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2021-03-31-accounts

JULIAN HOUSE

(Regulator of Social Housing registration: L4549 Company Number: 11791952 Registered Charity Number: 1183751)

REPORT AND CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

JULIAN HOUSE

REPORT AND FINANCIAL STATEMENTS For the year ended 31 March 2021

CONTENTS

Page
Reference and administrative details 1
Trustees' report 3
Independent auditors' report 21
Consolidated statement of comprehensive income 26
Statement of comprehensive income 27
Balance sheet and consolidated balance sheet 28
Consolidated statement of change in reserves 29
Statement of change in reserves 30
Consolidated statement of cash flows 31
Notes to the financial statements 32

JULIAN HOUSE

REFERENCE AND ADMINISTRATIVE DETAILS For the year ended 31 March 2021

Trustees Joy Luxford (née Saunders) (resigned 27 May 2021)
Kirsty Eastham
Matthew Graham (resigned 19 November 2020)
Barry Hughes (resigned 30 September 2020)
Andrew Stafford (resigned 19 November 2020)
Emma Cooke
Ahran Symonds-Baig
David Jobbins
Julia Hilton
Paul Mackenzie-Cummins (appointed 19 November 2020)
Fiona Nunn (appointed 11 December 2020)
Timothy Mitchell (appointed 11 December 2020)
Garry Peagam (appointed 14 May 2020)
Clive Pugh (appointed 14 May 2020)
Secretary Laura Baxter (from 9 August 2021)
Patricia Keen (resigned 9 August 2021)
Chief Executive Helen Bedser (from 7 October 2019)
Senior Management Team Jane Andrew HR & Admin Manager (until 17
July 2020)
Nina Reed HR Business Partner (from 21
September 2020)
Patricia Keen Finance Director (until 13 August
2021)
Laura Baxter Finance Director (from 1 August
2021)
Cecil Weir Fundraising & PR Director
Roanne Wootten Operations Director
Registered Company Number 11791952
Registered Charity Number 1183751
Regulator of Social Housing Number L4549
Registered Office and Place of Business 55 New King Street
Bath
BA1 2BN
Auditors MHA Monahans
Fortescue House
Court Street
Trowbridge
BA14 8FA

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JULIAN HOUSE

REFERENCE AND ADMINISTRATIVE DETAILS For the year ended 31 March 2021

Bankers

Lloyds Bank Milsom Street Bath BA1 1DN Triodos Bank Deanery Road Bristol BS1 5AS CAF Bank Ltd Kings Hill Kent ME19 4JQ Bank of Scotland The Mound Edinburgh EH1 1YZ

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JULIAN HOUSE

TRUSTEES’ REPORT For the year ended 31 March 2021

Introduction

The Board of Trustees of Julian House present their report and the audited financial statements of the organisation for the year ended 31 March 2021.

Public Benefit

The Trustees confirm that they have complied with their duty in Section 17 of the Charities Act 2011 to have due regard to the public benefit guidance published by the Charity Commission for England and Wales. The trustees further confirm that the activities of Julian House are carried out, in line with its objects, for the public benefit as described in this report.

Objectives and Activities

Our mission is to deliver quality accommodation and support services, which transform the daily lives and futures of people experiencing social exclusion. Our vision is a society where people experiencing socially exclusion are supported and empowered to build sustainable, independent lives.

Our objects are to carry on for the public benefit:

Our Purpose

We believe everyone deserves a safe place to live and opportunities to change their life for the better.

Our Vision

A society where people experiencing social exclusion are supported and empowered to build sustainable independent lives.

Our Mission

To deliver quality accommodation and support services, which transform the daily lives and futures of people experiencing social exclusion.

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TRUSTEES’ REPORT For the year ended 31 March 2021

Our Values

We value the individual:

We are collaborative:

We are creative:

Our current activities furthering our charitable purpose are:

The people our services support may have experienced or still be experiencing poverty, homelessness, rough sleeping, displacement, trauma and abuse, mental ill-health, substance misuse, domestic violence and abuse, long-term unemployment, involvement with the justice system, and/or a complex range of health and support needs.

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TRUSTEES’ REPORT For the year ended 31 March 2021

Our work mainly spans the South West of England, encompassing Bath & North East Somerset, Wiltshire, Basingstoke, Bristol, South Gloucestershire, Somerset, Dorset, Basingstoke & Deane, Exeter, Devon and Cornwall.

Strategies for Achieving Objectives

During the last year we have focussed on enhancing service quality standards, and improving our systems, performance, and outcomes. Despite COVID-19 presenting challenges never imagined or anticipated, we have made significant progress in strengthening our organisation, while continuing to deliver vital services and developing new ones in response to need.

In line with our 2020-21 business plan objectives, we focussed on:

  1. Delivering continuously improving quality services, which achieve positive outcomes for our clients.

  2. Building greater organisational resilience, improving performance, maximising resources and growing sustainably for a successful long-term future.

  3. Improving the ways we develop, value and empower our staff and volunteers, to perform their roles more effectively.

Achievements and Performance

In 2020-21:

  1. Delivering continuously improving quality services, which achieve positive outcomes for our clients.

  2. We supported in excess of 1,600 (2019-20: 1,900) socially excluded people through our network of housing and support services, transforming lives across the region.

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JULIAN HOUSE

TRUSTEES’ REPORT For the year ended 31 March 2021

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JULIAN HOUSE

TRUSTEES’ REPORT For the year ended 31 March 2021

preparation and delivery of the Covid Vaccination mobile project, which brought vaccinations to the boating and travelling communities, significantly improving health outcomes.

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JULIAN HOUSE

TRUSTEES’ REPORT For the year ended 31 March 2021

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JULIAN HOUSE

TRUSTEES’ REPORT For the year ended 31 March 2021

Covid-19 Response

We kept our services open and in addition opened new services for people experiencing rough sleeping in response to the introduction of national Lockdowns and the call by the government for ‘Everyone In’. We had no major outbreaks of Covid-19 in any of our services and were able to maintain appropriate levels of support. We undertook several steps including:

Social Enterprise

Our social enterprises are run through our subsidiary company, Julian House Trading Limited (JHT), and help to raise our profile with new audiences and diversify our income streams. JHT operates bike workshops which trade in new and refurbished bikes, with embedded employability programmes for homeless and socially excluded people, furthering the wider objectives of Julian House.

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JULIAN HOUSE

TRUSTEES’ REPORT For the year ended 31 March 2021

Despite a tumultuous year, in 2020-21 JHT has made positive progress against its strategic aims and is on track to achieve its ambition to break-even by March 2023, while sustaining positive social outcomes and making a fully costed payment to Julian House for the provision of shared services. Notable achievements for JHT include:

The financial results of JHT are consolidated into the Julian House financial statements.

Volunteers

Julian House has relied on volunteers to help us respond to changing needs and circumstances during the pandemic, as well as to keep activities such as our bike workshops running smoothly throughout a challenging year. During periods of lockdown and other restrictions, volunteers have helped provide emergency support with activities including transporting meals to emergency housing sites for people sleeping rough and carrying out welfare checks for boater communities supported by Julian House.

Despite several of our most volunteer-involving activities being paused or limited (for example our charity shops were closed throughout national lockdowns), some 200+ volunteers contributed an estimated 8500 hours of voluntary support for Julian House this year, plus the countless hours provided by our trustees.

We are indebted to all our volunteers who bring invaluable experience, fresh perspectives and enthusiasm to our work and help strengthen links to the communities we serve. Volunteers dramatically increase our overall capacity, representation, diversity and flexibility. In return, volunteers gain valuable experience, learn new skills, and improve their health and well-being. We are immensely grateful for the support and willingness of our volunteers to answer our calls for aid over the last year.

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TRUSTEES’ REPORT For the year ended 31 March 2021

Charity Shops

We have six charity shops across Bath, Trowbridge, Chippenham and Frome. Our Charity Shops give us a valuable presence on the high street and raise both unrestricted income and awareness about our work. Our shops were of course badly affected by the various lockdowns - trading for only a few months during the year. Thankfully the furloughing of staff, Government grants and business rates holidays helped to offset the impact of these forced closures. Nevertheless, it still meant that trading income was down by 66% on the previous year. Here too the support of the wider community was of huge help - in providing a large volume of quality donated stock. So much so, that a large community space had to be borrowed to accommodate donations – huge thanks to the Percy Centre in Bath for their help. During the year the break clause on the Thornbury shop was exercised – mainly influenced by the longer-term prospects for trading in the town, post pandemic. A new site in Wiltshire was subsequently identified which will bring the estate back up to seven shops.

Fundraising

Fundraising is incredibly important to us, as it is the only way we are able to run many of our vital services. We are proud of our commitment to fair, honest and open fundraising and we do not engage in direct fundraising or commercially contract with third parties to fundraise on our behalf.

We are registered with the fundraising regulator and adhere to the ‘fundraising promise’. We take the management of data very seriously and conform to Data Protection legislation. We only collect and use personal information for the purpose it was intended. We do not buy data or pass any of our data on to third parties. We send out regular supporter newsletters and that, along with all other correspondence, is tailored based on the interests and wishes of the donor. We received no complaints in relation to our fundraising activities last year. When working with volunteers who have chosen to fundraise for Julian House, we ensure that they comply with appropriate guidelines and follow best practice.

In 2020-21 our small in-house fundraising and PR team succeeded in raising £1,202k (compared to £906k in 2019-20). We are grateful to the hundreds of people, companies and trusts who continue to support us, particularly during the Coronavirus crisis. Our work would not be possible without them.

This diversity of income proved to be of massive help to Julian House during the year, as COVID-19 rapidly impacted longstanding fundraising activities and our charity shops.

Very quickly after the potential seriousness of COVID-19 was acknowledged a financial assessment was made on the likely impact. This was very much unknown territory, but the worst-case scenario suggested a loss of income in the region of £200k. At that stage of course no one knew how long restrictions would last and the extent to which lockdowns would be used.

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TRUSTEES’ REPORT For the year ended 31 March 2021

The Fundraising Team shared these estimates with existing supporters and the wider community - who in turn responded magnificently. In addition to lost income there were also significant needs for support in kind. The latter included bedding and other items for new emergency accommodation. Similarly, food donations for a delivered meals service which was necessary for clients who were unable to access food or cook in their hastily established accommodation. Cooks and delivery drivers also stepped forward to help.

Another urgent need was for supplies of PPE. Early-on in the pandemic obtaining sanitiser and PPE was a huge challenge. Such items were essential for our staff to carry on delivering vital support to clients. Several supporters deserve particular praise:

Although many fundraising events and activities had to be cancelled, in line with the general ‘can do’ approach that Julian House took throughout the pandemic we were mindful that supporters and indeed the wider public wanted to get out and help. Accordingly, a huge amount of effort and planning went into making the annual Circuit of Bath Walk (in September) COVID safe. The work paid off with the biggest turn out ever and the most money raised, over £62k.

The charity’s annual Christmas appeal is the most important event in the fundraising calendar. Despite some apprehension about the potential impact of the pandemic, again Julian House’s supporters and the wider community responded fantastically, raising a record sum of over £190k.

COVID 19 is likely to have an impact on many aspects of Julian House’s operations and its fundraising initiatives for some time to come e.g. remodelled events, increased reliance on social media and changes to the retail landscape. Some of those changes are likely to present opportunities.

Whatever lies ahead the charity takes great heart from its amazing supporters and the fact that there is a much more enlightened view about the needs of the individuals who are supported and trust in Julian House to deliver quality services with good outcomes.

Partnerships

Working in partnership with other organisations and different sectors is an important way to achieve change and support the people who use our services. We have collaborated with a number of

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TRUSTEES’ REPORT For the year ended 31 March 2021

organisations in the past year and will continue to work with partners to effectively and imaginatively address the issues of homelessness and social exclusion in the communities where we work. For example, we have:

Financial Review

The financial position of the charity is set out in the attached financial statements.

The principal sources of funding for Julian House are income from contracts, accommodation charges, fundraising and retail income. In 2020-21 Julian House’s turnover was £6.7m (2019–20 £5.9m).

In 2020-21 the Group turnover was £7.2m (2019-2020 £6.7m). The increase in turnover is due to contract income for new services and a successful fundraising year. These successes were offset by a significant reduction of 66% in retail income from our charity shops due to them being closed for a large part of the year due to COVID-19. During the year we received coronavirus business support grants from the Coronavirus Job Retention Scheme and Retail, Hospitality and Leisure Grant Funds.

Despite an increase in turnover of 8% we limited our expenditure increase to 4%. This was achieved due to furlough reducing staffing expenses and close management of our budgets during these uncertain times.

The increased turnover with a limited increase in expenditure has contributed to an increase in the Group surplus compared to the previous year. The Group surplus for 2020-21 is £562k, compared with a surplus of £324k the previous year.

Reserves Policy

In July 2020 the Reserves Policy was reviewed by the Trustees resulting in the reserves target range being set to be between £1,150k to £1,640k. This range has been determined using a risk-based approach. Identified risks include a change in the regulatory and economic landscape, an unplanned fall in voluntary income, cash flow requirements in relation to contract timing and renewals and a change in the retail environment. The reserves have been set to allow time to undertake mitigating actions should any or all of the identified risks eventuate. The Trustees regularly review the level of reserves to ensure that it is adequate and appropriate to meet the requirements of Julian House.

As at 31 March 2021, free reserves were £1,550,325 which is within the target range set.

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TRUSTEES’ REPORT For the year ended 31 March 2021

Principal risks and uncertainties

Like all organisations in our sector, we are facing unprecedented challenges and great uncertainty in our operating environment. We need to remain responsive to changing client needs and to fulfil the requirements and expectations of our supporters, commissioners and regulatory bodies, against a backdrop of increasing demand for our services, short-term funding limitations and ongoing reductions in funding. We need to exercise careful vigilance in the delivery of services for children, young people and adults at risk, and review our systems and processes against the highest governance and quality standards, to ensure they are safe and effective.

The Board has direct responsibility for ensuring Julian House has systems in place for internal control and the management of risk. The board regularly conducts a review of the major strategic, business and operational risks to which the organisation is exposed.

A risk register is held which is updated on an ongoing basis and is formally presented to, and reviewed by, the Audit, and Finance Sub-Committee and the Board twice a year. The risk register details the board assurance for each risk.

The current top five risks are:

The key risks identified in our risk register are prioritised in terms of potential impact and likelihood of occurrence. We consider ways of mitigating the risks and identify a lead member of the Senior Management Team responsible for taking necessary actions. The Board recognises that systems can only provide reasonable but not absolute assurance that major risks have been adequately managed.

The risk management and control processes are not a separate annual exercise but are a continuous function. Key elements in our internal control systems are:

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TRUSTEES’ REPORT For the year ended 31 March 2021

Where serious control weaknesses were identified during the year, they have been addressed.

Risk Appetite

We work in a rapidly changing environment where funding streams can be uncertain and changes in policy and public opinion can have a profound impact on our work. We also choose to reach out and support people with multiple needs, who lead complex lives, and are the most excluded by society and other services, which brings inherent risk. Julian House’s approach is to minimise exposure to reputational, compliance and excessive financial risk, whilst encouraging creative and innovative models of service delivery and accepting more risk in pursuit of our strategic goals.

Structure, governance and management

Julian House is a registered company limited by guarantee in England and Wales (No. 11791952), a registered charity with the Charities Commission (No. 1183751), and a Registered Provider of Social Housing (No. L4549). Julian House is also the parent charity of Julian House Trading, which is a subsidiary company of Julian House.

The Trustees of Julian House constitute the directors of the charitable company for the purposes of the Companies Act 2006 and Trustees for the purposes of the Charities Act 2011 and provide leadership, direction and control in pursuit of the organisation's charitable objectives.

Trustees usually serve for a term of three years with a possible re-appointment for a further two terms, each of three years.

Joy Luxford, our Chair, stood down at the end of her term in May 2021. We want to express our gratitude to Joy for her commitment and excellent leadership over a period characterised by significant change and continuous improvement at Julian House. We wish her well for the future. Joy is succeeded by Emma Cooke our former Vice Chair who has been a trustee of Julian House for over 2 years. Emma is the Head of Citizenship for an international law firm and has significant experience leading committees.

New trustees are recruited by open advertisement, based on an evaluation of the balance of diverse skills, knowledge and experience needed to govern Julian House. They receive an induction pack

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TRUSTEES’ REPORT For the year ended 31 March 2021

containing information about Julian House, its structure and operations, the Board and sub-committee structures, Trustee duties and responsibilities and the organisation's key policies. All trustees undertake training in Safeguarding and Equality and Diversity.

Regular scheme visits and project briefings are arranged to enable Trustees to obtain a better understanding of Julian House's services and operating environment. A nominated staff representative provides feedback to the board.

The full board of Trustees meets five times a year to discuss strategy, to formulate policy and to oversee operational matters. Trustees schedule an annual away day to consider the environment and plan strategic direction. The 2020 board awayday focussed on the development of new 5-year strategy for Julian House. The Board is supported by three standing sub-committees which meet quarterly to consider specific areas of activity in greater detail on behalf of the Trustees and report to Trustees on key issues. The three sub-committees cover the areas of: Audit, Risk and Finance, Client Services, and Governance. The Board and Sub-committee membership may include co-optees who are not Trustees, but who have generously agreed to contribute their knowledge and experience.

The Board of Trustees have overview of senior management pay and terms and conditions. The Board delegates day-to-day management of the organisation to the Chief Executive and Senior Management Team, through a documented delegated authority matrix. The Chief Executive is not a member of the company and has no legal status as Director although she acts as executive within the authority delegated by the Trustees.

Value for money

Over the last year we have worked hard to further embed a Value for Money (VfM) culture across the organisation, delivering year on year improvements in VfM, for example, we:

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JULIAN HOUSE

TRUSTEES’ REPORT For the year ended 31 March 2021

In the coming year we intend to deliver further improvements in efficiency, effectiveness and economy by:

Achievement against these objectives will be reported to the board on a quarterly basis, along with the KPI and financial monitoring reports.

To comply with the Regulator of Social Housing's (RSH) code of practice on VfM, as a registered provider we are required to publish our performance against a given set of key indicators which is

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TRUSTEES’ REPORT For the year ended 31 March 2021

shown below. We will further develop our understanding and measurement of our cost base using the RSH data analysis, sector scorecard metrics and review how our performance compares with others.

Metrics Explanation Julian House 2020 Supported
Housing
Specialist		 2020 All Returns
(median quartile)
Reinvestment
%		 Investment
in
properties as a
percentage
of
total properties		 0.0% 4.4% 7.2%
New
supply
delivered %		 The number of
new units as a
percentage
of
all owned units		 0.0% 0.4% 1.5%
Gearing % Percentage
of
assets made up
of debt finance
(lower
the
better)		 -73.1% 14.2% 44%
EBITDA
MRI
Interest Cover
%		 Measure
of
surplus
compared
to
interest
payments
(higher
the
better)		 4350% 259% 170%
Headline
social housing
cost per unit		 Measure
of
social
housing
cost per unit		 £10,270 £9,900 £3,830
Operating
Margin %
A)
Social
Housing
Letting
B) Overall		 Surplus divided
by turnover for
both
social
housing
and
overall		 6.7%
9.5%		 10.4%
6.5%		 25.7%
23.1%
Return
on
capital
employed %		 Investment
return
on
capital
resources		 21.5% 3.1% 3.4%

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TRUSTEES’ REPORT For the year ended 31 March 2021

Julian House is the registered provider of social housing within the Group, but with substantially fewer than 1,000 owned homes, is classed as a "small provider". Julian House provides homes with additional support, exclusively housing homeless and socially excluded people, occasionally on assured shorthold tenancies but most commonly on licences.

Many of the above metrics are designed to enable comparisons between large social housing providers with significant loan book commitments and a high level of general needs social rented homes. We have included alongside the All Returns comparators the Supported Housing Specialist comparators as this provides a fairer comparison with our social housing model. The Board has reviewed the results and is satisfied that Julian House complies with the revised Code issued by the Regulator of Social Housing and that Julian House is delivering year on year improvements in the value for money it offers to its beneficiaries.

Compliance with the Charities Code of Governance

Julian House has adopted the Charities Code of Governance. The Board has reviewed and confirmed compliance with all areas of the Code.

Compliance with the Governance and Financial Viability Standard

Julian House is a Registered Social Housing Provider and required by the Regulator of Social Housing, to certify compliance with the Governance and Financial Viability Standard. The Board has reviewed compliance with the standard and confirms that it complies in all material respects.

Future Plans

During 2020-21 Julian House developed a new 5-year strategy. We are now in the first phase of our strategy and have a clear ambition to sustainably scale-up our accommodation and support services, reaching over 10,000 people experiencing social exclusion, with meaningful opportunities to change their life for the better by 2026. Our new strategic goals are:

  1. Everyone we support will experience a high-quality service.

  2. We will be a great place to work and volunteer.

  3. We will sustainably grow, improve and enhance the accommodation and support services we provide for people experiencing social exclusion.

  4. We will continue to manage our charity efficiently and effectively.

  5. We will inspire and educate as many people as possible in our local communities to understand the causes and effects of social exclusion, and to support our life-changing work.

Statement of Trustees Responsibilities

The Trustees (who are also directors of Julian House for the purposes of company law) are responsible for preparing the Trustees Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

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TRUSTEES’ REPORT For the year ended 31 March 2021

Company law requires the Directors to prepare financial statements for each financial year, which give a true and fair view of the state of Julian House’s affairs and of its incoming resources and application of resources, including income and expenditure, for that period.

In preparing these financial statements, the Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the organisation’s transactions and which disclose with reasonable accuracy at any time Julian House’s financial position and which enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of Julian House and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

The Trustees are responsible for the maintenance and integrity of corporate and financial information included on Julian House’s website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Approved by the Board of Trustees on 16 September 2021 and signed on its behalf by

Emma Cooke Chair

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JULIAN HOUSE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JULIAN HOUSE For the year ended 31 March 2021

Opinion

We have audited the financial statements of Julian House (the 'Company') for the year ended 31 March 2021 which comprise the Consolidated and Parent Comapny Statement of Comprehensive Income, the Consolidated and Parent Company Balance Sheet, the Consolidated Cash Flow Statement, the Consolidated and the Parent Company Statement of Change in Reserves and notes to the financial statements including a summary of significant accounting polices. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 ‘‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’’ (United Kingdom Generally Accepted

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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JULIAN HOUSE For the year ended 31 March 2021

Conclusions relating to going concern

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

Other information

The board is responsible for the other information. The other information comprises the information included in the Trustees' 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 we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:

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INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JULIAN HOUSE For the year ended 31 March 2021

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Trustees' Report.

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

In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:

Responsibilities of the board

As explained more fully in the board’s responsibilities statement set out on page 12, the board is 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 board 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 board is responsible for assessing the Comapny’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 board either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.

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JULIAN HOUSE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JULIAN HOUSE For the year ended 31 March 2021

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (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.

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

Use of report

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the Comapny'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 Company and the Company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Based on our understanding of the charitable company and sector, we identified that the principal risks of non-compliance with laws and regulations related company and charity legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements of the charitable company. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Charities Statement of Recommended Practice and the Companies Act 2006. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to potential lack of segregation of duties, bookkeeping errors and management bias in accounting estimates and judgemental areas of the financial statements. Audit procedures performed by the audit engagement team included:

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JULIAN HOUSE

INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF JULIAN HOUSE For the year ended 31 March 2021

There are inherent limitations in the audit procedures described above and the further removed noncompliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

James Gare (Senior Statutory Auditor) For and on behalf of MHA Monahans Statutory Auditors Chartered Accountants Fortescue House Court Street Trowbridge BA14 8FA

24 September 2021

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JULIAN HOUSE

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 March 2021

JULIAN HOUSE GROUP
Notes
Turnover
2, 4
Operating expenditure
Operating surplus
Interest receivable and similar income
5
Interest payable and similar charges
6
Surplus on ordinary activities for the year before tax
Taxation
Actuarial (loss)/gain in respect of pension schemes
21
Total comprehensive income for the year
Surplus for the year after tax		 2021
£
7,249,768
(6,646,474)		 2020
£
6,690,393
(6,384,280)
603,294
404
(19,538)		 306,113
260
(24,879)
584,160
-		 281,494
-
584,160
(22,000)		 281,494
43,000
562,160 324,494

On behalf of the Board

….................................................................................. …..................................................................................

EMMA COOKE, Chair GARRY PEAGAM, Trustee

26

JULIAN HOUSE

STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 March 2021

JULIAN HOUSE
Notes
Turnover
2, 4
Operating expenditure
Operating surplus
Interest receivable and similar income
5
Interest payable and similar charges
6
Surplus on ordinary activities for the year before tax
Taxation
Actuarial (loss)/gain in respect of pension schemes
21
Total comprehensive income for the year
Surplus for the year after tax		 2021
2020
£
£
6,718,946
5,947,830
(6,082,057)
(5,612,654)
636,889
335,176
524
1,194
(19,538)
(24,879)
617,875
311,491
-
-
617,875
311,491
(22,000)
43,000
595,875
354,491

On behalf of the Board

….................................................................................. EMMA COOKE, Chair ….................................................................................. GARRY PEAGAM, Trustee

27

JULIAN HOUSE

BALANCE SHEET AND CONSOLIDATED BALANCE SHEET - company number 11791952 As at 31 March 2021

Notes
FIXED ASSETS
Social housing properties
10
Other tangible fixed assets
11
Investment in subsidiary
12
CURRENT ASSETS
Stocks
13
Debtors
14
Cash at bank and in hand
CREDITORS: amounts falling
due within one year
15
NET CURRENT ASSETS
CREDITORS: amounts falling
due after one year
16
DEFINED BENEFIT PENSION
LIABILITY
21
NET ASSETS
RESERVES
Income and expenditure reserve
18
Restricted funds
19
TOTAL RESERVES
TOTAL ASSETS LESS CURRENT
LIABILITIES		 2021
2020
£
£
1,293,842
1,312,960
1,234,036
1,470,124
-
-
2,527,878
2,783,084
80,073
84,736
565,246
639,202
1,696,790
742,393
2,342,109
1,466,331
(815,363)
(701,696)
1,526,746
764,635
4,054,624
3,547,719
(671,678)
(737,933)
(44,000)
(33,000)
3,338,946
2,776,786
3,296,235
2,760,869
42,711
15,917
3,338,946
2,776,786
-
-
Julian House Group		 Julian House
2021
2020
£
£
1,293,842
1,312,960
1,197,103
1,382,869
2
2
2,490,947
2,695,831
483
522
899,777
992,564
1,683,143
730,140
2,583,403
1,723,226
(763,362)
(648,689)
1,820,041
1,074,537
4,310,988
3,770,368
(671,678)
(737,933)
(44,000)
(33,000)
3,595,310
2,999,435
3,552,599
2,983,518
42,711
15,917
3,595,310
2,999,435
-
-

These financial statements have been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to charitable small companies.

The financial statements were approved and authorised for issue by the Board on 16 September 2021 and signed on their behalf by:

EMMA COOKE, Chair

GARRY PEAGAM, Trustee

28

JULIAN HOUSE

CONSOLIDATED STATEMENT OF CHANGE IN RESERVES For the year ended 31 March 2021

At 1 April 2019
Surplus for the year
Total comprehensive income
Share capital issued
Share capital redeemed
Transfers
At 31 March 2020 and 1 April 2020
Surplus for the year
Transfers
At 31 March 2021
Total comprehensive income
Actuarial (loss)/gain in respect of
pension schemes
Acturial gain in respect of pension
schemes		 Restricted
reserve
£
14,538
-
-
-
-
-
1,379
15,917
-
-
26,794
42,711		 Income and
Expenditure
Reserve
£
2,437,754
281,494
43,000		 Total
£
2,452,292
281,494
43,000
324,494
-
-
(1,379)		 324,494
-
-
2,760,869
584,160
(22,000)		 2,776,786
584,160
(22,000)
562,160
(26,794)		 562,160
-
3,296,235 3,338,946

29

JULIAN HOUSE

STATEMENT OF CHANGE IN RESERVES - JULIAN HOUSE For the year ended 31 March 2021

At 1 April 2019
Surplus for the year
Total comprehensive income
Share capital issued
Share capital redeemed
Transfers
At 31 March 2020 and 1 April 2020
Surplus for the year
Total comprehensive
income
Transfers
At 31 March 2021
Actuarial (loss)/gain in respect of
pension schemes
Acturial gain in respect of pension
schemes		 Restricted
reserve
£
14,538
-
-
-
-
1,379
15,917
-
-
26,794
42,711		 Income and
Expenditure
Reserve
Total
£
£
2,630,406
2,644,944
311,491
311,491
43,000
43,000
354,491
354,491
-
-
-
-
(1,379)
2,983,518
2,999,435
617,875
617,875
(22,000)
(22,000)
595,875
595,875
(26,794)
-
3,552,599
3,595,310

30

JULIAN HOUSE

CONSOLIDATED STATEMENT OF CASH FLOWS For the year ended 31 March 2021

Note
Cash flow from operating activities
20
Cash flow from investing activities
Payments to acquire social housing property
10
Payments to acquire of tangible fixed assets
11
Receipts from sales of tangible fixed assets
Interest received
Net cash used in investing activities
Cash flow from financing activities
Repayments of borrowing
Cash inflow from new borrowing
Interest paid
Net cash (used in) / provided by financing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at 1 April 2020
Cash and cash equivalents at 31 March 2021
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 March 2021		 2021
£
1,042,818		 2020
£
584,604
-
(12,300)
7,800
404		 -
(12,261)
-
260
(4,096) (12,001)
(64,787)
-
(19,538)		 (64,959)
-
(24,879)
(84,325) (89,838)
954,397
742,393
1,696,790		 482,765
259,628
742,393
1,696,790 742,393

31

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

1. ACCOUNTING POLICIES

(a) General information and basis of preparation of financial statements

Julian House is a charitable company and a private registered provider of social housing in the United Kingdom. The address of the Company is given in the reference and administrative details on page 1 of these financial statements and the nature of the Company's operations and principal activities are provided within the Trustees' Report.

Julian House constitutes a public benefit entity as defined by the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102).

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102, The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice for Social Housing Providers 2018 (SORP), and with the Accounting Direction for private registered providers of social housing in England 2019. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008, the Companies Act 2006 and the Charities Act 2011.

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling, which is the functional currency of the organisation and rounded to the nearest pound.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

(b) Group financial statements

These group financial statements consolidate the results of the Company and its wholly-owned subsidiary Julian House Trading Limited, both of which make up their financial statements to 31 March. The results of the subsidiary are consolidated on a line by line basis.

(c) Tangible fixed assets

Tangible fixed assets (including social housing properties) are stated at cost (or deemed cost). Cost includes costs directly attributable to making the asset capable of operating as intended such as the cost of acquiring land and buildings, developments costs, interest charges on loans during the development period and expenditure on improvements. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or resulting in a significant extension of the useful economic life of the property.

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

32

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Freehold land Not Depreciated Non-housing freehold buildings Over 50 years Leasehold land and buildings Over 10 years Motor vehicles Over 5 years Fixtures and fittings Over 5 years

Housing properties are divided into the major components and charged depreciation, so as to write-down the cost of each component to its estimated residual value, on a straight line basis, over its estimated useful economic life. The group depreciates the major components of its housing properties at the following annual rates.

Land Not Depreciated Main fabric Over 100 years Roof structure Over 70 years Kitchens Over 20 years Bathrooms Over 30 years Windows and doors Over 30 years Mechanical systems Over 30 years Gas boilers Over 15 years Electrics Over 40 years

Annually, housing properties are assessed for impairment indicators. Where indicators are identified an assessment for impairment is undertaken comparing the property's carrying amount to its recoverable amount. Where the carrying amount of a property is deemed to exceed its recoverable amount, the property is written down to its recoverable amount. The resulting impairment loss is recognised as operating expenditure. Where a property is currently deemed not to be providing service potential to the Company, its recoverable amount is its fair value less costs to sell.

(d) Investments

Investments in subsidiaries are measured at cost less impairment.

(e) Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Last year donated second hand goods were estimated at the value of nil. This year we have again taken a prudent view and estimated the value at nil.

(f) Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in expenditure.

(g) Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs.

(h) Leases

Rentals payable and receivable under operating leases are charged on a straight line basis over the period of the lease.

33

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

(i) Tax

The activities of the Company are partially exempt from VAT. Irrecoverable VAT which can be attributed to a capital item or operating expenditure is added to the cost of the capital item or expenses were practicable and material.

(j) Turnover and other income

Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policies adopted for the recognition of turnover are as follows:

Turnover represents rental and service charges income receivable in the year net of rent and service charge losses from voids, revenue grants from the government (local authorities) and Homes England (formerly the Homes and Communities Agency) and other income from trading.

Government grants are received in respect of purchasing fixed assets. These grants are recognised at the fair value of the asset received or receivable. The assets are accounted for using the cost model and the government grant is accounted for using the accruals model. The difference between the fair value of the asset and the consideration is recognised as a liability and amortised over the useful economic life of the asset. This amortisation is recognised within turnover. Where disposal of government donated assets are required to be recycled, a liability is included to recognise this obligation.

Grants received as a contribution to revenue expenditure are recognised in the statement of comprehensive income on a systematic basis over the period in which the organisation recognises the related costs for which the grant is intended to compensate. Grants are recognised in the same period as the related expenditure provided the conditions for receipt have been satisfied and there is reasonable assurance that the grant will be received.

Other income streams are recognised when the Company is legally entitled to the income after any performance conditions have been met, the amount can be measured reliably and it is probable that the income will be received. More detail on specific elements of other income streams are provided below.

For donations to be recognised the Company will have been notified of the amounts and the settlement date in writing. If there are conditions attached to the donation and this requires a level of performance before entitlement can be obtained then income is deferred until those conditions are fully met or the fulfilment of those conditions is within the control of the Company and it is probable that they will be fulfilled. Income tax recoverable in relation to donations received under Gift Aid or deeds of covenant is recognised at the time of the donation.

No amount is included in the financial statements for volunteer time in line with the principles of the Charities SORP (FRS 102), although the Company is not required to follow the Charities SORP.

Donated facilities and donated professional services are recognised in income at their fair value when their economic benefit is probable, it can be measured reliably and the Company has control over the item. Fair value is determined on the basis of the value of the gift to the Company. For example the amount the Company would be willing to pay in the open market for such facilities and services. A corresponding amount is recognised in expenditure.

34

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Gifts in kind donated for resale are included at fair value, being the expected proceeds from sale less the expected costs of sale. Where estimating the fair value is practicable upon receipt it is recognised in stock and ‘Income from other trading activities’. Upon sale, the value of the stock is charged against ‘Income from other trading activities’ and the proceeds are recognised as ‘Income from other trading activities’. Where it is impracticable to fair value the items due to the volume of low value items they are not recognised in the financial statements until they are sold. This income is recognised within ‘Income from other trading activities’.

For legacies, entitlement is the earlier of the Company being notified of an impending distribution or the legacy being received. At this point income is recognised. On occasion legacies will be notified to the Company however it is not possible to measure the amount expected to be distributed. On these occasions, the legacy is treated as a contingent asset and disclosed as a note.

Income from fundraising events and trading activities to raise funds for the Company is received in exchange for supplying goods and services in order to raise funds and is recognised when entitlement has occurred.

Interest income is recognised using the effective interest method. Any associated income tax recoverable is recognised at the same time as interest income is receivable.

(k) Expenditure recognition

All expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all costs related to the category. Expenditure is recognised where there is a legal or constructive obligation to make payments to third parties, it is probable that the settlement will be required and the amount of the obligation can be measured reliably.

Irrecoverable VAT is charged as an expense against the activity for which expenditure arose.

(l) Employee benefits

When employees have rendered a service to Julian House, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

Julian House operates defined contribution plans for the benefit of its employees. Contributions are expensed as they become payable.

Julian House also participates in the Social Housing Pension Scheme (SHPS), which is a funded multiemployer defined benefit scheme. In 2018/19 It became possible to identify the share of underlying assets and liabilities belonging to individual participating employers as at 31 March 2019 and the scheme is now accounted for as defined benefit plan for the benefit of its employees. No new benefits have been introduced and there is no change to the benefits themselves.

A liability for Julian House's obligations under the plan is recognised net of plan assets. The net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date.

Further details of the SHPS and its assumptions are included in note 21.

35

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

(m) Restricted reserves

Restricted reserves are those reserves which are only expendable in accordance with the wishes of the funder or regulatory body. Restricted reserves include funds raised in response to a specific appeal. Revenue and expenditure cannot be directly set against restricted reserves but is taken through the statement of comprehensive income and then a transfer to restricted reserves is made as appropriate.

(n) Going concern

The financial statements have been prepared on a going concern basis as the Trustees believe that no material uncertainties exist. The Trustees have considered the level of funds held and the expected level of income and expenditure for 12 months from authorising these financial statements. The budgeted income and expenditure is sufficient with the level of reserves for the Company to be able to continue as a going concern.

(o) Judgements and key sources of estimation uncertainty

The key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities include obligations under defined benefit pension schemes (see note 21) and the split and useful lives of components of social housing and other fixed assets (see notes 10 and 11).

2. SOCIAL HOUSING TURNOVER AND COSTS (JULIAN HOUSE AND GROUP)

Rent receivable after voids but excluding service charges
Service charges receivable
Revenue grants receivable
Social Housing activity expenditure
Operating surplus from social housing activities
Rent losses from voids
3.
ACCOMODATION OWNED AND IN MANAGEMENT
Supported Housing		 2021
£
2,228,848
78,571
1,062,470
(3,215,734)
154,155
(188,572)
2021
Property
Units
189		 2020
£
1,890,232
91,459
1,324,605
(2,749,871)
556,425
(225,978)
2020
Property
Units
176

36

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

4. INCOME FROM NON SOCIAL HOUSING ACTIVITIES

Other contracted income
Fundraising and donations
Legacies
Charity shops
Julian House Trading
Coronavirus business support grants
Other		 2021
2020
£
£
1,617,769
1,005,646
1,202,614
906,045
102,456
97,037
209,650
608,342
441,585
556,791
290,337
200,000
15,468
10,236
3,879,879
3,384,097
Julian House Group		 Julian House Julian House
2021
£
1,617,769
1,202,614
102,456
209,650
441,585
290,337
15,468
3,879,879		 2021
£
1,617,769
1,133,500
102,456
209,650
-
223,368
62,314
3,349,057		 2020
£
1,005,646
779,882
97,037
608,342
-
145,000
5,627
2,641,534

5. INTEREST RECEIVABLE AND SIMILAR INCOME

Bank interest receivable
Intercompany loan interest receivable		 2021
2020
£
£
404
260
-
-
404
260
Julian House Group		 Julian House Julian House
2021
£
404
-
404		 2021
£
404
120
524		 2020
£
260
934
1,194

6. INTEREST PAYABLE AND SIMILAR CHARGES

Bank loans and overdrafts 2021
2020
£
£
19,538
24,879
19,538
24,879
Julian House Group		 Julian House Julian House
2021
£
19,538
19,538		 2021
£
19,538
19,538		 2020
£
24,879
24,879

7. SURPLUS ON ORDINARY ACTIVITIES

Depreciation - other fixed assets
Deprecation - social housing properties
Loss on disposal of fixed assets
Auditors remuneration - audit fee
Movement in pension deficit liability
The operating surplus is arrived at after
charging:		 2021
2020
£
£
238,144
231,045
19,118
19,118
2,546
-
20,857
21,318
(11,000)
53,371
Julian House Group		 Julian House Julian House
2021
£
238,144
19,118
2,546
20,857
(11,000)		 2021
£
189,822
19,118
3,546
19,160
(11,000)		 2020
£
196,610
19,118
-
18,563
53,371

37

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

8. BOARD AND KEY MANAGEMENT PERSONNEL REMUNERATION

The key management includes the trustees of Julian House, the non-executive directors of Julian House Trading Ltd and senior management team as detailed on page 1.

Total remuneration (including employer national insurance and employer pension contributions) for key management personnel of the Company and the Group amounted to £325,214 (2020: £317,187).

No remuneration was received by trustees and non-executive board members.

During the year no trustees received reimbursement of expenses (2020: £246) for travel costs.

The Chief Executive is a member of the Social Housing Pension Scheme. She is an ordinary member of the pension scheme and no enhanced or special terms apply. The Company does not make any further contribution to an individual pension arrangement for the Chief Executive.

9. STAFF NUMBERS AND COSTS

STAFF NUMBERS AND COSTS
Wages and salaries
Social security costs
Pension costs		 2021
2020
£
£
3,201,690
3,108,696
256,844
233,008
119,103
165,150
3,577,637
3,506,854
Julian House Group		 Julian House
2021
£
3,201,690
256,844
119,103
3,577,637		 2021
£
2,961,793
240,697
110,693
3,313,183		 2020
£
2,778,422
209,801
153,284
3,141,507

The average monthly number of employees, including members of the management team, calculated on a full time equivalent basis was 130 (2020 :131).

The average monthly number of actual employees, including members of the management team, was 151 (2020 :158).

1 employee received remuneration (excluding employer national insurance contributions and employer pension contributions) over £60,000 (2020: none).

During the year total redundancy and severance payments of £18,490 (2020: £18,164) were made in Julian House and £560 (2020: £nil) in Julian House Trading.

38

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

10. SOCIAL HOUSING PROPERTIES

JULIAN HOUSE AND JULIAN HOUSE GROUP

JULIAN HOUSE AND JULIAN HOUSE GROUP
Cost
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
1,454,857
-
1,454,857
141,897
19,118
161,015
1,293,842
1,312,960

Social housing properties with a net book value of £1,293,842 (2020: £1,312,960) have been pledged as security for liabilities of the Company. These assets have restricted title.

Included within freehold property is land totalling £294,615 (2020: £294,615) which is not depreciated.

11. OTHER TANGIBLE FIXED ASSETS

JULIAN HOUSE GROUP

Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
1,337,404
-
(151,019)
1,186,385
384,537
31,007
(146,269)
269,275
917,110		 Leasehold
property
£
748,568
-
(157,180)
591,388
416,788
86,939
(157,180)
346,547
244,841		 Motor
vehicles
£
15,491
12,300
(7,345)
20,446
10,018
2,783
(5,345)
7,456
12,990		 Fixtures
fittings and
equipment
Total
£
£
735,931
2,837,394
-
12,300
(520,786)
(836,330)
215,145
2,013,364
555,924
1,367,267
117,415
238,144
(517,289)
(826,083)
156,050
779,328
59,095
1,234,036
952,867 331,780 5,473 180,007
1,470,124

39

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

JULIAN HOUSE

Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
On disposals
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Freehold
property
£
1,337,404
-
(151,019)
1,186,385
384,537
31,007
(146,269)
269,275
917,110		 Leasehold
property
£
602,816
-
(63,044)
539,772
320,953
60,685
(63,044)
318,594
221,178		 Motor
vehicles
£
2,345
12,300
(2,345)
12,300
2,345
820
(2,345)
820
11,480		 Fixtures
fittings and
equipment
Total
£
£
608,561
2,551,126
-
12,300
(418,451)
(634,859)
190,110
1,928,567
460,419
1,168,254
97,310
189,822
(414,954)
(626,612)
142,775
731,464
47,335
1,197,103
952,867 281,863 - 148,142
1,382,872

12. INVESTMENT IN SUBSIDIARY

As required by statute, the financial statements consolidate the results of Julian House Trading Limited, which is a company registered in the United Kingdom, and which is a wholly owned subsidiary of the Company. The Company has the right to appoint members to the boards of the subsidiary and thereby exercises control over it. Julian House is the ultimate parent undertaking.

Shares in Julian House Trading Limited Julian House Julian House
2021
£
2
**£ **		 2020
£
2
_£ _

At the year end, the aggregate capital and reserves of the company amounted to minus £256,363 (2020: minus £222,648) and loss for the year amounted to £33,715 (2020: loss of £29,997).

13. STOCK

STOCK
Retail stock 2021
2020
£
£
80,073
84,736
Julian House Group		 Julian House
2021
£
80,073		 2021
£
483		 2020
£
522

40

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

14. DEBTORS

DEBTORS
Due within one year
Less: provision for doubtful debt
Trade debtors (others)
Prepayments and accrued income
VAT debtor
Other debtors
Due after more than one year
Amounts owed by group undertakings
Trade debtors (gross social housing rent
arrears)
Amounts owed by group undertakings		 2021
2020
£
£
105,430
135,047
(8,341)
(38,741)
164,971
66,179
-
-
226,207
372,248
4,268
-
72,711
104,469
-
-
565,246
639,202
Julian House Group		 Julian House
2021
£
105,430
(8,341)
164,971
-
226,207
4,268
72,711
-
565,246		 2021
£
105,430
(8,341)
164,971
114,887
218,803
4,268
70,513
229,246
899,777		 2020
£
135,047
(38,741)
64,244
61,990
302,414
-
97,062
370,548
992,564

Amounts owed by group undertakings include formal intercompany loans totalling £97,026 (2020: £119,834) on which interest is charged at Bank of England base rate.

15. CREDITORS

CREDITORS
Due within one year
Bank loans
Trade creditors
Other taxation and social security
VAT liability
Other creditors
Accruals and deferred income
CREDITORS
Due after more than one year
Bank loans
Amounts owed to group undertakings		 2021
2020
£
£
66,290
64,822
159,316
165,688
-
64,147
58,498
-
4,100
53,232
50,309
472,378
358,279
815,363
701,696
2021
2020
£
£
671,678
737,933
671,678
737,933
Julian House Group
Julian House Group		 Julian House
2021
2020
£
£
66,290
64,822
146,960
137,443
-
64,147
58,498
-
4,100
52,732
49,664
433,233
334,162
763,362
648,689
Julian House		 2020
£
64,822
137,443
58,498
4,100
49,664
334,162
648,689
2021
£
671,678
671,678		 2021
2020
£
£
671,678
737,933
671,678
737,933

16. CREDITORS

Julian House has four mortgages, three with Triodos Bank and one with Bank of Scotland. Bank loans / mortgages are secured by fixed charges on individual properties.

41

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

The mortgages are repayable monthly and interest is payable at 2.25% above base rate for two of the Triodos mortgages (with a minimum rate of 2.5%), 3% above base rate (with a minimum rate of 3%) for one of the Triodos mortgages and 1.3% above base rate for the Bank of Scotland mortgage.

The mortgages include aggregate amounts of £390,574 (2020: £354,286) which fall due in more than five years and which are payable by instalments.

17. OPERATING LEASE COMMITMENTS

Total future minimum lease payments under non-cancellable operating leases are as follows:

2021
2020
£
£
Not later than one year
288,335
317,699
Later than one and not later than five years
169,159
268,603
Later than five years
2,833
9,633
460,327
595,935
Julian House Group		 Julian House Julian House
2021
£
270,585
144,159
2,833
417,577		 2020
£
272,069
250,397
9,633
532,099

Julian House has several properties which they occupy for the duration of the associated contracted income. The lease commitment for these properties has been quantified, however if the contracts were terminated the commitment would cease.

18. INCOME AND EXPENDITURE RESERVE

This represents cumulative surpluses net of other adjustments.

Income and Expenditure Reserve

At 1 April 2020
Total income (turnover and bank interest)
Total expenditure (operating expenditure and interest payable)
Transfers to restricted reserve
Actuarial (loss) in respect of pension schemes
Reserves Carried forward		 Julian House
Group
Julian
House
£
£
2,760,869
2,983,518
7,250,172
6,719,470
(6,666,012)
(6,101,595)
(26,794)
(26,794)
(22,000)
(22,000)
3,296,235
3,552,599

42

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

19. RESTRICTED RESERVES

Revenue and expenditure cannot be directly set against restricted reserves but is taken through the statement of comprehensive income and then a transfer to restricted reserves is made as appropriate. Details of any restricted income received and spent in the year and unspent at the year end are provided below:

Julian House and Julian House Group

There were restricted funds of £42,711 to carry forward at the year end date. Details of restricted monies received and spent in the year are as follows:

Year ended 31 March 2021

Balance
Brought Forward
£
Boater Fuel Grant
289
Good Start - Contactless giving
1,648
Hospital Release Fund
13,829
Specialist Custody Liaison Worker
151
Community Activities Storage
-
Coronavirus Community Fund
-
Covid-19 Community Action Fund
-
Domestic Abuse Services
-
Emergency Accommodation Support
-
Exeter Emergency Housing Support
-
Food Independence
-
Footprints Project
-
Julian House Trading
-
Lockdown Meaningful Occupation & Conne
-
Manvers Street Refurbishment
-
Move on Fund (Bath & North East Somerse
-
Move on Fund (Bath & North East Somerse
-
Practice Educator
-
Private Rented Sector Access Fund
-
Protect Plus
-
Real Change Basingstoke
-
Devon Coronavirus Response & Recovery
-
Specialist Female Support Worker
-
Sport England Inequalties Fund
-
Tenancy Starter Packs
-
The Salus Project
-
Women's Early Intervention Worker
-
15,917		 Income in
year
£
500
3,666
381
3,000
1,000
27,231
5,000
34,598
4,000
16,942
67,010
1,705
3,500
1,500
5,000
18,572
20,000
1,535
60
12,997
29,848
1,063
3,116
4,154
16,583
282,961		 Spent in year
/Transfers
£
(789)
(2,571)
(12,829)
(151)
(381)
(3,000)
(876)
(12,188)
(5,000)
(34,598)
(4,000)
(16,942)
(67,010)
(1,705)
-
(5,000)
(18,572)
(1,730)
(1,535)
-
(12,997)
(29,848)
(692)
(3,016)
(4,154)
(16,583)
(256,167)		 Balance
Carried
Forward
£
-
2,743
1,000
-
-
-
124
15,043
-
-
-
-
-
-
3,500
1,500
-
-
18,270
-
60
-
-
371
100
-
-
42,711

43

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Year ended 31 March 2020
Balance
Brought Forward
£
Hospital Release Fund
14,538
Boater Fuel Grant
-
Move On Fund
-
Singing for Supper
-
Good Start - Contactless giving
-
Julian House Trading
-
Specialist Custody Liaison Worker
-
Specialist Young Person's Coach
-
Footprints Project
-
The Salus Project
-
Domestic Abuse services - donation
-
14,538		 Received in
year
£
-
500
3,291
491
1,866
122,306
10,920
19,648
39,532
4,154
10,000
212,708		 Spent in
year/Transfers
£
(709)
(211)
(3,291)
(491)
(218)
(122,306)
(10,769)
(19,648)
(39,532)
(4,154)
(10,000)
(211,329)		 Balance
Carried
Forward
£
13,829
289
-
-
1,648
-
151
-
-
-
-
15,917

Restricted reserve descriptions

Hospital Release Fund

The purpose of the fund is to facilitate swift access to appropriate accommodation following hospital discharge.

Boater Fuel Grant

Funding provided to assist clients in the boater community to obtain fuel for cooking and heating during the Coronavirus pandemic.

Move On Fund

The purpose of this funding was to assist clients to move from supported housing to independent living.

Community Activities Storage

Shed for communities activities network for storage.

Good Start - Contactless Giving

This funding is obtained through contactless giving located at Nationwide bank in Bath. The funds are dedicated to assisting clients moving from supported housing to more independent living.

Julian House Trading

Julian House has a wholly owned subsidiary, Julian House Trading (JHT), registered company number 3450273. JHT’s mission is to operate viable social enterprises which provide quality skills development opportunities, work experience placements, employment support and jobs for socially excluded people, to further the objectives of Julian House. JHT’s existing social enterprises are in Bath, Bristol and Trowbridge.

Specialist Custody Liaison Worker

A specialist custody liaison worker to support rough sleepers in Exeter vulnerable to involvement in serious organised crime and exploitation by County Lines Groups.

Coronavirus Community Fund

Tablets for clients in supported housing in Dorset to remain connected with support networks and provide meaningful occupation.

44

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Footprints Project

This project supports homeless women, and those at risk of becoming homeless, who have had children removed from their care, to secure and maintain settled accommodation.

The Salus Project

The aim of this project is to target the link between homelessness and domestic and sexual violence and abuse, reducing the risk of further exposure to violence and supporting homeless young women into independence through holistic tailored support.

Domestic Abuse Services - Private donation

This funding was donated to provide support for our service providing refuge accommodation with Intensive Housing Management support in B&NES for clients, affected by domestic abuse who may also have additional needs.

Exeter Emergency Housing Support

Funding to provide staffing to respond to emergency housing requirements. Support provided to supported housing clients where the pandemic impacted on earnings ability to pay rent.

Food Independence

Funding provided to fit ovens to emergency accommodation to support food independence during lockdowns.

Lockdown Meaningful Occupation & Connectivity

Funding to provide clients in supported housing the means to remain connected with support networks and provide meaningful occupation.

Manvers Street Refurbishment

Funding to support the refurbishment costs of Manvers Street hostel.

Practice Educator Fund

This funding was obtained to make viable during start up a Practice Educator service. This service oversees the student placements within Julian House to ensure placement outcomes are achieved both for Julian House and the students.

Private Rented Sector Access Fund

Funding for private rented sector tenancy schemes for people who are, or at risk of becoming homeless.

Protect Plus

Funding to help provide services and sleeping bags to homeless clients In Dorset.

Real Change Basingstoke

The funds are dedicated to assisting clients moving from supported housing to more independent living.

Devon Coronavirus Response & Recovery Fund

Establishing safe storage for rough sleepers belongings, tablets for clients to remain connected with support networks and to provide mental health first aid training.

Sport England Inequalities Fund

To provide exercise equipment for vulnerable supported housing clients during lockdown.

45

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Tenancy Starter Packs

Funding to provide household and essential items to help clients in the Exeter area to move into their own accommodation from supported housing.

Covid-19 Community Action Fund

Funding provided for mobile phones to ensure that rough sleepers could maintain contact with their support during lockdown.

Specialist Female Support Worker

A specialist female support worker who is the consistent support for women during their journey from rough sleeping and throughout their stay in the hostel in order to successfully maintain mixed gender hostel life, addresses complex issues such as substance misuse, offending, mental health, domestic abuse and sexual exploitation with the ultimate aim of supportively moving on and achieving their potential.

Emergency Accommodation Support

Funding to provide household and essential items in rapidly deployed emergency housing during "Everybody in" initative in first lockdown.

Womens' Early Intervention Worker

A specialist women's early intervention worker to provide wrap-around support to prevent vulnerable women from becoming homeless, while also providing rapid assistance to women sleeping rough so that their situation does not become entrenched.

20. RECONCILIATION OF OPERATING SURPLUS TO CASH FLOW FROM OPERATING RECONCILIATION OF OPERATING SURPLUS TO CASH FLOW FROM OPERATING ACTIVITIES
2021 2020
£ £
JULIAN HOUSE GROUP
Surplus for the year 562,160 324,494
Depreciation charges 257,262 250,163
Interest receivable (404) (260)
Interest payable 19,538 24,879
Loss on disposal of fixed assets 2,546 -
Decrease / (increase) in stock 4,663 8,643
Decrease / (increase) in debtors 73,956 (178,827)
Increase / (decrease) in creditors 112,097 208,883
Increase / (decrease) in pension liability 11,000 (53,371)
1,042,818 584,604

46

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

21. PENSION COMMITMENTS

Social Housing Pension Scheme

As noted within the accounting policies, Julian House participates in the Social Housing Pension Scheme (SHPS), which is a funded multi-employer defined benefit scheme. Since 2019 it has become possible to identify the share of underlying assets and liabilities belonging to individual participating employers as at 31 March 2019 and the scheme is now accounted for as defined benefit plan for the benefit of its employees. Prior to this, a liability was calculated as the net present value of the social landlord's deficit funding agreement.

Amounts recognised in the Balance Sheet at 31 March 2021
2021
£
Fair value of plan assets
365,000
Present value of funded obligations
(409,000)
Deficit
(44,000)
The amounts recognised in the statement of comprehensive income are as follows
2021
£
Expenses
2,000
Net interest expenses
1,000
3,000
Changes in the fair value of the scheme assets are as follows:
2021
£
Fair value of plan assets at start of period
332,000
Interest income
8,000
32,000
Employer contributions
14,000
Benefits paid and expenses
(21,000)
365,000
Experience on plan assets (excluding amounts included in interest
income) - gain (loss)		 2020
£
332,000
(365,000)
(33,000)
2020
£
2,000
1,000
3,000
2020
£
325,000
7,000
6,000
14,000
(20,000)
332,000

47

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Changes in the present value of the defined benefit obligation are as follows:

2021
£
Defined benefit obligation at start of period
365,000
Expenses
2,000
9,000
(2,000)
2,000
54,000
(21,000)
409,000
The amounts recognised in other recognised gains and losses are as follows
2021
£
32,000
Experience gains and losses arising on the plan liabilities - gain (loss)
2,000
(2,000)
(54,000)
(22,000)
The categories of scheme assets are as follows
2021
£
Global Equity
58,000
Absolute Return
20,000
Distressed Opportunities
11,000
Credit Relative Value
11,000
Alternative Risk Premia
14,000
Fund of Hedge Funds
-
Emerging Markets Debt
15,000
Risk Sharing
13,000
Insurance-Linked Securities
9,000
Property
8,000
Infrastructure
24,000
Private Debt
9,000
Opportunistic Illiquid Credit
9,000
High Yield
11,000
Opportunistic Credit
10,000
Corporate Bond Fund
22,000
Liquid Credit
4,000
Long Lease Property
7,000
Secured Income
15,000
Interest expense
Effects of changes in the financial assumptions underlying the present
value of the defined benefit obligation - gain (loss)
Total actuarial gains and losses - gain (loss)
Effects of changes in the demographic assumptions underlying the
present value of the defined benefit obligation - gain (loss)
Actuarial losses (gains) due to scheme experience
Actuarial losses (gains) due to changes in demographic assumptions
Actuarial losses (gains) due to changes in financial assumptions
Benefits paid and expenses
Experience on plan assets (excluding amounts included in net interest
cost) - gain (loss)		 2020
£
412,000
2,000
8,000
1,000
(5,000)
(33,000)
(20,000)
365,000
2020
£
6,000
(1,000)
5,000
33,000
43,000
2020
£
49,000
17,000
6,000
9,000
23,000
-
10,000
11,000
10,000
7,000
25,000
7,000
8,000
-
-
19,000
-
6,000
13,000

48

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

Liability Driven Investment
Net Current Assets
Total assets
Key assumptions
Discount rate
Inflation (RPI)
Inflation (CPI)
Salary Growth
Allowance for commutation of pension for cash at retirement		 93,000
2,000
365,000
2021
% per annum
1.91
3.39
2.76
3.76
75% of
maximum
allowance		 110,000
1,000
332,000
2020
% per annum
2.45
2.75
1.75
2.75
75% of
maximum
allowance

The mortality assumptions adopted at 31 March 2021 imply the following life expectancies

Life expectancy at age 65 (Years) Life expectancy at age 65 (Years)
2021 2020
Male retiring in 2021 21.60 21.50
Female retiring in 2021 23.50 23.30
Male retiring in 2041 22.90 22.90
Female retiring in 2041 25.10 24.50

The Pensions Trust Growth Plan

Julian House also participates in the Pensions Trust Growth Plan scheme, a multi-employer scheme which provides benefits to some 1,300 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the Company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore it accounts for the scheme as a defined contribution scheme.

No deficit contributions are payable by Julian House in respect of this scheme, and therefore no liability in respect of deficit contributions is required.

49

JULIAN HOUSE

NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2021

22. RELATED PARTY TRANSACTIONS

The Company has taken advantage of the exemptions afforded by Financial Reporting Standard FRS 102 and not disclosed transactions with group undertakings. Any such transactions are eliminated on consolidation.

The trustee, Matthew Graham, is also a partner of Stone King solicitors (previously Mowbray Woodwards). During the year purchases totalling £877 (2020: £1,443) and £nil (2020: £nil) were from Stone King by Julian House and Julian House Trading respectively. Donations and fundraising income totalling £25 (2020: £850) were also received from Stone King by Julian House.

The trustee, Barry Hughes, is also CEO of Selwood Housing Group. Donations and fundraising income totalling £nil (2020: £228) were also received from Selwood Housing Group by Julian House.

All our business is conducted on an arm's length basis.

23. SUBSEQUENT EVENTS

Julian House sold their freehold property, 55 New King Street, Bath BA1 2BN in May 2021 receiving sales proceeds of £1,050,000.

24. ULTIMATE CONTROLLING PARTY

There is no ultimate controlling party of the charitable company.

50