to seeing Langley continue to improve as an employer of choice and the opportunity to be re- assessed for Investor5 in People Gold this year is testimony to the strength of our organisation. Langley continues to feature as finalist in a range of extemal awards and our staff survey. probably the most important benchmark of all, gave us good feedback last year. l am delighted to be assuming the reins as Chair of Langley House Trust's Board of Trustees. This Annual Report shows the good health of our organisation. and l am thrilled to be leading Langley House Trust and Kainos as we come out of the restrictions of the pandemic. I look forward to building on the strength of all that is described in this Annual Report. and appreciate the experienced team I have around me. There is so much to be thankful for and I am deeply grateful to God for His favour and kindness to this organisation. As we continue to genuinely put Him at the heart of it. l am confident Langley will thrive and continue to have all that it needs to serve the clients who need our support and care for many years to come. Ruth Williams Chair of the Board (from Ilth June, 20221 13th July 2022 Malcolm Hayes Chair of the Board luntil Ilth June. 20221 13th July 2022 rus Anntsal
Strategic Report ABoirr us Langley House Trust is an innovative Christian charity that provides specialist housing, programmes and support services in the community for offenders seeking to live crime-free. Since 1958 we have earned an enviable reputation for reducing offending with proven results. MAPPA IMulti-Agency Public Protection Arrangements). OVERARCHING VISION Our vision is of a crime-free society where no-one is unfairly disadvantaged or excluded because of their past. MISSION STATEMENT The mission statement for Langley House Trust was last reviewed in 2018119 to ensure it continues to be relevant. It states.. 'As a Christian organisation we support people. who have offended. or are at risk of offending. $0 they reintegrate into society. live crime- f ree and thrive.. The Trust seeks to use its faith base (which is centred on Christ and His teachings) to the advantage of clients. not by proselytising them, but by having a living ethos where all individuals are seen as of worth and capable of change. A5 a Christian charity we seek to support and care for clients. helping them to reach their full potential and become positive contributors to society. Langley House Trust will always see accommodation as a core part of its offer to the Criminal Justice Sector. We know that without suitable accommodation no other rehabilitative intervention stacks up. Ensuring people leaving prison have a suitable place to live is key to Seeing them be able to live crime-free lives in the future. Langley House Trust is the parent company to two subsidiaries that complement its work and contribute to its overall mission. These are- Kainos Community- which delivers a Ministry of Justice accredited programme called Challenge to Change. currently delivered at HMP Lancaster Farms. The accommodation we provide to those. who have offended or who are at risk of offending. is located in 21 geographical locations in both urban and rural settings. The accommodation includes hostels. dispersed supported housing. registered care homes and dispersed accommodation with extra care provision. During 2021122 we worked with Her Majesty's Prison and Probation Service IHMPPSI to secure a contract to provide accommodation and support through an Independent Approved Premises IIAPI, which opened in April 2022. Clean Sheet- which offers people with convictions the hope of a better fijture by finding sustainable employment. Langley House Trust worked with 653 clients who needed accommodation during 2021122 and has a reconviction rate of less than 3/ for those in our housing. We work with adult men and women 118+1, who have offended or who are at risk of offending. We are skilled in working with those deemed 'hard to place and those with complex needs.This includes individuals. who are subject to Our housing support services enable people to maintain a tenancy. develop their skills to budget, access and manage support for addictions and mental health issues. engage Langley House TIu51- Annual Report 2021- 2022
with key community seNices le.g. GPS and advocacy services). access education and develop their employability skills. environment in which participants live 24 hours a day. seven days a week for six months. The programme is based on the principles of forgiveness. accountability and restoration, challenging participants to examine their thinking. attitudes and behaviour in order to live crime-free on release. Our residential care and extra-care services provide high levels of support for people with complex mental and physical care needs,. offering one-to-one support, 2417 staff supervision, specialist psychiatric and psychological support for mental health issues and the development of independent living skills where required. Covid presented a number of challenges to the delivery of Challenge to Change, including lockdown and participants, self-isolation periods to manage positive cases. Despite these obstacles. the team successfully engaged 40 participants and saw 5 graduate during 2021-22. Our registered care homes provide placements for individuals coming from medium secure units, who require step- down services and are under mental health sections le.g. section 41 or section 1171. Each placement is individually assessed to ensure that individuals receive the correct care and support they require, which is responsive to changing needs. CLEAN SHEET Clean Sheet became part of The Langley Group in 2019 and its aim is to help people with convictions Itheir Members) to fi'nd employment. thereby creating social change and a safer society. They do this by ADVICE AND REHABILITATION IN PRISON providing a tailored employment support We provide targeted advice in 18 prisons service. working with Clean Sheet Members addressing key issues relating to housing. for as long as it takes for them to find work. debt. finance. benefits. gambling and In 2021122. Clean Sheet helped over 280 reintegration into the community for long- Member5 to find employment or training. sentenced prisoners. a 40/0 increase on the previous financial year. This was no small feat particularly as the country was still recovering from the Covid-19 pandemic. ADVICE AND REHABILITATION IN THE COMMUNITY This year saw the extension of accommodation and debt advice services through 7 national Activity Hubs as we were successful in our bid to deliver work on behalf of Shaw Trust. Clean Sheet delivers its work collaboratively. accepting referrals from organisations in the community supporting people with convictions and working in partnership with businesses to look beyond the stereotype and consider applications based on merit skills and experience. KAINOS COMMUNITY Through Kainos Community we deliver Challenge to Change. an accredited prison wing community programme. Challenge to Change incorporates cognitive behaviour therapy and a therapeutic community Clean Sheet's funding comes from a range of sources.. investment from Langley House Trust Group. prisons, community partnerships. Langley House Trust Annuèl Report 2021 2022
grant funding, employers contributions and supporter donations. with education and training providers, voluntary organisations. businesses and faith groups to provide volunteering. education. training and employment opportunities for our clients. We are committed to working in partnership to maximise resources. share good practice and ensure best possible outCQTnes are achieved. LANGLEY HOUSETRUST APPROACH Our approach is pragmatic, responsive and tsilored to each person that we work with. At the heart of our approach is the belief that people can change regardless of their history. Consequently we have a track record of success in working with people. who have previously failed in other placements. R•sponsiv¢ to client input- creating ownership and autonomy. Our National Consultative Group provides a forum for clients to meet with senior staff and Trustees. The National Consultative Group meets three times a year and agendas include reviewing policies and procedures and discussing topical subjects that affect their everyday lives. We have a range of formal and informal feedback options including an annual satisfaction survey. comment cards and client forums Iregional and nationall. All formal feedback is monitored and used to improve services at a local and national level. Although we engage clients in Kain05 Community. the prison- based clients have limited abilities to engage outside of their programme team. Our approach is: P•rson-centred - with a focus on recovery and independence. Care and support is shaped around the distinct needs and aspiration5 of each person. We support people to live as independently as possible. develop living and financial skills. access training, education and employment opportunities and participate in local community life. Respedful of privacy and dlgnity- we take the privacy and dignity of our clients seriously. We empower people to rnake their own choices wherever possible. Risk-management focus•d- our risk assessments and risk management plans are comprehensive and responsive to changing risks and needs. We work in close partnership with stakeholders involved in the supervision of clients including the National Probation Service. Safeguarding is of primary importance and we have comprehensive policies and procedures in place in relation to both the safeguarding of vulnerable adults and children. Focused on Equality. Diverslty and Inclusion- our Equality and Diversity Policy covers all nine of the protected characteristics recognised by the Equality Act 2010. During the year we have developed an Equality, Diversity and Inclusion IEDII calendar, approved by our Steering Group. and strengthened the Group's focus on the strands of our E,D & I framework. drawing attention to particular themes each month. GROUP PERFORMANCE Langley House Trust'5 Registered Care Bed spaces remained static during 2021122 at 100. As planned. the Supported Committed to partnershlp working in addition to working with statutory agencies to manage risk. we also work Lan9ley House Trust- AnnLoI ReporE 2021- 2022
Housing bed spaces remained at 408 for the majority of the year. with planned reductions being phased in towards the end of 2021122, this enabled the transition of Box Tree Cottage into an IAP, and improvements to Ihe quality of our offer at Tekoa. to its lowest paid staff. with its highest paid executives receiving no uplifts This decision was in the context of those lowest paid colleagues being more likely to be hit hardest through the predicted and real rises in costs of living. Langley House Trust has a resilient team of colleagues. and this has been shown by the way teams have continued to deliver vital services. going the extra mile to see clients. lives changed for the better. Since 2017 income has also grown by £4.Om132.5/.1 and net assets have grown by 21.5/ to £1.7m. REOFFENDING RATE OF OUR CLIEKrs The reconviction rate for clients of the Trust whilst with us rernained within the target of 3/. This is one of the lowest reconviction rates in the country, enabling men and women to live crime-free. CARE QUALITY COMMISSION (CQCI Due to the pandemic the Care Quality Commission changed its approach to inspections. As a result. we have not had any full inspections. Three services, Chatterton Hey. The Shrubbery and Ashdene have undergone Direct Monitoring Approach meetings. There were no concerns raised and no actions required following these meetings. COVID-19 AND POST-PANDEMIC LANDSCAPE During 2021 and 2022 the covid pandemic still affected service delivery with outbreaks occurring at a local and national level. The previously formed Covid taskforce continued to meet and coordinate the Group s response to ensure colleagues and clients remain safe, and sufficient staff were available to deliver our key services. ACHIEVEMENTS DURING 2021122 New HR database and self-service sy$tem Elementsuite was selected as being the most suitable HR software system that would allow our people to manage their own profiles as well as enabling managers to oversee recruitment, absences. rotas etc. It is equally accessible on laptops, mobiles (through an application) as well as on tablets. This will allow colleagues and managers to easily manage key aspects of HR. The levels of sickness due to covid and other associated issues has been challenging. In addition, the post pandemic landscape is one where core costs are rising at a higher rate than contract payments. Additionally, across all sectors there are signifi-cant recruitment challenges in being able to recruit and retain staff. This has led Langley House Trust to become more innovative in its approach to recruitment using social media. local churches. and universities to attract potential candidates. Awards In 2021122 we were proud to be shortlisted for two Charity Times Awards, namely 'Charity of the Year, and 'HR Management,. Launch of Independent Approved Premise 2021122 saw us commissioned by Her Majesty's Prisons and Probation Service IHMPPSI to deliver a new service from In considering its pay award for 2022-23, Langley House Trust made the decision not to go for an uplift across its entire staff group but to target higher uplifts Langley House frust- Annual Report 2021- 2022
April 2022. in the form of an Independent Approved Premise IIAPI. HMPPS had not opened a new AP for over 30 years so we were delighted to be able to re-roll our existing provision in Bradford and after consultation with key strategic partners. make Head of Chaplaincy provision and alterations to the property to In August 2021 we welcomed Penny Maginn meet the requirements for an AP. to our newly created Head of Chaplaincy role,. in a short space of time this has already enabled us to properly support our chaptains and to develop the role in client-facing services. two more care frameworks in Bradford and in Kent. This allows the Trust to have agreed funding for care referrals from these geographical areas. Launch of Shaw Trust Contract During 2021122 Langley House Trust launched a new specialist advice service for prisoners and ex-offenders as part of CFO Activity Hubs. which was contracted by the Shaw Trust. This advice is being delivered from Activity Hubs. situated in Birmingham, Stoke-on-Trent. Wolverhampton, Leicester, Nottingham. Peterborough. and Norwich. Its key aims were to.. Penny has previously worked as 3 parish priest in the Church of England and more recently as a Prison Chaplain. Executive Team Structure During 2021122 we made the decision to split our Corporate Services Directorate into two Actively engage with participants who may specialist directorates. overseeing 'People' have complex or multiple barriers within and 'Finance and Business Services.. a one-to-one and group setting and are unlikely to benefit from other services Support a participant journey led by the participant to encourage sustained engagement and therefore progression Developing an individual'5 life skills. communication. and self-worth in preparation for the next steps on their journey, 5ignF)OSting to other provision as appropriate Reduce and remove barriers to community reintegration Director of Peopl• The creation of a new role. Director of People, has brought Olukemi Jeboda to the executive team from 1st March 2022. The new Director of People role sees the Trust bring together the oversight of all its people. including staff and volunteers. This new role will help us achieve our ambition of seeing our people be the best version5 of themselves at work and being equipped and skilled to deliver high quality life changing work to our clients. This service is already a great success. and it works alongside our other similar contracted Olukemi is an experienced HR professional services. The Trust has seen numerous who has worked in a variety of sectors positive outcomes from clients using the and will bring a wealth of knowledge and services. which help them to manage and experience to the Trust. For the last 13 years deal with substantial outstanding debt. she has worked at the Hyde Group. a G15 allowing them to make positive choice5 Ori housing association with approximately their release from Prison. 1100 employees and more than 105,000 customers. She sits on the Boards of Thames Reach Charity and Thames Reach Housing and is also a non-magistrate member of the Judicial Office Advisory Committee. Securing Car• Fram•work$ During the year Langley House Trust successfully applied to become part of io Langley House Tru51-Annual Repgrt 2021- 2022
DirKtor ol Finance and Business Servl¢es This role has been remodelled to focus more on the sustainability of the Trust. Simon Herbertjoined the Trust as Director of Finance and Business services on 1st April 2022. Simon was previously a director with Samaritan's Purse and prior to that worked for G4S where he gained experience working within the Justice sector. Langley House Trust is in a strong financial position. but it Is keen to steward its resources well. ensuring we leave a solid legacy for generations to come and that resources are used to deliver and develop our missional and life changing services. Online Staff Conferences and Carol Servicei Despite the pandemic curtailing 50me large gatherings the Trust successfully held staff conferences live and online during 2021122. Running 6 half-day repeated conferences online. we saw 260 staff engage and the feedback was very positive as people recognised the benefits of coming 'togetherf, albeit virtually. For the second year running the Trust also delivered a successful pre-recorded carol service. The carol service visited a couple of services and included client testimonies and local staff contribution,. again. much positive feedback was received from staff and clients alike. Management D•v•lopment Programme During 2021122 we celebrated our third set of graduates completing our in-house, accredited programme which invests in developing leaders. Many previous graduates have gone on to new roles or testified in the personal benefits of the course. Meeting rnonthly over the year allows learning to be applied and not simply acquired,. follow up after the course includes personal coaching. Focus Groups This year saw the launch of staff focus groups,. these allowed staff to sign up to give the Trust feedback across a number of key areas which had been highlighted through the annual staff survey. This process of following through has allowed rich information to be fed into decision making and the development of an action plan to capture and prioritise actions to be taken forward from these focus groups. During 2022 we intend for the focus groups to be extended to clients as well as staff and they will be repeated on a regular basis, becoming an important rhythm for the Trust. Staff Recognition The Trust has continued to review its approach to staff recognition in response to feedback through our annual staff survey. Having reviewed and relaunched our approach to staff awards we developed a video to support the communication of this to staff. and more broadly formalised our approach to staff recognition within one document. The Trust has already seen this newly revised approach bear fruit, in that the staff awards (which will be celebrated at our People Conferences in June) attracted 60 nominations. which is a huge increase from previous years. New Operational Quality Committee A new operational quality comrnittee has been launched. This allows for governance to be strengthened around operational quality. IS027001 We achieved certification of this accredited status in May 2021. IS027001 certification offers assurance to stakeholders and clients that the organisation rnanages the security of their information well. Langley House Trust. Ann1 Report 2021 2022
R¢palYs Programme During 2021122 a new software system has been introduced to manage the reporting and outcomes of property repairs across the Trust. This new system will help us to more consistently report the feedback from staff and clients on the qualrty and tirneliness of repairs. 3. Whilst remaining relevant and missional. continue to increase levels of quality and efficiency in the delivery of services 4. Continue to increase financial and staff capacity to enable more sustainable effective delivery of the Trust's mission 5. Be a partner organisation of choice to both commissioners and referrers. Quallty software Systsm During 2021122 a new software system was introduced to track key quality performance indicators at a service level. This software system has also coordinated and allowed incidents to be reported. The quality System is already a55i5ting in the tracking of trends which help the organisation to target actions not only at a local level but also nationally. The Group has considered the principal risks and uncertainties to the Group and has addressed these within the Trustees Report Irefer to page 261. The Group has several strategie5 that identify sufficient resources to improve its seNices and prioritise its improvement plan, ensuring that Langley House Tru5L Kainos Community and Clean Sheet remain partners of choice within the sectors in which they operate. The Group has reviewed the risks to its business in the light of the Coronavirus pandemic and looked to eliminate. mitigate, or acknowledge these risks. GROWTH DURING 2021122 As a business we continued to grow in all domain5: our income increased by 3.7/ during 2021122, despite this sector being a very challenging environment to expand in during the panolemic. We extended our reach into new services as already described and saw 12.9/< growth within our staffi'ng. We have continued to maintain and develop a Christian ethos that provides an environment which will stimulate growth in our clients and our people Istaff and volunteers). It is anticipated that the Langley House Trust Group will continue to grow and develop new services.. the clients for whom it will provide new services will include offenders and those at risk of offending in the following groups- Complex needs Elderly offenders (including end of life care and those with long-term health conditionsl Mental health issues (including enduring condition51 Learning disabilities Women High risk of harm clients BUSINESS GROWTH ASPIRATIONS FOR 2022123 The Group s strategic objectives are to.. Maintain and develop a Christian ethos that provides an environment which will stimulate growth in our clients and our people Istaff and volunteers) 2. Continue to grow and develop both the capacity and models we offer the justice sector. within the community and in prison The growth priorities continue to be-. 12 LaryJW Hwse Trusi-Annual Report 2021- 2022
Car• As the care bed capacity in the Trust fills completely, it is important that the Trust seek5 to grow and develop more potential to house those with care need5 Wlthin the Trust. In the context of this. the Trust is actively seeking a building to deliver care from in a new geographical location. Buslness Aspirations for 2022123 Our business aspirations include.. Investors in People fllp) reaccreditation The Trust currently has I IP gold status and during 2022 it is scheduled to be re- evaluated. Since the last assessment in 2019 the Trust has worked on a number of areas to support our people such as: Support•d Housing A range of supported housing solutions will always remain a core offer from the Trust and it is important that we not only replace any attrition in supported housing beds. but also look to grow and develop in sustainable ways. Also, we intend to purchase more properties in Rochdale to allow Tekoa House to offer a model of single room occupancy going forward. Developing a more formaL clearly defined approach to recognition.. Engaging staff feedback in more creative ways. Continuing to develop our understanding and outworking of ethos and values.. Justlce The Trust will continue to offer vital services to the Justice Sector and will continue to work closely with HMPPS to ensure we are relevant and continue to be a partner of choice. Communicating with our people in more consistent ways. especially when contact between colleagues was more challenging during the pandemic. Cyber Essentials and Cyber Essentiats Plus The Trust is planning to become accredited with Cyber Essentials then moving to the higher level of accreditation of Cyber Essential Plus. This is in recognition of the challenges that cyber security brings and the accreditation will give the organisation further assurance that it is managing its information technology and systems infrastructure well. Meryers and Acqulsltlons The Group remains interested in further mergers and acquisitions. The key factors on deciding the appropriateness of such alliance5 include the organisation's work being in harmony with the Group s mission. the proposition adding value and the venture being financially viable. Futur• Prospects The Group has shown itself to be resilient and adaptable to a fast-changing market. However. the future still remains very uncertain.. this Annual Report is written against the backdrop of the global pandemic and only now are we beginning to See the effect of this and other global issues impacting on the economy and national priorities. Succession Planning The world of work is evolving and along with it. we have seen the competition for talent intensify. It has become apparent that the skills shortage experienced across all sectors in the UK will not be addressed by external recruitment alone. At Langley. in addition to our recruitment drive, we are focussing on developing our internal talent to fill leadership and business-critical roles required now and in the future. We will Longley House Tru51- Annual Report 2021- 2022
also ensure a clear alignment between our approach to talent management, our values. and our business plan in order to future- proof the organisation. Church Engagement The Trust plans to grow the area of church engagement. Currently recruiting and retaining staff is challenging and through church engagement the Trust hopes to add another avenue to attract potential staff applicants. Also. church engagement will develop awareness of our brand and increase the number of people who actively support the work of the Trust. Staff Benefit5 We are committed to ensuring that our people feel valued and to this end, we have commenced a review of how we reward and recognise our staff. We intend to develop an enhanced benefits package that supports our staff wellbeing and motivates them to reach their highest potential. We have also reviewed our approach to recognition and maintained our pay strategy even in the face of the challenging economy. FUNDRAISING The Group ran two fundraising campaigns.. one at Easter, supporting the installation of outside covered canopies to facilitate meeting areas for clients and their families and a Christmas appeal to raise money specifically for Tekoa House. Both campaigns were successfully received and raised vital funds for the Group. Property Review Ensuring properties we retain help us to meet missional objectives is important. We are committed to securing higher levels of ownership of resettlement properties so that we invest in their infrastructure. ensuing they are to a good standard. This also allows more affordable and sustainable rents and service charges to be applied. THANKS Langley House Trust, Kainos Community and Clean Sheet have a number of loyal supporters. who generously support the work of the Group. We are so grateful for their ongoing support. This support allows the Group to invest in new growth and new initiatives, which in turn improve the lives of our clients. Environmental strategy The Trust intends to review its environmental strategy. measure its carbon footprint and intentionally work to become carbon neutral. It also is looking to acquire and develop its stock to EHC level C. We are extremely grateful for all those. who have generously supported our work - individuals, churches. charitable fou ndations and businesses. Their support has been invaluable in helping to sustain and enhance the services we provide in a time especially throughout the pandemic when resources and demands were increased. Quality and Mock Inspections Much work is planned during 2022123 on developing a regular rhythm of internal mock inspections to complement both external CQC visits and visits through internal auditors. This will allow u5 to develop and grow the practices within our registered care services. learning from issues identified. The importance of having these funding streams cannot be underestimated - through these we are able to respond to local needs and to be more flexible in our support approach. This enhances our core services and makes a significant difference between managing a problem and transforming someone's life for the future. 14 L8ngley House Trust Annual Rewrt 2021. 2022
We are thankful to all the volunteers. who support Langley House Trust, Kainos Community and Clean Sheet for the value they add to our work and the difference it makes to the lives of our clients. We would also like to thank our staff. who are committed to changing the lives of those we work with and who often go the extra mile to ensure our work makes a difference. The Trustees also acknowledge with gratitude those partner organisations from whom we lease property including: BPHA, Cheltenham Borough Council, Coventry City Council, the Methodist Church in Great Britain, Milnrow Propertie5. MHS Homes. Places for People and Your Housing. FUNDERS The Trustees thank all of those, who have funded initiatives in the year. We would particularly like to thank-. The Caron Trust The Hanley Trust119871 The Norman Evershed Trust The David Pickford Charitable Foundation The Velnoweth Good Champions Trust OUR PARTNERS The Group is grateful to colleagues in partner agencies and organisations including Homes England (previously the Homes and Communities Agencyl, The Ministry of Justice, Her Majesty s Prison and Probation Service Community Rehabilitation Companies. Supporting People Teams, social Services, the Police. National Health Service INHSI Trusts, Integrated Offender Management Teams. Police and Crime Commissioners and all those that work alongside us to help people to live crime-free. LEGACY We would like to especially thank the families of the following people, who kindly left a legacy in support of our work. These gifts are gratefully received and the individuals will be remembered in building a better future for our clients and the growth of the Group. The late Edwin John Bird The late Ruth E Wren Their legacy lives on through all we do in helping individuals live crime free lives. Lo[eY Hovse Trust . Annu31 ReporT 2021. 2022 15
FINANCIAL REVIEW The Trust reported an Operating Deficit of £35k in 202112212020121.surplus £778kl. The Trust's policy is to write off all set-up costs at the point of a unit becoming available for occupancy. A summary of the Trust's five year financial performance is as follows.. Year Income Operating Costs £'ooo 11,924 12,646 13,156 14.734 16.119 Operating Surplus l (deficit £'ooo 174 13471 274 778 135.01 Operating Surplus l (deficit) £'ooo 12.098 12.299 13,430 15,512 16.084 2017118 2018119 2019120 2020121 2021122 L4 12.81 10.21 These figure5 have been prepared uréer FRS 102. OPERATING INCOME 2021-22 0.7% 1.3°A C¥• and $pot fvndlng £7.Sm146.7XI Social housing iettiThJs É5Am13L5%1 3LS% Mlnlstry of Justlce £1.6m19.9%1 Contract income £Llm16.fAI Supportlng people Incorne £O.Sm (3.2%1 Voluntary income £O.Im10.7%1 3.2% 9.9% Other charltable a¢tlvltle5 £0.2m U.5%1 16 Langley HoLe Tru5t- Annual Rept 2021- 2022
OPERATING EXPENDITURE 2021-22 i.o/ 3.2/ Care and spot lundrng £7Am145.7%1 So¢lal housSng lettlngs £5.4m133.5%1 ,9A% Ministry of Justice £L5m19.1%1 Contract Income £l.Om16.0%1 Supporting people Income £0.5m13.2 %) Voluntary Income £0.2m11.O%) Other charitable activities £0.Sm IIA5%1 The income of £16.Im (Group £16.3ml reflects growth across a number of revenue streams. To be certain of effective application of funds. the Trust evaluates its cost base by using various fi'nancial costing models. The impact of these cost Models. monitoring of the cost base and continual reviews of systems and processes can be observed in the two graphs below: The Trust continues to review services on a project- by-project basis to ensure that delivery is in line with expectations and reflects the funding provided. Net rental income increased by E169k and care and spot funding income increased by £281k Labour Cost per Unlt per Year Totsl Operatlng Cost per Unlt per Year S.QDD a4.0 io(w 33.0 1g.OJQ 18.( ai.o 10.0 29.g 17.rrtlD 15.Ll 1S,C*JO 16.0 25.0 X116 2017 2019 2010 21 2021 3)16 2017 ZQL9 ioz Z021 Ltngley House Tru5t- Annual Report 2021_ 2022 17
After allowing for interest received, movement on investments and any disposal of fixed assets. the surplus on ordinary activities in the year was £60k12020121'. surplus £977kl. VALUE FOR MONEY (Vfm) Our Approach to Vfm As a charity and recipient of funding from both local and national govemment bodies. the Trust recognises that it is accountable to its supporters. funders. clients and staff for the money it receives. The Group is committed to making sure it gets the best value for the money it spends and actively takes steps to identify and implement improvements. which will reduce costs. remove waste and add value for its Stakeholders. The Group figures also include a full twelve months trading results for the Trust's subsidiary companies. Kainos Community and Clean Sheet. Capital expenditure of £547k12020121- £76kl was spent on the Trust's housing properties, in improving the existing stock. In accordance with the accounting standards the components that were replaced have been removed from the value of the Group's fi'xed assets. The strategy within the Group is to ensure a cuItLJre where Vfm is integral to business delivery with clients. central to decisions made and outcomes achieved. The Group spent £95k (2020121: E201kl on other capital equipment. The Group has a robust framework for measuring. evidencing and improving Vf M activity and fostering a culture of empowering continuous improvement. The Group's value chain approach of economy. efficiency and effectiveness demonstrates the culture for improving the effi'ciency of its processes and evidencing value for money to clients. regulators. funders and other stakeholders. The Group generated a cash inflow from operating activities of £298k12020121'. £1.951kl KEY PERFORMANCE INDICATORS IKPlsl The Board used 20 KPIS to monitor the delivery of the Trust's strategic objectives. The range of KPIS included indicators of.. utilisation. reconviction. client engagement Iservicesl. client engagement Iprisonsl, staff performance and financial performance. The KPI performance report is a standard item that 15 reviewed by the Board. It looks to brin9 added value through the de'verY of services, which increase opportunities for education, volunteering and employment. The Trust internally monitors how many clients offend whilst resident with the Trust. For the year 2021122 the reconviction rate for those in our housing was within the target figure of 3/. This indicates that the Trust's approach is continuing to bring successful outcomes. Steps Taken to Deliver Vfm The Group's Vfm Awards were launched in 2016 and recognise innovation and cost savings within local teams. Staff and volunteers across the Group have been kept updated on Vfm activities and initiatives through internal communications and clients have been kept updated through the National Consultative Group and their Client Representatives. Organisational Vfm targets have been rolled out to each department and performance against these targets Is monitored by the Board as part of the Group s KPI reporting format. LarKJW House Trust- Annual Report 2021- 2022
Vfm Champions from across the Group meet to share good practice. receive training and identify. evaluate and prioritise Vfm opportunities for the Group. The Group has continued to review and improve many of its core processes. year direction of three of the six applicable RSH metrics. Specific remarks on the RSH'S metrics are". l. Re-investment. is the acquisition and repairs and maintenance costs. plus expenditure on works to existing owned properties divided by the value of the properties owned by the or9ani5ation. The table in 4.1 shows that in 2021122 the Group s investment in properties increased to 5.2/ lup from 0.8/D in 20201211. As lockdown restrictions eased more work on existing properties was able to be undertaken during the year. Vfm Performance During th• Y•ar The difficulty of the Regulator applying seven metrics across the housing sector in a generic 'one size fits all" approach to a provider the size of Langley House Trust is that you can lose the true value and achievement of purpose. The table above indicates a mixed outcome for the Trust with some metrics moving in a positive year on year direction whilst others have moved backwards. Nevertheless. the headline for Langley House Trust is that during the year 202112022 we were able to have an impact on the 653 clients that we engaged with1202012021 - 686 clients). 2. N•w suppty- the Regulator expects providers to report on both the supply of social and non-social housing units. It will calculate new supply from the total number of housing units acquired in the reporting period divided by the total number of units held at the end of that period. The number of new or replacement units taken on within the year amounts to 13 units compared to 10 in 2021122. It is important to note that government guidance during COVID imposed restrictions on the movement of clients land the public in generall within the 2020121 client numbers above. 3. Gearlng- this metric is designed to assess the provider's reliance on debt and appetite for growth. It divides the total owed in loans and finance leases by the cost or deemed cost andlor valuation of housing properties and would therefore not be applicable to the Group. Furtherrnore. Langley House Trust maintained the reconviction rate of less than 3/. for those in our housing. We work with adult men and women 118+1, who have offended or who are at risk of offending. We are skilled in working with those deemed 'hard to place. and those with complex needs. This includes individuals, who are subject to MAPPA IMulti-Agency Public Protection Arrangements). 4. Earnings Before Interest. Tax. Depreclation. Amortisation. Major Repairs Included (EBITDA MRI) overall surplus lor deficit), plus other income received, less grants and capitalised repairs, plus total depreciation charge divided by the total capitalised interest in housing properties and interest payable and other financing The 3.7/ growth in income IEO.6ml, application of the Group's Value for Money approach, driving the operating margin and ROCE have resulted in the positive year on Langley House Trust- Annual Report 2021- 2022 19
Year 2021122 2020121 2019120 2018119 2017118 Direction of Travel l. Reinvestment 5.2°A 0.8% 2.3Y. 5.2% 6.4% 2A. New Supply (Social HoLJsingl 2.1% 6.1% 13.8% 2B. New Supply Non-social Housing) o.o/. 0.0% 0.0% 5. Headline Social Housing Cost per Unlt EIO.578 É10.429 £9.689 £9,016 £9.183 6A. Operating Margin (Social Housingl 16.4%) 171%) 16.9%1 17.9%) U8%1 6B. Operating Margin Ioveralll 5.0Y. 2.0% 1.4% 7. Return on Capital Employed IROCEI 10.31 6.4°A 6.2% 3.3% costs. Designed to assess investment capacity by measuring surplus against a provider's interest payments, it would not currently apply to the Group. 6. Operating maryin - designed to assess the profitability of operating asset5 before exceptional expenses are taken into account and to give the Regulator an indication of overall value for money performance. The Regulator has proposed two measures: operating margin for social housing lettings calculated by dividing the operating surplus lor delicitl for social housing lettings by the turnover from social housing lettings only and operating margin overall. calculated by dividing the overall Surplus lor deficit) by overall turnover. The slightly improved operating margin for social housing reflects the ongoing focus in this area. The Group's overall operating margin decreased by 5.2/0 in 202U22 to10.2/1. 5. Headline social housing cost per unit an amalgamation of management. service charge. maintenance and repair costs, including capitalised major repairs and other related social housing expenditure such as neighbourhood and community Costs divided by the total number of social housing units at the end of the reporting period. The increase to the cost base for social housing reflects the cost pressures in this area coupled with the additional costs arising from the continued decision from the Business Plan to raise the quality of our housing stock far above that of the decent homes standard. 7. Return on Capltal Employed (ROCE) - a common measure used in commercial business, the Regulator suggests that this metric will demonstrate the level of efficient investment of resources. Calculated by dividing the overall 20 Langley House Trust- Annual Report 2021- 2022
surplus lor deficit), the income from anyjoint venture partnerships and any gain or loss from the disposal of housing properties by the provider's total assets, less its liabilities. Expenditure increases arising from the ending of COVID-19 restrictions and returning to re-lockdown activity levels in addition to labour challenges leading to increased agency usage to cover sickness absence and vacancies produced a decrease in Return on Capital Employed from 6.4/ to a deficit of 0.3/. The impact on the Trust's accounts of these estimates for the year ended 31st March 2022 is as follows.. Description Expenditure Incom• £485k Depreciation Grant amortisation £83k MATERIAL ESTIMATES. CONTROL AND JUDGMENTS The preparation of the financial statements requires management to makeJudgement5. estimates and assumptions that affect the amount5 reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However, the nature of estimation mean5 that actual outcomes could differ from those estimates. Bad debt expense £250k POST BALANCE SHEET EVENTS It has been agreed by the Trustees that the Trust will integrate one of its subsidiaries, Kainos Community. after the year-end. It is intended that the merger contract will be completed by September 2022, and the trade and assets of Kainos Community will be acquired by Langley House Trust, and Kainos Community will cease trading. The Principal Accounting Policies set out the Key Judgement Areas within Note 2. The main judgement areas that have had the most significant effect on the Trust's accounts are.. a. Depreciation and amortisation provisions relating to fixed a55et accounting. which are based on estimated useful economic lives of individual assets and apportionment of costs between components of composite assets b. Provision for bad debts. which are based on specific balances and past experience of bad debts Langley House TIust- Annual Report 2021- 2022 21
Board's Responsibility Statement The Board 15 responsible for preparing the Tru5tees' Strategic Report and the financial statements in accordance with applicable law and regulations. The Companies Act 2006 and registered social housing legislation require the Board to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the Group and the Trust and of the income and expenditure for that period. In preparing these financial statements the Board is required to.. Select suitable accounting policies and then apply them consistently Observe the methods and principles in the Housing SORP 2018 IFRS 1021 Make judgements and estimates that are reasonable and prudent State whether applicable accounting standards have been followed. subject to any material departures disclosed and explained in the financial statement Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the association will continue in business The Board is responsible for keeping proper books of account. which disclose with reasonable accuracy at any time the financial position of the Trust and enable it to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England. The Board has general re5pon5ibility for taking such steps as are reasonably open to it to safeguard the assets of the Group and the Trust and to prevent and detect fraud and other irregularities. The Trustees. who held office at the date of approval of this Trustees. report confirm thaL so far as they are each aware. there is no relevant audit information of which the Trust's auditors are unaware. and each Trustee has taken all steps that they ought to have taken as a Trustee to make themselves aware of any relevant audit information and to establish that the Trust's auditors are aware of that information. The strategic report was approved by the Board or113th July 2022 and signed on its behalf by: Ruth Williams Chair of the Board (from Ilth June. 20221 13th July 2022 22 Langley House Trust- Annual Rewil 2021- 2022
Trustees. Report The Trustees present their report and accounts for the year ended 31st March 2022 STRUCTURE. GOVERNANCE AND MANAGEMENT Langley House Trust was first registered as a charity in September 1958. Trust. It seeks to support the Executive in a culture of mutual confidence and trust. During the year. two new Trustees were appointed following an open selection process based on relevant skills and knowledge. The charity is a company limited by guarantee, incorporated on 20th December 2012 and registered as a charity with the Charity Commission on 8th March 2012. The company was also registered with the Regulator of Social Housing on 1st March 2012 as a non-profit social housing landlord and was registered with the Financial Conduct Authority IFRN7163781 on 4th January 2016. In addition to the Board members, the Trust has a number of honorary roles. namely Patrons. Ambassadors and Fellows, who represent the Trust externally in different capacities. The Trust has an Audit. Risk & Compliance Committee, a People's Committee and a National Consultative Group. These Committees have clear terms of reference and report directly to the Board. The company was established under a Memorandum of Association. which established the objects and powers of the The Board delegates to the Chief Executive charitable company and is governed under full control over the operation of the Trust its Articles of Association. In the event of the within policy. The Chief Executive and other company being wound up. members are members of the Executive. titled Directors required to contribute an amount of no more and National Chaplain, attend meetings of than £1. the Board. The term -Directors' should not be construed as Directors under the Companies Act. It is the duty of the Chief Executive to further the mission of the Trust and to ensure that management is effi.cient. effective and runs in accordance with good business practice. The Trustees. who are also directors for the purpose of company law and who served during the year. are listed on page 3. Langley House Trust has a group structure the Kainos Community and Clean Sheet are both legal subsidiaries of the Trust. The Board determines the remuneration and The governing body is the Board, whose the conditions of employment of the staff. members are non-executive and unpaid. The The Board monitors and reviews the quality, Board ensures it maintains full and effective effectiveness and timeliness of information control over the charity through close provided by the Executive. The Board has monitoring and oversight of the Group's access to independent professional advice if business. necessary. The Board is responsible for major strategic decisions and has ultimate responsibility for the conduct and financial stability of the The Articles of Association allow the Trustees to deposit or invest its funds. The Board will secure expert advice, where necessary, before Langley House Trusi-AnnLO1 Reporr 2021- 2022 23
investing funds. In deciding where and how to invest its funds the Board will always consider suitability of the investment and the overall diversification of the funds it has already invested. The Board has approved a As of 31st March 2022, Langley House Trust Treasury Management Policy to assist with this had 278 employees, including temporary staff, area of responsibility. and excluding relief worker5. Of these. 77/ worked directly with clients. The Trust has The Board is content that the Trust complies increased its staffing by 12.9/0 over the past with the NHF Code of Governance 2020, in year. The Group places a lot of value on its the areas in which it applies to the Trust. Any people. and this is recognised in our Investors potential conflicts of interest are declared at In People Gold Award. every meeting. None are declared as existing at the date of this report. organisation. and they go above and beyond to deliver great services and care for our clients. The Group is reliant on the skill, knowledge. professionalism, and dedication of its employees. Our staff worked incredibly hard throughout the year to ensure that all our services carried on operating, and we continued to support our clients safely and in-line with Government guidelines. COMPLIANCE WITH THE GOVERNANCE AND VIABILITY STANDARD The Board is content that the Trust broadly complies with the NHF Code of Govemance 2020, in the areas in which it applies to the Trust. To fully apply the Code requirements on Board tenure would create unacceptable succession risks in the short to medium term. The Board commissioned an external Govemance review which will assist the Board in decision making about how best to transition to the new requirements. The Group recognises the valuable role volunteers play in assisting in the delivery of a high-quality service to clients. Volunteers provide valuable support in a range of different contexts and work alongside our staff enabling us to undertake value-added activities with clients. During 2021122 the The Board confirms compliance with all legal Trust appreciated the support 0177 volunteers and regulatory requirements for companies working across a range of roles. registered under the Companies Act 2006 and for charities registered under the Charities Act 2011. GENDER PAY GAP REPORTING The Group is committed to fair pay and in line with this. we published our Gender Pay OPERATIONAL INFRASTRUCTURE Gap Report during the year. The mean gender The Trust has the majority of its Central pay was 5/a representing higher mean hourly Service staff based in Coventry. This pay for males. The median gender pay gap of includes specialist staff in Housing. Propety. 8/0 represents higher median hourly pay for Referrals. Finance. Human Resources. IT and females. We have on90ing plans to monitor, Development. publish and create action plans for the gender pay each year so this continues to support our values within the Group. STAFF AND VOLUNTEERS Our People are at the centre of what we do at Langley. and we would not be able to achieve STATEMENT ON THE GROUP'S SYSTEM OF our mission without them. Many staff and INTERNAL CONTROL volunteersjoin the Group because they are The Board ha5 overall responsibility for committed to the mission and value5 of the establishing and maintaining the system 24 Langley House Twst-Annuèl Rewrt 2021. 2022
of internal control and reviewing its effectiveness. Trustees recognise that no system of internal control can provide absolute assurance against material misstatement or loss or eliminate all risk of failure to achieve business objectives. however, the system of internal control implemented by the Trust has been designed to manage key risks and provide reasonable assurance that planned business objectives and outcomes are achieved. It also exists to give reasonable a55urance to the Board regarding the preparation and reliability of financial and operational information and the safeguarding of the Trust's assets and interests. are discussed at each Audit. Risk & Compliance Committee meeting. 2. Envlronm¢nt and control procedures The Trustees retain responsibility for a delined range of issues covering strategic. operational, financial and compliance issues. The Trust's Articles of Association. policies and procedures cover issues such as delegated authority, segregation of duties, accounting, health and safety. data protection, fraud and whistleblowing. The Trust also has an extensive range of policies and procedures relating to the safe management of the client group with which it works to minimise the risk to clients. staff and the wider public. In meeting their responsibilities, the Trustees have adopted a risk-based approach to internal controls. which are embedded within the normal management and governance process. This approach includes the regular evaluation of the nature and extent of risks to which the Trust is exposed. The process adopted by the Trustees in reviewing the effectiveness of the system of internal control. together with some of the key elements of the control framework includes- The Trust also holds an Asset and Liability Register in line with regLJlatory requirements, which provides a collated view of the Trust's assets and contract liabilities. The integrity of the register is audited and reported to the Executive Team on a quarterly basis. 3. Information and financial reporting systems - The Trustees review and approve the annual budget and the 5 year financial plan for the Trust. Financial reporting procedures include detailed management account5 and forecasts, which are reviewed by the Executive Team and are presented to the full Board of Trustees monthly. The Board also reviews key performance indicators to assess progress towards the achievement of key business objectives. targets and outcomes at each Board meeting. l. Identification and •v•luation of key risk$- Management respon51bility has been clearly defined for the identification, evaluation and control of significant risks. There is a formal and on-going process of management review in each area of the Trust's activities. The Executive Team regularly considers signiftcant risks facing the Trust and the Chief Executive is responsible for reporting to the Trustees any significant changes affecting key risks. In accordance with the Group's Risk Management Policy. the Summary Risk Map is formally reviewed by the full Board at least once a year and the highest risks facing the Trust 4. Monitoring and corrective action - A process of regular management reporting on control issues provides assurance to senior management and to Trustee5. This includes ensuring that corrective action is taken in relation to any significant control issues. particularly Langley House TnJsi-Annual Repon 2021- 2022 25
those that may have a material impact on the financial statements and delivery of our seices. 5. The Prevention. Detection. R•portin9 and Recovery ol Financial Crlme and Fraud- The Trust takes fraud and other financial crime seriously. The Trust's Fraud and Prevention of Financial Crime Polices set out management responsibilities to ensure an adequate control system is in place to minimise the risk of fraud and other financial crime5 such a5 money kundering and to ensure a reasonable likelihood of early detection. These policies also state the procedure to be followed in the event of suspected fraud. money laundering or other financial crime, including reporting requirements and any subsequent action to be tsken for recovery. The internal control framework and the risk management process are subject to regular review by Internal Auditors, who advise the Executive Team and report to the Audit. Risk & Compliance Committee. A three year Internal Audit pian exists to assist in this process and is approved annually by the Audit, Risk & Compliance Committee. Progress against the plan is also monitored throughout the year and the Audit. Risk & Compliance Committee formally reviews the performance of the Internal and External Auditors once a year. The Audit, Risk & Compliance Committee considers internal control and risk at each of its meetings during the year. In addition to Internal Audit. the Executive receive assurance on the operation of intern31 controls through a self-assessment audit toolkit used by the managers of its various Projects. The Trust maintains a register of actual and attempted frauds and thefts. The contents of the register are reported annually to the Audit, Risk & Compliance Committee. During 2021-2022 there were no significant losses identified as a result of fraud. The Audit. Risk & Compliance Committee conducts an annual review of the effectiveness of the system of internal control and has tsken account of any changes needed to maintain the effectiveness of risk management and control proces5. The Audit, Risk & Compliance Committee reports on progress to each Board meeting and make5 an annual report to the Board of Trustees. In preparing its report. the Audit, Risk & Compliance Committee takes into account the various reports of the Internal and External Auditors. the Chief Executive's Annual Report on Internal ControL other reports from the Executive to the Audit, Risk & Compliance Committee and full Trustee Board and inspection reports from the Care Quality Commission. the Regulator of Social Housing and other regulatory bodies. The Trustees confirm that there is an on-going process for identifying and managing significant risks of fraud and other financial crime faced by the Trust. This process has been in place throughout the year under review. up to the date of the annual report and account5. and 15 regularly reviewed by the Audit. Risk & Compliance Committee. PRINCIPAL RISKS AND UNCERTAINTIES The Group's main sources of income come from various forms of government funding and grants. This means that the Group is therefore at risk from changes in policy in regards to funding and the strategic priorities given to the rehabilitation of offenders both at a national and local level by the government. Over the last few years there have been 26 Langley House Tru5t- Annual Report 202L- 2022
PARTNERSHIPS The Trust is well regarded by its partner agencies. It is commissioned by a range of public bodies, including the Ministry of Justice and Local Authorities. The Trust has also entered into a number of formal sub-contracting arrangements, which has enabled it to deliver targeted services in new and existing areas. The Trust holds regular meetings with all of its stakeholders to discuss progress, service delivery and to ensure targets are met. PUBLIC BENEFIT The Trustees confirm that they have complied with the duty in Section 17 of the Charities Act 2011 to have due regard to public benefit guidance published by the Charity Commission. Reducing reoffending benefits the whole population. The Trust's work is h'nanced through funding from local and central government and other public authorities. and through legacies, donations and grants. Resident5 contribute to their accommodation costs. but are entitled to claim Housing Benefit and other benefits to allow them to fi'nance their stay,. therefore those in poverty are not excluded from the opportunity to benefit from the Trust's services. We appreciate the confi'dence shown to us by those organisations, who have provided grant funding to ensure the Trust can flourish, evolve and develop new services. Some of these organi5ation5 have provided funding over several years. The Trustees, report was approved by the Board on 13th July 2022 and signed on its behalf by.. Ruth Williams Chair of the Board Ifrom Ilth June, 20221 13th July 2022 28 Langley House Trust- Annu81 Report 2021 2022
reductions in government funding due to The Group understands the vital role that the austerity measures implemented by the Equality, Diversity and Inclusion plays in government. The Group has sought to ensure creating an environment in which our all of its services are of a high quality and staff. volunteers and clients are able to relevant to commissioners. Over the last few reach their full potential. We appreciate year5. the Group has worked hard to diversify and celebrate difference and individuality. its income stream to mitigate the loss of any respecting everyone as being made in God's one funding stream.A number of the risks on image and having an intrinsic value, a view the Group's risk map relate to the continued strongly upheld by our Trustees and senior uncertainty around various funding streams. management team. The Group's risk map details the main business risks and identifies how the risks have been mitigated. The risk map identifies the significant risks, which the Board considers could have a material impact on the Group's business. There is no place for racism or any other form of discrimination within the Group. It is not just illegal but goes against all that we stand for as outlined in our values. Langley House Trust Group staff are asked to challenge any racist or discriminatory behaviour that they witness, experience, or hear about and then report it. The CEO'S commitment is to ensure all allegations are investigated and appropriate action taken. The risk map is regularly updated in the light of changing internal and external circumstances and it informs the business planning and decision-making process at a high level. This map is reviewed by the Executive Team and the Audit. Risk & Compliance Committeè at each meetin9. HEALTH AND SAFETY The Board and Langley House Trust's employees maintain a high level of attention to and awareness of Health and Safety acros5 the organisation. The Board. through the Audit, Risk & Compliance Comrrittee. receives regular reports in relation to Health and Safety and over the last few years has ensured it remains an area for Internal Auditors to validate. RESERVES The Trust's Reserves Policy has identified that a contingency equivalent to twelve weeks, operating expenditure (equating to £4.4ml needs to be maintained in order to cover identifiable and quantified risk and to allow the Trust sufficient time to be able to restructure its operations minimising the disruption to clients. The reserves at the end of March 2022 of E9.2m exceed this requirement and the Trust is compliant with thi5 policy. Regular internal Health and Safety audits have taken place during the reporting period alongside unannounced audits from an external health and safety professional. The fi'ndings lead to the creation and implementation of an action plan. Analysis of the Group's reserves is shown in the Statement of Changes in Reserves. QUALITY AND QUALITY MANAGEMENT The Corporate Director for Quality and Compliance is the lead officer for the Quality Strategy and regularly reports on performance to the Audit. Risk & Compliance Committee and to the Board. EQUALITY, DIVERSITY AND INCLUSION The Group's approach to Equality. Diversity nd Inclusion is set out in its Group Equality. Diversity and Inclusion Policy and included within Langley House Trust's activities. Lèngley House Tru5t- Annuèl Report202I- 2022 27
135, 268 BAME registered clients in 15 residential settings No. of clients with self- disclosed disability bed spaces available 1459 accommodation referrals received 1174 31 clients departed for re-offending reasons clients received our seplices in the last year 79/ Satisfaction reported by clients for staffing. key-working and the impact of this of clients surveyed would recommend the Trust's services to others Langley House Trusi- Annual Report 2021- 2022 29
Independent Auditor's Report to the Members of Langley House Trust Year ended 31 March 2022 Opinion We have audrted the finanelal statements of Langtey House Trust ('Ihe Trusf} and rts sub8idi8ries I'the group'} for th8 year ended 31 March 2022 which comprise the group and parent statement of comprehensive income, the group and parent statement of financial posf(ion, the group and parent statement of changes in reserves, the group cash flow statement and notes lo the financial stslemenls, including significant accounting policies. The financial reporting framework that has been applied in their preparatIC is applicable law an(1 United Kingdom Aeeounting Standards. including Financial R8POrting Standard 102 The Financial Reporting Standard applKable in the UK and Republic of Ireland (Uniled Kingdom Generally Acc£pted Accounting Prxtu}. In our opinion the financial slatemenl8'. gNe a true and fair view of the state of the group's and the Trust's affgirs as at 31 March 2022 and of the group's incoming resources and application of resources, including ils income and expenditure for the year then ended., have been pioperly prepared in accordance with United Kingdom Generally Accepted Accounting Pradice,. arbd have been prepared in accordance with the requirements of the Companies Act 2006. the Housing and Regeneration Act 2008 and the Aecounling Direction for Privale Registered Providers of SoGial Housing. Basis for opinlon We conducted our audr( in accordance Wbth International Standards on Audiling IUKI (ISAS IUK}) and applicable law. Our responsibilities undar those standards are further eribed in the Auditor's resFonsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial slalemenls in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilf(ies in accordance wrth these reqU1mentS. We believe that th8 audit èvmlence we have obtained is sufficient and apPrrIale lo provide a baBiS for our opinion. Conclusions relatlng to golng concern In auditing the financial stalemenls. we have concluded Ihat the trustee's u58 of the going Ccern basis of 8ccoiJnting in the preparation of the financial slalemenls is appropriate. Based on the vlork we have performed, we have not Klentifigj any material uncertainties relating lo events or condrtions that, individually or collectwely. may cast significant doubt on th? TrusY¥ or the group's ability to continue as a going concern for a Peri¢Jd ol at least tsvelve months frC wh8n the financial statements are aulhorised for is$u8. Our resFonsibilitwd 8nd the responsibilities of the trustee5 With respect to g)Ing concem we described in the relevant sections of this report. other Infomiatlon The trustees are reswnsibKg for the other infomiatKJn Contain within the annual report. The other infonnotion comprises the information included in the annual report. other than the financial statements and our auditor's report thereon. Our opinion on the finan¢L41 $L*ements does not cover the other infonnatKJn and, except to the extent otherwise explicf(ly slated in wr t. we do not eypress any fomi of assurance conclusion thereon. Our responsbility is to read the other information and, in doing so, consider whether the other information is malerialty inconsistent with the financial statements our knowledge obtained in the audit or olherwse appears lo be materially mi5$1aled. If we identrfy such material inconsistencies or appanI malerLal misstatements. we are required lo detemine whether ihis gives rise to a material misstatement in the financial ststemenls themselves. If, based on the work we have performed, we conclude that there is material misstatement of this other information, we are required lo reptri that fact. We have nothing to report in thig regard. 30 Langley House TTUSt- Annval Report 2021- 2022
Independent Auditor's Report to the Members of Langley House Trust Year ended 31 March 2022 Oplrblons on other matters prescribed by the Companles Act 2006 In our opinion based on the work undertaken in the course of our audtt the information given in thetruslees. report, which includes the director¥, report arKJ the strategic report prepared for the purpose$ of ¢ompany law, for the financial year forwhich the financial $tslements are prepared is consistent with the finan¢o1 $lalemenls- and the Strategic report and the directors, report included wrthin the trustees, rep)rt have en prepared in accordance wrth applicable tegal requirements. Matters on whlch we are required to report by exception In light of the knowledge and understanding of the group and the Trust and their environment obtained in the ¢ourse of the audit. we have not Idèntif material misstalemenls in the straegic report or the dIrtorS. report in¢luded wilhin the trustees. report. We have nothing lo report in respect of the followiNJ matters in reL91ion lo which the Companies Act 2006 requires us to report to you rf, in our opinion.. Ihe parent company has not kept adequate accounting wor(15- or the paient company financial statements are not in agreement with the auntIng ordS and returns., or cartain disclosures of trustees, remuneratDn specrfpd by law are not made; or we ha not receivèd all the infom)ation and explanations we require for our audrt. Responsibilities of trustees As explained more fully in th8 trustoes, re$pon$ibilrf(ies statement set out on page 22, Ihe Iruslges (who are also the directors of the Trust for the purposes of company law) are responsible for the preparation of the financial slaternents and for being satisfied that they gNe a true and fair view, 8nd for such internal control as the trustees detemiine is necessary to enable the pParatIon of financial slalemenls that are free frc¥n material misstatement, whether due to fraud or error. In prepaTing the financial statements. the trustees are responslble for assessing the Trusys ability to continue as a going concern, disclosing, as applicable, matters relatwj to going concern a1 using the going concem basis of accounting unless the trustees eith8r int8nd to liquidate the Trust or to ceas& operalions, or hav8 no realistic allemative bul lo do so. Audltor's responsibilities for the audlt of the flnancial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a ¥thole are free fr¢Jm material misstatement, whether due to fraud or error, and to issue an auditor's rewt that iludeS our opinion. Reasonab assurance 15 a high level of assurance. but 18 not a guarantee that an audit Conducted in accordance with ISAS IUKI will always delect a material misstatement when il exists. Misstatements ean arise fiom fraud or error and are considored material rf, individually or in the aggregate, they could reasonably be expe¢led lo infiuence the economic decisions of us8rs taken on the basis of these financial statemenls. Details of the extent lo which the audit was considered capable of detecting irregularities. including fraud and non-compliance with laws and regulations are sel out below. A further description of our r@sponsibilrti for the audit of the financkgl slalements is localed on the Financral Reporting Council's website al- www.frc.or .uklauditorsr ilrties. This description forms part of our audilorf$ report. Extent to which the audft was considered capable of detecting Irregularltles. In¢ludlng fraud Irregularities, including fraud. are instance5 of non-compliance with laws and regulations. We tdentified and assessed the risks of material misstatement of the financial sl*ements from irregularities, whether due lo fraud or error, and discussed these btheen our audr( team members. We then desHJned and performed audr( procedures responsive to those risks. induding obtaining audit evidence sufficient and appropriate lo provide a basis for our opinion. Langley HcMJse Tru5t- Annual Report 2021 2022 31
Independent Auditor's Report to the Members of Langley House Trust Year ended 31 March 2022
We obtained an understanding of the legal and regulatory frameworks within which the Trust and group 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, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing, together with the Housing SORP. 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 Trust's and the group's ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the Trust and the group for fraud. The laws and regulations we considered in this context for the UK operations were the Regulator of Social Housing regulations, CQC Regulations for service providers and managers, employment legislation and taxation 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 income, and the override of controls by management Our audit procedures to respond to these risks included enquiries of management and the Audit, Risk & Compliance Committee about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, designing audit procedures over the timing of income, reviewing accounting estimates for biases, reviewing internal audit reports, reviewing regulatory correspondence 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 non-compliance and cannot be expected to detect non compliance with all laws and regulations.
Use of our report
This report is made solely to the Trust's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Trust'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 Trust and the Trust's members as a body, for our audit work, for this report, or for the opinions we have formed.
Guy Biggin
Senior Statutory Auditor
For and on behalf of
Crowe U.K. LLP
Statutory Auditor Fourth Floor St James House St James' Square Cheltenham GL50 3PR
Date: 17 October 2022
Langley House Trust - Annual Report 2021 - 2022
32
Langley House Trust Statement of Comprehensive Income For the Year Ended 31 March 2022
| Notes Turnover 3 Cost of sales Gross profit Operating expenditure 3 Other income Gain on disposal of propery, plant and 7 equipment Operating surplus 3 Movement in fair value of investments 15 Interest receivable and other income 8 Surplus before tax Taxation Surplus for the year after tax Total comprehensive income for the year |
Group 2022 £000 16,320 16,320 (16,298) 22 66 29 117 117 117 |
LHT 2022 £000 16,084 16,084 (16,119) (35) 66 29 60 60 60 |
Group 2021 £000 15,754 15,754 (14,884) 6 876 159 34 1,069 1,069 1,069 |
LHT 2021 £000 15,512 |
|
|---|---|---|---|---|---|
| 15,512 (14,734) 6 |
|||||
| 784 159 34 977 |
|||||
| 977 | |||||
| 977 |
The financial statements were approved and authorised for issue by the Board on 13 July 2022 and were signed n its behalf by:
Ruth Williams Chair of the Board Board Member
Simon Herbert Secretary
The notes on pages 37 to 55 form an integral part of these accounts
33
Langley House Trust - Annual Report 2021- 2022
Langley House Trust Statement of Financial Position For the Year Ended 31 March 2022 Group 2022 £000 LHT 2022 £000 Group 2021 LHT 2021 £tJOO Note FIXED ASSETS Housing properties Other fixed a55els Inv8Stments Total flxod ass•ts 13 14 15 6,361 6.361 30S 1.003 7.670 6,147 367 937 7,451 6,147 367 937 7.457 1,003 7,670 CURRENT ASSETS Debtors Cash in haTrJ and at bank Total GuTfent a550ts 16 1,726 1.725 1.496 1,486 .7A47 7.036 7,532 T, 149 Less Creditors: amounts falling due wi(hin one year Net current assets 17 2,722 4,725 2,690 4,345 4.946 4,623 Total assets less current liabllltles 12.395 12.015 12,397 12,074 CrgJitor8." amounts falling due after more than one year Provlslons for Ilabllltles and charges Other Provisions 18 2,842 2,842 2,925 2,925 19 36 36 Total net assets R¢serve5 Restricted feserves Revenue re8etve8 Tolol ¢apitsl & rns•rves 15 9.421 9,436 15 9.098 9.548 9.168 9.173 The fina1?1 stslements were approved and authorised foi issue by the Board on and were sDed.On ils behalf by.. 4M Ruth Williams ewell Simon Herbert Chalrofthe Board Board Member Registered Company numb8r.' 7888191 The notes on page5 37 to 55 fom an integral part of these &counts. 34 LOngY House Trv5t-Annual Report 2D21- 2022
Langley House Trust Statement of Changes in Reserves For the Year Ended 31 March 2022 GROUP Income and expendlture reselve Rostri¢ted reserve8 T¢)tsl £000 £000 Balance as at 31 March 2020 Surplus for the year Transfers frcffl restrted erVeS Balance as at 31 March 2021 Surplus for the year Transfer$ frcth reStrted reserves 8,285 1,069 67 9.421 117 10 8,367 1,069 167} 15 9.436 117 110) BalanG& as at 31 March 2022 LHT Income and gxponditure re5•N• Restrlcted reseNes £000 82 Total £000 8,136 977 Balance a5 al 31 March 202Q Surplus for the year Transfers from restricted reserves Balanco as at 31 March 2021 Surplus for the year Transfers from restrict reserves 8.054 977 {67} 15 9.098 60 10 9.113 60 {10} Balance as at 31 March 2022 Thfr notes on pages 37 to 55 form an inlegral part of thes8 accounts. Langley HcNJ5e Trust Annual Report 2021- 2022 35
Langley House Trust Cash Flow Statement For the Year Ended 31 March 2022 GROUP 2022 £000 2021 ea$h from operatlng actl¥lile8 298 7,951 Cash flow from investing •ctlvltle8 Purchase of housing properties Purchase of other fixed assets Proceeds of sale of ¢xher fixed assets Proceeds of sale of invesknents 1547) 1951 (T6) (201) (121) Cash flow from flnanclng athities Interest re1 29 Net thange In cash equlvalent 13151 1.864 Cash and cash 4ui¥alents at beglnnlng of the yoar 6.036 4,172 Cxh and cash equlvalents at tho •nd of thè year 5.721 6.036 2022 £000 2021 Note i - reconciliation of n81 cash flow from operating activities Surplus for the year Depreciation of tangible re1 a8set8 Amortisation of Grants Los51lProfrtl on disposal of asset Other non cash changes Interest received (Decrease}Ilncrease in provisicffis {IncreasellDecwse in debtors Increase in creditors Not inflow from operatlng activities 1.069 491 (83) f6) (159) 134) (64) 183) 66) (29} (36) {2301 136 298 673 1.951 rhg notes on pages 37 to 55 fom integral part of these financial statements. 56 Langley House Trust- Annual Report 2021. 2022
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 LEGAL STATUS LangY House Trust is registered in England and Wales as a Company Limited by Guarantee (No. 78881911, as a charity with the Charty Commission (No. 11463041 and as a ScLial Housing Provider with the Regulator of Swk?l Housing INo.46931 as defined by the Housing and Regeneration Act 2008. The wistered office is 3 & 4 The Square, Mansfield Avenue, Walsgrave. Coventy, CV2 2QJ. PFNcIPAL ACCOUNTING POLICIES The Group's financial statements have been prepad in accordance wfih applicable United lfjngdom Accounting Generalty Accepted Accounting Practice (UK GAAP} and the Statement of Recommended Practice for registered housing providers.. Housing SORP 2018. Basis of accountlng The fi'nanu'al ¥latemenl$ comply with the Housing and Regeneratn Act 2008 and the Accounting Difection for Private Registered ProvJ8rs of Social Housing. The accounts are prepared on the hi$torieal cost basis of accounting as rwdrfied by Gurrent asset invesknenls held al valuation and are presented in slorfing £. The Group's financial statements have been prepared in compliance with FRS 102. As a public benefit entlty, Langley House Trust has applied the public benefrt entity'PBE' prefixed paragraphs of FRS 102. In prep8ring the separe firAncial statements of the parent company. advantage has tren taken of the folbwing disclosure exemptions available in FRS102.. No cash flow slatem8nt has been presented for the parent company, Di$¢losure$ in pect of the parent companls financial instruments have not been presented as equivalent disc105ures have been provided in respect of the group as a whole, 8nd No disckjsure has boen given forthe aggregate Temuneration of the key maneMent personnel of the parent company as their remuneration is included in the totals for the group 88 a whole. Basls of consolld•tion The consolidaled financial statemènts of Langley House Trust incorporates the financial statement$ of Kainos Community 8nd Clean Sheet under the acquisition accoLtnting basis- see note 23 for more details. On the 1st August 2013 the Micorporated Langley House Trust became the sole corporate trustee of Langley House Trust Icharty number 290059) which transferred ts activf(ie5 to the incorporated Langley House Trust. Going concem The Group's financial stslemenls have been prepared on a going concern basis which assumes an ability to ntinUe operating for the f¢resb future. No Significant concems have been noted and v consider il appropriate to continue to Ppare the financial statements on a going certern basls. Langley House Trust- Annual Rep(>rt 2021- 2022 57
Langley House Trust Notes to the Financlal Statements Year ended 31 March 2022 Tumovor Tumover comprises rental inccffio, Servi charge income. income from contracts with $latutory bodi8S, including Supporting People Block ntrlS and care fe8 income, Ministry of Justice contract, other revenue grants and income from the sale of other goods and services. Such income is recorded in the accounts as it becomes receiva)16. The lumover of the Trust also 1ndude518gI8$, donations, gTFt5 and other inccffle. the accounting treatment of which is Includ in separ aOuntIng policies. Supporting P•ople Income and expendlture The TnAst operates a numb8r of Supporting People Block contrxts. The income from these conlrxt5 is reccgnised in the Statement of Comprehensive In¢ome in the year in which il is receivable and expenditure charged to it li accordance wflh the matching conGept. Lega¢loS Leg&i8s are crediled as income where the legacy ha8 been received or rf, before receipt, where there was $uffi¢ient evidence to provide the necessary c&rtainty that the acy w¢uld be received and its value known with sufficient reliabilty. Donatlons gifts and other incomo Donations, gifts and other irKome are credited as income in the year in which they were receivable. Oporating laa8è9 Amounts due under operaiing leases are charged to the income and expendrturo account as incurred. Pensions Contributions mode by the Trust into pension schemes on behalf of wnployees are recognised wthin operating costs in the inwme expendilure account for the pericJ to whith il relates. Employee 8eneffts A liability is recogni$ed to the extent of any employee benefits including unused holiday pay entitlement Nthich has accrued at the balance sheet date and Carri forward lo future periods. This is measured at the Und1sUnIed cost to the èmployees of the future holiday entitlement and accrued at the statement of financial posrtion dale. Taxation Parts of the group charge value added IVATI on some of its income arbd is ab lo recover part of the VAT il incurs on expenditure. Incomo is shown in the accounts nel of any VAT ¢har9e(S. Expenditure 18 shown in the accounts inclusive of VAT less thè value of any VAT recoverable from HM Revenu8 and Customs. The balance of any VAT payab or rE0verable is inclLMded as a Current liabilty or asset in the Statement of Financial Positiefi. 38 Langley House Ttust- Annual Report 2021- 2022
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 Fix•d ass•ts Valuatlon of houslng propertles The Trust operates many of lis services from propertie$ il either owns or leases in which living accommodation 1$ plovided for clients. Housing properties are included in the accounts at cost less depreciation, unless impairment has occurred or the properties have been transferred fr another Registered Provider or charty. A h)using propety comprises of several components with substsntially drfferent useful 8conomic lives. Each major component is accounted for separately and depreciated ovei its iThJividual useful economi¢ lrfe as set out in the Fixed Assets section above. Land is treated as a separate asset and Th)t depreciated. The G05t of a¢quiring land and buildings. includirvJ profeSSk)nal faes, ar develepmant costs are included in the costs. Deprnciatlon and Impalmienl of flxed assets. Including housing properties Freehold land Is not depreciated. Depreciation on all other a$sets Is Calculated to write off the cost of fixed assets on 8 Straight line basis over their estimated useful economic lives. Fixed assets ar8 depreciated on a straight line basis by equal instalments over their useful economic lives at the following annual rates.. Freehold properties (excluding landl.. Useful oeonomi¢ Ilfe Depmclatlon rate 2° 5% 4% 5% 40 Pitche(I mfs Flat roofs Windows and extemal d¢or$ Healing Electral Bathroom8 Kitchens Lifts Structure Plant and equipment Computers Motor hl¢le$ 50 years 20 years 25 years 20 years 25 years 25 years 20 years 10 years 50 years 5 years 4 years 4 years 5% 100 20 20% 250 25% Leasehold properties are depreclated by equal instalments over the lrfe of the lease or their eslimaled useful economic life IF shorter. The carrying values of tangible assets are reviewed for impaimient where events or changes in clrcumslances indicate that the Carrying values may not be recoverable. Works to existing housing propertles Expenditure which resuws in an anhaneemenl of the econom benefits d a property, the creation of a new property component or the replaeement of a component that has been treated separately for depreciation purposes 15 capitalised. In all other instances expenditu on existing properties is charged Langley House Trust Annual Report 2021- 2022 39
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 to the income and expendrture a¢eounl. This includes expendf(ure incurred to ensure that th8 property can maintain its expected level of nel rental income or the standard of performance anti¢ipated when the asset was first acquired or constructed or last r¢pl?¢ed. An enhancement of the economic benefits means an incwse in Ihe rental stream, a reduction in future maintenance costs or a signffjcant exiension of the lrfe of the property. Soclal Houslng and Govarnm8nt Grants (SHG) Where developments have been financed wholly or partly by social housing and other grants, the amount of the gronl weived has been included as deferred income and recognised in Turnovor over the estimaied useful life of the assockqte(l asset structure Inol land}, under the accruals model. SHG received for i(ems of cost written off in the Statemonl of Comprehensive Income Account is includ8d as part of Turnover. SHG must be recycled by the Group under certain condrtions, rf a propety is sold, or If another relevant event lakes place. In these casgs, th8 SHG Can be used for projects approved by the Homes England. However, SHG may have lo be repaid if certain conditions are not met. If grant is not r8quired to be r&ycled or repaid. any unamortised grant is recognised as Turnover. In certain circumstances, SHG may be repayable, and, in that event. is a subordinated unsecured repayable debt. Non4nonetsry governmfrnt grants On disposal assets for whKh non-mnalary government grants a held as liabilities in the Ststem8nt of Financial Position. the unamrtised amount in credrtors is ¢Jerenised ond re¢ognised as income in the Statement of Comprehensive Income. Investments Inveslmenls are stated at rnaet value. The Investments held have been classified as fixed asset investments as the Group intends lo hold them on a continuing bask%, are re-measured te market value al each stslement of financi81 position date. Gains and losses on re-rreasurement are re¢ognised in the Statement of Comprehensive Income for the perth. Provlslons The use of provisions is restncted to situations whgrg a liabilty exists, fcf example arising under a contract. but where there is some uncertainty as lo the timing of the amount of the expenditure or the identity of the credrtor. RestrScted re8•r¥es Grants and donations received whith have restrictions as to their use are included in reslTiCted reserves. The value of the reserve shown in the balance sheet is shown net of any transfer8 to the general revenue reserve in respect of expenditure lo be financed by the restrK*ed reserve. 40 Langley House Trusk- Annu41 Report 2021- 2022
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 Revenu8 r980rvos Due to the ever changing nature of policy, fvnding streams and risk. Trustees are of the vKgW tha not every risk and impact can be envisaged. The Trusfs reseD/es policy has idenlrfied that a contingency equwaknt lo Iwelve weeks. operating expenditure needs to be maintained in order to Covgr identifiable and quantified risk and to allow the Trust suffiaenl time to be abk to rastructure ils operations minimising the disnJptK)n to Clients. Flnanclal Instruments held by th8 Group are ¢lasslfled as fdlows: Financral instruments which meet the criteria of a basic financial instrument a$ defined In Seclion 11 of FRS 102 accounted for at amortised hislciic cost. Non-basic financial instruments are recognised al fair value using a v81uation technique with any gains or108ses reported in surplus or deficit. The Group has no non-basic financial instruments at the year end. Judgements and key sources of e8tlmatlon uncortalnty The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounls reported for assets and liabilities as al the balance sheet d81e and the amounts reported for revenLtes and expenses dufing the year. However, t nature of eslimalion means that xtual outcomes could differ from those eslimales. The following judgement5 {apart from those involving ests'mates} hav8 had the most signrficant effect on amounts recognised in the financial statemen al Calegorisation of housing propertles: The Trust has undertaken a detailed review of the intended use of all housing properties. In determining the intended use, the Trust has considered If the asset is held for social benefit or to earn ¢crfnmer¢i81 rentsls. bl Impaimient.. The Trust has identified a cash generating unit for impairment assessment purposes * a propety scheme level. Consid&ralion has been given and no impaim7ent has arisen a$ a result of the continu8d impact of COVID 19. Other key sources of e5tlmatlon and assumptions: Tangible flxed assets Tangible fued assets are depreciated over their useful lives lakir#J into aeeount resldual values, where appropriate. The actual lives of the a558ts and residual values are as$8S50d annually and may vary depending on a number of factors. In reassessiny asset lives, factors such as technological innovation. produ¢1 lrfe cycles and m8inlenance prc•Jrammes are taken into account. Residual value assessments consKler issues such as future marftet conditions, the remaining Ilfe of the 8sset and prdecled disposal values. Rfjcoverablllty of rent arrearn The Tnjst make an estimate of the recoverable value of rent arrears based ¢Jn factors including the ageing profile of the rental debtors in addi(ion to historical experience of dIk10S in recovering rent arrears for clients that have moved on from our services. Langley House Trusi- Annuèl RepoTt 2021- 2022 41
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 PARTICULARS OF TURNOVER, OPERATING COSTS AND OPERATING.SURPLUS I (DEFICIT> 2022 Opèrating Gainlllossl costs on dl$posal of property, plant and equipment £000 GROUP Turnover Operatlng Surplusl (dellcit) £000 5,072 £000 5,395 £000 (3231 Soclal Houslng LgttingslNote Sl Other social houslng actlvltles Supporting People 519 517 Actlvities otherthan soclal Houslng Care and spot funding Ministry of Just Other govemment contracts Voluntsry Income Prison ServKes Other Income for generating fijnds Galn on disposal of property¥ plant and equlpment 7,482 1,585 1,083 135 188 219 37 7,365 1,467 117 118 117 117} 53 1681 13 152 135 2T7 24 16.320 16,298 22 2022 Operatlng Galnl{lossl costs on disposal of property, plant and ¢qulpment £000 LHT Turnov•r Oporatlng Surplusl (deficit) £000 5,072 £000 5,395 £000 13231 sla1 Housing LottingslNota S) Other social housing actlvlties Supporting People 519 517 Activities oth8r than social Housing Care and spot funding Ministry of Justic& Other government Contr18 Voluntary Ineome other Income for generating funds Galn on dlsPO8al of property. plant and equipment 7.482 1.585 1.083 111 195 37 7.365 1.467 966 152 233 24 117 118 117 (411 (38) 13 42 Lan9ley House Iiust- Annual Report 2021- 2022
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 3. PARTICULARS OF TURNOVER, OPERATING COSTS AND OPERATING .SURPLUS I IDEFICIT} 2021 Tumover Operating Gain/{lossJ OpeTrting costs SuuS/ (delrt) GROUP disposal of pmperty, plant8nd equipment £000 (340) Social Housing LettingslNote 61 Other soclal houslng activiti8S Supporting People 4,791 a131 512 505 Aetlvltles other than social Houslng Care and spot funding Ministry of Justi Other govemmenl contract$ Voluntary Income Prin Services Other Income for generating funds Galnl{lossl on dlsposal of property¥ plant and •quipment 7,313 1,426 865 3T2 155 282 38 6, 735 1, 156 785 128 101 324 19 578 270 (42) 79 75. 754 14,884 876 2021 Tumover Operating Gain/(lossJ Opet3ting Ca8ts Sury)lus/ (deficit) dispasal of pmpety, planl and equipment Soclal HouslDg Lettlng8(Not& 5} Oth0r social housing actlvltle8 Supporting People 4,791 5,131 (340) 512 505 Actlvltles other than soclal Houslng Care and Spot funding Ministry of Justice Other government contracts Voluntsry Income other Income for generating funds Galnllloss} on disposal of prowrty. plant and equlpment 7,313 1,426 865 316 251 38 6,736 1,157 786 128 272 19 577 269 188 (21) 19 75.512 14, 734 784 Langley House'frus-. Anth1 Report 2021- 2022 43
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 4. UNITSIBED SPACES - GROUP Social Housing Lettin Other Soclal Housln Total Supported Housln Care Homes Reglstered Care Bed5 General Need5 Soclal Houslng At 31 March 2022 90 480 At 31 March 2021 390 90 2022 2021 Non-social Housing Under management al start of year Under management at end of ye8r rhe Trust also owns 43 units12021.' 43 units) of accommodation managed by a third party. As the rights and Jbligalions of the scheme have been transferred to iha managing organisalion, these units are Trgt included in these a¢counts. Langley House Trust- Annual Report 2021- 2022
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 5. TURNOVER AND OPERATING EXPENDITURE Supported hou¥ing 2022 £000 Care Homes 2022 £000 GROUP AND LHT TOTAL 2022 £000 TOTAL 2021 £000 INCOME Rents receivable Service income Arnortised governmnt grants 2,544 2,377 6S 2.578 2N12 82 35 17 2.24S 82 Tumover from Social Housing Lattingg 4,986 5,072 4,791 EXPENDITURe Management Services Routine maintenanc8 Planned maintenance Bad debts DeprlatIOn of Hou$ng Propertie8 2.331 2,169 393 42 41 2,372 2.195 2.268 332 133 203 201 186 195 187 Operating costs on Soclal Houslng Lattlngs 87 5.395 OPERATING IDEFICITI ISURPLUS ON SOCIAL HOUSING LErriNGS ACTIVITIES 322 23 Void losses Langley Hou5e'fTV5t- Annual Report 2021- 2022
Langley House Trusl Notes to the Financial Statements Year ended 31 March 2022 6. OPERATING SURPLUS Group 2022 £000 330 LHT 2022 £000 330 Group 2021 £000 338 LHT 2021 £coo 338 Is slated aft chargingllcrediting).. DaPrlatIOn of housing properties Depr6latIOn of other tangible fixed assets 1&8 153 Operating lease rentals.. Land and buildings Office equipment 477 477 519 519 Auditors remuneration (excluding VAT) In their capacty as external auditors 19 15 18 14 Other fees 12 12 Surplus on Sale of other fixed 85sets (6) {6) 7. SURPLUS ON DISPOSAL OF FIXED AssErs Group 2022 £000 LHT 2022 Group 2021 £000 LHT 2021 Proceeds of sales Carrying value of fixed assets di$posed of during the year SURPLUS ON DISPOSAL 46 Langky House Trust- Annu41 Reporti 2021 2022
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 8. lfEREST RECEIVABLE AND OTHER INCOME Group 2022 £000 27 LHT 2022 £000 27 Gmup 2021 LHT 2021 £000 29 Dwidends received on invesknenls Bank int8r8St TOTAL 29 29 29 34 9. EMPLOYEE INFORMATION Group 2022 LHT 2022 Group 2021 LHT 2021 The 8veT8ge number of staff employed during the year, expressed as full lime equNalents. li.e. 35 hours Fer weekl was.. 292 281 260 249 Group 2022 £000 7.041 LHT 2022 £000 6,767 624 300 83 7,TT4 Group 2021 LHT 2021 £000 6,035 557 265 76 6.933 Stsff Wages and salaries Social security costs Other pensK)n costs Other Empk)yee benefrts TOTAL 6.300 577 275 76 7,228 312 83 8.080 During the year ended 31 March 2022, the Trust made severance and redundaney payments of £12k 12021.. £nil}. The number of staff whose emoluments plus taxable beneffi15 amounted to over £60,OIXI during the year vlas as follcws.. Group 2022 LHT 2022 Group 2021 LHT 2021 £60,000- £70,000 £70,000- £80,000 £80,000- £90.000 £100,000- £110,000 £11o.OC- £120,1XJO Langley House Trusi Annual Reporr 202L- 2022 47
Langley House Trust Notes to the Financial Ststements Year ended 31 March 2022 10 PENSION OBLIGATIONS The Trust contributes to 8 group personal (defined contributffil pension scheme for those qu81ifying employees who have chosen to icin the scheme. The Trust has no legal or ¢struCtive obligation to pay further contributions if the pension provider does not have sufficient assets lo pay all benefts relating lo employees. service in current and pri periods. Individual members benefrts are detemiined by reference to contributions paid into the schane in spect of Ihat member. The cost of the pension scheme is equal to the contributions payable to the scheme forlhe 8ccounling period. The cost is rwnised within operating costs in income aNJ expenditure account for the peri¢xl lo which it relates. 11 DIRECTORS, EMOLUMEKrs No emoluments were paid to Company Dirlor8 in 2022 Of 2021 by the Tntst. They do receive reimbursement of ressary expenses incurred on behal of the Tnjst. In 2022 relmbursement of Directors. expenses lotalled £0.4k {2021.. £3k). Group 2022 £000 LHT 2022 £000 Gtvup 2021 LHT 202t The aggregate emduments paid to or receivable by nonoxecutive Directcrfs and fOner non- execlrtive dirlorS The aggregate emolumenl$ paid lo senior officers, including salary, employefs pension contributions and benefits-in-kind 387 335 335 The emoluments paid lo highest pa officer (Chief Executive), including benefils-in-kind bul excluding employerfs pension conlnbutions 112 112 106 106 The Chief Executive was the highest paid officer and is an ordinary member of the pension scheme. The pension scheme is a group persongl (defined contribution) pension $¢heme funded by the empl¢)yer, with voluntary contributions payable by the employee. No enhanced ot speckql terms apply lo the Chief Executive and there are no additsonal pension arfangemenls. Directors (key managemonl personngll are dofined as mgmbers of the Board, the Chief Executive and any other person who is a member of the Senior Management Team or its equivalent. 48 Langley Ffouse Trust- Annual Reporr 2021- 2022
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 12 TAXATION STATUS HM Revenue & Customs accepts that Langley House Trust is a charity for tax purposes. Tr Trust's taxable tumover falk below that required for VAT registration. The Trust has not elected to be taxed. 13 TANGIBLE FIXED ASSETS - HOUSING PROPERTIES GROUP AND LHT Under Completed Construction £000 Totsl £000 COSTNALUATION At 1 April 2021 Additions 10,029 70 10,099 547 70 547 Transfers Disp¢)sals At 31 March 2022 (701 36 DEPRECIATION At 1 April 2021 Charge for year Eliminated on Disposals At 31 MarGh 2022 3,952 330 3,952 330 33 4,249 NET BOOK VALUE * 31 MARCH 2022 6.361 NET BOOKVALUE at 1 April 2021 6.077 70 6. 147 Houslng propertles compris•: 2022 £000 5,968 16 377 2021 Freehokys Long Leaseholds Short Leaseholds Assets under construction 5,627 17 433 70 L4ngley House Twsi- Annual ReFQrt 2021- 2022 49
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 14 TANGIBLE FIXED ASSEfs- OTHER GROUP AND LHT Motor vehicles £000 Plant & equlp £000 Total £000 COSTIVALUATION Al 1 April Additions 329 1, 137 95 95 Disposals 1191} 140 763 51 278 Al 31 m?h DEPRECIATION At 1 April Charge for year Disposals At 31 March 570 99 140 529 200 57 51 770 191 735 NET BOOK VALUE at 31 March 2022 72 306 NET BOOKVALUE al 1 April 2021 238 129 367 15 FIXED ASSET INVESTMEMr LHT & Group 2022 Market Value of invesknents at Start of ye Market valu8 of investment 501d during the year Market valu• of inv•stments al end of year Goin in value during the year 937 928 {150) 937 159 Gain recogni5ed in Statement of Comprehensive Income 159 159 Historic Cost of Investments All investments are erther unit trusts or ffix1 lemi investments wth UK banks. 599 599 50 LangÈy House Trusr- Annual Rewrt 2021- 2022
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 16 DEBTORS Group 2022 £000 LHT 2022 £000 Group 2021 £coo LHT 2021 Amounts falling due within one year.. Rent arrears Less.. provision for bad debts Non rental arrears Less.. provision for bad debts Prepayments and accrued income 898 17091 1.175 11771 539 898 (709) 1,175 (177) 538 940 17611 1.081 11231 359 1761) 1,071 1123) 359 Intercompany balanGe 17 CREDITORS - AMOUNTS FALLING DUE WITHIN ONE YEAR Group 2022 £000 LHT 2022 £000 Group 2021 L4T 2021 Rent credit bala9$ Non rental credit balance5 Trade creditors Taxation, sctial security and pension payabl8 Accruals and deferred income SP contract income received in advan¢e Deferred capital grant {nole 18b} 278 547 232 238 1,343 278 547 232 223 1,326 235 410 207 221 1.416 14 235 410 207 1,373 14 83 83 2,722 2,690 Z586 2.526 18 la) CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Group 2022 LHT 2022 Group 2021 LHT Deferred capltal grant {nole 18b) 2,842 2042 2,842 2.842 2,925 2.925 2.925 Langley HoLJse Trust- Annual Report 2021- 2022 51
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 18 Ib) CREDITOR: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Group 2022 LHT 2022 £000 Group 2021 LHT 2021 At the start of the year Grant received during the year Released to inctyne in the year At the end of the year 3,008 3.008 3.091 3,091 183} 2.926 183) 2.925 183} 3.008 1831 3.008 Amount due to be resed <1 year Amount due to b8 re*sed >1 year 83 83 83 2.842 2,925 Total grant received 4.721 4,721 4.721 4.721 19 PROVISIONS FOR UABILITIES AND CHARGES GROUP AND LHT 2022 £000 2021 Opening balte as a11 Aprll Utilised in the year Addrtional provision ClosirvJ balance as al 31 March 100 164} {361 36 52 Langley House Trust-Annual Report 2021- 2022
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 20 CAPITAL COMMITMENTS Group 2022 LHT Group 2022 £000 £c(o LHT C4)ital expenditure that has begn Contracted for bul has not been prcvided for in the financial statements. 149 149 170 170 The commitments as at 31 March wll be financed as folk)ws.' Group 2022 LHT 2022 £IM)o £c(o Group LHT 2021 Revenue reserves ofthe Trust 149 149 149 149 170 170 170 170 21 OPERATING LEASES Th& Trust holds properties and office equipment under non-cancellable operating leases. .At the end of lh8 year the Trust had ¢ommitmenls of fLrture minimum lease paymanls as fdk)ws." Group 2022 LHT 2022 Group 2021 LHT 2021 Land and buiklings: In one year or more but less than tK) years In two years or more and less than five years In five years or more 276 372 131 276 372 131 419 501 221 419 501 221 Other5. which explre: In one year or more but less than years In two years or more and less than five years In five yaars or mo Langley House Tru5t- Annual Report 2021- 2022 55
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 22 RELATED PARTIES Langley House Trust is the Parent entty in Group and ultimate controlling paty. The Group has tak8n 3dvanlage of the exemption under section 33 FRS 102 not to disclose Iran3action$ with wholly ry•vned subsidiary undertakings. During the year the Trust had the folknmng intra-group transactions with its $ubsidiarM". 2022 £000 2021 Management eharges from Subsidiaries Funding grant provided to subsKliari8s 16 179 16 170 Managemenl Chary9S Inlra-group management fees are receivable by the Trust from the subsKliaries to cover the running costs the Trust incurs on behalf of managing the subsidiaries and providin9 services. The management fee is calculated based on an albcated time by staff members prov*Jlng the following Serv&s.. Hous9 Management {including arrears & repair8 management) IT 5erwces Finance servic8s including purchase ledger and man4ement aGwunling Executive servtces Fundlng grant During the year the Trust providod funding to one of the Subsidiar5. 23 SUBSIDIARY UNDERTAKINGS The company has three subsidiaries, each of which has the wne registered office address as Langley Hj86 Trust.. 1. Langley House Tnjst is a registered charjty Icharity number 2900591 which transferra assets, Ik?bilitigs and business lo the incorporated Lang18y House Trust Icharity numbgr 1146304} 1 August 2013. It has been dormant since, and has £10 in fis reserves. 2. On 1 October 2013 Langléy House Trust acquired, for no consideratn, Kainos Communily. Kainos Community is a charty which work5 Wrthin prisons delivering servlces to hèlp rehabilrtatKJn. 3. On 1 October 2019 Langley House Trust acquired, for no consideration. Clean Sheet. Clean Sheet 8 a charity that works to offer people with eonvKtions the hope of a better future by fincliThJ sustainable employment. 4. Accord Community Servrees Ltd was a i¥ a limite(I company and subsidiary of Langley House Trust, whKh had been dom)ant since its incorporation in May 2012.11 was dissolved on 22 March 2022. Larlty Pbu5e ITU5t- Annual Report 2021- 2022
Langley House Trust Notes to the Financial Statements Year ended 31 March 2022 24 FINANCIAL INSTRUMENTS a. GROUP 2022 2021 Financkgl Assets Measured at Amoiised Cost.. Rent and Servi¢0 Charge Debtors 0th8r Debtors Cash and Cash Equivalents Totsl Financlal Assets 184 958 6.036 5,721 Financ1 Lkilities Measured at Amortised Cost., Trade Creditors Other Creditors 232 2,163 95 207 2,075 2,282 Total FSnanGlal Llablll¢l¢s a. LHT 2022 £000 2021 Financial Assets Measured al Amortised Cost.. Rent and Servrce Charge Debtors Othei Debtots Cash and Cash Equivalents Total Flnanclal Assets 189 998 5,310 6N97 184 948 5,663 6. 795 Financial Liabiif(ies Measured al Amortised Cost.. Trade crltorS Other Credf(or8 Total Flnanclal Llabllllles 232 2,153 207 2,032 25 POST BALANCE SHEET EVENTS tt has l)een ayreed by thg Trustee5 that the Trust will integrate one of ils subsidiaries, Kainos Community, after the y8ar-8nd. It is intended that the merger contr1 will be completed by Septembèr 2022. and the trade and assets of Kainos Community will be acquir8d by Langley Hous8 Trust, and KaIn Communily will cease trading. LallgY House Trl- Annual Repori 2021- 2022 55