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2023-03-31-accounts

Company Registered number 08225808 Regulator of Social Housing number LH0279 Charity number 1149085

St Mungo Community Housing Association (A company limited by guarantee)

ANNUAL REPORT AND FINANCIAL STATEMENTS For the year ended 31 March 2023

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

ST MUNGO COMMUNITY HOUSING ASSOCIATION REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

CONTENTS PAGE
Trustees and Advisors 3
Chair’s Statement 4
Strategic Report 5-8
Trustees’ Report 9-17
Statement of Trustees’ responsibilities for the annual report and the financial statements 18
Independent Auditor’s report 19-22
Consolidated Statement of Comprehensive Income 23
Association Statement of Comprehensive Income 24
Consolidated and Association Statement of Financial Position 25
Consolidated and Association Statement of Changes in Reserves 26
Consolidated Statement of Cash flows 27
Notes to the Financial Statements 28-48

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

TRUSTEES AND ADVISORS

The Board of Trustees is the governing body of St Mungo Community Housing Association (St Mungo’s). The Trustees are also the directors of the Association for the purpose of Company Law.

Trustees

Joanna Killian (Chair) Tracy Allison (resigned 16 November 2022) Rolande Anderson Alexandra Beidas Robert Bradshaw (appointed 8 February 2023) Daniel Corry Timothy Gadd (resigned 29 March 2023) Darren Johnson Lorraine Mealings (appointed 26 July 2023) Philip Moore (appointed 26 July 2023) Teddy Nyahasha Mark Pears (resigned 27 May 2022) Susmita Sen (resigned 6 May 2022) Bontle Senne (resigned 9 January 2023) Jane Tabor (appointed 26 July 2023, resigned 21 August 2023) Stephen Smith Helen Walters John Watts

Executive Officers

Emma Haddad, Chief Executive David Fisher, Executive Director of Client Services Jonathan Manuel, Executive Director of Finance Kellie Murphy, Interim Executive Director of Housing Services Sean Palmer, Executive Director of Transformation

Company Secretary

Louise Wykes

Registered Office

5th Floor 3 Thomas More Square London E1W 1YW

Auditors

Crowe UK 55 Ludgate Hill London EC4M 7JW

Principal Solicitors

Ashfords LLP 1 New Fetter Lane London EC4A 1AN

Bankers

HSBC 123 Chancery Lane London WC2A 1QH

Company No. 08225808

Charity No. 1149085

Regulator of Social Housing Registration No. LH0279

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St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

CHAIR’S STATEMENT

This is my fifth year on the Board at St Mungo’s and my second as Chair. The work our organisation does never fails to make me feel extraordinarily proud. We supported more than 28,000 people facing homelessness last financial year. This is about 12% more than 21/22 and illustrates the ongoing and significant demand there is to support people to find a safe, secure, and affordable place to live. I would, as always, like to say a huge thank you to all the staff and volunteers who have worked so hard to run our services, support our clients and make ending homelessness a possibility.

The other challenge we have faced is a pay dispute with one of our recognised unions, Unite, regarding the nationally agreed pay rise for 2021-22. We made a number of offers but unfortunately these did not resolve the dispute and Unite members began strike action on 30 May 2023. We continued to maintain an open dialogue with Unite representatives and on 25 August 2023, our latest offer was accepted. This resolved the dispute and ended a period of unprecedented strike action. We are relieved with the outcome as we know this has been a difficult time for everyone involved. We look forward to working together with our colleagues and our partners as we continue to support people recovering from, or at risk of, homelessness.

One of the things I am always impressed by is the range of St Mungo’s provision, and last year we ran 164 services. From our 13 outreach services to supported accommodation like Housing First, we were able to help people off the streets and into their own homes. We’ve continued to run recovery services as well, like our Putting Down Roots gardening programme and construction skills training, to help people rebuild after homelessness and get back into work.

While service delivery is at the heart of what we do, working with Government is also critical to ending homelessness in this country. We know that in England, 26% more people found themselves rough sleeping in Autumn 2022, the first-time rough sleeping has risen in four years.

We worked closely with our partners in Government and across the sector this year, calling for an increased supply of supported housing, accessible and trauma informed care for people with multiple disadvantages, and for support for non-UK nationals. St Mungo’s is proud to be the Secretariat for the Kerslake Commission on Homelessness and Rough sleeping, and we were greatly saddened to hear that the Commission’s Chair, Lord Bob Kerslake, passed away in July 2023. It was an honour to work alongside him, and his legacy will be continued through our work, which includes looking ahead to the next general election, and ensuring homelessness is high on the agenda. This year we welcomed Emma Haddad as our new Chief Executive. She has offered inspirational leadership to the organisation and beyond.

Finally, for St Mungo’s to be relevant and sustainable, we must also be financially and operationally resilient. Improving outcomes for our clients means change. We must equip our staff with modern tools and technology, and focus investment on our housing stock, so our clients have the best possible experience as they recover from homelessness. It also means strategically allocating the finite funds we do have as a charity, to ensure longevity. Transformation for us means building a strong foundation, so that we continue to be well placed to deliver excellent services for our clients, for the long term.

Joanna Killian Chair of the Board of Trustees 9 September 2023

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St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

PRINCIPAL ACTIVITIES

St Mungo’s vision is that everyone has a place to call home and can fulfil their hopes and ambitions. Our services cover almost every borough in London, as well as Bath, Bournemouth, Christchurch and Poole, Brighton, Bristol, Leicester, Oxford, and Reading.

The causes and consequences of homelessness are complex, and St Mungo’s runs a variety of services to support people at every stage of their journey out of homelessness. Our provision includes outreach teams that helped 7,274 people off the streets last year. With the help of these teams, of the 3,324 people that were new to the streets in areas we worked last year, 2,093 (63%) did not have a second night out on the streets.

Our accommodation services provided a safe place to stay for an average of 2,735 people each night. We our clients are in the best possible living environment, be that supported accommodation, independent living or somewhere with very high support. Of the people who left our accommodation services last year, 73% were supported to move into a living environment that better suited their evolving needs.

We also provide holistic support for people experiencing or recovering from homelessness, such as vital access to healthcare, peer support groups, practical skills courses, and employment support.

Ending homelessness cannot be achieved alone, and we work in close partnership with local authorities, Government, and other charities to influence policy and achieve our aims. We influence policy through building strategic relationships with decision makers, releasing our own reports and research, and responding to Government consultations.

KEY MISSION AND PUBLIC BENEFIT

St Mungo’s is a leading homelessness charity which has been working at the forefront of homelessness and rough sleeping for over 50 years. Our mission is to end homelessness and rebuild lives.

Between April 2022 and March 2023, St Mungo’s ran 164 services, supporting more than 28,000 people who were experiencing or at risk of homelessness. Many of our services are made up of multiple projects, sometimes across different sites, to provide distinct, tailored, and holistic support to our clients. Last year we ran 1,262 projects across our services.

St Mungo's is a registered charity and in setting out our aims and planning our activities we have carefully considered the Charity Commission's general guidance on public benefit. The Trustees ensure that the activities of the charity are consistent with its charitable objectives and aims. In our annual plans, the Trustees consider the Charity Commission's general guidance on public benefit in relation to the prevention and relief of poverty, the advancement of education and health and the relief of those in need. The Trustees believe there is clear public benefit derived from the activities of our charity.

FUTURE PLANS

St Mungo’s key public benefit will remain running services that support people off the streets and helping them to find, and keep, a home. The range of services we deliver will continue to span multiple needs and stages of someone’s experience of homelessness, from street outreach, to supported and move on accommodation, to recovery support. In the next year we will focus on the services that most closely align with our mission and those which have the greatest impact on the people we support.

Our influencing work will also continue, as we advocate for policy change to tackle the causes of homelessness and to better support people experiencing it. We will remain in the role of Secretariat for the Kerslake Commission on Homelessness and Rough Sleeping, bringing the voices of our partners together to champion solutions to homelessness in the context of the cost-of-living crisis. We also look towards the next general election, and the opportunities it presents, ensuring that homelessness is at the top of the Government’s agenda.

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St Mungo Community Housing Association Company Registered number 08225808 Annual Report and Financial Statements for Regulator of Social Housing Registration LH0279 the year ended 31 March 2023 Charity number 1149085

St Mungo’s will also be developing the ways its people and systems work. We are delivering a transformation programme to strengthen and modernise our infrastructure, to support sustainable, long term financial stability. Our five-year strategy is also under review, as we realign our priorities to ensure we are a resilient organisation, which can tackle the challenges ahead.

FINANCIAL PERFORMANCE

Overview

2023 has been a very challenging year due to an exceptionally difficult macro-economic environment and in particular inflation that has had a significant impact on our cost base. As a result, while income is ahead of 2022, a significant increase in costs has resulted in an overall deficit for St Mungo’s.

Income and Expenditure Review

£m 2023 2022 Variance
Rent and Service Charges 44.5 44.2 0.7%
Support 61.8 61.6 0.3%
Fundraising 16.5 12.9 27.9%
Total Income 122.8 118.7 3.5%
Operating Expenditure (126.0) (118.6) (6.2)%
Operating Surplus/(Deficit) (3.2) 0.1

Rent and Service charge income has increased reflecting the annual CPI+1% increase on the social housing element of our portfolio, partially offset by a reduction of housing stock as we continue the gradual transfer of our Real Lettings stock to other providers.

Support income is marginally ahead of 2022 as we maintained the majority of our contracts from 2022 into 2023. Additions include a new contract with Hammersmith and Fulham together with incremental No Second Night Out (NSNO) activity while our pandemic work continues to decrease as we transition away from hotel support.

Fundraising income benefitted from a one-off restricted donation of £2.5m, enabling £1.3m of capital investment during the year, together with other support activity and was the key driver of an overall 27.9% increase, alongside continuing strong support from both individual and corporate donors.

As well as being a core income stream, fundraising also enables St Mungo’s to support a number of activities that would otherwise not have funding such as the Recovery College and our gardening skills programme, Putting Down Roots.

Operating expenditure increased by 6.2% to £126m. The increase reflects incremental staff costs, as we supported our staff in the year with the National Joint Council (NJC) pay settlement of £1,925 person together with a one-off payment of £700 per person to support staff earning below £40k with the cost of living crisis. The energy crisis has impacted St Mungo’s with incremental spend of £0.9m, although the financial effect would have been a lot worse were it not for fixed energy contracts on a substantial part of our properties. We also increased spend on repairs and maintenance across our estate of owned, managed and leased properties.

The incremental spend on staff, energy and repairs drives an operating deficit of £3.2m, with the overall deficit reduced to £2.4m due to a property sale gain and due to a pension credit arising from actuarial gains in respect of our defined benefit pension scheme.

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St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

Balance sheet Review

Unrestricted reserves have fallen by £2.8m to £10.2m reflecting the challenging cost environment and sit at the bottom of the trustee target range of £10m to £13m.

Net assets are 16% below 2022 due to the unrestricted deficit on the income and expenditure account. Fixed assets show a 1% increase with new investment in HMO and move on accommodation together with IT. Debtors have remained flat year on year while current creditors declined due to drawdown on deferred income and lower accruals.

Cash Review

Cash at £16.1m is below 2022, reflecting the impact of the deficit for the year, our capital investment in both property and IT, and the impact of reduced creditors on working capital. The Trustee set range is £14m ~~-~~ £18m for cash and the current cash position is therefore ~~,~~ in the middle of that range.

VALUE FOR MONEY

St Mungo’s is a charity but also a registered provider of social housing and is obliged by the Regulator of Social Housing to provide an overview of its approach to Value for Money. This is set out below together with a set of indicators also required by the regulator. For St Mungo’s, value for money means delivering our strategic objectives in the most cost-effective way, that enables us to maximise our support to people who are homeless and remain financially sustainable for the long term. The Board regularly monitors performance through the budget and 5-year plan process, together with review of our management accounts and latest forecast. Our strategy delivers homes that meet a wide range of requirements, from initial move off the street to longer term recovery, supporting clients with complex needs. St Mungo’s regularly reviews the allocation of resource and assets to ensure the most effective support to our strategic objectives. As part of the budgeting process, we also review specific opportunities for improvement, such as procurement savings, support contract margin and central overhead spend. However, as a charity we also choose to use fundraising income to invest in projects that generate no financial return, as they contribute to the core strategic goals of ending rough sleeping and helping people recover from homelessness.

The VFM measures as required by the Regulator of Social Housing are set out below. It should be noted that, given the complexity of needs of our tenant base, and given that St Mungo’s is a charity with charitable goals and invests the maximum possible to support those goals, there will be significant variations in the measures for St Mungo’s as set against the Housing Association sector average.

Reinvestment
New Supply (social)
New Supply (Non social)
Gearing
EBITDA MRI Interest cover
Social Housing Cost per Unit £'000
Operating margin (social)
Operating Margin (Overall)
Return on capital employed (ROCE)		 2022 Sector
Average
6.30%
1.60%
0.18%
47.00%
128.00%
4.60
25.40%
19.60%
2.90%		 2023
Target
5.00%
4.30%
n/a
n/a
n/a
21.52
8.63%
0.26%
0.30%		 2023
2022
2021
2020
2019
3.92%
1.89%
2.83%
4.08%
2.80%
1.51%
0.73%
1.09%
3.56%
0.09%
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
n/a
24.77
21.98
21.03
20.58
23.04
-4.40%
0.52%
1.84%
0.58%
2.30%
-2.61%
0.08%
-0.79%
-1.54%
3.70%
-2.94%
0.10%
-1.00%
0.12%
3.50%

In calculating the above ratios, social housing units are measured by bedspace.

Reinvestment

St Mungo’s continues to invest to improve our housing stock and to provide incremental bedspaces. However, the re-investment rate is lower than target due to scaled back property acquisitions as a result of the macro-economic environment.

New Supply (social)

St Mungo’s continues to invest its own funds to provide additional bed spaces, but the supply rate is lower than target due to a scaled back property acquisition programme.

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St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

New Supply (Non-social)

St Mungo’s has not acquired non-social units.

Gearing/EBITDA MRI Interest Cover

St Mungo’s is debt free and therefore these measures do not apply.

Social Housing Cost per Unit

The housing cost per unit is significantly higher than target due to the impact of increases in staff, energy and repair costs. The costs incurred by St Mungo’s are higher than the sector average due to a number of factors including the short-term nature of our tenancies and hence much higher renewal rates and the level of staffing required to safely run support services.

Operating margin (social)

The in-year performance is well below target due to higher staff, repair and energy costs.

Operating margin (overall)

St Mungo’s budgeted for a small surplus but the deficit for the year results in a negative margin.

Return on Capital Employed

The deficit for the year means that the ROCE is negative rather than positive as anticipated, due to the impact of higher costs on our operating margin.

Joanna Killian Chair

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St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

TRUSTEES’ REPORT

The Trustees present the annual report and audited financial statements of St Mungo’s for the year ended 31 March 2023. The financial position and results for the year are set out on pages 22 - 48 of these statements.

OBJECTIVES AND ACTIVITIES

The Trustees have reported St Mungo’s strategic objectives and outlined our activities within the Strategic Report on pages 5 – 8.

STRUCTURE, GOVERNANCE AND MANAGEMENT

St Mungo Community Housing Association ("the Group"), a registered housing association and charity, is made up of a lead association and four directly and wholly owned subsidiaries.

Street Impact London Limited and Street Impact Brighton Limited, both wholly owned subsidiaries (companies limited by shares), provide housing and support to rough sleepers. These projects have now ended, and the companies are in liquidation. Broadway Homelessness and Support (a registered charity and company limited by guarantee) holds several leasehold interests on behalf of St Mungo’s, its parent.

St Mungo’s Homes Limited (a community benefit society) was established in 2019 as part of a strategy to acquire move on accommodation for former rough sleepers. This entity is currently dormant.

St Mungo’s has a 33% share in Social Impact Bristol Limited (a company limited by shares), a consortium of three charity partners set up to provide housing and support to people sleeping rough. This project has now ended, and the company is in liquidation.

These are the financial statements of the Group. Any activity relating to the Association will be specified. All references to comparable 2022 figures are to those of the Group, unless otherwise specified.

The Board of St Mungo’s is responsible for ensuring that a sound system of governance exists across the Group and that it is financially viable and properly managed. The Board works alongside the Executive team, which is responsible for the day-to-day management of the Group.

The Board comprises ten Trustees, who for purposes of company law are non-executive directors. They bring a broad range of skills, knowledge and experience to their roles from fields including finance, legal and government policy. During the year the Board met on seven occasions, including a Strategy Day.

The Board has a formal schedule of matters reserved for its decisions, which includes overall strategy and future development, allocation of financial resources, acquisitions and disposals, annual budgets, senior executive appointments, treasury policy and risk management.

The Board has identified the skills it requires to fulfil its functions and recruits new members as required. The Board has recently recruited new trustees to strengthen skills on the Board specifically in finance, housing and transformation and strategic change.

Trustees are elected for a three-year term at the Annual General Meeting. Trustees who have served a threeyear term are eligible to stand for re-election for a further three years. A Trustee who has served six years may serve further terms of one year up to a maximum of nine years in total, where the Board agrees that it is in the interests of St Mungo’s for them to do so.

During the year the Board commissioned an external review of St Mungo’s Board and Committee structure. An action plan is underway to implement the recommendations of the review and further strengthen St Mungo’s governance arrangements. Following the review, the Board introduced a new streamlined committee structure:

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St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

St Mungo’s is committed to involving clients in all aspects of our work, including in its decision-making structures. The Client Advisory Board, made up of ten current or former clients of St Mungo’s, reviews Board and Committee papers and provides input for discussion at Board meetings.

The Board is covered by Trustees’ indemnity insurance policy. No claims have been made during the year.

Compliance with the Code of Governance

St Mungo’s has adopted the National Housing Federation’s 2020 Code of Governance which is designed to ensure that the Association operates to the highest possible standards. An underlying principle of this is that we will comply with the Code or explain any areas where we do not comply. An assessment of compliance with the NHF Code has been undertaken and compliance confirmed.

The Board has also agreed to carry out an annual assessment against the Charity Code of Governance 2020. This has been undertaken and compliance noted.

Compliance with RSH Governance and Financial Viability Standard

Registered providers are required by their regulator, the Regulator of Social Housing, to certify their compliance with the Governance and Financial Viability Standard. Compliance with the standard has been reviewed and compliance confirmed in all material respects.

Following an in-depth assessment in 2021, the Regulator confirmed St Mungo’s governance rating as G2, meaning that St Mungo’s meets its governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance. An action plan to address the issues identified by the Regulator is on track for completion by September 2023.

The Regulator has assessed St Mungo’s financial viability as V2, meaning that St Mungo’s complies with the financial viability elements of the Governance and Financial Viability Standard and can deal with a reasonable range of adverse scenarios. However, there remain material risks which St Mungo’s needs to manage. The Board has agreed a transformation plan to improve operating margins and strengthen financial sustainability.

In November 2022, the Regulator refreshed its assessment of St Mungo’s compliance with the Governance and Viability Standard and confirmed our governance and viability rating as G2 / V2.

Compliance with Section 172 of the Companies Act 2006

Throughout the year the Board of Trustees has considered the matters set out in section 172 of the Companies Act 2006 during its discussions and decision-making. Set out in the Chair’s Statement, Strategic Report and Trustees’ Report is a description of how the Trustees have had regards to the matters set out in section 172 (1) when performing their duties under section 172.

STAKEHOLDERS

The Board has an overriding duty to promote the success of the charity to achieve its charitable purpose. In agreeing its strategic plans and in its decision-making regard has been given to St Mungo’s stakeholders. The commissioners and partner agencies we work with are fundamental to delivering our mission. Furthermore, we recognise that our success in supporting the recovery of our clients against the backdrop of the challenges we face depends on the skill, commitment and engagement of our supporters, staff and volunteers.

Fundraising report

St Mungo’s is registered with the Fundraising Regulator and works in a way that is compliant with the Code of Fundraising Practice. St Mungo’s is also a member of the Chartered Institute of Fundraising. This report covers the requirements charities must follow as set out in the Charities Act 2011.

Fundraised income supports both new and existing projects to help people who are at risk of or experiencing homelessness. Our fundraising efforts involve encouraging donations from corporate partners, community groups and individuals. In addition, we also raise funds through legacy giving, special events and challenge events.

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St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

Our donors and clients are at the heart of everything we do, and our practices aim to be more than just about compliance. We want to ensure that our supporters are treated with the care and attention they deserve.

As the regulatory environment has continued to change, we have adapted and challenged the way we work to ensure we operate to a high standard. We regularly review all fundraising materials and consent options and update our consent and privacy statements to ensure compliance with General Data Protection Regulation (GDPR). We also regularly update our fundraising database to ensure we record consent consistently and compliantly.

We continue to have three Professional Fundraising Organisations working on our behalf, which are:

We have safeguards in place to ensure that organisations who fundraise on our behalf operate to the correct standard, including requiring them to comply with the Code of Fundraising Practice.

We follow up on all feedback we receive from members of the public to ensure compliance with the Fundraising Regulations and to ensure there is no unreasonable intrusion on a person’s privacy.

Across the year and across all our fundraising activity, which in total resulted in 395,495 donations, we received 33 complaints about our fundraising. All complaints were investigated, and appropriate action taken. We regularly record, report and share positive unprompted feedback about our work and our fundraising from the public along with many messages of support we receive directly from our donors.

Every donation we receive is greatly appreciated. We wish to say thank you to all our supporters who made donations of their time and energy or gave financial support to St Mungo’s during 2022-23, including those who left us a special gift in their Will.

Employee engagement

Our People Strategy 2021-26 sets out our commitment to recruiting and retaining the very best people from diverse backgrounds and investing in their learning, development and engagement.

We have a range of channels and opportunities for staff to feed in their ideas and give feedback. Our Colleague Forum meets quarterly to discuss key organisational issues and allows colleagues to give their views. We hold regular online Q&A sessions with our Chief Executive and have continued our practice of senior leaders regularly attending team meetings. This has enabled us to dynamically assess what is ‘on top’ for staff and respond to ideas and concerns promptly.

Supporting the wellbeing of colleagues has been a major area of focus. All our manager and staff training modules include a wellbeing focus. Additionally, we have stress risk assessment tools and Wellbeing Action Plans for staff and toolkits for managers to support both mental and physical wellbeing.

St Mungo’s recognises two unions, Unite and Unison, and meets regularly with union representatives to discuss key issues affecting staff. We worked hard to resolve a dispute with Unite the union, in relation to our nationally agreed pay award for 2021/22. On 25 August 2023, Unite members accepted our offer, bringing unprecedented strike action, which had been ongoing since 30 May 2023, to an end.

Volunteers, apprentices and students

Volunteering at St Mungo’s is an integral and valued part of our work. Volunteers play a vital role in supporting our clients and make a huge difference to the range of services we can offer homeless people.

Volunteer numbers at St Mungo`s have seen a reduction post Covid, mirroring a national trend. We are reviewing our recruitment and engagement tools to ensure we can increase and develop our volunteer pool.

We provide a comprehensive induction and ongoing training to support volunteers to carry out their roles. We recognise and reward our volunteers through our annual award scheme, which is supported by the Marsh Trust, and gave out £7,500 of volunteers’ awards in 2022-23.

We are proud of our award-winning apprenticeship scheme for people with lived experience of homelessness. Following a drop in numbers during Covid, we are pleased to have recruited 10 apprentices this year who are currently working in our services.

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St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

We also provide placements for Social Work, Nursing and Occupational Therapy students to influence future professionals and help shape their practice. Student Social workers have returned to pre pandemic numbers and include students from overseas joining us through the Turing Scheme, while nursing student placements remain lower than expected.

Business relationships

We have robust policies and practices in place to ensure that our procurement decisions are transparent, fair and non-discriminatory. Compliance with procurement requirements and any decisions taken outside of our policies are reviewed regularly by our Audit and Risk Committee.

During the year we have reported on our business payment practices in line with government requirements.

We recognise that the commissioning bodies for whom we deliver services are key stakeholders who enable us to achieve our strategic objectives. In 2022-23 we launched our first commissioners’ satisfaction survey. The purpose of this work was to benchmark commissioners’ satisfaction with St Mungo’s to help us further embed a culture of customer focus across the organisation.

A blend of quantitative and qualitative research was carried out by an independent research agency. 95% of commissioners surveyed were satisfied with St Mungo’s as a provider (5% neutral). Areas for improvement fed into an action plan and this will become a recurring exercise that helps us continually improve.

During the year, the focus of our regular communications with our commissioners has been on health, including the hidden care needs of our clients, and on the progress made by the sector post Pandemic through the Kerslake Commission.

Energy and carbon reporting

Greenhouse Gas (GHG) Emissions

In line with the Greenhouse Gas Protocol (GHG) Corporate Accounting and Reporting Standard (Revised Edition), St Mungo Housing Association (St Mungo) continues to be engaged in a process aimed at reducing our greenhouse gas emissions. Public awareness of carbon emissions, and climate change is higher than ever before, and therefore we are keen to continue driving down our emissions where possible.

St Mungo incurs scope one (1) and two (2) emissions (natural gas and electricity) at our offices, hostels, and domestic properties throughout the UK. Further, in line with government guidance, we have included grey fleet (employee-owned vehicles used for business purposes) and vehicle hire car transport emissions as part of our overall reporting.

St Mungo has a longstanding commitment to tackling climate change and reducing carbon emissions. Our calculated carbon footprint for the current financial year is 3,617.95 tCO2e, whilst energy consumption was 26,357,692.28 kWh (26,357.6 MWh).

Accordingly, St Mungo can report figures below based on the GHG Protocol Corporate Standard calculated using 2022 conversion factor guidance published by the UK government. Reporting corresponds with our fiscal year and reflects emissions from the leased and controlled assets for which St Mungo is responsible.

Emissions

Scope 1 (natural gas, transport) Tonnes CO2 equivalent 3,327.88 Scope 2 (electricity) Tonnes CO2 equivalent 93.19 Scope 3 (transport, electricity T&D) Tonnes CO2 equivalent 196.88 Total 3,617.95 tCO2e Scope 1, 2 and 3 intensity metric 2.42 tCO2e per person employed during the financial year (1,492)

This represents a 20.8% reduction on our reported emissions from our previous financial period.

Efficiency Measures Taken 2022 / 2023

It is a requirement of the Streamlined Energy and Carbon Reporting legislation that we outline energy efficiency actions taken within the fiscal year. These are as follows:

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St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

Transport

St Mungo’s continues to maintain it’s cycling policy, and encourages staff to cycle to work. During the last year, employees collectively cycled 5,736.50 miles.

Renewable Energy

St Mungo’s half-hourly electricity supplies (which comprises 20 meters) switched from 89.1% renewable to 100% completely renewable effective December 2022.

DIVERSITY AND INCLUSION

Inclusion is one of our core values and valuing the backgrounds, experiences and strengths of our colleagues and clients is integral to our work. The Board has agreed an Equity, Diversity and Inclusion Strategy which sets out a vision where colleagues, clients and volunteers from all backgrounds can be their best selves, bringing their experience, commitment and expertise to deliver a personalised recovery approach. We have also developed a specific Race Action Plan to ensure that we are actively combating the potential for racism to be experienced by our clients and colleagues.

Central to the delivery of our strategy are seven Diversity Networks which meet regularly and work together to help shape the strategic direction of our inclusion practices. We also have 150 Allies across the organisation who champion diversity and inclusion within their teams, help to plan awareness raising events, challenge any non-inclusive practices and come together quarterly to network, share best practice and learn.

The Board is committed to increasing the diversity of its membership and has agreed an aspirational target of at least one in three appointments being from an underrepresented group, with an anticipated representation of 33% by 2026. Our Board is currently 40% women and 30% representation from people from ethnic minority backgrounds. Our Executive team is 57% women and 29% representation from people from ethnic minority backgrounds.

Our data on workforce demographics shows an under-representation of managers from ethnic minority backgrounds. We are committed to taking action to understand and positively address the issue. Our positive action strategy working group brings together senior managers from across the organisation to focus on recruitment, progression, retention and communications.

Our People Strategy sets representation ambitions across all levels of management at St Mungo’s for 2026. A key step to achieving this has been the aim of including at least one member from an ethnic minority background in recruitment panels. Our Steps into Management programme, which includes a positive action element, will also help us to develop the leadership pipeline of junior and middle managers from ethnic minority backgrounds.

We again gained a place in the Stonewall Index of the Top 100 Lesbian, Gay, Bisexual and Trans-friendly employers, ranking 24th and receiving their Gold Standard Award.

MODERN SLAVERY ACT

Information about St Mungo’s compliance with the Modern Slavery Act, which seeks to curb slavery and human trafficking, is available on our website www.mungos.org This was last updated in November 2022 and is reviewed annually to ensure we continually improve our practice in this area.

REMUNERATION POLICY

The aim of our remuneration policy is to offer pay rates and a broader package of terms and conditions that will attract, retain and motivate high calibre employees. We aim to pay salary rates at all levels that effectively support recruitment and retention.

Most roles in St Mungo’s are paid at salary grades linked to the National Joint Council (NJC) for Local Government Services. The appropriate grade is determined by evaluation of the role within the terms of St Mungo’s Job Evaluation scheme. The remuneration for certain posts is determined outside of NJC salary grades. In these cases, spot salary rates are determined by market testing and other factors. These posts include the Chief Executive, Executive Directors and Directors.

Market testing of Chief Executive, Executive Directors and other relevant roles is periodically reviewed by an external benchmarking company to keep salaries aligned with the comparator market. In the years which fall between market-tests, the Chief Executive and Executive Directors receive the same cost of living increase as all other members of staff, which is determined by reference to the NJC annual settlements.

13

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

All colleagues at St Mungo’s receive the same standard package of terms and conditions of employment, apart from access to Flexi/Toil, which is not available to recent and newly appointed Executive Directors and the Chief Executive. There are no enhancements to the standard terms and conditions, and no bonuses or discretionary additional awards in terms of salary to any individual.

As a responsible employer our aim is to secure the best benefits for St Mungo’s employees past, present and future. Employees are auto enrolled into our defined contribution pension scheme with Aviva. Our standalone defined benefit scheme with TPT Retirement Solutions is closed to new employees.

RESERVES POLICY

Reserves are that part of the Group’s funds that are freely available to spend on any of the Group’s purposes. This definition excludes restricted reserves which arise from specific restrictions being imposed on the reserves by the donor. As a Group which has no complex financial arrangements, the Group and Association’s reserves are made up of the liquid working capital offset by provisions for long-term liabilities associated with property and pension commitments.

In May 2023 the Board approved the 2024-28 Five Year Plan. The Board considered the worst-case impact of an economic recession leading to an adverse impact on our three income streams, fundraising, support contracts and rents, together with an increase in core costs. The Reserves and Liquidity policy sets thresholds to manage adverse risks should they materialise. St Mungo’s will manage to cash balances of £14 million - £18 million and unrestricted reserves of £10 million - £13 million to ensure that St Mungo’s is viable longer term.

Total reserves as at 31 March 2023 were £12.4 million (2022: £14.8 million). We held restricted reserves of £2.2 million (2022: £1.8 million) and unrestricted or free reserves of £10.2 million (2022: £13.0 million).

The year-end cash balance was £16.1 million (2022: £22.5 million).

The Trustees have reviewed the reserves of the Association and Group taking into consideration future activity, uncertainties and risks and have concluded the level of reserves shown at 31 March 2023 is appropriate to maintaining the continuation of the Association and Group as a going concern.

PRINCIPAL RISKS AND UNCERTAINITIES

Our Strategic Risk Register sets out the principal risks and uncertainties which could impact on St Mungo’s achieving its strategic objectives. Risks are captured with reference to the Board’s strategic priorities and the Regulator’s sector risk profile. The internal and external environment is scanned on an ongoing basis to identify any new and emerging risks to the organisation.

The impact of recent and ongoing macroeconomic shocks, coupled with reform of the social housing sector, presents a challenging external context, which has in turn brought several internal challenges into sharp focus. Responding to these risks has been a major focus of the Board during the year.

Our business plan is fully funded and based on reasonable assumptions. However, much of our contract income is short-term and low-margin and it is because of this that we maintain a robust focus on our reserves and liquidity, including a significant level of cash reserves. To further strengthen financial resilience, the Board has agreed a transformation programme, which aims to achieve long term financial stability. The five-year financial plan, agreed by the Board in May 2023, has been stress-tested against a range of plausible scenarios and provides assurance.

The Board has continued to ensure that the risks arising from our day-to-day work are effectively managed and safety and essential services are prioritised. Further information about our principal risks and the key controls in place is set out below.

Risk Key controls
Failure to achieve the cash
flow and operating margins
needed to strengthen our
financial resilience.
Current risk rating: Medium		 •
Cash and reserves targets informed by annual stress-testing of
financial plan. Close monitoring of cash and reserves.
•
Transformation programme agreed to target cash improvement.
•
Investment decisions subject to consideration of cash flow
forecasts with short term interventions in place.

14

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

Providing good quality
accommodation and meeting
our obligations as a landlord.
Current risk rating: Medium		 •
Housing Services Action Plan agreed covering regulatory
assurance and operational improvements.
•
Asset Management Strategy agreed. Stock condition survey
completed and stock investment plan underway.
•
Integrated Fire and Building Safety Action Plan to respond to
forthcoming changes in building safety and consumer regulation.
Industrial relations do not
improve following the
dispute, resulting in financial
and reputational
consequences.
Current risk rating: Medium		 •
Regular Joint Negotiating Council with both unions in attendance.
•
Return to work agreement specifying commitments from all parties
to work collaboratively and positively.
•
Wide and regular communications directly with the workforce.
•
Planned Colleague Survey to understand views of whole
workforce.
Level of staff vacancies
impacts on essential service
provision.
Current risk rating: Medium		 •
Proactive recruitment campaigns via a range of media. Increased
focus on transferable skills and priority roles.
•
Competitive rates of pay which are regularly reviewed.
•
Temporary cover is available through our locum and agency
arrangements.
•
Streamlined recruitment processes have been implemented
following an end-to-end review.
Failure to ensure that our
data is protected from the
risk of cyber-attacks.
Current risk rating: Medium		 •
IT security function delivered by expert third party including
identifying security vulnerabilities.
•
Technical measures to ensure data security including multi-factor
authentication.
•
Organisational measures to implement the data protection
principles including training and guidance.
Managing significant IT and
change projects.
Current risk rating: Medium		 •
Executive to oversee change projects related to people, processes
and systems.
•
Programme management office and processes established
including gating, milestones and clear success criteria.
•
Learning from phase one is being used to inform future IT and
transformation projects.
Lack of data integrity results
in sub-optimal control and
decision making.
Current risk rating: Medium		 •
Policies and procedures to ensure the quality of data in key areas
of regulatory exposure.
•
Mandatory data protection training and guidance to embed the
right information management behaviours.
•
Interim data integrity improvement plan pending a longer-term
review of our system architecture.
Failure to safeguard clients
from serious harm caused by
staff or corporate negligence.
Current risk rating: Low		 •
Referencing, DBS checks and mandatory training.
•
Management support through case call-overs and supervision.
•
Central support available including helpdesk and surgeries.
•
Best practice reviews to identify lessons learnt and prevent future
occurrences.
Failure to comply with health
and safety legislation
resulting in death or serious
injury.
Current risk rating: Low		 •
Comprehensive suite of health and safety policies in place.
•
Compulsory health and safety training for all managers.
•
Programme of health and safety inspections across services.
•
Investigations into incidents and near misses and lessons learnt
disseminated.
Failure to deliver high quality
services which meet the
expectations of our
commissioners and clients.
Current risk rating: Low		 •
Service specifications are developed through the tender process
and regularly reviewed.
•
Influencing work to ensure the needs of our clients are addressed
through national policy and local commissioning.
•
Strategic Marketing promote our position as a leading provider.
•
Futures programme will improve internal systems and processes
andhelp usrespond tofeedback.

15

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

INTERNAL CONTROL AND RISK MANAGEMENT

The Board acknowledges its ultimate responsibility for ensuring that St Mungo’s has a system of internal control and risk management in place to safeguard people, assets, compliance and the reputation of the organisation. The system of internal control is designed to give reasonable rather than absolute assurance that key objectives and expected outcomes will be achieved.

The Audit and Risk Committee provides oversight on behalf of the Board regarding the system of internal control and risk management and regularly reviews its effectiveness.

Risk review

A programme is in place to ensure that risks are regularly reviewed. St Mungo’s has ten Strategic Risks, as set out above.

The Executive team reviews the Strategic Risk Register regularly to ensure that risks are identified, assessed and mitigated appropriately. The Audit and Risk Committee reviews the Strategic Risk Register on a quarterly basis and provides assurance to the Board.

The Board has reviewed its risk appetite and agreed risk tolerance levels, and these are used to guide our day-to-day activities. The Executive team is responsible for ensuring that the organisation is managed in line with the agreed risk appetite.

Following a review of our governance arrangements in November 2022, we have further strengthened our risk management framework by clarifying roles and responsibilities for risk management across our governance structure and revising our risk management reporting.

Internal control and assurance

We have a framework of policies and procedures in place which set out our expectations of employees. Processes are in place to monitor compliance and ensure controls are operating effectively.

Our Quality Audit Programme for client-facing services identifies areas of good practice and highlights any improvements that are needed. A regular programme of Health and Safety inspections across our projects provides further assurance on compliance with statutory and regulatory obligations.

A framework of key performance indicators and regular reporting to the Board exists to ensure that any performance issues are identified, and corrective action is taken.

Concerns about weaknesses in controls can be raised via line management or confidentially via our Whistleblowing Policy. Our Services of Concern Procedure ensures a comprehensive action plan is put in place where concerns relate to client-facing services.

Executive Directors are responsible for effective risk management and providing assurance, both within their areas of responsibility and collectively as part of their leadership roles.

Sources of assurance are identified using the three lines of assurance model and recorded in our risk register. The Audit and Risk Committee reviews the sources of assurance to identify gaps in assurances, overlaps and assurance effectiveness.

Internal assurance is provided through the Chief Executive’s annual assurance report, which is reviewed by the Audit and Risk Committee and used to inform the Board’s review of the system of internal control.

Internal and external audit

St Mungo’s internal audit function, delivered by Beever and Struthers, is used to provide objective assurance on our control framework and management of risks. A programme of internal audits has been overseen by the Audit and Risk Committee. Based on the work undertaken and subject to the weaknesses identified and reported in the internal audit reports, the Board can take adequate assurance that there is an effective framework of governance, risk management and controls at St Mungo’s.

The work of our external auditors provides further independent assurance on the control environment. Any weaknesses in internal control identified by our external auditors are considered by the Audit and Risk Committee and the Board along with an action plan to address any issues.

16

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

Fraud and whistleblowing

A Fraud Register has been maintained during the year and reviewed by the Audit and Risk Committee. During the period there have been some minor losses due to isolated fraud.

St Mungo’s has a Whistleblowing Policy that encourages employees and others to express any serious concerns regarding suspected misconduct or malpractice within the organisation. No whistleblowing concerns were raised during the year.

Conclusion

The Board has considered the effectiveness of the risk management and internal control system in place across the organisation for the year ended 31 March 2023 and has concluded that it has an adequate level of assurance that there is an effective framework of governance, risk management and control at St Mungo’s. The delivery of the assurance programme has identified stock condition data as an area where improvement is needed and an action plan to strengthen controls is due to complete in 2023/24. No other weaknesses or relevant information have been identified which would result in material misstatement or loss and which require disclosure in the financial statements.

Auditor

Crowe UK LLP was appointed as external auditors at the Annual General Meeting on 21 September 2022. Pursuant to section 487 of the Companies Act 2006, Crowe UK LLP have indicated their willingness to be reappointed for another term. A resolution to re-appoint them will be proposed by the Board.

Disclosure of Information to the Auditor

The Board who held office at the date of the approval of this Trustees’ Report confirm that in so far as the Board is aware:

Certain information as required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) regulations has been included within the Strategic Report. As permitted by section 414C (11) details of future developments, analysis of the development and performance of the business, commentary of key performance indicators and financial review are included in the Strategic Report.

This report was approved by the Board in their capacity as company directors.

Joanna Killian Chair

17

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

STATEMENT OF TRUSTEES’ RESPONSIBILITIES FOR THE ANNUAL REPORT AND FINANCIAL STATEMENTS

The Board is responsible for preparing the Strategic Report, the Trustees’ Report and the financial statements, in accordance with applicable law and regulations.

Board members (who are also directors of the Association for the purpose of company law) are required by Company law and registered social housing legislation to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and Association and of the Group and Association income and expenditure for that period. In preparing each of the Group and Association financial statements, the Board is required to:

The Board is responsible for keeping adequate accounting records that are sufficient to show and explain the Group’s and Association’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and Association and enable them to ensure that its financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction of Private Registered Providers of Social Housing 2019. The Board has general responsibility for taking such steps as are reasonably open to safeguard the assets of the Group and the Association and to prevent and detect fraud and other irregularities.

The Board is responsible for the maintenance and integrity of the corporate and financial information included on the Group’s website. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

This report was approved by the Board of Trustees on the XX and signed on its behalf by:

By order of the Board

Joanna Killian Chair 9 September 2023

18

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ST MUNGO’S COMMUNTY HOUSING ASSOCIATION

Opinion

We have audited the financial statements of St Mungo Community Housing Association (the “Association”) and its subsidiaries (the “group”) for the year ended 31 March 2023 which comprise Consolidated statement of comprehensive income, the Association Statement of comprehensive Income, the Consolidated and Association statement of financial position, the Consolidated and Association statement of changes in reserves, the Consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information contained within the annual report. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and,

19

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In light of the knowledge and understanding of the group and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors’ report included within the trustees’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement set out on page 18, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the Association’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the trustees either intend to liquidate the Association or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free

20

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the 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 such as the Companies Act 2006, the Charities Act 2011, the Housing and Regeneration Act 2008 together with the Housing Statement of Recommended Practise (Housing SORP). We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statements 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 may be fundamental to the Association’s ability to operate or avoid a material penalty or have another material effect on the financial statements. We also considered the opportunities and incentives that may exist within group for fraud. The laws and regulations we considered in this context were the requirements imposed by the Regulator of Social Housing, health and safety legislation, taxation legislation, employment legislation and General Data Protection Regulations (GDPR).

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 grant and contract income, the assumptions applied in the consideration of impairment of property assets and the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, analytical review and substantive testing of income, reviewing accounting estimates for biases, reviewing regulatory correspondence with relevant regulators 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 this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, forgery, collusion or the provision of intentional misrepresentations. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

21

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

Use of our report

This report is made solely to the Association’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 Association’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 Association and the Association’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Julia Poulter Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP

Statutory Auditor London 29[th] September 2023

22

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2023

Note

TURNOVER
3
Operating expenditure
3
OPERATING SURPLUS / (DEFICIT)
Gain/(loss) on disposal of freehold property
Interest receivable
Interest payable and similar charges
7
6
(DEFICIT) / SURPLUS BEFORE TAX
Taxation
10
(DEFICIT) / SURPLUS FOR THE YEAR
Other comprehensive income:
Actuarial gains / (losses) in respect of pension schemes
22
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE
YEAR		 Unrestricted Restricted
Total
Total
2023
2022
£million
£million
£million
£million
118.5
4.3
122.8
118.7
(122.1)
(3.9)
(126.0)
(118.6)
(3.6)
0.4
(3.2)
0.1
0.4
0.1
(0.2)
-
-
-
0.4
0.1
(0.2)
-
-
(0.2)
(3.3)
0.4
(2.9)
(0.1)
-
-
-
-
(3.3)
0.4
(2.9)
(0.1)
0.5
-
0.5
1.1
(2.8)
0.4
(2.4)
1.0

The consolidated results relate wholly to continuing activities.

The accompanying notes on pages 28 - 48 form part of these financial statements.

23

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

ASSOCIATION STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 March 2023

ASSOCIATION STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 March 2023

Note

TURNOVER
3
Operating expenditure
3
OPERATING SURPLUS / (DEFICIT)
Gain/(loss) on disposal of freehold property
Interest receivable on bank deposits
Interest payable and similar charges
7
6
(DEFICIT) / SURPLUS BEFORE TAX
Taxation
10
(DEFICIT) / SURPLUS FOR THE YEAR
Other comprehensive income:
Actuarial gains / (losses) in respect of pension schemes
22
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE
YEAR
The association’s results relate wholly to continuing activities.		 Unrestricted Restricted
Total
Total
2023
2022
£million
£million
£million
£million
118.6
4.3
122.9
118.8
(122.1)
(3.9)
(126.0)
(118.6)
(3.5)
0.4
(3.1)
0.2
0.4
0.1
(0.2)
-
-
-
0.4
0.1
(0.2)
-
-
(0.2)
(3.2)
0.4
(2.8)
(0.0)
-
-
-
-
(3.2)
0.4
(2.8)
(0.0)
0.5
-
0.5
1.1
(2.7)
0.4
(2.3)
1.1

The accompanying notes on pages 28 - 47 form part of these financial statements.

24

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

CONSOLIDATED AND ASSOCIATION STATEMENT OF FINANCIAL POSITION For the year ended 31 March 2023

For the year ended 31 March 2023
Note
FIXED ASSETS
Intangible assets
11a
Housing properties
11b
Other fixed assets
11c
Investment in subsidiaries
12
CURRENT ASSETS
Trade and other debtors
13
Cash and cash equivalents
19
CURRENT LIABILITIES
Creditors: amounts falling due within one year
14
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Creditors: Amounts falling due after more than one year
15
Retirement benefit obligations
22
Provisions for liabilities
17
TOTAL NET ASSETS
RESERVES
Restricted reserve
18
Income and expenditure reserve
TOTAL RESERVES		 Group
Association
2023
2022
2023
2022
£million
£million
£million
£million
1.1
1.4
1.1
1.4
82.7
81.8
82.7
81.8
0.6
0.5
0.6
0.5
-
-
0.1
0.1
84.4
83.7
84.5
83.8
19.2
19.7
19.1
19.7
16.1
22.5
16.1
22.3
35.3
42.2
35.2
42.0
(24.4)
(26.9)
(24.5)
(27.0)
10.9
15.3
10.7
15.0
95.3
99.0
95.2
98.8
(72.3)
(72.1)
(72.3)
(72.1)
(6.3)
(8.1)
(6.3)
(8.1)
(4.3)
(4.0)
(4.3)
(4.0)
(82.9)
(84.2)
(82.9)
(84.2)
12.4
14.8
12.3
14.6
2.2
1.8
2.2
1.8
10.2
13.0
10.1
12.8
12.4
14.8
12.3
14.6

The accompanying notes on pages 28 - 47 form part of these financial statements.

The financial statements were approved by the Board and authorised for issue on 9 September 2023 and are signed on its behalf by:

Joanna Killian Chair

Stephen Smith Trustee

25

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

CONSOLIDATED STATEMENT OF CHANGES IN RESERVES
For the year ended 31 March 2023
Balance at 31 March 2021
Surplus/(Deficit) for the year
Balance at 31 March 2022
Surplus / (Deficit) for the year
Capital Reserves Adjustment
Balance at 31 March 2023
ASSOCIATION STATEMENT OF CHANGES IN RESERVES
For the year ended 31 March 2023
Balance at 31 March 2021
Surplus/(Deficit) for the year
Balance at 31 March 2022
Surplus / (Deficit) for the year
Capital Reserves Adjustment
Balance at 31 March 2023		 Unrestricted
reserves
Restricted
reserves
Total
reserves
£million
£million
£million
11.3
2.4
13.7
1.7
(0.6)
1.1
13.0
1.8
14.8
(4.1)
1.3
1.8
(1.3)
(2.4)
-
10.2
2.2
12.4
Unrestricted
reserve
Restricted
reserve
Total
reserves
£million
£million
£million
11.0
2.4
13.4
1.8
(0.6)
1.2
12.8
1.8
14.6
(4.0)
1.3
1.8
(1.3)
(2.3)
-
10.1
2.2
12.3

The Capital Reserve Adjustment represents the spend to date of a donation restricted to capital property acquisition.

26

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2023

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

CONSOLIDATED STATEMENT OF CASH FLOWS
For the year ended 31 March 2023
Note
Net cash generated from operations
Interest received
NET CASH GENERATED FROM OPERATING ACTIVITIES
19
CASH FLOW FROM INVESTING ACTIVITIES
Purchase of fixed and intangible assets
Proceeds on disposal of tangible fixed assets
Grants received
NET CASH (USED IN) INVESTING ACTIVITIES
CASH FLOW FROM FINANCING ACTIVITIES
Loan finance
NET CASH (USED IN) FINANCING ACTIVITIES
NET (DECREASE) / INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS AT END OF YEAR
19
(I) ANALYSIS OF CHANGES IN NET DEBT
At 1
April
2022
£million
CASH AND CASH EQUIVALENTS
Cash
22.5		 2023
2022
£million
£million
(3.9)
0.1
(3.8)
2.1
-
2.1
(6.4)
0.9
(3.1)
-
2.9
0.6
(2.6)
(2.5)
-
-
-
-
(6.4)
(0.4)
22.5
22.9
16.1
22.5
Cash Flows
At 31
March
2023
£million
£million
(6.4)
16.1

27

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

1. LEGAL STATUS

St Mungo Community Housing Association (“the Association”) is a company limited by guarantee and registered charity, a public benefit entity and is an English registered social housing provider.

The address of the Association’s registered office and principal place of business is St Mungo’s, 5th Floor, 3 Thomas More Square, London E1W 1YW.

2. ACCOUNTING POLICIES

BASIS OF ACCOUNTING

These financial statements have been prepared in accordance with UK Generally Accepted Accounting Practice (UK GAAP) including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”), the Housing SORP 2018 “Statement of Recommended Practice for Registered Housing Providers” and the Accounting Direction for Private Registered Providers of Social Housing 2022. The financial statements have been prepared under the historical cost convention and on a going concern basis.

GOING CONCERN

During the year, the Board considers the worst case impact of different business scenarios (stress testing) on the financial plan. The Board considered the worst case impact of an economic recession leading to a reduction in fundraising receipts, loss of contracts and rent service charge income, cost and wage inflation, strike impact and an increase in voids and bad debts. The Board also considered the impact of a “perfect storm” which included several scenarios occurring at the same time considering mitigating actions including cost cutting measures and supporting the conclusions that sufficient cash reserves remain available for at least the next 12 months.

Based on the review of these forecasts and the available free cash reserves the Trustees have concluded the Group is a going concern and accordingly have prepared the financial statements on this basis.

BASIS OF CONSOLIDATION

Under the Companies Act 2006 the Group has prepared consolidated financial statements. The consolidated financial statements incorporate those of the Association and all its subsidiaries (i.e., entities that the Group controls through its power to govern the financial and operating policies to obtain economic benefits). All financial statements are made up to 31 March 2023.

All intra-group transactions, balances and unrealised gains on transactions between Group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the Group.

Where the Group does not control the financial and operating policies of an entity but is able to exert significant influence over them then that entity is accounted for as an Associate. The Group includes its share of the entities result and financial position in its consolidated financial statements.

All subsidiaries are dormant and listed in note 12

REDUCED DISCLOSURES

In accordance with FRS 102, the Association has taken advantage of the exemption from the following disclosure requirement in the individual financial statements of the Association under Section 7 ‘Statement of Cash Flows’ – Presentation of a Statement of Cash Flows and related notes and disclosures.

28

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

TURNOVER AND REVENUE RECOGNITION

Turnover comprises rental and service charge income receivable in the period net of rent and service charge loss from voids. Turnover also includes fees and revenue grants receivable from Local Authorities, Government departments and charitable bodies, amortisation of deferred capital grants, donations and income from fundraising activities and other services provided in the year (excluding VAT).

Rental income is recognised from the point when properties under development reach practical completion or otherwise become available for letting, net of any voids.

Revenue grants are receivable when the conditions for receipt of agreed grant funding have been met.

Donations and income from fundraising activities are recognised when the Group has entitlement to these and receipt is probable, being at the point of cash receipt.

Charges for support services funded under Supporting People are recognised as they fall due under the contractual arrangements with Administering Authorities.

OTHER INCOME

Interest income

Interest income is accrued on a time-apportioned basis, by reference to the principal outstanding at the effective interest rate.

INTANGIBLE ASSETS

Software – Internal and external costs incurred during the preliminary stage of developing computer software for internal use are expensed as incurred. Internal and external costs incurred to develop computer software for internal use during the application development stage are capitalised if the company expects economic benefits from the development. Capitalisation in the application development stage begins once the company can reliably measure the expenditure attributable to the software development and has demonstrated its intention to complete and use the software. Software is amortised on a straight-line basis over its estimated useful life of 4 years.

TANGIBLE FIXED ASSETS – HOUSING PROPERTIES

Housing properties are properties for the provision of social housing and are principally properties available for rent.

Completed housing properties are stated at cost less accumulated depreciation and impairment losses. Cost includes the cost of acquiring land and buildings, and expenditure incurred during the development period.

Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that enhance the economic benefits of the assets, are capitalised as improvements. Such enhancements can occur if improvements result in:

DONATED LAND AND OTHER ASSETS

Land or other assets which have been donated by a government source is added to the cost of assets at the fair value of the land at the time of the donation. The difference between the fair value of the asset donated and the consideration paid is treated as a non- monetary government grant and included within the Statement of Financial Position as a liability. The terms of the donation are considered to be performance related

29

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

conditions. Where the donation is not from a public source, the value of the donations less the consideration is included in income.

DEPRECIATION OF HOUSING PROPERTIES

Freehold land or assets under construction are not depreciated.

The Group separately identifies the major components of its housing properties and charges depreciation so as to write-down the cost of each component to its estimated residual value, on a straight line basis over the shorter of the length of the lease or the following years:

Structure 60 years
Land Nil
Kitchens 10 years
Bathrooms 15 years
Pitch roof 60 years
Flat roof 20 years
Windows 25 years
Electrical works 15 years
Boilers 10 years

IMPAIRMENTS OF FIXED ASSETS

An assessment is made at each reporting date of whether indications exist that an Asset or Cash Generating Unit (CGU) may be impaired, or that an impairment loss previously recognised has fully or partially reversed. If such indications exist, the Group estimates the recoverable amount of the asset.

Impairment losses are recognised through expenditure.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Reversals of impairment losses are recognised through expenditure. On reversal of an impairment loss, the depreciation or amortisation is adjusted to allocate the asset’s revised carrying amount (less any residual value) over its remaining useful life.

OTHER TANGIBLE FIXED ASSETS

Tangible fixed assets are initially measured at cost, net of depreciation and any impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost of each asset on a straight line basis over its expected useful life, as follows:-

Motor vehicles over 4 years
Office equipment, fixtures and fittings over 4 years
Computer equipment over 4 years
Leasehold improvements up to the break clause in the lease

GOVERNMENT GRANTS

Government grants include grants receivable from Homes England, local authorities and other government bodies.

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received .

Government grants received for housing properties are recognised as income over the useful economic life of the structure of the asset and, where applicable, the individual components of the structure (excluding land) under the accruals model.

30

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

Government grants relating to revenue are recognised as income over the periods when the related costs are incurred once reasonable assurance has been gained that the Association will comply with the conditions and the funds will be received.

OTHER GRANTS

Grants received from non-government sources are recognised using the performance model. Grants are recognised as income when the associated performance conditions are met.

TAXATION

The charity meets the definition of a charitable trust for UK income tax purposes, as set out in Paragraph 1 Schedule 6 of the Finance Act 2010. Accordingly, the charity is exempt from UK taxation in respect of income or capital gains under part 10 of the Income Tax Act 2007 or section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Irrecoverable VAT is not separately analysed and is charged to expenditure when incurred. It is allocated as part of the expenditure to which it relates.

Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled based on tax rates that have been enacted or substantively enacted by the reporting date. Deferred tax is not discounted.

Deferred tax liabilities are recognised in respect of all timing differences that exist at the reporting date. Deferred tax assets are recognised only to the extent that it is probable that they will be recovered by the reversal of deferred tax liabilities or other future taxable surpluses.

Deferred tax is recognised on income or expenses from subsidiaries that will be assessed to or allow for tax in a future period except where the Group is able to control the reversal of the timing difference and it is probable that the timing difference will not reverse in the foreseeable future.

Current and deferred tax is charged or credited as income or expenditure, except when it relates to items charged or credited to other comprehensive income or equity, when the tax follows the transaction or event it relates to and is also charged or credited to other comprehensive income, or equity.

LEASES

Operating Leases

The Group enters into operating leases, the annual rentals are charged to expenditure on a straight line basis over the lease term. Rent free periods or other incentives received for entering into an operating lease are accounted for as a reduction to the expense and are recognised, on a straight-line basis over the lease term.

EMPLOYEE BENEFITS

The costs of short-term employee benefits are recognised as a liability and an expense. Employees are entitled to carry forward up to five to ten days of any unused holiday entitlement at the reporting date. The cost of any unused entitlement is recognised in the period in which the employee’s services are received.

The best estimate of the expenditure required to settle an obligation for termination benefits is recognised immediately as an expense when the Group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

31

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

RETIREMENT BENEFITS

Defined contribution plans

For defined contribution schemes the amount charged is the contributions payable in the year. Differences between contributions payable in the year and contributions paid are shown as either accruals or prepayments.

Defined benefit plans

The Employer operates a defined benefit scheme in the UK. This is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities. Scheme liabilities have been based on liability information as at 30 September 2021 updated to 31 March 2023 by a qualified actuary, independent of the Scheme's sponsoring employer.

FINANCIAL INSTRUMENTS

The Group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 Other Financial Instruments Issues’ of FRS 102, in full, to all of its financial instruments. Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the instrument, and are offset only when the Group currently has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Financial assets

Debtors

Debtors which are receivable within one year and which do not constitute a financing transaction are initially measured at the transaction price. Debtors are subsequently measured at amortised cost, being the transaction price less any amounts settled and any impairment losses.

A provision for impairment of debtors is established when there is objective evidence that the amounts due will not be collected according to the original terms of the contract. Impairment losses are recognised in income for the excess of the carrying value of the debtor over the present value of the future cash flows discounted using the original effective interest rate. Subsequent reversals of an impairment loss that objectively relate to an event occurring after the impairment loss was recognised, are recognised immediately in income.

Financial liabilities

Creditors

Creditors payable within one year that do not constitute a financing transaction are initially measured at the transaction price and subsequently measured at amortised cost, being the transaction price less any amounts settled.

Borrowings

Borrowings are initially recognised at the transaction price, including transaction costs, and subsequently measured at amortised cost using the effective interest method. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and other similar charges.

De-recognition of financial assets and liabilities

A financial asset is de-recognised only when the contractual rights to cash flows expire or are settled, or substantially all the risks and rewards of ownership are transferred to another party, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party. A financial liability (or part thereof) is derecognised when the obligation specified in the contract is discharged, cancelled or expires.

32

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

PROVISIONS

Provisions are recognised when the Group has an obligation at the reporting date as a result of a past event which it is probable will result in the transfer of economic benefits and that obligation can be estimated reliably. Provisions are measured at the best estimate of the amounts required to settle the obligation. Where the effect of the time value of money is material, the provision is based on the present value of those amounts, discounted at the pre-tax discount rate that reflects the risks specific to the liability. The unwinding of the discount is recognised within interest payable and similar charges.

RESERVES

The Group establishes restricted funds for specific purposes where their use is subject to restrictions imposed by third parties. Designated reserves are established as appropriate and are part of unrestricted free reserves.

CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, which are described in note 2, the Trustees are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Critical accounting policies where judgements or estimation are necessarily applied are summarised below.

Impairment

The Group determines whether non-current assets are impaired on annual basis. Any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

Defined benefit pension plan

The cost of defined benefit pension plans and the present value of the pension obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and its long term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

33

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

3. TURNOVER, COST OF SALES, OPERATING COSTS AND OPERATING SURPLUS

2023: Group and Association
SOCIAL HOUSING ACTIVITIES
Income and expenditure from social housing lettings (note 4)
OTHER SOCIAL HOUSING ACTIVITIES
Supporting people contract income
NON SOCIAL HOUSING ACTIVITIES
Support Services
Fundraising
Real Lettings
2022: Group and Association
SOCIAL HOUSING ACTIVITIES
Income and expenditure from social housing lettings (note 4)
OTHER SOCIAL HOUSING ACTIVITIES
Supporting people contract income
NON SOCIAL HOUSING ACTIVITIES
Support Services
Fundraising
Pandemic
Real Lettings		 Turnover
Operating
expenditure
Operating
surplus/(deficit)
£million
£million
£million
40.9
42.7
(1.8)
22.0
24.4
(2.4)
33.6
43.1
(9.5)
16.5
4.9
11.6
9.8
10.9
(1.1)
122.8
126.0
(3.2)
Turnover
Operating
expenditure
Operating
surplus/(deficit)
£million
£million
£million
38.8
38.8
0
20.4
22.3
(1.9)
27.2
34.0
(6.8)
12.9
3.9
9.0
8.7
7.4
1.3
10.7
12.2
(1.5)
118.7
118.6
0.1

34

St Mungo Community Housing Association Company Registered number 08225808 Annual Report and Financial Statements for Regulator of Social Housing Registration LH0279 the year ended 31 March 2022 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

4. PARTICULARS OF INCOME AND EXPENDITURE FROM SOCIAL HOUSING LETTINGS

Group and Association
TURNOVER FROM SOCIAL HOUSING LETTINGS
Rent receivable net of voids
Service charges net of voids
NET RENTAL INCOME
Other revenue grants
Amortisation of deferred capital grants
TURNOVER FROM SOCIAL HOUSING LETTINGS
EXPENDITURE ON SOCIAL HOUSING LETTINGS
Management
Service charge costs
Routine maintenance
Planned maintenance
Bad debts
Depreciation charged
Lease Charges
Landlord charges
Other costs
OPERATING COSTS ON SOCIAL HOUSING LETTINGS
OPERATING SURPLUS/(DEFICIT) ON SOCIAL HOUSING LETTINGS
Rent losses due to voids		 2023
Supported
Housing
Care
homes
Short stay
housing
Total
£million
£million
£million
£million
9.9
2.1
0.4
12.4
22.2
-
0.1
22.3
32.1
2.1
0.5
34.7
4.2
0.1
0.2
4.5
1.5
0.1
0.1
1.7
37.8
2.3
0.8
40.9
8.8
0.6
0.4
9.8
14.0
1.6
0.5
16.1
3.2
0.1
0.1
3.4
1.0
-
-
1.0
2.0
(0.2)
-
1.8
3.4
0.2
0.2
3.8
6.1
-
-
6.1
0.2
-
-
0.2
0.5
-
-
0.5
39.2
2.3
1.2
42.7
(1.4)
-
(0.4)
(1.8)
3.4
0.1
-
3.5		 2022
Supported
Housing
Care
homes
Short stay
housing
Total
£million
£million
£million
£million
10.0
2.1
0.3
12.4
20.9
-
0.2
21.1
30.9
2.1
0.5
33.5
3.3
-
0.4
3.7
1.4
0.1
0.1
1.6
35.6
2.2
1.0
38.8
8.8
1.5
0.3
10.6
12.6
0.5
0.7
13.8
2.4
0.1
0.1
2.6
0.3
-
-
0.3
1.0
0.2
-
1.2
3.2
0.1
0.2
3.5
6.4
-
-
6.4
0.1
-
-
0.1
0.3
-
-
0.3
35.1
2.4
1.3
38.8
0.5
(0.2)
(0.3)
-
3.8
0.1
-
3.9

35

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

5. ACCOMMODATION IN MANAGEMENT AND DEVELOPMENT

5. ACCOMMODATION IN MANAGEMENT AND DEVELOPMENT
Group and Association
Supported Housing
-
Supported housing
-
Care homes
-
Short stay housing
Total number of Supported Housing managed units
Other Units
-
Non-Social
-
Owned but managed by another organisation		 2023
Units
2022
Units
2,405
2,327
55
55
-
37
2,460
2,419
650
748
75
147
3,185
3,314

Supported Housing managed units and units owned but managed by another organisation are measured by bedspace. Non-Social units are measured as self-contained properties.

6. INTEREST PAYABLE AND SIMILAR CHARGES

Group Association Association
2023 2022 2023 2022
£million £million £million £million
Interest arising on;
Unwinding of discount factor on pension deficit provision 0.2 0.2 0.2 0.2

7. GAIN ON DISPOSAL OF PROPERTY

Association and Group

Association and Group
2023 2022
£million £million
Disposal proceeds 0.9 -
Carrying value of fixed assets (0.3) -
Write back amortised grant (0.2) -
Gain on Disposal 0.4 -

8. OPERATING SURPLUS

Note Group Association Association
2023 2022 2023 2022
£million £million £million £million
Operating surplus is stated after charging/(crediting):
Amortisation of intangible fixed assets 11a 0.7 0.1 0.7 0.1
Depreciation of housing properties 11b 3.7 3.5 3.7 3.5
Depreciation of other tangible fixed assets 10c 0.1 0.1 0.1 0.1
Operating lease rentals 11.0 12.4 11.0 12.4
Fees payable to external auditors 0.1 0.1 0.1 0.1
Non audit services - - - -

36

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

9. EMPLOYEES

The average monthly number of persons (including directors) employed during the year was:

The average monthly number of persons (including directors) employed during the year was:
Group and Group and
Association Association
2023 2022
No. No.
Full time 1,256 1,321
Part time (full time equivalent 88) (2022:124) 163 163
Locums (full time equivalent 117) (2022:105) 210 176
1,629 1,660
Staff costs: Group and
Association		 Group and
Association
2023 2022
£million £million
Wages and salaries 53.6 50.4
Social security costs 5.6 5.1
Other pension costs and current service cost (note 21) 2.3 2.2
Agency staff 12.1 10.9
73.6 68.6
The full time equivalent number of staff who received remuneration (excluding trustees,
including executive directors):
2023		 2022
£60,001 - £70,000 17 9
£70,001 - £80,000 9 11
£80,001 - £90,000 9 6
£90,001 - £100,000 1 2
£110,001 - £120,000 - 1
£120,000 - £130,000 1
£130,001 - £140,000 2 1
£140,001 - £150,000 1 -
£150,001 - £160,000 - 1
£180,000 - £190,000 - 1

EXECUTIVE DIRECTORS

The key management of the charity, as at 31 March 2023, comprised the Chief Executive and the four directors of the organisation (Finance Director, Client Services Director, Director of Housing Services and Director of Transformation). The total remuneration and benefits, including salary and employer's pension contributions, of the key management personnel of the charity are outlined below:

Remuneration and fees
Association contributions to money purchase pension schemes
Compensation for loss of office		 2023
2022
£
£
694,790
735,612
25,307
28,154
10,000
155,497
730,097
919,263

Pension contributions were paid on behalf of key management personnel. The amount paid to the highest paid director (the Chief Executive), including pension contributions, was £73,285 (2022: £189,418). She was an ordinary member of the Association’s Aviva defined contribution pension scheme and no enhancement or special terms applied. The Association does not make any further contributions to an individual pension arrangement for the Chief Executive. None of the Trustees received any emoluments in the year. Trustees claimed £86 in expenses during the year (2022: £290)

37

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

10. TAXATION

Factors affecting the tax charge for the year.

The tax assessed for the year is lower than the standard rate of corporation tax in the UK (19%). The differences are explained below:

(Deficit) on ordinary activities before tax
(Deficit) on ordinary activities multiplied by the standard rate of
corporation tax in the UK of 19% (2020: 19%)
Effects of:
Exempt charitable activities
Tax expense		 Group
Association
2023
2022
2023
2022
£million
£million
£million
£million
(2.9)
0.1
(2.8)
-
(0.5)
-
(0.5)
-
0.5
-
0.5
-
-
-
-
-

Any profits are donated by gift aid by the subsidiaries. No UK corporation tax has arisen in the period to 31 March 2023 (31 March 2022: £nil). As any profits are donated by gift aid no deferred tax asset is recognised in respect of any tax

11A. INTANGIBLE FIXED ASSETS

Group and Association
Cost
At 1 April 2021
Additions
At 31 March 2022
Additions
Disposals
At 31 March 2023
Depreciation and impairment
At 1 April 2021
Depreciation charged in year
At 31 March 2022
Depreciation charged in year
At 31 March 2023
Carrying amount
31 March 2023
31 March 2022		 £million
1.0
0.5
1.5
0.7
(0.3)
1.9
-
0.1
0.1
0.7
0.8
1.1
1.4

Internal and external costs associated with developing computer software for own use.

38

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

11B. TANGIBLE FIXED ASSETS – HOUSING PROPERTIES

Group and Association
Cost
At 1 April 2021
Properties acquired
Works to existing properties
Schemes completed
Disposals
At 31 March 2022
Properties acquired
Works to existing properties
Schemes completed
Disposals
At 31 March 2023
Depreciation and impairments
At 1 April 2021
Depreciation charged in year
Released on disposal
At 31 March 2022
Depreciation charged in year
Released on disposal
At 31 March 2023
Net Book Value
At 31 March 2023
At 31 March 2022		 Social housing properties held for letting
Completed
properties
Properties under
construction
Total
£million
£million
£million
119.1
0.3
119.4
1.1
-
1.1
1.0
0.7
1.7
0.3
(0.3)
-
(0.2)
-
(0.2)
121.3
0.7
122.0
1.9
-
1.9
2.3
1.1
3.4
0.6
(0.6)
-
(1.2)
(1.2)
124.9
1.2
126.1
36.8
-
36.8
3.5
-
3.5
(0.1)
-
(0.1)
40.2
40.2
3.7
-
3.7
(0.4)
-
(0.4)
43.5
-
43.5
81.5
1.2
82.7
81.2
0.7
81.8

At each reporting date an assessment must be made of whether any indicators of impairment exist. A review has been undertaken and no impairment indicators have been identified. Cumulative impairments on housing properties amounted to £nil at 31 March 2023 (2022: £nil). Development and works to existing properties include capitalised administration costs of £0.1m (2022: £0.3m).

EXPENDITURE ON WORKS TO EXISTING PROPERTIES
Group and Association
Total capitalised costs in respect of existing properties and replacement components
Amounts charged to income and expenditure
HOUSING PROPERTIES BY TENURE
Group and Association
Freehold land and buildings
Long leasehold land and buildings
Short leasehold land and buildings		 2023
2022
£million
£million
3.4
1.6
-
-
3.4
1.6
2023
2022
£million
£million
73.6
72.2
6.6
7.0
2.5
2.6
82.7
81.8

39

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

11C. TANGIBLE FIXED ASSETS – OTHER

Group and Association Computers
Equipment		 Furniture and
Equipment		 Leasehold
improvements		 Leasehold
improvements		 Total
£million £million £million £million
Cost at March 2021 and 2022 0.1 0.3 0.8 1.2
Additions 0.3 - - 0.3
As at 31 March 2023 0.4 0.3 0.8 1.5
Depreciation and impairment
31 March 2021 0.1 0.3 0.3 0.7
Depreciation charged in year - - - -
31 March 2022 0.1 0.3 0.3 0.7
Depreciation charged in year 0.1 - 0.1 0.2
31 March 2023 0.2 0.3 0.4 0.9
Carrying amount
31 March 2023 0.2 - 0.4 0.6
31 March 2022 - - 0.5 0.5
12. INVESTMENT IN SUBSIDIARIES AND ASSOCIATES
Association 2023 2022
Investment in subsidiaries £million £million
Cost
At start of period 0.1 0.1
At end of period 0.1 0.1
he St Mungo Community Housing Association subsidiary undertakings are:
Name of undertaking Class of Country of Proportion of nominal
Nature of
shareholding incorporation value held directly Business
Broadway Homelessness and Support
Ordinary		 England 100% Dormant
Street Impact London Limited Ordinary England 100% Dormant.
Street Impact Brighton Limited Ordinary England 100% Dormant.
St Mungo’s Homes Limited Ordinary England 100% Dormant.

The St Mungo Community Housing Association subsidiary undertakings are:

Additionally St Mungo Community Housing Association owns 33% of Social Impact Bristol Limited.

13. DEBTORS

Amounts falling due within one year:
Rent and services receivable
Less: provision for bad and doubtful debts
Trade debtors
Other debtors
Prepayments and accrued income
Capital grant receivable		 Group
Association
2023
2022
2023
2022
£million
£million
£million
£million
8.7
8.2
8.7
8.2
(6.3)
(5.1)
(6.3)
(5.1)
2.4
3.1
2.4
3.1
11.5
11.1
11.4
11.1
-
-
-
-
5.3
4.7
5.3
4.7
-
0.8
-
0.8
19.2
19.7
19.1
19.7

40

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Rent and service charges received in advance
Deferred capital grants
Trade creditors
Amounts owed to subsidiary undertakings
Other taxation and social security costs
Other creditors
Accruals and deferred income		 Group
Association
2023
2022
2023
2022
£million
£million
£million
£million
7.0
5.7
7.0
5.7
1.6
1.6
1.6
1.6
1.1
2.1
1.1
2.1
-
-
0.1
0.1
1.6
1.7
1.6
1.7
0.5
0.7
0.5
0.7
12.6
15.1
12.6
15.1
24.4
26.9
24.5
27.0

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE

YEAR

Recycled capital grant
Deferred capital grants (note 16)
16. DEFERRED CAPITAL GRANT
Association and Group
As at 1 April
Grant received in the year
Capital grant released
Grant moved to creditors
As at 31 March		 Group
2023
2022
£million
£million
0.5
0.5
71.8
71.6		 Association
2023
2022
£million
£million
0.5
0.5
71.8
71.6
72.3
72.1		 72.3
72.1
2023
2022
£million
£million
73.2
74.3
2.1
0.6
(1.7)
(0.2)
(1.7)
-
73.4
73.2

In full the Association has received Social Housing Grants of £105,448,052 from Government Bodies (2022: £103,322,000). The Association intends to use the recycled grant to fund new property development activities furthering the Associations aims and objectives.

Recycled Capital Grant

As at 1 April
As at 31 March
17. PROVISIONS FOR LIABILITIES
Group and Association
1 April 2021
Additional provision in year
31 March 2022
Utilised in the year
Additional provision in year
31 March 2023		 2023
2022
£million
£million
0.5
0.5
-
0.5
Dilapidations
Total
£million
£million
3.5
3.5
0.5
0.5
4.0
4.0
(0.2)
(0.3)
0.5
0.5
4.3
4.3		 2023
2022
£million
£million
0.5
0.5
-
0.5

Dilapidations : This represents the anticipated cost of making good properties at the end of their lease terms.

41

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

18. MEMBERS AND RESERVES

The Association is limited by guarantee and consequently has no share capital. Each of the Association’s members agrees to contribute £1 in the event of the Association winding up.

to contribute £1 in the event of the Association winding up.
Number of members
1 April
Joined during the year
Left during year
31 March		 2023
2022
No.
No.
12
12
1
3
(3)
(3)
10
12
RESTRICTED RESERVES
Recovery College
Street Legal
HARP
HomelessWise
Westminster Contract & Assessment
Lifeworks
Putting Down Roots
SELHP Project
Oxford Mental Health
Barratt Developments
Leicester Constriction Skills
Tower Hamlets SORT
Complex Needs
First Response
Other
Total		 At 1 April
2022
£million
Income
£million
Expenditure
£million
At 31 March
2023
£million
0.7
-
-
-
-
-
-
0.2
0.5
0.1
0.1
0.8
0.6
0.2
0.2
0.4
0.1
0.3
-
-
-
0.1
(1.2)
(0.3)
(0.2)
(0.2)
(0.4)
(0.1)
(0.3)
(0.1)
(0.1)
(0.1)
-
0.3
0.3
-
-
-
-
-
0.1
0.4
-
0.2
-
0.1
(0.1)
-
-
0.1
(0.1)
-
-
0.1
-
0.1
0.2
1.3
(0.7)
0.8
1.8
4.3
(3.9)
2.2

Restricted reserves

Restricted donations are applied to part or fully fund projects that meet the donor restriction and that further the charitable activities of St Mungo’s.

42

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

19. RECONCILIATION OF PROFIT AFTER TAX TO NET CASH GENERATED FROM OPERATIONS

Group
(Deficit) / for the year
(Gain) on disposal of tangible fixed assets
Interest receivable
Interest payable
Operating Surplus / (Deficit)
Defined Benefit Pension Scheme payment toward deficit
Adjustments for non-cash items:
Amortisation of capital grant
Amortisation of intangible assets
Depreciation of tangible fixed assets
Fixed Asset non-cash movement
Increase in provisions
Defined Benefit Pension costs recognised in Statement of Comprehensive Income
Operating cash flows before movements in working capital
Decrease / (Increase) in trade and other debtors
Increase / (Decrease) in trade and other creditors
Cash generated from operations
Cash and cash equivalents represent:-
Cash at bank
Short-term deposits
20. CAPITAL COMMITMENTS AND OTHER CONTRACTUAL OBLIGATIONS
Group and Association
Capital expenditure contracted for but not provided in the financial statements
Expenditure authorised by the Board, but not contracted
These liabilities will be met by the use of free cash reserves.		 2023
2022
£million
£million
(2.9)
(0.1)
(0.4)
-
(0.1)
0.2
0.2
(3.2)
0.1
(1.6)
(1.6)
(1.7)
(1.6)
0.7
0.1
3.8
0.2
3.7
-
0.3
0.5
0.1
0.1
(1.4)
1.3
(0.4)
(0.9)
(2.1)
1.8
(3.9)
2.2
2023
2022
£million
£million
0.8
0.1
15.3
22.4
16.1
22.5
2023
2022
£million
£million
0.4
1.4
3.2
9.9
3.6
11.3
21. COMMITMENTS UNDER OPERATING LEASES
Group and Association
The total future minimum lease payments are payable:
Within one year
Between one and five years
After five years		 2023
2022
£million
£million
5.8
6.9
3.9
9.4
1.9
2.5
11.6
18.8

43

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

22. RETIREMENT BENEFITS

The Group participates in two defined contribution pension schemes for all qualifying employees. The assets of the schemes are held separately from those of the Group in independently administered funds. The contributions payable by the Group are charged to expenditure, and contributions payable to the fund at the year-end are included in creditors as follows:

Administrator
Pensions Trust
Aviva		 Contributions payable
charged to Statement
of Comprehensive
Income
Contributions payable
to the fund included
in creditors
2023
2022
2023
2022
£million
£million
£million
£million
0.2
0.1
-
-
2.1
2.1
(0.4)
(0.4)
2.3
2.2
(0.4)
(0.4)

ST MUNGO’S DEFINED BENEFIT SCHEME

The Employer operates a defined benefit scheme in the UK. This is a separate trustee administered fund holding the pension scheme assets to meet long term pension liabilities. Scheme liabilities have been based on liability information as at 30 September 2021 updated to 31 March 2023 by a qualified actuary, independent of the Scheme's sponsoring employer.

The actuarial valuation as at 30 September 2021 showed a deficit of £14,072,000. The Employer has agreed with the Trustee that it will aim to eliminate the deficit by 30 May 2029. To achieve this, prior to 1 April 2023, deficit contributions of £1,560,600 p.a. plus £81,000 p.a. in respect of scheme expenses were payable. From 1 April 2023, deficit contributions of £1,592,000 p.a. (payable monthly) and £94,764 p.a. in respect of scheme expenses are payable, both increasing by 2% p.a. on 1 April 2024 and each 1 April thereafter.

DEFINED BENEFIT PENSION LIABILITY

DEFINED BENEFIT PENSION LIABILITY
1 April
Defined benefit costs recognised in Statement of Comprehensive Income
Defined benefit (gains) / costs recognised in Other Comprehensive Income
Deficit contribution paid
31 March		 2023
2022
£million
£million
8.1
10.6
0.3
0.3
(0.5)
(1.2)
(1.6)
(1.6)
6.3
8.1

PRESENT VALUE OF DEFINED BENEFIT OBLIGATION, FAIR VALUE OF ASSETS AND DEFINED BENEFIT LIABILITY

LIABILITY
Fair value of plan assets
Present value of defined benefit obligation
Net defined benefit liability to be recognised		 2023
2022
£million
£million
29.4
43.6
(35.7)
(51.7)
(6.3)
(8.1)

44

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

RECONCILIATION OF OPENING AND CLOSING BALANCES OF THE DEFINED BENEFIT OBLIGATION

Defined benefit obligation at start of period
Interest expense
Actuarial losses / (gains) due to scheme experience
Actuarial losses / (gains) due to changes in demographic assumptions
Actuarial (gains) / losses due to changes in financial assumptions
Benefits paid and expenses
Defined benefit obligation at end of period		 2023
2022
£million
£million
51.7
51.4
1.5
1.1
2.8
0.9
(1.2)
2.1
(18.1)
(2.9)
(1.0)
(0.9)
35.7
51.7

RECONCILIATION OF OPENING AND CLOSING BALANCES OF THE FAIR VALUE OF PLAN ASSETS

Fair value of plan assets at start of period
Interest income
Experience on plan assets (excluding amounts added as interest income) gain
Contributions by the employer
Benefits paid and expenses
Fair value of plan assets at end of period		 2023
2022
£million
£million
43.6
40.8
1.2
0.9
(16.0)
1.2
1.6
1.6
(1.0)
(0.9)
29.4
43.6

The actual return on plan assets (including any changes in share of assets) over the year ended 31 March 2022 was £2,123,000 (year ended 31 March 2021 - £2,813,000).

DEFINED BENEFIT COSTS RECOGNISED IN STATEMENT OF COMPREHENSIVE INCOME (SOCI)

DEFINED BENEFIT COSTS RECOGNISED IN STATEMENT OF COMPREHENSIVE
INCOME (SOCI)
Expenses
Net interest expense
Defined benefit costs recognised in statement of comprehensive income (SoCI)		 2023
2022
£million
£million
0.1
0.1
0.2
0.2
0.3
0.3

DEFINED BENEFIT COSTS RECOGNISED IN OTHER COMPREHENSIVE INCOME

Experience on plan assets (excluding amounts included in net interest cost) – gain
Experience gains and losses arising on the plan liabilities – (loss) / gain
Effects of changes in the demographic assumptions underlying the present value of the
defined benefit obligation – (loss) / gain
Effects of changes in the financial assumptions underlying the present value of the defined
benefit obligation – gain / (loss)
Total actuarial gains and losses (before restriction due to some of the surplus not being
recognisable) – gain / (loss)
Total amount recognised in other comprehensive income – gain / (loss)		 2023
£million
2022
£million
(16.0)
1.2
(2.8)
(0.8)
1.2
(2.1)
18.1
2.9
0.5
1.2
0.5
1.2

45

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

ASSETS

ASSETS
Equity
Bonds
Property
Cash
Other
LDI
Liquid Alternatives
Private Credit
Total assets		 2023
£million
2022
£million
0.1
4.5
1.6
8.6
2.7
3.4
1.2
0.5
4.2
12.6
15.2
14.0
1.8
2.6
29.4
43.6

None of the fair values of the assets shown above include any direct investments in the employer’s own financial instruments or any property occupied by, or other assets used by, the employer.

KEY ASSUMPTIONS

KEY ASSUMPTIONS
2023 2022
% per % per
annum annum
Discount Rate 4.85 2.80
Inflation (RPI) 3.15 3.50
Inflation (CPI) 2.90 3.20
Salary Growth 2.50 2.80
75% of 75% of
maximum maximum
Allowance for commutation of pension for cash at retirement allowance allowance
The mortality assumptions adopted imply the following life expectancies on retirement 2023 2022
age 65: (Years) (Years)
Male retiring in 2023 21.3 21.6
Female retiring in 2023 24.9 24.0
Male retiring in 2043 23.0 23.2
Female retiring in 2043 25.3 25.5

23. LOCAL GOVERNMENT HOUSING ACT 1998

The total grant available from the Association of London Government and London Councils for the year ended 31 March 2023 includes the following:

The Assertive Offender Resettlement Project was £298,930. The analysis below summarises what the grants were awarded for and how they have been used:

London Councils – Assertive Offender Resettlement

Salaries
Beneficiary costs
Running costs		 Grant
Spend
£000
£000
207
222
32
18
60
56
299
296

As at the 31 March 2023 the amount of grant unspent and therefore not received was £3,000.

46

St Mungo Community Housing Association Annual Report and Financial Statements for the year ended 31 March 2022

Company Registered number 08225808 Regulator of Social Housing Registration LH0279 Charity number 1149085

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2023

The Street Link London Advice Line was £102,663. The analysis below summarises what the grants were awarded for and how they have been used:

London Councils – Street Link London Advice Line

London Councils – Street Link London Advice Line
Salaries
Beneficiary costs
Running costs		 Grant
Spend
£000
£000
82
71
2
2
19
16
103
89

As at the 31 March 2023 the amount of grant unspent and therefore not received was £14,000.

The Link Worker Immigration Advice Service was £540,877. The analysis below summarises what the grants were awarded for and how they have been used:

London Councils – Street Link London Advice Line

London Councils – Street Link London Advice Line
Salaries
Beneficiary costs
Running costs		 Grant
Spend
£000
£000
149
123
329
267
63
38
541
428

As at the 31 March 2023 the amount of grant unspent and therefore not received was £113,000

24. RELATED PARTY TRANSACTIONS

The following transactions are with 100% owned entities which are not regulated by the Regulator of Social Housing:

The following transactions are with a 33% owned entity which is not regulated by the Regulator of Social Housing:

47