R•gistèrad number: 09244172 Charity number. 1163098 Spring Hou$lng Asso¢latlon Llmltèd Trustees. report and financlal slalemènts For Ihg Year Endgd 30 September 2021 IDAINS ACCOUNT ANTS
Spring Housing Association Limlted IA company limltod by guarant801 Contgnts Page Refergnco and administrativa detall$ of the Charty, its Trustees and advlsers Tru8teos' report 2-11 Independent audltors, r•port on the financlal statoments 12- 15 Consolldatod statoment of financial a¢tlvities Consolklated balance sheet 17 Charfty balance sheet 18-19 Consolldatgd $tatamont of cash flows 20 Notos to the financlal statemonts 21-41
Sprlng Hou$lng A¥sociation Llmltèd IA company Ilmited by guaranlge) Referenoe and admln15trative details of thè Charlty. Its Trustees and advlsers For tho Yoar Ended 30 September 2021 Trustees T J M Clark. Chair (resigned 28 September 2021) K L Moor6, appointed Chair 30 November 2021 D R Bindert N V De-cosla P B Hlbbert Iresioned 8 D&cember 2020} R Ikram N Owen D J Saunder8 N Sunder L Cannon lappoinled 28 September 20211 Company regist•r•d number 09244172 Charlly rggl$t•rod numbèr 1163098 Registered offlce Hestia House 22 Old Walsall Road Birmingham 842 1DT Company Sècretary D J Bradley Group Chief Executiv D J Bradley Indep8ndènt auditor Dains LLP 15 Colmore Row Birmingh8m B3 2BH Sollcltors Anthony Collins Sollcllors 134 Edmijnd Street Birmingham B3 2ES Higgs & Sons 3 Walerfronl Business Park Brierley Hill Dudley DY51LX Bankers Barclays Bank PIC 66 Oxford Street Kidderminstar DYI0 1BL Page 1
Sprlng Hou$lng Assoclatlon Llmltod (A company Ilmitod by guarantèol Trustees. Roport For the Year Ended 30 S•ptèmber 2021 The Trustees (who are also diroctors of the Charty for the purposes of the Companies Act) present Ihelr annual report together with the audited financial slalemenls of Sprfng Housing Assoclation Ilhe Charity) ar Sprfng Community Homes Limtted (the subsldlary} fol the year 1 October 2020 to 30 September 2021. The Annual report Serves the purposes of both a Trustees, report and a dlre¢lors' report under company law. The Trustees confirm that Ihe Annual report and financial statefnenls of the charitable ¢ompany comply with the ¢urrent slalulory requirements, the requirements of the charitable companls govorning document and the provisions of the Slalemenl of Recommended Pra¢ti¢e {SORPI applicable lo charities preparlng their a¢counls in accordance with the Financial Reportin9 Standard applicable in the UK and Republic of Ireland IFRS1021 leffeclive 1 January 20191. Spring Housing Asso¢ialion Limited is a charitable company limited by gu8rantee and not hawng share capltsl. 11 was incorporaleLI on 1 O¢lobgr 2014 and registered as a charity on 11 August 2015. 11 commencad Its 8clivilies on 10 November 2014. The charltable companls pollGy and operations are governed by ils Memorandum and Articles of Association. Spring Community Homes Limlled is a wholly owned subsidiary of Spring Housing Assoclatlon Limited. It was registered on 7 March 2018 under the Co-operative and Community Benefrt Societies Act 2014. Since the charity qualifies as sm811 under sects'on 383, the strategic report roquired of medium and large companies under the Compariie5 Act 2006 (Strateg¢ Report and Oireclorfs Report} Regulations 2013 is not required. Objectives and actlvltl88 a. Constltutlon The charity Is regl$ter8d as a charitable company Ilmll8d by guarantee and was set up by a Mèmorandum of Association on l October 2014 whlch were revised In July 2018. 11 Is also a reglslergd charity numb9¥ 1163098. The prlnclpal oblecl of thg charity is lo carry on, for the btrngfit of the community. the business of providing housing and associated amgnilies for persons in necessitous circumstances upon terms appropriate lo their means and providing for persons in need Ihereof housing and any associated amenities especially designed OF adapted lo meet the disabilities and requirements of such persons. Such business is lo be run on a not for profit basis. The subsidiary is registered under the Co-operative and Community Benefit Societs Act 2014 Lsnder the society's rules approved on 13 Fèbrtjary 2018. The soci&ty Is fom)ed lor the benelil Df the community in providing. directly or indirectly. and managing housing and accommodalSon, and any associated facililiss, amgnilies and $6rvices for persons in necessllous ¢ircumslances and aged, disabled Iwhelher physically or mentally} or chionically sick people upon terms appropriate lo their means. Page 2
Spring Housing Asso¢14tlon Llmltod IA company Ilmltod by guarantee) Trust¢es' Report {continuedl For the Year Ended 30 Septemb&r 2021 Obloctlv•8 and actlvltle$ (contlnued} b. Methods of appolntment or electlon of Truste8s The management of the Charity is the responsibility of the TTUStees who are elgcled and co-opted under Ihg temis ol the Articles of Association. The managgm8nl of the subsidiary is the responsibility of ils mombers who ar8 elected under the societ$ rules. The members of the Boards maintain a good rango of skills and expertise in order to govern the group and are monitored annually by appraisal lo folm a skills Thatrix. New trus*Èes are appointed by placing advertisements with BVSC anij through dlre¢l applicalitsns. The procéss requlres potential Trustees to submit a CV detailing qualifi¢alions, skills and their motivation for joinirsg. Al Cvs are reviewed by existing Trustees, and individuals wlth appropriate skills are be invited for interview. If the applicant is considered to have skills that would enhance th8 operation of the Board, this is assessed against our annual review of governance where we identify where Iherg are skills gaps. A pefspective boaid (nember is invited lo attend a Board meeting as an obseNer and if, èfler that, Ihgy still wish lo become a Trustee they wsll be invited to join the Board. ¢. Policles adopted for tha Inductlon and trainlng of Trustees Each new Trustee is indu¢t8d into the charity by meetin9 with other Trustees and executive officers and being offered a shadow place on the Board prior to joining. Along with our regular Board meetlngs, we hold 8oard away days which Is an opporttjnlty lo Inle consultants who have a good understandlng of charity and housing govgrnance lo help guldg the Trusl8es through th8 governance process. d. Organlsatlonal structure and decislon maklng The Board of Tiuslees has overall responsibillty for the management of the group. its strategic direction and decision making. However, day lo day responsibility for njnning the affairs of the charity and its subsidiary is delegated lo the charit8 D1CtOrS and the Senior Team. The 8oar(J of Trustees for the charily mgel at least once a quarter wlth a 8¶te meeting being held for the subsidiary and its merrTrbers. Each board meeting is structur8d td have one or two main themes linked lo a corporal8 calendar 8$ well as considerlng speclfic business that has arlsen since the previous meeting. Main themès include the business plan and slralogic dire¢tlon, pèrformance of existing conlracis, salting budg&ts, revi8wing accounts and reviowing the corporate fisk Tegisler. The Company Secretary Is also the Group Chief Executive who is paid for his capacity as Group Chief Executive and not for his role as company secrètary. The group has adoplod the National Housing Federation codg of govomanc8 to ensure a hlgh level of conduct and integrity is in place. A sesf-assessment is carried out by the board annually lo ensure it continues lo meet the requlremenls of the code. Page 3
Spr5ng Houslng Assoclatlon Llmlted (A company Ilmited by 9uaranteg1 Trustees. Report Icontlnuedl For the Year Ended 30 September 2021 Obloctlvas and activltles {continued) e. Rlsk management There is a dsk management plan in place which focusses on the major risks lo which the tharity and ils subsidiary are exposed, The plan focusses on the financal risks, operational risks, governancè risks and compliance risks faced by the group. The plan sets out the effocts of each of the risks facing the ¢hBrity including the controls and miligalions in place lo mlnimls8 the risk and Is reviewed by the board on a regular basis lo monitor both the likelihood and severty of each identified risk. The plan is a regular agenda item al Trustee meetings and will focus on areas whgre likelihood and severity are seen lo have changed. The Trnsts8s have also adopted a rlsk managom8nt slrat8gy which in¢orporales a stralogic risk register to focus on sp8c4fic straleglc rlsks affectlng the group and the mlugallons whlch are In place. f. Pollcies and objectives The TrL8lees consider they have had regard to th8 Charity Commission guidelines on public benefit and have established the followng alms, objectives, vision and mlsslon. Thg obje¢lives of the charity given in the Memorandum of Association are: "to carry on for the beneflt of the communlty the buslness of provldlng hou8lng and any as$o¢lated amonltl8$ for parsons In necessitous clrcumstances upon tomis approprlate to thelr means" and "provldlng for p•rsons In need thereof houslng and any associated amenities especlally deslgned or adapted to meet the dlsabSlltlès and r¢qulremonts of such porsons" Our Alms: To provSde hlgh quality aCmmOdattQn for poopfg in housing need. To prevent and reduce homelessness. To assist people on 8 joumey away from housing need towards a future of stability, happiness and Independence. In addition to the above we aim to remain an Ilependent organlsalion. Mission St*tement= 'To create long tem prosperity by Investing to Pi8v8nl homal8ssn8ss and social iSDlalion° Pgge 4
Sprlng Houslng Association Limitod (A company Ilmltad by guarantee) Tru51ees' Report (continued} For the Year Ended 30 Septernber 2021 Objectives and actlvltles (contlnuodl g. Strategles for achlevlng oblectlves The Charity has continued Èo grow and has expanded the number of SeNiS it is operaling and also the regions it is now operating wlhin. It continues lo operate its Vulnerable Adults Housing and Wellbeing SLSPPOrt contracts whlch have now been fully embedded successfulty into the ¢harily and are now apprDachin9 the end of year 2 in delivering this support across the four conlracl$ which support homeless, young adults and exwoffenders. Due lo the ongoin9 pandemic, there has been increasing dèlays to naw arrivals wilhirs the Birmingham r988tUemgnt servlca howgver the Charily has w8lcomed a further g families lo the seN¢g this ygar and there are also sevgral famlli&s who slart8d on this project who are now in their year 5 of the project. In addition to our general refugee res8ttlem8nt programme, we have also been able to widen our offer due the emergency in Afghanlslan wher8 we hav8 been commlssioned in both Birmingham and Slaffordshire to house and support 120 people who are connected lo the UK through their work with Ihe BFilish Military. Spring has expanded its services into Covenlry wlth a 24-hour supported homeless project in Radford Road which opened in January 2021 and houses up to 24 vulnerable adults this has been commissioned as a complex needs service by Coventy City Council. Spring has a180 opaned its lirsl 10 supported units of aCmModation in Solihull in partnership with Solihull MBC which welcomed its first customers in January 2021 wlh the aim lo expand the accommodation available within this région in thè coming years. Th8 Charity has conllnued to work wth B5rmlngham City Councll with the Charter of Rights publlcatlon and research into living standards wtthin exempl accommodallon. 66 organisalions have now sigNed up to the chartgr with the publication referenced in both the Nalional Statement of Expectations for Supported Houslng and the recenuy published Kerslake Report. Spring has continued into ils ground breaking research into women who are rough sleeEM'ng. Throughc>ul 2020, our best practice lead carried out a research and learning pioject in Birmingham around a 'women-specific' funding stream that formed part of Year 3 of the Rough Sleepers, Inilialive. This report, published in Marth 2021 as Violence Under Quiet Conditions. looked in depth al the experien¢es of women who wefe deemed to be rough sleeping, or at rlsk of doin9 $0, and the experiences of the practitioner5 and 51akeholders who worked alongside th8in. This work, continuing into 2022, seeks to understand and highlight how women's experiences of 'rough sleeping, do not always, or often, align with thosa of men, and how women's backgrounds, needs, and slrtjctural and systernic position as women need lo be taken into ac¢ounl at funding, policy and practice levels. It S88ks to continue to explore and pul forward aY(ernalive ways lo con¢eive of womén's èxperiences of 'rough $18&ping'; eviden the structural and systemic problems that compound women's experi6nces, and make r8¢omm&ndatlons around fulura fvnding, slralegy. and practice. Spring hgld awareness and information event on our Blrthday on 10th Novembèr whlch had 167 professionals, praclilioners and experts by experigncg who allended the online the event, with a follow annfrd this year. Services have continued to be affected by th8 pand8mic and the Charity has adapted its working practices to protect its Customers and its wDrf(force. 11 also continues to SLtpport thos8 cuslomars with no recourse lo public funds to ensuro they have a pla¢9 to live while pursuing their right lo remai. Spring has also led on the refurbishment of the Fd Winter Centre in Slralford Upon Avon whlch 11 b8come 15 units of accommodation to be made availabk lo those al risk of homelessness in the district and also hom8 a multi-a9ency support office offering support, training and 8mpSoymanl. The refurbishment works are nearing the end with the centre due lo open early 2022. Page 5
Spring Houslng Assoclatlon Llmlted (A company Ilmltod by guarantee) Trusteès. Report {continued} For the Year Ended 30 Septembei 2021 Oblectlves and actlvltles {Gontlnuod} h. AGtivities undertaken to achieve objectives Accommodatlon The accommodation has been sourced through a seleth'on of private landlords and charitable organisations which meet th8 needs of ils customers in tem)s of Iwing standards and location. The properly stock is split between Spring Housing Association and Spring Community Homes wth the majority managed by the subsidiary. The stock is a mixturo ol selfkncontained flats and individual rooms which is used for the homeless and young people services. Along wSth properties ranging from I bod flats to &bedroom famlty homes used for the Syrian and Afghan famlly resettlem8nl programme. The general needs affordablg accommodation managed by the chaTity, where possiblo, is let to indivlduals who Were formally In supported accornmodation bul are now able to sustain their own tenancy. At the end of the period the charity wa8 managing a total of 848 unlts of accommodation across 21 dlfferenl local authorities. Employ$a Mattars Staff numbers h8ve increased in the year which indude the staff required to oporat$ new services wthln Coventry, Solihull, and the Afghan schemes. Staffing numbers have also been increased across our housing support Sorvi¢es wlth increase in staff wthin our Housing, Maintenance. and Cleaning teams. There have also b8en new rK>sl8 addèd to our back-office functions which provide support lo enable our front-line teams and gnsure our PToperty standards arè mel. As of the 30th September 2021 the Charity employed 115 staff wlth a mlxlure of full and part lime posts and remains a Ilvlng wage employer and accredlled through Living wage Foundation. Hestla House is the head office of th8 charity with many staff being based there, bul there are other regional and satellite offices in Birmingham, Lichfield, and Coventy where staff are based to support the customers SL•rroLtrnding each l¢)calion. SSgnifi¢ant investment has been made lo our ICT infrastructure within the year which has helped to support the workforce through remote and hybrid working pallems becoming more nomial. All stsff are recrurted through a safer recruilmenl programme and induction process lo ensure they offer thè highèst lèvels of experience in Ihgir ¢hosen area and are 8ultable to Wofk with vulnerab18 adults and youn9 ptsople. Page 6
Sprlng Housing A5soclatlon Llmltgd {A company limlted by guarant¥g} Tw$te9$' Report Icontinuedl For the Ytar Ended 30 Septembar 2021 Objeet1v and actlvltles (continued) l. Programme related Investments Most of the income received by Ihg Charity is in the form of Housing Benefit whi¢h is paid on 8 28-day cyde. In additional lo this. there has been a stèady increase in the levels of Universal Credit received as the numbers of customers receiving this benef41 Increases. Support contracts have continued lo increase with extension to Iha rough sleeper support contract wthin Lichfield and Canno¢k and new commissioned SeNiS within Coventry and Slratlord upon Avon. There has been a significant increase Sn the lèvel8 of grant Managed by the charity this yaar with the largest portion received to fund the refurbishment works at the Fred Winter Centre wSlhln Stratford upon Avon. In additional lo this thgr& is the continuation of grants received for support services from both Reaching CommunitlO8 through the Big Lottery and also Children in Need. Page 7
Sprfn9 Houslng Assoclatlon Llmltsd IA ¢¢mpany Ilmited by guarantee) Trustees. Report {contlnu¢d) For the Year Ended 30 Septembar 2021 Achlgvpmonts and perfom)anco a. Golng concem After m8klng appropriate enquiries, the Trustees have a reasonable expeclalion that Ihe charity has adequate resources to continue in operational existence for the foreseeable futurg. For this reason. they continue lo adopt the going concern basis in preparing financial slalemenls. Further details regarding the adoption of the golng concem basis can be found in the Accounting PcAicy note. b. Revlow of activitios Accommodallon All of the properties managed withln the group are leased. with tho malorlty on short term agreements between 1 and 5 years. As of 30th September 2021, th8 lolal number of units in management werè 848 which was a 7 /0 increase on the prgviou5 year. 65/0 of the stock is used by the homeless setvice lo provkle shared and single accommodation within the Birmingham homeless Servi with a further 4VD offering the same service in other regions. 2P/o of the stock is Used as fan)ily homes for the customers in our resettlement s8Nices. 4Vo is general needs stock. 12Vo ol the stock is managed by Spring Hotjsing Association and the remaining 88% is managed by Spring Community Homes. We continue to work with a core group of landlords who provide a large proportion of th8 accommodats'on used with the hom8less sBrwces. However, wts have a much morg varied approach to procurement in the r8fugo services in order lo obtain the right accommodatw)n in the rlghl areas for the incomin9 families. This ¢an lead lo a high number of different privat8 landlords and letting agents being L+sed. We wlll continue lo increase OUT accommodatlon bul only with targeted growth which is In Ilne with our existing contracts worklng with the local authofilies speclNcally in the reglons of Coventry, StraÉford upon Avon and Solihull. All stock is reviewed in terms of viability, and quality on a regular basis and any property which fails to meet the requirements will be handed back lo the landlords at the naxl available break in the lease. Employment The staffing structure has increased over the period lo 115 members of staff across all sethces whlch Is made up of a mixture of full and part time Posts. This is an increase of 17¥0 compargd lo the previous period. Th8 Increase in posts has come from addltlonal seryicas and contracts startifig in the ygar bul also an increase in the housing support services and back-office potsts required lo strengthen the infTaslruclure of the workfor. Despite this invostmenl our central costs whare at 8.50A this insured, we mel our target of nev8r beiw more than 100/0 of turnover since Springs formatlon In 2014. Page 8
Spring Housing Association Limitod {A company limited by guaranteg) Trustees, Report Icontinugd} For the Year Ended 30 September 2021 Flnan¢lal revlwv a. Re6eNes poll The current reserves pc>licy is to hold cash or near cash equivalents that are sufficient lo cover 3 months of committed expenditure for the charity. The lev&ls of resetves have reduced the last period with the additional funding requir8d lo complete the refurbishment of the Fred Win18r Centre in Slrattord upon Avon. so the aim is lo rebuild this back to previous levels over the corning years. b. Principal funding For th8 p8riod ending 30th Sgplèmbar 2021 the group had a turnover of £10,722.476 which was an Increase of 13Vo ¢ompared to tho provlous yoar. Thg 9rovrth has come from an incrBas6 in tha rental income generated by the additional units aCqUid in the ar and also an incrgas& in the grants r¢¢eived in Ihe year due lo the funding received to complete the refurbishment works al the Fred Winter Centro. Rgfug99 services income has dropped slightly on the previous year which was paruy down lo the postponement of several arrivals planned in the year and also rgaching the end of tho ¢ontra¢ls in som? areas. Care leavers support income has also dropped due lo the planned redutstion in numbers of customers supported throu9h this agreement. The surplus for the period was £442.936 which is lower than the previous period where higher than expected lev&l8 of voids have reduGed the level of rental income achievable. In addition lo this the level of maintenance spend increased by 57% caused by an investment in propety stsnd8rd$ but also to ensure the regulaloTy guidelines were mel across all siles. Cenlr818nd ov8rhead8 wer0 8t a Cost of £933,141 whSch is an Increas8 on th8 pr8vious poriod of 32°/• dug to increased back office support costs and also Increas&d compliance Inspoctlons. This is 8.5Yo of ttjrnovèr which is below our maximum target of 10'h. Lease costs are the highest cost lo the Charity which were al £4.276,900 in the period. This has increasèd on the previous period due to ari increase in units managed within the homeless services. The next highest cosl to the Charity is ils staff costs which lolalled £2,415,230 in the peiiod which is an increase of 28 /0 compared to the lasl period with increased levels of staffing both in the baCkffICe support and also the within our housing and maintenance teams. The largest area of inveslmènl Is towards the redèvelopment of the Fred Wlnler Cgnlre which as al the end of the period had an increase in £1.7m worth of assets to cover the build works and professional fe¢s associated with the refurbishment. In addition to this there was further investment in IT lo support the expanding workforc8 and also in addS1ional vans required for the maintenance team. Cash held al the &nd of the perlod was £219,472 whlch has reduced compared to th8 previous pariod due lo the investments made Into the Fred Wlnler Contre. Page g
Spring Houslng As$o¢l#tlon Llmltéd A company limited by guaranto•1 Trustees. Roport Icontlnuedl For the Year Ended 30 Septembèr 2021 ¢. Plans for futur• p¢rlods The Charity plans to open an addltional 24 hour sile in Earlsdon. Coventry which wlll bts a slep down service and able lo accommodate an additional 27 peoplg who have experienced Homelessness in the region lo complement the existing Radford Road scheme. The Charity Is due lo commence 2 seryice in both Birmingham and Coventy for the Relugee Transillons Oulcomg Fund which alms lo support in both accommodation and employrnent lo newly ariived refugees. There is still a commitment to provide family homes in both Birmin9ham, Slaffordshire, Wolverhampton and Hereford$hiro for the settlement serwces so will continue to source suitable accommodation and provide the support ne8ded to thosa families up until the end of March 2022. Additional units of accommodation will b8 sought in thè ragions of Coventy, Slratford and Solihull and will aim lo seek separate ¢ommissioned ServIS for support of people gxperiencing homelessness withln these regions. The Fred Winter Centre will be opening early 2022 wllh the first services starting to operate and customers momng into the accommodation within this multi-agency hub which wll be the first of ils kind lo operate within the region. The research and work around women rough sleepers and the Charler of Rights will continue with the aim to increase the number of organisations signed up and engaging. The Charity also has its ambition lo own its own properties and has several opportunities on offer which will be Fevi8w8d during the year which should bring the first assets onlo tha books. d. Funds held as custodlan The charlty does not hold ariy funds on behalf of others. Page 10
Spring Houslng Asso¢latlon Llmited IA company Ilmlted by guarantee) Tru5tees' Report (continued} For the Year Ended 30 September 2021 Statement of Trustees. rosponslbllltlos The Trustees (who are also the directors of the Charity for the purpose5 of wmpany law) are responsible for preparing the Trustees, report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards {United Kingdom Generally Acoepled AccountSng Practtce). Company law requi$ tho Trustees to prepare financial statements for gach financlal year. Under company law. the Trustees musl not approve the financial slalements unlèss Ihoy are satisfied that they give a true and fair view of the slate of affairs of the Group and the Charity and of Ihebr incoming resources and apyicalion of resources. Including their inGome and expenditure, for that period. In preparing these financial slalements, the Trustees are required lo.. select suitable accounting policies and then apply them cons5stent. observe the methods and principles of the Charities SORP IFRS 1021,. make judgements and accounting eslima16s that are reasonable and prudent., stale wheth&r applicable UK Accounting Standards (FRS 1021 have bgen followed. subject lo any material d8partures disclosed and explainad in th8 financial $ts18menls', prepare the financial slalemenls on the golng concein basis unless il is inappropriate to presume that the Group will continue in business. The Trkjslges are responslble for keeping adeouale accounting records that are Sufflent 10 Show and explain the Group and the Charity's transactions and disclose with reasonable accur8¢y al any time the financial position of the Group and the Charity and enable them lo ensure that the linancial slalemenls comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and the Charity and hence for taking reasonable st8ps for the prevention and detection of fraud and other irregularities. Dlsclosure of infomiation to audltors Each of the pèrsons who are TrLtslees at the timo whgn thls Trustses. report is approved has conffrmed that.. so far as Ihal Trustee is aware, there is no r8levanl audit information of whlch the charitable group's audhors are unaware. and thal Trustee has taken all the steps that ought to have been taken as a Trustse In ordèr lo be aware of any relovanl audit infomialion and to establish that the charilablo group's auditors are aware of that informalion. Audltors The auditors. Dains LLP. have indi¢al¢d their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees. Approved by order of the membars of the board of Tfustees on 3 March 2022 and signed on their behalf by.. D J Bradley Secretary Page 11
Spring Houslng Association Llmited IA company limited by guaranteel Independent audStors' roport to tho MemboT8 of Spring Houslng Assoclation Llmltèd Opinion We have audited the financial slalements of Sprin9 Housing Association Limited {the 'parenl charitable compBnll and its subsidiaries {the 'group'l for the year anded 30 September 2021 which comprise the Consolidated stslemgnl ol financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidate(I slal&ment of cash flows and the rglaled nolgs, including a summary of significant accounting pollcles. The financial reporNng fram8work that hay beèn applied in their preparation is applicable law and Unoted Klngdom Accounting Stsndards, including Financial Reporting Standard 102 'The Flnancial Reporting Standard applicable In the UK and Republic of Irgland. (United Kingdom Generally Accepted AccoLtnlSrvJ Practice). In our opinion the financial $tatemenls'. glve a true and faSr view of tho state of the Group's and of the parent ¢haritsble companls affairs as al 30 September 2021 and of the Group's incoming resources and application of resources, including its ncome and expend4ture for the year then ended.. have been propedy prepared in a¢cord8nce with United Kingdom Generally Accepted Accounting Prdclice., and have been prepared In accordance wlth the requirerrbents of the Compallies Act 2006 and the Chari1195 Ac12011. Basis for oplnlon We conducted our audit in accordance wlth Inlemational Standards on Auditing IUKI IISAS IUK}l and appllcable law. Our responsibillb'es under those standards are further described in the Auditors, responsibilities for the audlt of the financlal slalemenls section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant lo our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 approprkg16 to provide a basis for our opinion. Concluslons relating to going concorn In auditing the financial statements, we have concluded that the Trustees. use ol the going Goncern basls of accounllng In Ihe preparallon of Ihe finan¢tal statemgnls is appropriat8. Based on the work we have performed, we have not Identified any mal8rial uncertainligs relating lo events or conditions that. individually or Coll1&ye1y. may cast significant doubt on the Group's or the parent charilablo ¢ompanls ability to conlinue as a going concem for a period of al least twelve months fiom when the financial slalements are aulhoris¢d for issue. Our responsibilities and th8 rosponsibilitses of the Trustees with respect lo going concern are described in the relevant sections of this report. Page 12
Spring Houslng Assoclatlon Llmited {A company Ilmlted by guarantee) Ind•pend¢nt audllors, roport to th8 Mernbers of Spring Housln9 Association Limited l¢ontlnuèd) othor information The other informatson comprises the information in¢luded in the Annual report other than tho financtal slatem9nls and our Auditors, report thereon. The TFuslees are rgsponsible for the other informafjon contained within the Annual report. Our opinion on the financial slal6menls does not Gover the other information and, except lo the extent otheNlse explicitly staled in our report, wtr do not èxpress any form of assurance conclusion Iheretsn. Our r8sponsibillty is to read the other informallon and, in doing so, consider whether the olhgr infomialion is Material inconsist?nt wllh the financial statements or our kno0gO obtained in the course of Ihg audit, or otheISe appears lo bo materially misslaled. If we identify such material inconsistencies or apparent material misslatemenls, we are requlred lo deterrnine whether this gives rise to a malarial misstatement in the financial slatemenls Ihems81ves. If, based on tho work we have p8rformed, w8 condude that there is a material mlsslalemgnl of this other information, we are required to report that fact. We have nothing to report in this ragard. Oplnlon on other matters pre8cribod by tho Companles Act 2006 In our opinion, based on thè work undertaken in the course of th8 auditr. the information given in the Trusteas, Report for the flnancial year for which the flnandal stalemonts aTg prepared is consistent with the linancSal statements. the Trustees, Report has been PTepared in ac¢ordan¢e wrfh app5icable legal rtsqulrements. Matters on which we ar• requlrod to raport by 8XCOPtion In the light of our knoedge and und8rstanding of the charitable company and ils environment obtained in the course of the audit, we have not identified material misstatements in the Trustees. Report. We have nolhlng to report 111 respgct of tho followlng matters in relaOn to which Companies Act 2006 rgquir8S us lo report to you If, in our opinion.. the parent chariiable company has not kept adequate and sufficient aOUntIng recoTds, or returns adequate for our audit havo not been reiVed from branches not visited by ijs.. or the parent ¢harilable company financial slalemenls are not in agreement with the accounting records and retums., or c8rtaln dlsclosures of TrLJStees' remunerallon speclfSed by law are not made., or we have not received all the information and explanations we require for OUT audit., (Ir Ihe Trustees were nol enlilled to prepare the financial statements in accordancè with the sm811 companios regime and lake advantage of the small companies, exemptions in pieparing th8 Trustegs, Rèport and from the requirement lo prepare a Slralagic Report. Page 13
Spring Housing Associatlon Limited IA company limited by guarantOo1 Independent audltor8' report to the Membèrs ol Sprlng Houslng Asso¢lotlon Llmltgd {contlnued) Rosponslbllities of trust•es As explained more fully in the Trustees. responsibilities statement. the Trustees Iwho are also the directors of tho charitable company for the purposes of company lawl are responsible for the preparation of the financial stat8menls and for b&ir*g salisfied that thèy giv8 a truè and fair view, and for such internal control as the Trustees delermlno is necossary lo enabl8 the pr¶tlon of financial stat8m8nls that are free from material misstatement. whether due to fraud or error. In preparing the finanoal statements, the Trustees are responslble for assesslng the Group's and the parent charitable ¢ompanls ability lo continue as a going concem, disclosing. as applicable, matters relal8d lo golng concein and using the going concem basis of a¢¢ounling unless the Trustees either intend to liquidate the Group or the parent charitable company or to cease operations, or hav$ no realistic allernalive bul lo do so. Audltors. responsibilities for the audit of the flnanclal statement8 Our objeclNOS are lo obtain reasonable assurance about whether the financial ststemtsnts as a whole are free from material misstalemenl, whether due to fraud or error, and lo issue an Auditors, report that includes our opinion. Reasonable assurance is a high18vg1 of assurance, bul 18 not a guarantèe that an audit conducted in accordance with ISAS IUKI wll always detect a material misslaleFnenl when il exlsls, Mlsststemonts can ayise from fraud or error and are consider8d ma18rial If, indivldually or In IhB aggregate, thèy could 188sonably be éxpected to influence thè economic decislons of L¢s&rs taken on the basis ol these financial slalemenls. Irregulanties. including fraud. are instsnces of non-compllance whh laws and regulations. We deSn procedures in line with our responsibilities, ouvined above. lo delecl material misstatements in respect of irregularilies, including fraud. The exl8nl to which our prctedures are capable of (Jelectiry irregulallties. including fraud is delailed below.. Our approach to identrfying and assessing the risks of material misstatement in respect of irregulariti8s, including fraud and non-compliance with laws and rtsgulalions, was os follows.. the senior slatulory auditor enstjred that the engagement team collectively had the appropriate competence, capabllllies and skills to identify or recogni$8 non-MPlI8nCfj with applicable laws and regulations.. we identified the laws and regulations applicable to the company through discussions with d1ctorS and other managomenl, and from our commercial knowledge and experience ol th8 charity sector.. we focused on specific laws and regulations which we considere(J may have a direct rKbalerial effect on the financial statements or tho ope¥alions of tho company, including the financial reporting legislation, Companies Act 2006, laxalion legislation, anb'_bribery, employrngnl, and environmental and heallh and salolylogislalion; we asstrssed the extent of ¢ompliance Tmlh the laws and re9ulaliDnS identified above through maklng enquiries of mariagemenl and inspecting legal correspondence.. and identified laws and regulations were communicated wthin the audit team regularty and the team remained alert lo instance5 of non-compliance throughout the audit. We assessed the susceplibilily of the company's financial sla18ments to material ffti8slalemenl, including obtaining an und&rstsnding of how fraud might occur, by.. making enquiries of management as to Whe they considtsred there was suscaptibility lo fraud, their knowledge of actual, suspected and all$ged fraud.. considering the internal controls In place to miligale iisks of fraud and non-complianc8 th laws and regulatlons. Page 14
Sprlng Housing Association Limlted IA ¢ompAny Ilmlted by guarantee) Indopondgnt audltors, report to tho Membors of Sprlng Housing Association Limited leontlnuedl To address the risk of fraud through management bias and override of control8, we.. performed analytical procedures to identify any unusual or unexpected ielationships,. t8sled journal entries to idenlrfy unusual transactions., assessed whether ludg8mènts and assumptions made in d&t8rmining the accounting estlmal68 sel out in Note 3 were Indlc8tiv8 of pc>tential bias., investigated the rationale behlnd significant or unusual transactlons. In responso to thg risk of irregularities and non-eornpliance with laws and regulations, we dosigned procedures which included, bul weie not limited to: agreeing financial statement disclosures lo underfying supporting documentation.. reading the minu18s of meetings of those charged with govemance., enquiring of management as to actual and potential litigation and claim5- reviewing corresp(Indence wth HMRC, reltsvanl regulators and the company's leg81 adv¢sors. Because ol the inherent limitations ol an audit. there Is a rfsk that we wll not delect all inegularitios, inclL*ding those leading lo a material misslalemenl in the financial slalements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from thè av6nls and transactions rgfleclèd in th8 financial slatemenls, as we will b8 lass likely to becon7e aware of Instances of non-compllance. Th8 risk is also greater regafding irregularttles 0urrIng due lo fraud rather than error. as fraud involvas intentional concealment, forgery, Gollusion, omission or mlsrepresent81ion. A further description of our responsibilities for the audit of the flnanclal slalements is located on the Flnanclal Reporting Councifs website al.. www.frc.or .uklauditorsres onsibililies. This description forms part of our Auditors, report. Use of our report This report is made solely lo the charitable companjls members, as a body, in accordance ¥Aqth Chapter 3 of Part 16 of the Companies Act 2006, and to the ¢haritsble company's trustees, as a body, Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit Work has b&en undertakgn so that wè might slate to the charitable companls mgmbers those mallers we are requirèd lo stale lo tham in an Auditors, report and for no other purpose. To the fullest gxlgnl permitted by law. we do not ac¢oPt or assume responsibility to anyon8 other than the charitable company and Its members, as a body. for our audll work. for this report, or for the oplnlons we have formed. Andrew Morrls FCA IS¥nlor statulory audltorl for and on behalf of Dalns LLP stalulory Auditor Chartered Accountants Birmingham 3 March 2022 Page 15
Sprlng Houslng Assoclatlon Llmitod (A ¢ompany Ilmit•d by guarant891 Consolldated St8t•ment of financial activiti•s lincorporatlng Incomè and expenditure account) For the Year Ended 30 September 2021 Unre$trfct¢d funds 2021 Restrlcted funds 2021 Totsl funds 2021 Total funds 2020 Noto Income from: Donations and legacies Charitable activities Other incoma 39,714 9.285,882 272,985 1,050,377 73,518 1.090.091 9.359,400 272,985 470,706 8.796,901 237,885 Total income 9,598,581 1,123,895 10.722.476 9,505,492 Expenditure on- Charitable aclivitles 9.837,179 442,361 10.279.540 8,032,307 Total gxpendlture 9.837,179 442,361 10,279,540 8,032,307 Net movom•nt In funds 1238,5981 681,534 442,936 1,473,185 Re¢on¢lliatlon of funds: Total funds brought foFward Nel movement in funds 18 2.554,519 1238,598) 350,849 681,534 2.905,368 442,936 1.432,183 1,473,185 Total funds carried forward 16 2,315,921 1,032,383 3.348,304 2.905,368 The notes on pages 2110 41 fomi part of those financial 8talements. Page 16
Sprlng Houslng Assoclatlon Llmlted IA company Ilmlted by guarontè8} Reglstered number: 09244172 Consolidated Balan¢è Sh•8t As at 30 Septèmber 2021 2021 2020 Noto Flxad assets Tangible assets Current assets 11 2,483.345 651,876 Debtors 13 1,863.976 219.472 1,452.559 1.461.307 Cash al bank and in hand 2,083,448 2,913,866 Credilors.. amounts falllng due wllhln one year 14 {1,158,2791 1558,963) Not Curront as$gt$ 925,169 2,354,903 Total assets less current liabiliti8s 3,408,514 3,006,779 Creditors.. amounts falling due after more than one year 15 160.2101 1101.4111 Total net assets 3.348.304 2,905,368 Charityfunds Reslricled funds-. Reslri¢led in¢ome funds Restricted capital funds 16 16 165,372 867,011 272,583 78,266 Total restricted funds Unrestricted funds 16 16 1,032,383 2,315.921 350,849 2.554.519 Total fund 3.348,304 2.905,388 Th8 Twslees acknowledge their responsibilities for complying with the requirem8nls of the Act with respect lo accounting iecords and proparalion of financial statements. The financial statements hav8 been prepared In accordance with the provisions applicable to enlilles sublect to the small companies reglme. The financial slalemgnts were apwoved ar authoTt5ed for issue by Ihg Trustees on 3 March 2022 and signed on their bohall by.. K L Moor• Chair The notes on pages 21 to 41 fom) parl ol these financial slatemenls. Page 17
SpTin9 Hou$lng Assoclation Limit8d (A company limited by gvarantèè) Re9iStered number: 09244172 Charity Balan¢e Sheot For the Year Ended 30 Seplembèr 2021 2021 2020 Notè Fixed a$$¢ts Tangible assets Investments 11 12 2A83.345 651,876 2A83.345 651,876 Currant assgts Debtors Cash at bank and In hand 13 1,863.941 219.332 1.452,658 1,461,208 2,083.273 2,913,866 Creditors.. amounts falling due within orbe year 14 11,158,104) (558,963) Net current assot$ 925.169 2,354.903 Tot81 assets less current liabilltlos 3.408.514 3,006.779 Croditors.. amounts falling due after more than one year 15 (60,210) 1101,4111 Total net a$sots 3,348,304 2,905,368 Charity funds Reslricled funds.. Restrted income funds Restricted capital funds 16 18 165,372 867,011 272,583 78,266 Total restricted funds Unrestricted funds 16 1.032,383 2.315,921 350,849 2.554.519 16 Total funds 3,348,304 2,905,368 Page 18
Spring Houslng Assoclatl¢n Llmlted {A company limitsd by guarante•) Reglstered numb•r: 09244172 Charity Statement of finanelal posltion {¢ontinuedl 30 September 2021 The Charity's nel movement In funds for the year was £442,93612020- £1.473,185). The Trustèès acknowledge their responsibilities for ¢omplwng with th8 requirements of the Act with respect lo accounting 16cords and PTeparalion of financial statamènls. The financial statements hav8 been prepared In accordance with the provlsions applicable to entlll88 subl8cI to the small companies regimg. The financial ststements wer8 approved and aulhorised for issuo by the Trustees on 3 March 2022 and signed on theSr b&hakf by.. K L Moor& Chair The notes on pages 21 to 41 form part of these financial statgmenls. Page 19
Spring Houslng A880clatlon Llmited (A ¢ompany Ilmlted by guarantèg) Consolidated Statement of Cash Flows Far thè Year Ended 30 Septèmber 2021 2021 2020 Nots Cash flowts from op8ratSng actlvitias Net cash provad by operating ath'viti'es 18 047.981 1,257,017 Cash flows from investlng actlvltles Pro¢eeds from the sale of tangible lixed assets Purchase of langiblg fixed assets 15.344 (1.939.217) 1338,8001 N•t ¢ash used In Investlng actlvltles (1,923,873) 1338.8001 Cash IIow8 from flnanclng activities Cash infk)ws from now bormwing Repaymgnls of borrowing 55,000 (20.943) 120,000 Net cash provlded by flnanclng actlvitles 34.057 120,000 Changè In cash and cash oqulvalents In thè year Cash and cash equwalenls at the beginning of the year {1.241.8351 1,038,217 423,090 1,461,307 Cash and cash equlvalents at tho and of tho yoar 19 219,472 1,461,307 The notes on pages 21 to 41 form part of these firbarscial statements Paga 20
Sprlng Houslng Association Llmlted {A ¢ompany limitod by guarant8•1 Notes to the Flnancial Statements For tho Year Ended 30 September 2021 Gon•ral Information Spring Housing Association Limited is a charitsble company limited by guarantee and not having shale capital. It was in¢oiporaled on 1 October 2014 and register8d 8$ 8 charity on 11 August 2015. 11 commenced its aclivltws on 10 Nov8mber 2014. Spring Community Homes Limited is a wholly owned subsidiary of Spring Houslng Associallon LmIted. 11 was registered on 7 March 2018 under the Co-operative and Community Benefit Socielles Act 2014. and began Ils aclimlles on I September 2018. The principal object of the group is to carry on, for thg benefit of the communty. the business of providing, directly or indirecUy. and mana9ing housing and accomodalion. and any associaled facilities, amenities and services for persons in necessitous circumstances and aged, disabled {wh¢lhor physically or menlallyl or chronically sick people upon terms 8PPFopriate to their means., and any other charitable oblecl that can be carried out from lime lo lime by a registered society. Accounting pollcias 2.1 Ba$1$ of preparation of financial statomont$ The financial statements have b66n prepared in accordance wilh the Charities SORP IFRS 1021 Accounting and Reporting by Charities.. Ststemenl of Recommended Practice applicable lo charities preparing Iheir accounts In accordance with the Financial Reporting Standard applicable in the UK and Rèpublic of Ireland IFRS 1021 leffgctivg 1 January 20191, the Financial Reporting Stsndard applicablè the UK and Republic of Ireland IFRS 1021 and the Companies Act 2006. Spring Housing Association Lbmiled meets the definition of a public benefit entity under FRS 102. Assets and liabilibes are initially re¢ognis&d at hl8torlcal cost or transaction value unless olharwlse slated in the relevant accounting policy. The Consolidoted stslement of financial activities ISOFAI and Consolidated balance sheet consc>lidal8 the flnancial slalements of the Charity and Its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis. The Charity has takgn advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not pres$nted its own Statement ol fi'nancial activities in these financial statements. 2.2 Company status The charity is a company limited by guarantee. The membgrs of the Company are the Trustees narned on page l. In the event of the charity being wound tjp, the liability in respect of the guaranla is limited to £10 per membèr of the charlty. 2.3 Going concern The financial statements have been prepared on a going concern basis as thè Trustee$ believe that no material uncertain118s exist. The Trustees have considered Ihe level of funds held and the expected level of Income and expenditure for a period of 12 months from the dale of authorising these finan¢ial sta18menls. The budgeted in¢ome and exp&ndilure is sufficient with the level of reseNos for the charity to be able lo continuè as a going concern. Page 21
Spring Houslng Assoclation Limited (A company Ilmltsd by guarantoel Notes to the Financial Statements For the Year End•d 30 Saptember 2021 Accounilng pollclgs Icontinuodl 2.4 Incom¢ All income is r8cognis&d once th8 Charity has enlidtrment lo the income. il is probabl8 that th8 in¢ome will be rec8ived and the amount of income ieceivable can b8 measured reliably. Grants arg included in the Consolidated slalemenl of financial activltles on a receivable basis. Th8 balance of Income received for specrfic purposes but not expended during the period Is shown in the relevant funds on the Balanco she81. Where income is received in advancg of 8ntillement of receipt, Its reco9nitson is deferred and includod in creditors as deferred income. Where entittemenl occurs before Incomg is ieceived, the income is ac¢rued. 2.5 Expenditure Expenditure is recognised once there Is a legal or constructive obligation lo transfer economic benefit to a third paty, il is probable that a transfer of economic benofits will be required In setuement and the amount of the obligation can be measured reliably. Charitsbla activities costs arè costs incurred on the charSWs operations. Includlng support costs and costs relating to th8 govèrnance of the charity. Grants payable are charged In the year when the offer is made except in those cases where the offer Is conditional, such grants belng Y8¢ognised as expenditure when the conditlons attaching are fulfilled. Grants olfered subject lo conditions which hav8 nol been mel al the year end are noted as a commitment, bul not accrued as 8xpendilu¥e. l experlIre Is inclusNe of irrecoverable VAT. 2.6 Tanglblè fixad assets and depreclatlon Tangible fixed assets costing £500 or more are capitslised. A review for Impairment of a lixed asso1 is carriad out if events OT changés in t)r¢umStan Indlcale that the Carng amount of any fixed asset may not be recoverable. Shortfalls between the carry?ng value of fixed assols and their recoverable amounts are reco9nised as impalrmenls. Impairm9nt losses are recognised In the Statement of Financial Aclivlll8S. Ass?18 In the course of construction are in¢luded al costs incurred lo dale. Depreciation on these assets is not charged until they are brought into use. Tangible fixed assets are Carried al cost, net of depreciauon and any provision lor impairment. Depreciation is provided al rates cal¢ulaled lo wr+te off the cost of fixgd assets. less their estimated residual value, over their expected useful lives on the following bases.. Long-lerm leasehold prop8rty Motor vehicles Fixlufes and fittings Officts equlpment Computèr equlpm8nt 5Yo straight line 20¥0 slraighl line 20Yo Straight line 200/0 stralghl ling 20Yo Straight Ilne Page 22
Spring Houslng Asso¢l8tion Limited (A company Ilmlted by guaranteo) Notes to thg Financial Statements For the Year Ended 30 Septembor 2021 Accounting pollelès leontinued) 2.7 Invfj$tments Investments in subsidiaries are valu8d al Cost tess provision for impairmanl. 2.8 Leaslng and hlre purchase Assets obtsingd under hlre purchase contracts and financo leases are capltalk%ed as tanglble flx8d assets. Asststs acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase a depreciated over their useftjl lives. Finance leas&s are those where substantially all of the benefits and risks of ownership are assumèd by the Group. Obligations under such agreements are included in creditors, nel of the finance charge allocated to future perR?ds. The finance element of the rental payment is charged lo the Consolidated statement of financial a¢liwties so as lo produce a constant Periodic rale of charge on the nel obligation oul818nding in each period. 2.9 Operatlng lea$0$ Rentals pald under operating leases ar8 charged lo the Consolidated slalement of flnanoial actlvllles on a 81raSghl line basis over the leasè tèmi. 2.10 Debtors Trade and other debtors are re¢ognised al the Selllement amount aller any trade discount olfered. Prepayments are valued at the amount prepaid nel of any trad6 discounts due. 2.11 Cash at bank and in hand Cash at bank and in hand in¢ludtrs cash and short-term highly liquid invoslmenls with a short alurty of three months or less from the date of acguisilion or opening of the d8posII or similar account. 2.12 Llabllltles and provlslons Liabilities are re¢ognised when there is an obligation al thg Balance sheet dale as a result of a past event, it is probable that a transfer of economic benefit wlll b& required in settlement, and the amotjnt of the $8ttlemènl cari be 8slimated reliably. Liabilities are recognised al the amount that the Charity anticipates il will pay lo sellle the debt or the amount it has received as advanced payments for the goods or services it musl Provide. Provisions are measured al the best estimate of the amounts requlred to settle the oblwation. Where the eff9¢1 of Ihtr tsme value of money is malertal, the provision Is based on the present value of those amoLJnts, dis¢ounted al the pre-tax discount ralo Ihal reflecis the risks specific lo Ihe liability. Th& unwinding of the discount is recognised in the Consolidated statement of financial aclivits$s as a finance cost. 2.13 Ponslons The Group operates a defined contribution pgnsion scheme and the pension chargo reprgsenls fhe amounts payable by the Group lo the fund in re8pècI of the year. Page 23
Spring Housing Asyo¢iatlon Llmited (A company limited by guarantee) Notes to th? Financial Statgments For th• Ysar Ended 30 Septemb•r 2021 Accounting policies (continued) 2.14 Fund accounting General funds are unrestricted funds which are available for usa al th6 disu8tion of the Tnjslees in furtherance of the general oblectives of the Group and whlch havè not baèn dèsignated for other purposes. Dgslgnated funds comprise unreslricled funds that havg been $91 aside by the Truste8s for particular purposes. The aim and use of each designated fund is sel out in the notes to tho financial slalernents. Restricted funds are funds which are lo be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and admini51ering such funds are charged ag8insl the spècific fund. The aim and use of each reslrided fund is sel out in the notes to the financial slalernents. Crltlcal accountSng estlmates and arèas of Judg•m•nt In the application of the chaKills accounting policies, which ar8 described above, the Trustees are required lo make ludgements, eslimales and assumptions abotjl the carwng amotjnts of assets and Ibabilitles that are not readily apparent from other SOL)rcès. The oslimalès and assocSaled assumptlons are based on experlence and other factors that are considered to be relevant. Tangible fixed assets are deprecrdted over their useful lives taking into account residual values where appropriate. The actual lives of the assets and Tesidual valLses are assessed annualty and may vary dèpending on a number of factors. In re-assessing the asset lives. factors such as technological Innovalbon. product Ie cycl65 and maintenance programmes are taken into a¢unt. Rosidual values consider such things as future market conditions. the remaining life of thè asset and projected dlsposal values. Management is required to exercise significant judgement in eslimaling the bad and doubtful debt provision, whiGh takes into account the ageing of debt and management's assessment of the Ilkellhood of recovery. Actual results may differ frorn those eslimaled. The eslimat8s underlylng assumptions are rgviewed on an ongoing basis. Revisions lo accounting estimates are recognised In th8 peilod in which the &slimate is revised if Ihe revision affects only that period, or in the period of revision and future perio(Js il the revlsion affects both Cur1 and fL+ILtre periods. Page 24
Sprlng Houslng As¥o¢latlon Llmited IA Company Ilmlted by guarantee) Noto$ lo th¢ Financlal Stataments For the Year End¢d 30 Sèptèmber 2021 Incomè from donations and legacies Restricted Rèstrictad income Capltal funds funds 2021 2021 Unrestricted funds 2021 Total funds 2021 Donaliony Grants 481 481 1.0SD.377 39,233 255.377 795,000 Government grants 39,233 39,714 255,377 795,000 1,090.091 The Group furloughed certain staff under the Government's Coronavirus Job Retention Scheme ICJRSI. The fvnding recelved of £39.23312020 - £39,794} relates to claims made In respect of th8 year. Re$trlctod incomè fund5 2020 Restricted capita funds 2020 Unrestricted fund$ 2020 Total funds 2020 Donatioris 3.450 3,450 352.927 114,329 Grants 352.927 Government gr?nls 114,329 117.779 352,927 470,706 Page 25
Sprln9 Housing Association Limited IA company Ilmlt•d by guarant891 Notos to the Flnanclal Statements For the Year Ended 30 Sèptgmbor 2021 Income from ¢harltabl• actlviti8s Unrastrlcted Restricted funds funds 2021 2021 Total funds 2021 Rent, eligible serwee charge8 and propety managèment Income 9,285,882 73,518 9,359,400 Unrestrlcted Restrfctgd funds funds 2020 2020 Total funds 2020 Renl, elyible service charges and property management income 8,744,305 52.596 8,796,901 Othgr Incomo Unrgstrlct8d funds 2021 Total funds 2021 other miscallaneous income 272,985 272,985 Unrestiicted funds 2020 Tatal funds 2020 Modern day slav8ry funding Other misceIan8ouS incom8 17.996 219,889 17,996 219.889 237,885 237,885 Page 26
Spring Houslng Associatlon Llmlted {A ¢ompany Ilmltad by 9uarantee) Notès to th8 Financial Statements For thg Year Endgd 30 September 2021 Anatysls of expenditure by actlvltlès Activities undertaken dlrèctly 2021 Grnnt tundlng of actlvltles 2021 Support costs 2021 Total funds 2021 Housing provision 7.952,294 306,163 2.021,083 10.279,540 Activities undèrtaken dlr¢ctly 2020 Support osts 2020 Total funds 2020 Houslng provision 6,632,534 1,399,773 8.032,307 Analysis of direct ¢o$ts Total funds 2021 Total funds 2020 Staff cos18 Depreciation on vehicles, leasehold property and fixtures and fittings Staff training and expenses Property lease costs and writè-offs Propety costs Managing Agenvs feos Bad debt allowance 1.085.701 55,305 58,078 4,460,621 1,680,672 312,063 299.854 913.529 40,587 38,693 4,244,713 1,186,074 255,612 146.6741 7.952.294 6,632,534 Paga 27
Spylng Hou$lng Associatlon Llmlted {A Company Ilmlted by guarantee) Note5 to the Flnanclal Statemonts For the Year Endèd 30 Sèptember 2021 Analysls of •xp8ndituro by aetiviti8s (continued) Analysls of support costs Totol funds 2021 Total funds 2020 Staff costs D6precialion on office antl Computer equipm8nl Staff Iraining and expenses Office costs Vehicle running costs and sundry support costs Marketsry costs IT costs Consultancy ¢osts and bank charges ALtdit and accountancy fees Legal and professional fees Interest payable 1.329.529 36.849 201,139 204,430 29.559 4,1 $3 76,966 59.806 37.754 31,494 9.404 978.788 29,337 62,343 183,896 19,509 7,474 57,177 31,681 16,620 6,925 6,023 2,021,083 1,399,773 Analysis of grants Grants lo Institution$ 2021 Total funds 2021 Total funds 2020 Grant paid to Sl Petels {Saltley} Housing Association Ltd 306,163 306.163 The above was a capital grant paid lo assist St Peterfs Isaltleyl Housing Assoclalion Ltd in funding their element of the renovation of th8 Fred Wintar Cenlre, a new community hub supportSng local people in Strarford-tJpon-Avon. with a focus on providing housing plus a range of services which addrass homalessn8ss and hardship. Page 28
Spring Housing Association Limited IA company limitod by guarantee) Notes to thé Flnancial Statements For the Year Ended 30 September 2021 Not Incomellexpenditur8} This is stated after charging= 2021 2020 Depr8¢iation of tan9ible fixed assets owned by the ¢harity Depreciation of tangible fixed assets held under finance leases Audito¢s remuneration audit of the group financial stalemenls Operating lease rentals 89.754 2.400 15,150 4,276.900 62,480 7,444 14.700 3,953,810 4,3B4.204 4,038,434 Staff ¢o$ts Group 2021 Group 2020 Charfty 2021 Charfty 2020 Wag8s and salaries Social security Costs Penslon conlr¢bulions 2,187,958 186,224 41,04B 1.719.536 139,009 33.772 1,369.736 186.224 41.048 833.784 139,009 33,772 2,415,230 1,892,317 1,597,008 1.006,565 The average number of persons employed by the Charity during the year was as follows.. Group 2021 No. Group 2020 Managernenl and admill Housing ainlenancg Support 47 45 39 27 105 89 Page 29
Spring Houslng As$o¢l8tlon Llmlted (A company limlted by guarantee) Notes to the Financial Statements For th8 Year Ended 30 September 2021 Staff costs (continued) The number of employees whose employe8 benefits {exclLKling employer pen8lon costs) exceeded £60.000 was: Group 2021 No. Group 2020 No. In the band £60,001- £70,000 The lolal compensation reiVed by the key management of the charity during the year, including employer pension costs, was £76,31712020- £66,314). 10. Trustees. remuneration and expenses During the year, no Truslees r8caived any remunerallon or othèr b8nefils {2020- £NILI. DL*Ting thg yea¥ ended 30 Sgplembgr 2021, no Trusl8e gXP9nses have been Incuffed12020- £NIL}. Pase 30
Sprlng Houslng Associatlon Llmlted {A company Ilmlted by guarantee) Not•$ to the Financial Statements For the Year End&d 30 September 2021 11. Tangibl8 fixed assets Group and Charlty Long- tam) leasèhold proporty Fixtures Computer and and office As$8ts under flttlngs equlpmant con$tructlon Motor vehicles Total Cost Al 1 October 2020 Additions 251.333 47,920 104.912 69,191 74758 {15,5941 160,538 47,681 249,339 814,042 1.747,587 1.939,217 {15.5941 Disposals At 30 September 2021 251,333 101,517 179,670 208,219 1.996.926 1737,665 Dopreciation Al 1 October 2020 Charge for the year 29,128 13,028 26,721 18.796 40,263 25,482 66.054 36.848 162,166 92,154 At 30 September 2021 42.156 43,517 65,745 102.902 254.320 Not book valua At 30 Saptemb8r 2021 209,177 58,000 113,925 105,317 1.996,926 2,483,345 AI 30 September 2020 222,205 21,199 64,649 94,484 249,339 651,876 Paga 31
Spring Housing Association Limlted {A company limitod by guarantee) Not0$ to thg Flnanclal Stalements For the Ygar Endèd 30 September 2021 12. Fixed assot Invastmants Prlnelpal subsldiarios The followlng was a subsldiary undertaking of the Charity.. Name Company number Reglstered offl¢e or prlncipal Principal activity place of business Spring Community Homes RS007733 Heslia House, Old Walsall Road, Birmingham, B42 1DT To carry on, for the benefit of the community. the business of providing and managing housing and accommodation for r$on$ in neeessitous circumstances, on a not for profil basis. The flnanclal results of the subsidiary for the year were- Nam• Income Expendlture Surplus for the yoar Spring Community Homes 6,504,725 6,501.922 2.803 The subsidlary had net assets of £NII as at 30 Seplgmb9r 2021 following a gift aid8d donallon of tho surplus lo Ihe pargnl charity12020- £Nill. Pag8 32
Spring Houslng As$oclatlon Llmlted IA company Ilmltsd by guarantee) Ntstes to the Financlal Statements For the Year Endèd 30 September 2021 13. Debtors Group 2021 Group 2020 Charlty 2021 Charity 2020 Trade dobtots Amounts owed by group und8rtakings Other debtors Prepayments and accrued income 1,310,461 1,044,325 1.310.461 1.044.325 99 100,880 452,635 76,875 331,359 100,845 452.635 76,875 331,359 1,863,976 1.452.559 1,863.941 1,452.658 14. Cr•ditor5'. Amounts falllng du8 wlthln onè y•aT Group 2021 Group 2020 Charlty 2021 Charlty 2020 Other loans Trade creditors Amounts owed lo group undertakings Other taxaOn and social security Obligations under financè léa88 and hire purchase contracts Other credilors Accwals and deferied income 93,847 714.252 21,172 239,489 93,847 714,252 25 49.367 21,172 239,489 49,387 40,122 40,122 2,708 5B,832 Z39,273 3.442 26,963 227,775 2,708 58.632 239.273 3,442 26,963 227,775 1,158,279 558,963 1,158,104 558,963 Nel obligations under flnance leases hire purchase contracts are secured on the related assets. 15. Credltors: Amounts falling due after mort than one year Group 2021 Group 2020 Charity 2021 Charlty 2020 othgr loans Nel obllgalions under finance lease and hire purchase contracts 60,210 98,828 60.210 98.828 2,583 2.583 60,210 101,411 60.210 101.411 Page 33
Spring Houslng Asso¢latlon Llmited {A company limitod by guarant9•) Note5 to the FSnan¢lal Statem•nts For the Year Endèd 30 Septembèr 2021 16. Statemont of funds Statèmant of funds- cuThent y8ar Balance at 30 Tran$fÈrs S•pt•mber Inl{outl 2021 Balanco at 1 October 2020 Income Expenditure Unrestricted funds Doslgnated funds Flxed assets 1,616,334 1.616,334 General funds Gener81 Funds 554,519 9,598,581 (9,837,179) (1,616,334) 699.587 Total Unrestricted funds 1554.519 9.598,581 19,837,179) 2,315,921 Re$trIcI Incomo funds Refugee Action SVRPS Big Lollery Fund Grant Chlldren In Need Grant W M Slrat8glc Mlgralion Partnership BCC- Production of the Chavler of Rights Children In Need Grant- Refugees Nationwide 5.326 IS6,602 16,594 55,518 97.497 4.849 140,5531 {135,6541 119.9101 20,291 118.445 1.533 1,287 13.750 115.037} 20,000 120,000) 14,793 15,828 17,270 32,S25 3.065 9.933 (24,726) {15,8281 {17,2701 {32,5251 13.0651 17,5001 117,013) Poslcode Lottery Lottery Community Fund Landaid Landaid - kitchen fund 7.$00 15,542 15,000 52,039 18,000 6,767 BCC- miscellaneous 9,293 7.822 15.000 Reaching CommunitEs - FWC Protect (52,0391 (16.321) {6,165) RSI 2021 1,679 602 Other StrICted lunding Fred Winter Centre- operatlons 12.500 {12,5001 Page 34
Sprlng Housing Association Limited {A company Ilmit•d by guarantee Notas to the Flnanclal Statements For the Y¥ar Endad 30 Soptomber 2021 16. stat•mgnt of funds Icontinuedl Balance at 30 Soptember 2021 Balanca at I October 2020 Transfers Inl{outl Income Expendlture Rostrictèd capital funds Midlands Together {Hestia Houye} The Clolhworker Foundation Garfield Weston Slratford District Councl 26th May Charity Trust Stratford Town Trust Warwickshire County Council 53,387 24,879 14.8111 11.4441 48.576 23.435 200,0110 310,000 25,000 60,000 200,000 200,000 310,000 25,000 60,000 200,000 Total Rè$trfet8d funds 350,849 1.123,895 (442.361) 1,032,383 Total of funds 2.905,368 10.722,476 110,279,540) 3,348,304 Page 35
Sprlng Houslng Assoclatlon Llmlted {A company Ilmlted by guarantge) Notes to the Financial StatÈm•nts For thè Yèar Ended 30 Septemb8r 2021 16. Statement of funds Icontlnuod) Statoment of funds - prior yaar Balanc• at 30 Sèptember 2020 Balan¢a at 1 O¢tobgr 2019 Income Expendltur• Unrostrictod funds General Funds 1,049,093 9.099,969 17,594,543} 2.554,519 Rèstrlcted Income funils Refugee Action SVPRS Bim)ingham LIF Fund Lottery Fund Grant Children In N86d Grant W M Strategic Migration Partnership Wor¢esler Council - Refugee Seryices Birmingham Cty Council - Production of the Charter of Rlghls Children In Need Grant- Refuge88 Nationwide Postcode Lottery Lottery Community Fund Homeless Link Commonweal Funding Landaid BCC- Mapyng 75,532 1.650 184,911 17,819 494 3.807 52,596 1122,802) 11.6501 {122,4151 16,074} 126,707) 13.807} 5,326 94,106 4.849 27.500 156,602 16,594 1,287 17.450 25,543 10,000 29,799 50,000 18,600 39,860 30.000 4,000 9,260 9,953 127,450) 140,5491 {34,1721 {1,3301 17.3351 130,0001 14,000} 16,195) 16601 14,793 15.828 17.270 32,525 3,065 9,293 Restrlcted capltal funds Midlands Together (Heslia House) The Clothworker Foundation 55.884 12,4971 11211 53,387 24.879 25.000 Total Restrict funds 383.090 405,523 1437,7641 350,849 Total of funds 1.432.183 9,505,492 18,032.3071 2,905,368 P8ge 36
Spriny Housing Association Limbted IA company Ilmltèd by guarant8•) Notas to thè Flnanclal Statements For th• Y9ar Ended 30 S•pt•mbèr 2021 Purpos• of r•strictad funds Refugeè Actlon SVPRS This project supports Syrian refugees resettling within Birmingham by providing furnished accommodation and SUPPDrt lo the fami5ies. Blrmlngham LIF Fund This grantls from Bimingham City Council's Local Inngvalion Fund and is towards our Together We Can Make A Difference project. This project aims to engage the local Community in business and enterprise and starting off your own busines8 idea8. 8lg Lolt•ry Fund Grant Is helping Spring be a place shaper and IT hub for thè local community. Childron in Noed Grant IYPS This fund is being used lo deliver our Llfe-Ha¢ks prol6cI thIn our yOLtng people services. This project offers a range of activities lo our young people and provides gquipmènt and support throughoL*I the 3- year project. WM Strateglc Mlgratlon Partnorshlp This fund is being used lo gain Open College Network accredilalion for our Life-Hacks training programme, which is offered to unaccompanied aSM seeking children. Birmingham City Councll - Pr¢dudlon of the Chartor of Rlghts This fund is being used to commission the pr¢xluclion of a Charter of Rights with residents and lo¥mer residents of supported 'exempl' accommodation to produ a voluntary code of practice. Chlldren In Need - Refugees This proj8cl provides a family worker lo specificalty work with the children in the Syrian 18setllèm8nt project. Natlonwld6 This is to provtde support and advi to those who are or who have suffered from modem day slavery. Post¢ode Lottgry This grant Is to be used towards creating and improving the green spaces on a numbeT of Springs properties. Lottery Communlty Fund This fund Is belng used lo support and accommodate those who have no recourse to public funds durlng the recent pandemic. Homeless Llnk This fund has been used specifically around our homeless services lo provide support and accommodation serviGes lo those who aro al risk of homelessness. Page 37
SprSng Houslng Assoclation Umited IA company limlted by guaranteg) Notes lo the Financial Statements For tha Y•ar Ended 30 Sapt8mb8r 2021 Commonweal Funding Thls fund was used lo support th8 research into exempl accommodation. Landald Thls fund is bein9 used lo provbde equlpment and eommunicalions lo those limng alone to help reduce Isolation durino the r8c8nl pandemic. Midlands Together (Hestia Hous•> Thls funding was a capltsl contribution towards the works required lo renovate the ground ftoor at Hestia House Into an office space and community hub. Th8 Clothworkors Foundatlon These funds wa used towards the capital refurbishment project al Hesti2 House to create a community and ICT Hub. Gartl•ld W¥$ton I Stratford Dlstrlct Councll 126th May Charlty Trust I Stratford Town Trust I Warwi¢k$hire County Counc51 Capital grant fundlng recelve¢J towards the devèlopment of the FTed Winter Centre. a new community hub supporting local people in Slralford-upon-Avon. wllh a focus on providing houslno plus a range of setViC88 which address hom8lessness and haldship. 17. Analysis of net assets between funds Anatysls of net assets betweon funds - current yoar Ro$tri¢ted Restricted income capital funds funds 2021 2021 Unrestricted funds 2021 Total funds 2021 Tangible fixed 8$88ts Currant assets Creditors due within one year Creditors due in more than one year 1,616,334 1.918.076 {1,158,279} 160,210) 867,011 2,483,345 2.083,448 (1,158,279} 160,210) 165,372 Total 2,315,921 165,372 867,011 3,348,304 Page 38
Spring Housing Asso¢latlon Llmlt•d {A company limited by guarantee} Notes to the Financial Statements For tha Yoar Endod 30 September 2021 17. Analysis of net assets betw8•n funds {continuedl Analysls of net ass8ts between funds- prlor year Restricted Restrl¢ted Income capbtal funds funds 2020 2020 Unrestrlctod funds 2020 Total funds 2020 Tangiblg fixed assets Current assols Credllors due wllhin one year Creditors due in more than one year 573,610 2,627,533 1545,213} 1101,411) 78,266 651,876 2.913.866 1558,9631 1101,4111 286,333 (13.7501 Total 2,554,519 272.583 78,266 2,905,368 18. Re¢on¢iliatitsn of not movement in funds to net cash flow from operatlng actSvltlo8 Group 2021 Group 2020 Net income for the year las par Ststsment of Financial Aclivilies} 442,936 1.473,185 Adlustm•nt$ for- Depreciation charges Loss on the sale of fixed assets Increase in debtors Increaselldbcreasel in creditors 92.154 250 69.924 (411,417) (182.017) 524,058 1104,0751 Net cash provldad by op•ratin9 activities 647.981 1.257,017 19. Analysis of cash and cash oqulvalents Group 2021 Group 2020 Cash al bank and in hand 219.472 1.461.307 Page 39
Sprlng Houslng Association Limited {A company limited by guarantee) Notos to the Flnancial Statements For the Year Endad 30 Soptembar 2021 20. Analysis of chan9es In nat debt Atl October 2020 Cash Ilows At30 September 2021 Naw loans Cash at bank and in hand Debt due within l year Debt due after 1 year Finance leases 1,461,307 11,296.835} {21,1721 117.675} (98,8281 38.618 (6,0251 3,317 55.000 {55.000) 219.472 193.8471 160,2101 (2.7081 1,335,282 {1,272,5751 62.707 21. Capltal Commltmonts Group 2021 Group 2020 Charlty 2021 CharSty 2020 Contracted for but not provided in these flnanclal statements Construction of tangible fixed assols 362,899 362.899 Page 40
Sprin9 Hgu$lng Association Limlted {A company limit•d by guarantee> Notes to th& Flnan¢ial Statemonts For the Year Ended 30 Saptember 2021 Pension ¢ommitm•nts The group operates a defined contribution pension schem8. The assets of the scheme are held separately from those of the group in an independently administered ftjnd. The pensic>n cost char represents contributions payable by the group to the fund and amounted lo £41.048 12020 £33.7721. Contributions 01 £9.135 12020 £7,435) were payable lo Ihe fvnd al the baI8nce sheet datg and are in¢luded in creditors. 23. Operating Igasg commltments At 30 September 2021 the Group and the Charity had commilmonls lo make future minimum lease payments under non-cancellable operating leases as follows: Group 2021 Group 2020 Charlty 2021 Charfty 2020 Land and bulldings.. Not later than 1 year Later than l year and not later than 5 years Later than 5 years 842.887 1,346.948 1,525.918 1,277.112 1,614.232 1,833,068 304,540 792.677 1,500.000 203,669 942,228 1,800,000 3,715,753 4,724.412 2.597,217 2,945,897 24. R•latad party tran$a¢tlon8 On 30 September 2021. Sprfng Community Homes Limited donated its surplus for the year of £2,803 12a20- £783,165). 25. Controlllng party The group is controlled by the Board of Trusloes. Page 41