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2022-03-31-accounts

SIR OSWALD STOLL FOUNDATION

REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Charity Number: 207939

Company Registered Number: 148636 Homes England Number: A3418 Registered in England & Wales

INDEX TO THE REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2022

Page
Index 2
Trustees, Officers and Advisers 3 - 4
Trustees’ Report 5 - 21
Independent Auditor’s Report 22 - 25
Statement of Comprehensive Income 26
Statement of Financial Position 27
Statement of Changes in Reserves 28
Cash-Flow Statement 29
Notes to the Cash-Flow Statement 30
Notes to the Financial Statements 31 - 54

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CHARITY TRUSTEES, OFFICERS AND ADVISERS

The Charity Trustees under Charity Law and the Directors of the Charitable Company are listed below, as is their committee membership:

Patron: HRH The Countess of Wessex GCVO DStJ CD

President: Field Marshal The Lord Walker of Aldringham GCB CMG CBE DL

Company Secretary: Richard Gammage

Trustees:

Air Vice-Marshal Ray Lock CBE (Chairman) David Arthur (d) Paul Brookes (c) Karl Craig (a, b) Dr Ian Fyfe-Green (b), from December 2021 Richard Freeman (e) Uta Hope (e) Commander Clare Hughes RNR (b), until March 2022 Simon Philips (e) Timothy David Rossington CB (a) Katherine Russell (d) Roger Shrimplin (c) Mark Sweeney (a), from December 2021 George Thornton (b, c)

During the reporting period, two new Trustees joined the Board: Dr Ian Fyfe-Green and Mark Sweeney, both in December 2021. Commander Clare Hughes resigned from the Board in March 2022.

During the year the activities of the Charity Trustees were conducted through five sub-committees, the Trustee membership of which is shown above:

Chief Executive Officer (CEO): Air Commodore Richard Gammage

Senior Management Team (the ‘Executive’):

As well as the CEO, the Executive included the following during the reporting period:

Claire Bendall Director of Services Sarah Berzon Director of Corporate Services Nick Coverdale Director of Housing Beverley Russell Director of Fundraising and Communications Amanda Soobrayan Finance Director

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PRINCIPAL ADDRESS AND REGISTERED OFFICE

The Sir Oswald Stoll Mansions, 446 Fulham Road, London, SW6 1DT

Advisers
Investment Advisers CCLA
Senator House
85 Queen Victoria Street
London
EC4V 4ET
Bankers National Westminster Bank Plc
Fulham Broadway
London
SW6 1AG
Solicitors Trowers & Hamlin LLP
3 Bunhill Street
London
EC1Y 8YZ
Auditors Crowe U.K. LLP
St James House
St James Square
Cheltenham, GL50 3PR
Insurance Brokers AJ Gallagher
27-30 Railway Street
Chelmsford
CM1 1QS

Website:

www.stoll.org.uk

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THE TRUSTEES’ REPORT FOR THE YEAR ENDED 31 MARCH 2022

Under the Charities Act 2011, the Board of Trustees has pleasure in presenting its Report and the Financial Statements of the Sir Oswald Stoll Foundation (Stoll) for the year ended 31 March 2022.

REFERENCE AND ADMINISTRATIVE INFORMATION

Stoll was formed in 1917, is constituted as a company limited by guarantee registered in England & Wales, No 148636 and it is registered with the Charity Commission, No 207939. It is also a registered provider of social housing, No A3418.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Stoll is organised and managed in accordance with its Memorandum and Articles of Association (most recently updated 5[th] December 2019).

Code of Governance

Stoll intends to continue to be compliant with the relevant elements of the National Housing Federation’s Code of Governance, including the 2020 revision and the associated Together with Tenants standards. We also benchmark ourselves against the standards of governance expected by the Charity Commission. Stoll makes use of independent reviews of its governance, most recently in 2019. Stoll is also informed by the standards expected by the Confederation of Service Charities (Cobseo) in respect of good governance procedures.

Following issuance of the National Housing Federation’s latest Code of Governance, the Board undertook to review Stoll’s governance procedures and, where applicable, to adapt it to meet the revised Code; and, to adopt the Together with Tenants standards. The Code is built around the key values upon which good governance is based, namely, accountability, integrity, openness, and equality, diversity and inclusion. And at its heart are four core principles:

The Board unanimously endorsed Together with Tenants standards in early 2021 and it endorses a focus upon and continuous improvement in their implementation.

Board of Trustees

The Charity’s Trustees are legally responsible for the overall management and control of Stoll, and they normally meet four times per annum. Trustees are appointed at a meeting of the Board of Trustees on the basis of nominations received from the Trustees and the CEO, including professional qualities, experience, personal competence and availability. Where necessary, advertisements are placed to secure candidates to fill vacancies. The appointment of new Trustees takes care to ensure that the relevant skills and experience are represented, and the current Trustees bring a great depth of experience in charity work, housing, the Armed Forces, finance, investments and property. The Board of Trustees is selfappointing, with members appointed initially for three years and subject to re-appointment every three years for a maximum of three terms.

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The Trustees receive no remuneration or other benefit from their role with Stoll, nor are they directly related to it in any way. Expenses are reimbursed as appropriate. Any matters involving connections between Trustees and Stoll staff or beneficiaries, or indeed any interests, such as contractual relationships with a related party, must be disclosed to the full Board and registered in the Interests’ Register. In the current year, no significant matters were reported, but one Trustee (who is also a tenant), George Thornton, has declared interests in any future development of the Fulham site and in rent and service charge setting.

The Board sets the strategic direction which it delegates to the Executive to deliver. It appoints the CEO and ensures good performance through regular supervision and annual appraisal. The CEO is responsible for leading and managing the organisation through the Executive. In 2020, the Board of Trustees and the Board’s sub-committees moved meetings online to maintain safe, appropriate and effective governance during the Covid-19 global pandemic, but it has since returned gradually to face to face meetings.

The work of the Board is conducted by five sub-committees all of which are: attended by the CEO and the appropriate member(s) of the Executive; chaired by a Trustee; and, attended by Trustees and by other volunteer members:

Trustee Recruitment and Training

New Trustees and Committee Members are recruited on a need’s basis in accordance with the Stoll Governance Procedures. Each new person is inducted into the workings of the Charity, including its various policies and procedures, at an induction workshop organised for them by the Executive. They can also attend specialist external courses, including training on the roles and responsibilities of Trustees. External trustee training and information courses are designed to keep them informed and updated on current issues in the sector and on regulatory requirements. They also benefit from in-house training opportunities, spending time with staff and with our beneficiaries and from meetings with the CEO and

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Executive. The Charity wishes to encourage greater numbers of residents to volunteer to become committee members and, in time, trustees.

OBJECTS, PRINCIPAL ACTIVITIES and PUBLIC BENEFIT

Charitable Objects

Stoll is a charitable company and registered provider of social housing established to provide housing and associated amenities and facilities, and care and support for those who have served in the Armed Forces of The Crown and in the Merchant Navy, and who are disabled, vulnerable or infirm. Its principal activity is the provision and management of housing and accompanying support services to enable Stoll’s tenants and other Veterans in the wider community to live independently. Its subsidiary aim, where spare capacity exists, is to support any other person who is disabled, vulnerable or infirm. This is less well known, but it is a core element of the Charity’s Objects. During the year ending 31 March 2022, Stoll continued to meet its Objects through the delivery of training and support to veterans.

Principal Activities

The Charity’s principal activities, as specified in the Memorandum and Articles of Association, are delivered effectively. Stoll provides two hundred and eighty-seven supported housing units which are delivered in five main schemes (sites) found within London and the South East. We have one hundred and fifty-seven homes and communal facilities in Fulham (Sir Oswald Stoll Mansions), four further townhouses in Fulham, twenty homes at Banstead Court in Acton, thirty-six homes in Chiswick (Chiswick War Memorial Homes) and a further thirty-six units in Hounslow (Countess of Wessex House). Outside of London, we opened a new scheme in 2018 in Aldershot (Centenary Lodge), which won the Inside Housing Award for best social housing development in 2019. This wonderful accomplishment for the Charity now provides a further thirty-four homes for Veterans.

Stoll’s income comes from two main sources, foremost of which are rent and service charges which provides the basis of funding Stoll housing. Secondly, charitable donations, which fund the comprehensive support services that Stoll provides to Veterans living in its five schemes. Stoll maintains an ongoing commitment to keep its rents and service charges as low as is possible, commensurate with delivering the core housing function, yet not proving a barrier to Veterans approaching Stoll for support or to tenants returning to work. We remain committed to providing an exceptionally high-level of support services to tenants, but rents and service charges do not cover the cost of providing support services, therefore, fundraising remains a vital source of income. The Charity’s support services include facilities not normally found in housing schemes, such as Wi-Fi, IT suites, a gymnasium, communal gardens and other recreation facilities. Stoll provides a higher void standard for new lettings and a handyman-type service to help with minor repairs and DIY requests. The support services we offer enable Stoll to house tenants with complex problems, although we have made (and will continue to make) the case to Government that we cannot take the most complex cases without statutory funding from Government. Stoll’s own support services are enhanced by the many positive working relationships that Stoll has built with its various partners in the wider voluntary sector (for example with Haig Housing, the Poppy Factory and SSAFA) and with the NHS. These relationships enhance the support offered to the more than three hundred Veterans that we support annually in our properties. Covid-19 created all manner of practical difficulties in sustaining housing and support services during this reporting period, but the Trustees are proud of what has been achieved and they are grateful to the staff for their efforts in trying circumstances as well as to the many partners and donors who have enabled this collective effort.

Stoll also operates a number of wider support services, including a national resettlement service for Veterans ready to live independently without further support. The nationwide Veterans’ Nomination Scheme provides access to local authorities’ social housing to meet the ‘general needs’ of Veterans who are ready to move on from supported accommodation. It affords them a priority for general needs housing. Over six hundred Veterans have been found such a permanent home during the past decade. This Scheme was previously enabled by external funding, but the removal of such funding caused Stoll to reconsider how to fund it as a ‘core service’ of Stoll while we continue to explore external funding

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opportunities.

Stoll continues to provide a broad range of Health and Wellbeing activities, providing training, confidence-building, and considerable wider benefits to those undertaking them. During this period, in response to the challenges of the pandemic, our programme has necessarily been more flexible and creative than is normally the case, with at times less in-person and more online and remote Health and Wellbeing activities for Veterans and their families. Due to the vulnerability of our beneficiaries, it has been important to seek to maintain social networks. Activities have ranged from therapeutic programmes with a focus on psychological wellbeing and mindfulness, to other activities that focus upon social and physical outcomes to support the wider wellbeing of our Veterans. This work was enhanced through the year by joint working with local NHS mental health services and by a wide range of partners offering therapies and similar projects. This year there was an increase in bespoke individual work, plus some group work such as gardening. Some activities involved hybrid sessions, with a mix of outdoor group work and online work via zoom. The programme has continued to provide training, confidence building alongside other wider benefits. There has been an increase in demand for support for issues regarding mental health and we have welcomed the ongoing success of mental health services provided by Op COURAGE (the Veterans’ Mental Health and Wellbeing Service).

One final area of work for Stoll and which has been a significant growth area for the Charity is in policy and public affairs work around Veterans’ housing. Stoll’s CEO co-chairs The Confederation of Service Charities (Cobseo) nationwide ‘umbrella group’ (the Cobseo Housing Cluster) that leads the process of bringing about a much more co-ordinated, sector-wide and nationwide approach to our country’s Veterans in housing need. In this guise, we continue to lead the successful ‘No Homeless Veterans’ campaign, helping Local Authorities to best fulfil their statutory obligations around Veterans’ housing and encouraging them to ‘go beyond’ wherever possible. Anecdotally, the number of Veterans in housing need has gone down and we have some evidence that tens of Local Authorities have changed their practice as a result of our campaigning. During this period, we have prepared a second phase of this campaign, which we plan to launch in May 2022. We intend to ensure this reach endures and improves. The CEO is also a Director of Cobseo.

PUBLIC BENEFIT

The Trustees give careful consideration to the Charity Commission’s guidance on Public Benefit. They are content that the Charitable Objects are being followed and that significant Public Benefit is being achieved by the Charity. Stoll remains committed to the aim of providing Public Benefit in accordance with its founding principles and the disclosure of its Public Benefit aims. The Trustees have complied with the Public Benefit duty in Section 17 of the Charities Act 2011. With appropriate governance in place, Stoll has volunteers donating their time in different ways, including as Trustees and Committee Members, in fundraising and activities, as practitioners, as well as corporate and support volunteers. Community Outreach activities are broad, and Stoll seeks to enhance these further in the next reporting period.

STRATEGIC REPORT

ACHIEVEMENTS AND PERFORMANCE

Strategy and Achievement

Achievements by the Charity are in many ways unquantifiable, being as they are so closely related to the holistic support of the beneficiaries. That said, Stoll benchmarks its performance closely against key sector performance indicators. The emphasis for our staff is upon the needs of each individual and the Charity is making considerable headway in this respect, including through ongoing, significant investment in facilities, training and its clear focus on support. We aspire to continually improve.

The Board's commitment to maintaining Stoll's excellence has been reinforced by the capital programme. Expenditure on capital projects (component replacements) during the reporting year amounted to £633k

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(2021: £22k).

The extensive range of capital projects in recent years has included ongoing refurbishment of the five schemes, the Aldershot development (mentioned above) and planned maintenance, albeit this latter element has in the short-term been impacted significantly by Covid-19. This reporting period has seen significant investment (£563k) in fire-safety works across our schemes

This reporting year’s work has been delivered in accordance with the Charity’s five-year Strategy (developed as a focus for work out to 2026 and refined by the Board in 2021) and in the context of the significant cost reductions in 2019. These were essential given a temporary pause in the intended redevelopment of the site in Fulham. Despite the self-evident challenges associated with the global pandemic, the fundamental services that Stoll provides to its beneficiaires have continued to be delivered effectively.

During this reporting period, the Trustees note the progress being made in four key areas:

  1. Maximise the independence of our exisiting beneficiaires through the provision of excellent support and housing services. During the reporting year, Stoll:

  2. delivered effective services to ensure an increased focus upon independence;

  3. ensured that our Health and Wellbeing Services maximised outcomes relating to mental health such as reducing isolation;

  4. evolved our support structure to give greater clarity to tenants and encourage the more independent to stand on their own two feet to a greater degree;

  5. nurtured effective collaborative work, including with local authorities, The Poppy Factory and Op Courage, that promotes the independence of our beneficiaries; and,

Our work has resulted in the following outcomes for our beneficiaries:

We are proud that these figures are consistent with the previous year, reflecting the hard work that staff have undertaken with the focus on outcomes for our beneficiaries.

As the above demonstrates, Stoll has continued to provide high quality support and housing services which serve to engender independence. This year over one hundred beneficiaries received bespoke support to gain new skills and interests, while over one thousand opportunities were taken to attend activities either online or in person. There have been more than one hundred and fifty examples of collaborative work with other agencies such as around addiction, mental health and debt. The Charity’s staff have actively worked with over two hundred beneficiaries to achieve outcomes such as gaining employment, maximising welfare benefits, managing anxiety and making local connections. Our staff have continued to deliver this vital support despite the challenges of lockdowns and other Covid-19 restrictions.

2. Deliver increased levels of Veteran-specific supported accommodation according to need.

Following the relatively recent completion of the Centenary Lodge scheme in Aldershot, Stoll has not further added to its property portfolio, but work has been initiated to explore how best to redevelop the Sir Oswald Stoll Mansions’ site in Fulham. This work is informed by engagement with our residents in Spring 2022. We intend that this should involve some improved properties on site and, in time, improved scope for an increased portfolio of supported housing for our future beneficiaries at the point of greatest need. We have therefore evolved our strategic work around developing Stoll’s future housing offer,

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whereby an option could be to offer two different types of housing: more temporary accommodation in studio-type flats for working age Veterans on short-term tenancies; coupled with, longer-term accommodation options for Veterans who may not return to the workplace because of age, health issues or disability. We intend to work together with our current beneficiaries, and with others, to scope future provision.

3. Contribute to a National Network of Suitable Accommodation and Support Services for Vulnerable Adults.

Stoll continues to be the leading Veterans’ housing supported charity seeking to achieve a more co-ordinated approach to Veterans’ housing in the UK. Our nationwide ‘No Homeless Veterans’ campaign (www.nohomelessVeterans.org.uk) has been a considerable success. The campaign has already had a media reach of twenty-two million people including five pieces of national coverage and four pieces of broadcast media, as well as a social media reach of one hundred and forty-one thousand impressions. Staff from some one hundred Local Authorities were briefed by members of our team up and down the country. We deliver this work on behalf of the Cobseo Housing Cluster. We are leading the Cluster to evolve the No Homeless Veterans brand and its offer have launched the second phase of this campaign in May 2022. There is much more to be done to end Veterans’ homelessness.

  1. Redevelop Stoll’s ‘outreach services’ to increase our visibility and ability to prevent homelessness.

Stoll had run outreach services for Veterans over the previous eight years and was saddened in late 2019 to close its Outreach Service due to funding constraints on the partner charity. The closure of this service had two detrimental effects on the beneficiaries. London lacked an outreach service with the range of skills and multi-disciplinary approach that previously existed, meaning that the most vulnerable Veterans in the capital did not get the level of support they need to coherently move forward in their lives. Secondly, it meant that some of the more vulnerable Veterans could not move into Stoll properties because Stoll did not now have the resource to properly prepare the Veterans, for example to assist them in resolving issues that prevent them settling down in a residential setting prior to moving to Stoll. We continue to seek to bring back the former outreach service if we can secure the necessary funding.

Corporate Services

The Corporate Services function has had a special focus of late on digital technology in order to best support the Charity’s business functions during the pandemic with, where appropriate, staff being given the facility to work from home and maintain communication with colleagues, Veterans and partners alike. Improving digital access for Veterans has been a key element of work during this reporting period, involving training, software and hardware.

Stoll also made some important improvements to its corporate services functions in areas such as Finance, Fundraising, Human Resources, Health and Safety, and Governance. Key initiatives during the reporting year included:

Benchmarking and Key Performance Indicators (KPI)

Benchmarking with other social housing entities is frequent and detailed, and it is scrutinised robustly by the Board’s Housing and Services Committee, which regularly reviews benchmarking and KPI data. This includes where there is scope to improve provision for the beneficiaries.

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Stoll makes effective use of comparative information from supported housing and small housing associations, including in the following regards:

Value for Money

Our performance is measured against our strategic goals. Our Performance indicators are based on the Regulator of Social Housing (RSH) Value for Money (VfM) metrics. The RSH introduced VfM metrics to compare performance across the sector in a fair and comparable way and in accordance with FRS102 requirements. The relevant VfM metrics measure economy, efficiency, and effectiveness on a comparable basis across the sector. We benchmark our VfM performance:

VfM Metrics Measure Stoll
20/21		 Stoll
21/22		 Small
Providers
Benchmarking
(SPBM)
1 -OperatingMargin(Overall). Efficiency 21.1% 13.5% 8.8%
2 - Operating Margin (Social Housing
Lettings).		 Efficiency 28.8% 22.4% 14.7%
3-EBIDTA MRI (as % of interest). Efficiency 555.5% 110.5% 913.0%
4 -Gearing (RSHand ScorecardMeasure). Efficiency 27.8% 23.4% 101.0%
5 - New Supply Delivered (Social Housing
Units).		 Effectiveness Nil Nil -
6-Reinvestment %. Efficiency 0.1% 2.9% -
7- ReturnOnCapital Employed (ROCE) %. Efficiency 2.2% 1.5% 3.3%
8-Social Housing Cost Per Unit. Economy £7,318 £8,079 £13,935

Continuous improvement remains a key approach for Stoll and, while our Key central focus remains the support and services we provide to our residents, we provide KPI that are monitored and reported to the Board (on a quarterly basis).

1 - Operating Margin – expenditure across all areas was reduced due to the phased exit Covid lockdowns from March 21 to July 21 in the year, contributing to an ongoing positive operating margin of 13.5% (operating surplus of £544k)

2 - Operating Margin (Social Housing Lettings) – our procurement policy was embedded further this year, resulting in an operating margin of 22.4% for social housing lettings. This margin is likely to come under pressure though with increasing regulatory compliance requirements arising from the fire safety, the social housing white paper and the Government’s 2050 net carbon target.

3 - Interest Cover (EBITDA MRI) – due to capitalised repairs in excess of £633k, our earnings before interest, tax, depreciation, and amortisation were 110.5% against a covenant of 110.0%.

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4 - Gearing - this is a measure of borrowing in relation to our total assets. Our Gearing ratio at March 2022 is low at 23.4% which satisfies loan covenant requirements and gives us the capacity to take advantage of additional borrowing, for example, for development and growth purposes.

7 - Return on Capital Employed (ROCE) – is a measure of our overall operating surplus in relation to our total assets less current liabilities. Our ROCE is always low as any surplus that Stoll makes in its operations is reinvested in maintaining its existing homes, building new homes and maintaining and investing in its support services.

8 - Social Housing Cost Per Unit – this is the key cost measure used by RSH. We fell slightly short of our target of £8k. However, this cost is higher than the median cost for supported housing providers published by the RSH. Their publication on the ‘cost regression analyses’ recognises that supported housing providers’ unit costs can vary significantly between £8k and £14k per unit/annum. A supported housing provider’s average unit cost is dependent on (a) its income/cost proportions from supported housing, (b) clients’ support needs, (c) size of the organisation, and (d) regional cost variances. Therefore, due to Stoll’s size and investment in support for our beneficiaries our unit costs are in the higher end of this band.

Social Housing White Paper

The disaster seen at Grenfell has driven a want and need for change across the social housing sector. Guidance was published in November 2020 and outlines seven commitments for social housing providers including enhancing the existing Decent Homes Standard. Stoll reviewed and reinforced its procedures to manage safety risks during the design, construction, completion, and occupation stages of its developments and we have put into place effective, proportionate measures to manage safety risks. Stoll has a dedicated member of staff, the Director of Corporate Services, who along with the Director of Housing is responsible for maintaining health and safety and building standards. As part of the White paper requirements, Stoll began an extensive capital refurbishment programme this financial year 202122 that is in excess of £750k.

Sustainability target

Stoll is committed to meeting the Government’s sustainability targets – EPC ratings C by 2030 and the net zero carbon targets by 2050. We have included a significant capital commitment in addition to fire safety measure costs for our existing stock in our long-term business planning. We will also ensure that the proposed development in Fulham and any new developments are built within these standards.

Housing KPI

Stoll achieved the following performance:

tollachieved thefollowing performance:
SPBM Housing KPI Stoll
£’s		 Similar Housing
Associations
£’s
Housing Management Cost Per Unit. 1,158 643
Responsive Repairs Cost Per Unit. 1,042 1,162
Major & Cyclical Repairs Cost Per Unit. 19 753
Service ChargePerUnit. 1,920 -

The main benchmarking resources used to compile this Report are the:

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Indicator Stoll’s
Target		 Stoll
20/21		 Stoll
21/22		 SPBM
sources
Void turnaround time (days). 42 154 132 41
% VoidLoss. 4.1% 6.3% 6.1% 6.2%
Current arrears. 4.5% 4.6% 5.6% 5.6%
Personal rent arrears (net of Housing Benefit). 3.0% 2.4% 3.2% 1.4%
% of RoutineRepairs Completed Within Target. 97.0% 78.0% 93.0% 92.9%

Arrears – arrears increased in 2021-22 due to the effects of the pandemic and the resulting impact on the finances of our veterans and the delays in processing Housing benefit payments. These increases are being monitored and a personal action plan put into place for each tenant in arrears.

Independence and Dignity

**Indicator ** Stoll's Target Stoll 20/21 Stoll 21/22
Veterans living more independently >20.0% 8.0% 8.0%
% Veterans who have maintained or increased
their independence.		 90.0% 97.0% 97.0%

During the last two years, Stoll has evolved its tenancy agreements so that all new tenants are offered Periodic Assured Shorthold tenancies.

People and Homes

Indicator Stoll's Target Stoll 20/21 Stoll 21/22
Veterans moving into Stoll properties. 24 34 34
Veterans moving towards independence. 16 7 7
Veterans housed through the Veterans’
Nomination Scheme.		 40 36 35

FUTURE PLANS

The context in which Stoll makes its future plans involves many factors, including:

In the Strategy, the Board has set five strategic objectives, each with their own sub-objectives to be achieved over the course of the next five years:

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These set the context within which our annual work plans and budgets are developed. Stoll’s staff are caring, competent and they work collegiately, but they are limited by the current capacity of the Charity. The Board is confident that, through this Strategy, capacity can be enhanced leading to even better outcomes for the beneficiaries.

FINANCIAL REVIEW

Following previously reported concerns about cash-flow, robust action was taken from 2019 by the Board and it, allied to the effective actions of the Executive, has enabled a far stronger financial position during the last and during this reporting period. This has established a much firmer footing for the Charity. This context also provided the basis and confidence for proceeding with the temporarily paused Fulham site development planning (so as to address the increasingly high risk associated with the site) and for other activities.

Stoll’s turnover increased by 3% to £3.8m (2021: £3.6m) and the operating costs by 16% to £3.3m (2021: £2.7m). This is due to operating cost increases from continuing investments in management, staff and IT infrastructure to enhance our service delivery. The overall surplus for the year was £343k.

As at March 2022, capital employed within Stoll was £33.4m (2021: £33.7m) comprised of £22m in grants, £6.9m in bank loans and the remainder as reserves of £4.5m (2021: £3.9m). We had cash reserves of £1.3m providing a good buffer to manage short-term cash flow pressures, albeit less than the target in our Reserves Policy.

Results for the year

The Charity’s total comprehensive income for the year was £597k (2021: £187k).

----- Start of picture text -----
How Stoll Raised its Funds
0.3%
3%
2%
15%
80%
Property Fundraising Support Commercial Investment
----- End of picture text -----

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----- Start of picture text -----
How Stoll spent is funds
Financing 6%
Support 26%
Property 68%
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Principal Risks and Uncertainties

The Trustees monitor risk via a comprehensive Risk Table and consider that the key strategic risk relates to the ongoing and prohibitive cost of maintenance of the properties at Sir Oswald Stoll Mansions (its oldest scheme, based in Fulham). Much of the Fulham site was constructed a century ago and at a time when expectations and standards were unrecognizably different. While the buildings have undergone substantial refurbishment in their lifetimes, they are not at the standard of Stoll’s other properties. They need significant (and currently unaffordable) investment. Our low rents and service charges mean that we do not raise the levels of funding needed to maintain them to the standard Stoll would wish, let alone to redevelop them or to cope with increasing regulatory aspects. Despite the endeavours of the Charity to secure alternative funding for example from central Government for supported housing or via a step change in fund-raising, the Board has concluded that an alternative approach is now required. This is one of the main drivers to think creatively about how best to redevelop the site and to improve provision for Veterans at the point of greatest need in the coming years. This would ensure that all our properties are best-in-class in line with our other schemes away from Fulham. During the last year, the Charity initiated the work necessary to underpin proposed development at Fulham and it intends to consult residents during 2022-23 on a proposal that would enable it to continue to support its current and future residents with high quality housing for veterans in the 21[st] century.

The most significant other risks facing the Charity similarly involve financial and estate risks. Other risks include those relating to compliance with statutory requirements (for example, fire-safety standards), service delivery and support. All such risks are monitored closely and mitigated by a range of measures including comprehensive policies and strategies. The level and breadth of activity at Stoll is impressive and the risks associated with all activities are minimised by effective planning and robust risk assessment. Credit, liquidity and cash-flow risks are overseen by the Finance and HR Committee and managed directly by the CEO and Finance Director.

Risk is monitored in detail by the Board and also scrutinized by all Board sub-committees, who in turn report on risk matters regularly to the Board. The separate Audit and Risk Committee provide oversight of the Executive in such matters and it helps shape the approach taken by the other Committees and by the Board. The risk management process and the resulting Risk Table identifies risks, assesses their impact and probability and, where necessary, recommends controls to further mitigate and monitor those risks that are assessed as the highest. The generic controls used to minimise risk include:

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We ensured that services to our beneficiaries remained as accessible as possible during this challenging time. The Support services were, however, offered in different ways and they were not always as readily accessible to the beneficiaries as we, or they, would want.

Our agility and flexibility has nevertheless meant that we have continued to offer high-quality Housing and Support services, responding to the changing needs of our beneficiaries as the pandemic unfolded. That said, we recognise that Stoll staff have at times been less accessible and certainly less well able to provide support over the reporting period.

Cost of Living - One of the main risks to sustainable rents and tenancies facing social housing providers in 2022 is the ‘Cost of Living’. It is reported that, across the UK, 9-10% of the population are experiencing moderate to severe food insecurity. The Covid pandemic has reportedly exacerbated these problems. Stoll has been a supportive landlord during the pandemic. One of the risks to household sustainability over the coming months is the expected rises in energy prices, which will likely disproportionately affect those on low incomes. It is realistic to predict that these compound circumstances will result in additional pressure on rent arrears. We are trying to identify tenants that may be at risk of fuel poverty or financial hardship and putting in place a procedure to begin conversations early to put suitable support in place and sustain tenancies.

Fundraising Performance

There was more good work continued this year, seeking to improve engagement with external funders across our sector in order to sustain core activities, with the broad aspiration of creating a step-change in philanthropic income post pandemic. As the Covid-19 impact became clearer, the focus shifted to seeking funding to enable the Charity to best assure the safety of staff and beneficiaries and to assure the delivery of core services. Stoll is very thankful for the continued support the organisation gets from its regular funders. As the Covid-19 restrictions lifted throughout the year we were able to welcome funders to again visit our housing schemes and to see the difference that their generous support makes to Stoll veterans. We were, for example, delighted to host a visit by ABF The Soldiers’ Charity in November 2021 who met with Stoll veterans and talked to them about their individual journeys since leaving the Armed Forces and how Stoll provides them with a home and individual support. Our CEO welcomed attending the Royal Navy and Royal Marines Charity (RNRMC) Board meeting in June 2021 and the opportunity to speak about the impact of its funding on Stoll’s Royal Navy and Royal Marines veterans and their families. Stoll is looking forward to working more closely with our regular funders over the coming year and will be involved in filming Stoll veterans with the Veterans Foundation early in the next reporting year. Thanks to the funding from the Forces in Mind Trust, Stoll is delighted to be the lead partner in the Cobseo project for the next stage of the No Homeless Veterans Campaign. The campaign will work closely with social housing providers to ‘Think Veteran’ and it will provide support for local authorities and housing associations with training and materials to understand the needs of veterans seeking social housing.

Stoll is very grateful to its various supporters, including the following: Forces Support, ABF The Soldiers’ Charity, Armed Forces Covenant Fund, Forces Support, Headley Court Trust, Irving Memorial Trust, Lloyd’s Patriotic Fund, Queen Mary’s Roehampton Trust, Royal Air Force Benevolent Fund, Royal Navy and Royal Marines Charity, Scott (Eredine) Charitable Trust, Trinity House, Veterans’ Foundation, Forces in Mind Trust, Chelsea Supporters’ Trust, Cemex, and Hounslow Council

The Charity receives support from other charities too, and from businesses, as well as via its fundraising activities and individual, regular and one-off donors. The main focus in this year was in seeking support from new trusts and charities. The Charity is immensely grateful to all of our donors, past and present who make our various charitable activities possible, a typical example being the work of the Chelsea Supporters’ Trust with its annual ‘Big sleep out’, an event that was virtual last year but returned to its

16

normal format this March and was attended by our CEO and a couple of our veterans, one of who spoke eruditely about having lived in a car until he moved to Stoll a year before.

Overall, £572k was raised this year (2021: £549k), with additional sums pledged for the future. Although this reflects a dip on many previous years, it is nevertheless adjudged to be a success given the context.

Stoll employs a small team of fundraisers to raise funds for its projects and activities. We raise funds from charitable trusts and foundations, corporates, individuals and through community events and activities. Stoll’s activities are undertaken in accordance with the guidance of the Fundraising Regulator and in adherence to its Code of Practice. Stoll does not contact individuals or hold personal information without their permission. Fundraising income and activity is monitored quarterly by the Fundraising and Communications Committee and by Stoll’s Board. Stoll’s fundraising team work to set targets (e.g. for trusts, individual donors and corporates). Performance against targets is monitored monthly through the Stoll Management Accounts. We mitigate the risk of not achieving our targets through the use of scenario planning and frequent reviews of progress. Stoll also has a single employee focussed solely on communication. Internal communication works to inform beneficiaries of events, activities and general information regarding their tenancies at Stoll. The Stoll website has a ‘beneficiary only’ section and we also send out a monthly newsletter. We were delighted to re-introduce a summary ‘Annual Report’ for 2021, a short document which sets out what we do and how we do it. We intend to return next year to holding quarterly residents’ meetings with the key Stoll staff including the CEO wherever possible.

Planning has commenced for consulting residents on future development of the Fulham site. Stoll’s external communication seeks to inform the public about the work of Stoll and the needs of our beneficiaries. We do this through the Stoll website, social media and written materials. Communications are monitored quarterly by the Fundraising and Communications Committee.

Reserves Policy

The Charity’s Reserves Policy is to maintain sufficient unrestricted income reserves to enable it to meet its short-term financial obligations (deemed to be three months’ operating costs) in the event of an unexpected revenue shortfall and to mitigate operational risks such as those arising from pandemics, staffing shortages, and reactive asset management requirements. We hold three types of reserves:

With, annually, 15% of our income coming from revenue fundraising, maintaining an adequate reserve is vital. Therefore, Stoll commits to retaining a minimum of three months’ operating costs (not including restricted funds) in cash reserves and we intend to have six months’ reserves by the end of the forthcoming strategy period (2025). The Board reviews the Reserves Policy annually. Total reserves at 31 March 2022 were £4.5m (2021: £3.9m) of which £96k (2021: £128k) was restricted, £3.7m (2021: £3.5m) was re-invested in our properties to the benefit of our Veterans and free reserves amounted to £630k - this is under our target of six months of operating costs, £1.6m for 2021-22.

Investment Policy

Stoll’s investment objectives are focused upon supporting the Charitable Objects. This involves emphasis upon the current and future needs by, maintaining (at least) the value of the investments in real terms; producing a consistent and sustainable return to support operational expenditure; and, delivering these objectives within acceptable levels of risk. The investment strategy and associated distribution are reviewed annually by the Finance and HR Committee, as is the performance of investment manager(s). Investments are only those considered suitable for a charity, including in respect of social, environmental or ethical considerations, and external investment managers provide reports on a quarterly basis for review by the Finance and HR Committee, which monitors performance.

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Investments

At the year-end, the Charity invested £500k (2021: Nil) via funds managed by CCLA (investment managers) in the COIF Charities Investment Fund. Stoll’s investments are managed in accordance with the Investment Policy, with the intent to balance the needs and interests of current and future beneficiaries of Stoll activities. Through the Finance and HR Committee, the Trustees monitor the performance of the investments and of the external manager(s) of its investments quarterly.

Our People

The Board of Trustees is immensely grateful for the outstanding efforts of staff during the unprecedented challenges associated with Covid-19. Between April 2021 and spring 2022, Stoll concentrated on delivering the core housing and support services during the pandemic, and in line with Government guidelines and direction it moved many staff to remote working while continuing to enable the essential ‘front line’ service delivery staff to work on site in a ‘Covid-19-secure’ way. Employee wellbeing has naturally been at the forefront of our planning during the period, thereby ensuring that we protect the community, continue to deliver services and reduce the impact of social isolation. At the end of the reporting period, Stoll had thirty-five members of staff (with 4 vacancies), a mix of full-time and parttime.

Consultation with employees has continued at all levels throughout the Covid-19 pandemic with the aim of taking the views of employees into account when decisions are made that are likely to affect their interests. Employees are made aware of the financial and economic performance of the Charity. Communication with employees continues through normal management channels in a variety of forms and also to apprise staff of current issues. Remuneration is set by the Board, with the objective of enhancing performance and of rewarding fairly and responsibly our employees. The appropriateness and relevance of remuneration is reviewed annually, including reference to benchmarking with small housing associations and charities. This enables Stoll to remain sensitive to the broader issues of remuneration and employment conditions elsewhere. Delivery of Stoll’s charitable vision and purpose is primarily dependent on its staff, the cost of whom is the largest single element of charitable expenditure. Stoll encourages applications from disabled persons, makes adjustments to application and interview processes accordingly, and supports staff who become disabled through the course of their employment via reasonable workplace adjustments and access to continuous professional development and staff training.

Decisions relating to employment are objective, free from bias and based solely on work criteria and individual merit. Stoll promotes a working environment that is free from discrimination, harassment and victimisation. Stoll is an equal opportunities employer and seeks to be inclusive in its approach to recruitment, selection and staff development. Stoll operates a policy of positive promotion of employment opportunities to Veterans and is proud to be a gold standard holder of the Armed Forces Covenant Employer Recognition Scheme.

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STATEMENT OF ACCOUNTING AND REPORTING RESPONSIBILITIES

Trustees Responsibilities Statement

The Trustees (who are also the Directors for the purposes of Company Law) are responsible for preparing the Annual Report and the Financial Statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

Company Law requires the Trustees to prepare Financial Statements for each financial year which give a true and fair view of the state of affairs.

In preparing these Financial Statements, the Board was required to:

The Trustees are responsible for keeping proper accounting records that are sufficient to show and explain the charitable company’s transactions, disclose with reasonable accuracy at any time the financial position of the charitable company and enable them to ensure that the Financial Statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019 and the SORP: Accounting by Registered Social Housing Providers 2018. The Board has a general responsibility for taking reasonable steps to safeguard the assets of the Charity and to prevent and detect fraud and other irregularities. The Board is responsible for the maintenance and integrity of the corporate and financial information included on the Stoll website.

Code of Governance

In 2019 Stoll implemented an action plan to ensure it remained compliant with all aspects of the National Housing Federation Code of Good Governance. We also benchmarked ourselves against the equivalent code developed by the Charity Commission. In 2017 we conducted an independent review of our governance assisted by consultants (Campbell Tickell). During the previous financial year, we also benchmarked ourselves against the new Cobseo governance standard, having been on the working group to develop it. We scored very highly and continue to retain high governance standards and to operate in line with our Governance Procedures. A further light touch review is envisaged in the next reporting period.

Internal Controls

The Board acknowledge its responsibility for ensuring that Stoll has in place a system that is appropriate to the various business environments in which it operates and for reviewing its effectiveness. These controls are designed to give reasonable assurance with respect to:

It is the Board’s responsibility to establish and maintain systems of internal control. Such systems can only provide reasonable and not absolute assurance against material financial misstatement or loss. Key elements include ensuring that:

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No weaknesses have been identified in internal controls that resulted in material losses, contingencies, or uncertainties that require disclosure in the Financial Statements or in the Auditor’s Report on the Financial Statements, but the Board records that the intended internal audit mechanism was deferred (due to Covid-19) from this reporting period to the next.

The Board has undertaken an assessment of compliance with the Governance and Financial Viability Standard as set out by the Regulators. Stoll has completed two independent reviews of its governance. One in 2017 with an independent consultant in the light of the regulatory framework and a second, in 2019, involving a review with Cobseo (the umbrella body). These reviews confirm that Stoll complies with these standards.

Disclosure of information to the Auditors

In the case of each person who was a Trustee at the time this Report was approved:

This confirmation is given and should be interpreted in accordance with the provision of s418 of the Companies Act 2006.

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Auditors

At the Annual General Meeting in November 2021, Crowe UK LLP was appointed as External Auditors from the financial year ending March 2022.

Approval of the Report

This Report was approved by the Board on 31[st] August, 2022.

Signed on behalf of the Board by:

Air Vice-Marshal Ray Lock CBE (Chair of Trustees)

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Independent Auditor’s Report to the Members of Sir Oswald Stoll Foundation

Opinion

We have audited the financial statements of Sir Oswald Stoll Foundation (“the charitable company”) for the year ended 31 March 2022 which comprise the Statement of Comprehensive Income, the Statement of Changes in Reserves, the Statement of Financial Position, the Statement of Cash Flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

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Other information

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

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

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

Responsibilities of trustees

As explained more fully in the trustees’ responsibilities statement as set out on page 9, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to

23

enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Details of the extent to which the audit was considered capable of detecting irregularities, including fraud and non-compliance with laws and regulations are set out below.

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

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We identified and assessed the risks of material misstatement of the financial statements from irregularities, whether due to fraud or error, and discussed these between our audit team members. We then designed and performed audit procedures responsive to those risks, including obtaining audit evidence sufficient and appropriate to provide a basis for our opinion.

We obtained an understanding of the legal and regulatory frameworks within which the charitable company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements such as the Companies Act 2006, the Housing and Regeneration Act 2008 together with the Housing SORP. We assessed the required compliance with these laws and regulations as part of our audit procedures on the related financial statements items.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which might be fundamental to the charitable company’s ability to operate or to avoid a material penalty. We also considered the opportunities and incentives that may exist within the charitable company for fraud. The laws and regulations we considered in this context for the UK operations were requirements imposed by the Regulator for Social Housing, general data protection legislation, health & safety legislation and employment legislation.

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

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

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

Use of our report

This report is made solely to the charitable company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the charitable company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the charitable company and the charitable company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Guy Biggin Senior Statutory Auditor For and on behalf of

Crowe U.K. LLP

Statutory Auditor Cheltenham

Date: 30 September 2022

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STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 March 2022

Notes
Turnover
2
Operating expenditure
2
Operating Surplus
8
Interest receivable and similar income
Interest payables and similar charges
6
7
Surplus for the financial year
16
Actuarial profit/(losses) in respect of pension schemes
Total comprehensive income for the financial year		 2022
£
3,797,616
(3,254,001)
543,615

10,781
(210,979)
343,417
254,000
597,417		 2021
£
3,626,274
(2,780,461)
845,813
613
(207,459)
638,967
(452,000)
186,967

All of Stoll’s operations are classed as continuing.

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STATEMENT OF FINANCIAL POSITION AS AT 31 March 2022

Notes
Fixed assets
Tangible fixed assets – housing properties
9
Tangible fixed assets – other
10
Current assets
Debtors
11
Investments
Cash at bank and in hand
Creditors:amounts falling due within one year
12
Net current assets/liabilities
Total assets less current liabilities
Creditors:falling due after more than one year
13
Total net assets
Reserves
Unrestricted reserves
16
-
Invested in housing Properties
-
General Reserves
Restricted Funds
22		 2022
33,350,192
210,084
33,560,276
363,517
500,000
874,798
1,738,315
(1,881,224)
(142,909)
33,417,367

(28,947,372)
4,469,995
3,743,591
630,251
96,153
4,469,995		 2021
32,972,924
190,031
33,162,957
295,129
1,863,026
2,158,155
(1,620,026)
538,129
33,701,085
(29,847,505)
3,853,580
3,516,825
208,255
128,500
3,853,580

The accounts were approved and authorised for issue by the Board of Trustees on 31[st] August 2022 and were signed on its behalf by:

Air Vice-Marshal Ray Lock CBE (Chair of Trustees)

Timothy David Rossington CB (Chair of Finance Committee)

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STATEMENT OF RESERVES FOR THE YEAR ENDED 31 March 2022

Balance at 1st April
2021
Surplus for the year
Transfer between
funds
Balance at 31st
March 2022		 Invested in
housing
properties
£
Restricted funds
£
General (Free
reserves)
£
Total Reserves
£
3,516,825
128,500
208,255
3,853,580
-
217,653
379,765
597,417
226,766
(250,000)
42,231
18,997
3,743,591
96,153
630,251
4,469,995

The invested in housing properties column shows the designated reserve specifically earmarked for future investment in Stoll’s housing properties.

Restricted funds represent funds given to Stoll for a specific purpose or to support a project (these cannot be used for any other purpose).

Undesignated funds are funds which can be used in accordance with the Memorandum and Articles at the discretion of the Trustees.

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STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 March 2022

Notes
Net cash generated from operating activities
A
Investing activities
Interest received
Deferred capital grants received
Proceeds on disposal of tangible fixed assets
Purchases of tangible assets
Investment
Net cash used in from investing activities
Financing activities
Repayments of borrowings
New loans
Interest paid
Net cash generated from financing activities
Net (decrease)/increase in cash and cash equivalents

Cash and cash equivalents at beginning of the year
B
Cash and cash equivalents at end of year		 2022
£
1,068,569
10,781
-
4,300
(1,000,608)
(500,000)
(1,485,527)
(360,292)
-
(210,979)
(571,271)
(988,229)
1,863,027
874,798		 2021
£
724,678
613
-
-
(57,153)
-
(56,541)
(302,842)
1,000,000
(207,459)
489,699
1,157,836
705,190
1,863,026

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NOTES TO THE CASH FLOW STATEMENT for the year ended 31 March 2022

Net Income/loss
Depreciation
Loss/Gain on sale of housing properties
(Increase)/Decrease in Accounts Receivable
(Decrease)/Increase in Creditors
Interest payable
Interest Receivable
Amortised government grants
Movement in Pension Liability
Net cash inflow from operating activities
B
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Net funds
C
NET DEBIT NOTE
Cash and Cash Equivalents
Short Term Borrowings:
Bank Loans
Other Loans
Long Term Borrowings:
Bank Loans
Other Loans
Net Debt position		 Net Income/loss
Depreciation
Loss/Gain on sale of housing properties
(Increase)/Decrease in Accounts Receivable
(Decrease)/Increase in Creditors
Interest payable
Interest Receivable
Amortised government grants
Movement in Pension Liability
Net cash inflow from operating activities
B
CASH AND CASH EQUIVALENTS
Cash at bank and in hand
Net funds
C
NET DEBIT NOTE
Cash and Cash Equivalents
Short Term Borrowings:
Bank Loans
Other Loans
Long Term Borrowings:
Bank Loans
Other Loans
Net Debt position		 2022
£
597,417
603,288
(4,300)
(68,388)
301,921
210,979
(10,781)
(307,568)
(254,000)
1,068,569
At 1st April
2021
Cash flow
£
£
1,863,026
(988,229)
1,863,026
(988,229)
£
2022
£
874,798
(264,988)
(114,524)
(6,316,121)
(208,335)		 2021
£
186,967
569,180
15,659
(21,100)
(304,307)
207,459
(613)
(307,568)
379,000
724,678
At 31 March
2022
£
874,797
874,797
£
2021
£
1,863,026
(227,214)
(125,000)
(6,599,545)
(312,500)
(6,903,967) (7,264,258)
(6,029,169) (5,401,232)

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NOTES TO THE ACCOUNTS for the year ended 31 March 2022

1 Accounting Policies

General information

Stoll is a private company limited by guarantee incorporated in England and Wales under the Companies Act 2006. Stoll is also a registered charity and a registered provider of social housing with Homes England. A description of the nature of Stoll’s operations and its principal activity is disclosed in the Trustees’ Report.

Stoll’s registered office is:

The Sir Oswald Stoll Mansions, 446 Fulham Road, London, SW6 1DT.

Stoll meets the definition of a Public Benefit Entity per Financial Reporting Standard (FRS) 102, the FRS applicable in the UK and Republic of Ireland.

Basis of accounting

The Financial Statements of Stoll are prepared: in accordance with FRS 102 and with the Housing Statement of Recommended Practice (SORP) 2018 (“the SORP”); and, so as to comply with the Accounting Direction for Private Registered Providers of Social Housing 2019. The Financial Statements have been prepared under the historical cost convention as modified by the revaluation of certain assets in accordance with Stoll’s accounting policies. The Financial Statements are presented in Sterling.

Going concern

After reviewing the Stoll Budget for 2022/23, the Charity’s forward-looking financial planning (fiveyear cash-flow), the associated Strategy and planning, and with an eye to the wider context in the sector and with the economy, the Board has a reasonable and prudent expectation that Stoll has adequate resources to continue to operate for the foreseeable future. Given the comprehensive nature of this analysis, the Board continues to adopt the ‘going concern’ basis in preparing the Financial Statements.

Turnover

Turnover comprises rental and service charge income, revenue grants (where available), fees and donations.

Rental, service charge and fee income is recognised on a receivable basis.

Revenue grants and donations which are received to fund specific expenditure are matched with that expenditure and any such income received in advance is deferred.

Other revenue grants and donations are recognised when Stoll becomes entitled to them, where there is a probable certainty over their receipt and they can be measured reliably.

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NOTES TO THE ACCOUNTS for the year ended 31 March 2021 (continued)

1 Accounting Policies (continued)

Social Housing Grant and Government grants

Government grants include grants receivable from Homes England, local authorities, and other Government organisations. Government grants received for housing properties are recognised in income over the useful life of the housing property structure on a pro rata basis under the accrual model. The unamortised element of Government grants is recognised as deferred income in creditors.

Grants relating to revenue are recognised in the Statement of Comprehensive Income over the same period as the expenditure to which they relate. Until revenue grants are recognised as income they are recorded as liabilities.

Government grants released on sale of the property may be repayable but are normally available to be recycled and used for projects approved by Homes England. If this is the case, they are credited to a Recycled Capital Grant Fund and are included in the Statement of Financial Position in creditors. If there is no requirement to recycle or repay the grant on disposal of the asset, any unamortised grant remaining within creditors is released and recognised as income in the Statement of Comprehensive Income.

Other grants

Grants received from non-Government sources are recognised using the performance model. A grant which does not impose a specific future performance condition is recognised as revenue when the grant proceeds are receivable. A grant that imposes a specific future performance related conditions on Stoll, is recognised only when these conditions are met. A grant received before the revenue recognition criteria are satisfied is shown as a liability in the Statement of Financial Position.

Housing property

Housing properties are properties held for the provision of social housing or to otherwise provide social benefit. Housing properties are principally properties available for rent and stated at cost less accumulated depreciation and any recognised impairment losses. The cost of properties is the initial purchase price together with those costs that are directly attributable to acquisition and construction including interest cost up to the date of completion and directly attributable staff costs. Properties in the course of construction are not depreciated. Freehold land is not depreciated.

Depreciation is charged on major components so as to write off the cost of the components to their residual values, over their estimated useful lives, using the straight-line method. The components identified, with their respective estimated useful lives, are as follows:

Component Life
Kitchen 20-25 years
Bathroom 25 years
Electrical heating 20 years
Electrical main 20 years
Hot water cylinders 20 years
Boilers 7-20 years
Lifts 25 years

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NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

1 Accounting Policies (continued)

Flat roof 25 years Traditional roof 50-100 years Structure 100 years

Capitalisation of interest

Interest is capitalised on fixed asset housing up to the date of completion of capital works on each scheme. The interest is calculated using the weighted average rate of interest payable by Stoll on its loans as a whole, applied to the carrying value of the asset under construction net of grant. This treatment applies irrespective of the original purpose for which the loan was required.

Expenditure on components

Subsequent expenditure which relates to either the replacement of previously capitalised components or the enhancement of such components which results in incremental future benefits is capitalised and the carrying amount of any replaced component or part component is derecognised.

Any other expenditure incurred in respect of repairs is charged to the Statement of Comprehensive Income.

Other fixed assets

Other property, plant and equipment are stated at cost less accumulated depreciation. Stoll also holds other assets i.e. paintings which are held under policy of revaluation. Depreciation is charged on a straight-line basis over the expected useful lives of the assets at the following rates:

Freehold Office 50 years
Leasehold Buildings 50 years (or the term of the lease if shorter)
Equipment 4 years
Fixtures 4 years
Motor vehicles 4 years
Computers/laptops 3 years

Individual items of furniture or equipment are capitalised where the unit cost of the purchase exceeds £1,000.

Impairment

For the purposes of impairment assessments, housing properties are grouped together into schemes, each scheme typically comprising one or more buildings in an immediate locality, and each building consisting of one or more accommodation units. Schemes are typically developed or acquired as one entity. The exception is street properties, which are geographically diverse and where individual properties may have been acquired piecemeal.

33

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

1 Accounting Policies (continued)

Impairment (continued)

At each Statement of Financial Position date, housing schemes are assessed to determine if there are indicators that the scheme may be impaired in value; if there are such indicators of impairment, then a comparison of the scheme’s carrying value is compared to its recoverable amount is undertaken. Any excess over the recoverable amount is recognised as an impairment loss and charged as expenditure in the Statement of Comprehensive Income; the carrying value is reduced appropriately.

The recoverable amount of a scheme is the higher of its fair value less costs to sell and its value in use. Value in use for housing schemes which are able to be let in their current condition and which are fulfilling the social purpose for which they were acquired is based on the depreciated replacement cost of the asset. For other schemes, value in use is defined as the net present value of the future cash flows before interest generated from the scheme.

When an impairment loss is subsequently reversed, the carrying amount of the scheme is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the Statement of Comprehensive Income.

Holiday Pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which has accrued at the balance sheet date, has been carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

Pension costs

Stoll operates a defined benefit scheme, which is administered independently by TPT retirement solution. The expected cost of providing pensions is calculated from actuarial advice. It is not possible to separately identify the underlying assets and liabilities belonging to Stoll on a consistent and reasonable basis.

As there is a contractual agreement between the scheme and its members, including Stoll, that determines how the deficit will be funded, the contributions payable that arise from the agreement to the extent that they relate to the deficit is recognised as a liability in the Statement of Financial Position and the resulting expense in the Statement of Comprehensive Income. When the contributions are not expected to be settled within one year after the reporting period, the liability is measured at the present value of the contributions payable by using a discounted rate (discounted present value basis). The rate used is determined by reference to market yields at the reporting date on high quality bonds.

Stoll also contributes to a defined contribution scheme. The charge to the Statement of Comprehensive Income represents the employer contributions payable to the scheme for the accounting period.

34

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

1 Accounting Policies (continued)

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to income and expenditure on a straight-line basis over the lease term. The aggregate benefits of any lease incentive are recognised as a reduction in expenses recognised over the term of the lease.

Value Added Tax (VAT)

Irrecoverable VAT which can be attributed to a capital item or expenditure is added to the costs of the capital item or expenditure.

Taxation

Stoll is a charity within the meaning of the Charities Act 2011 and is exempt from taxation under the provisions of the Income and Corporation Taxes Act 1988.

Financial instruments

Financial assets and financial liabilities are recognised in the Statement of Financial Position when Stoll becomes a party to the contractual provisions of the instrument.

Trade (including rental) and other debtors and creditors are classified as basic financial instruments and measured at initial recognition at transaction price. Debtors and creditors are subsequently measured at amortised cost using the effective interest rate method. A provision is established when there is objective evidence that Stoll will not be able to collect all amounts due.

Cash and cash equivalents are classified as basic financial instruments and comprise cash in hand and at bank, short-term bank deposits with an original maturity of three months or less and bank overdrafts which are an integral part of Stoll’s cash management.

Interest bearing bank loans, overdrafts and other loans which meet the criteria to be classified as basic financial instruments are initially recorded at the present value of cash payable to the bank, which is ordinarily equal to the proceeds received net of direct issue costs. These liabilities are subsequently measured at amortised cost, using the effective interest rate method.

The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or liability, or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Interest bearing loans, overdrafts and other loans which do not meet the criteria to be classified as basic financial instruments are recorded at their fair value with any movements in fair value being reflected in the Statement of Comprehensive Income.

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, at bank and in short-term deposits. Cash equivalents are highly liquid investments that are readily convertible to known amounts of cash without significant risk of change in value.

35

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

1 Accounting Policies (continued)

Employee benefits

Short-term employee benefits including holiday pay and annual bonuses are accrued as services are rendered.

Restricted reserves

These are funds given to Stoll for a specific purpose or to support a project and that cannot be used for any other purpose. (See Note 22 for more detail).

Unrestricted general funds

These are funds which can be used in accordance with the Memorandum and Articles at the discretion of the Trustees.

Key sources of estimation uncertainty and judgements

The preparation of the Financial Statements requires the use of estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for income and expenses for the year. Although these estimates and associated assumptions are based on historical experience and the management’s best knowledge of current events and actions, the actual results may ultimately differ from those estimates. The estimates and underlying assumptions are reviewed on an on-going basis.

Critical judgements in applying Stoll’s accounting policies

The following are the critical judgements, apart from those involving estimations (which are dealt with separately below), that the Board has made in the process of applying Stoll’s accounting policies and that have the most significant effect on the amounts recognised in the Financial Statements.

Financial instruments classification

The classification of financial instruments as “basic” or “other” requires judgement as to whether all applicable conditions as basic are met. This includes consideration of the form of the instrument and its return.

One of Stoll’s loans includes a clause that allows the lender to reset rates unilaterally at various points in the future. As such, one of the required conditions for classifying that loan as basic is not met and the loan has been classified as being “other” and therefore held at fair value.

The rate of interest charged at present is considered to be in line with the market rate. Furthermore, there is no penalty for repaying the loan in the event that any future reset rate is considered to be above the then market rate. On that basis, the Trustees consider that the fair value of the loan is not materially different from the principal amount outstanding.

36

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

Key sources of estimation uncertainty and judgements (continued)

Housing property impairments

For impairment purposes, as explained in the accounting policies, housing properties are grouped into schemes which reflects how the properties are managed.

Recoverable amounts are based on either future cash flows or, for assets held for their service potential, depreciated replacement cost. The assessment of whether an asset is held for its service potential is a matter of judgement and in making that judgement the Board considers the current use of the asset and the expected future use of the asset. If the asset is unable to be let in its current condition or is not being used for a social purpose, either now or in the foreseeable future, it is assessed as not being held for its service potential.

Recoverable amounts for assets held for their service potential are assessed at the depreciated replacement cost. This is the lower of (a) the cost of purchasing an equivalent property on the open market; and (b) the land cost plus the rebuilding cost of the structure and components. The Board has oversight of its properties and considers that all of them are in demand and that, therefore, depreciated replacement cost is appropriate. In view of the location of Stoll’s properties and the high cost of replacement, the Board has conducted a review and assessed that no areas impairment has arisen.

Key sources of estimation uncertainty

The estimates and assumptions which have the most significant effect on amounts recognised in the Financial Statements are discussed below:

Identification of housing property components

Stoll accounts for its expenditure on housing properties using component accounting. Under component accounting, the housing property is divided into those major components which are considered to have substantially different useful lives. Judgement is used in allocating property costs between components and in determining the useful lives of each component.

Housing property depreciation is calculated on a component-by-component basis. The identification of such components is a matter of judgement and may have a material impact on the depreciation charge. The components selected are those which reflect how the major repairs to the property are managed.

Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date based on the expected utility of the assets.

Uncertainties in these estimates relate to ‘technological obsolescence’ and changes to future legislative requirements.

37

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

2a Particulars of turnover, operating costs and operating surplus

2022 2021
Operating Operating
Turnover Operating costs surplus surplus
Income and
expenditure from
lettings
(Note 2b) 2,988,344 (2,318,647) 669,697 931,290
Other social housing
activities: 58,657 (653,993) (595,336) (519,884)
Supporting people
Activities funded by
donations and grants 643,868 (271,166) 372,702 335,873
Non - social housing
activities
Commercial property 106,747 (10,195) 96,552 98,534
3,797,616 (3,254,001) 543,615 845,813
Activities funded by donations and grants comprise:
2022
2021
£
£
Trusts & Grants 581,977
435,562
Corporates 22,500
25,100
Strategic Partners (Help for Heroes) -
11,562
Community, Individuals & Events 34,391
35,093
Major Donors 5,000
1,050
Statutory Bodies -
35,000
Lottery Funding -
5,262
Legacies - -
643,868 548,629

38

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

2b) Particulars of income and expenditure from lettings
Turnover
Rent receivable net of service charges and voids
Service Charges
Other Income
Grant Amortisation
Profit on disposal of assets
Turnover from other social housing lettings
Expenditure on letting activities
Services
Management
Routine Maintenance
Planned Maintenance
Bad Debt expense
Depreciation of housing properties
Profit or Loss on disposal of assets
Total expenditure on lettings
Operating Surplus/Deficit on letting activities
Net rental income is stated after losses from voids of
3 Analysis of accommodation
Units in management:
Supported housing / housing for older people
General needs		 2022
£
1,836,781
752,544
87,150
307,568
4,300		 2021
£
1,786,334
687,286
169,267
307,568
-
2,988,344 2,950,455
(551,046)
(859,396)
(299,171)
(5,496)
(24,040)
(579,498)
-
(2,318,647)
669,697
165,614
2022
Number
283
4		 (527,316)
(575,493)
(209,342)
(102,627)
(39,023)
(549,706)
(15,659)
(2,019,164)
931,290
(120,411)
2021
Number
283
4
287 287

4 Emoluments of the Board of Trustees and Senior Management Team

The Chief Executive, who is also the Company Secretary, receives emoluments, but none of the Trustees do. Total expenses reimbursed to Trustees were £834 (2021: £127).

Trustee and Senior Management Team


Totalexpensesreimbursed

The total emoluments including

pension & benefits in kind of the key management personnel
were:

The total emoluments excluding pension & benefits in kind of
the key management personnel were:
 Trustee and Senior Management Team


Totalexpensesreimbursed

The total emoluments including

pension & benefits in kind of the key management personnel
were:

The total emoluments excluding pension & benefits in kind of
the key management personnel were:
 2022
£
834

423,961
395,252		 2021
£
127
Totalexpensesreimbursed
398,492
were:
366,799

39

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

4 Trustee emoluments (continued)

Key management personnel are defined in Note 21.

Stoll employed three (3) members of staff who earned between £60,000-£70,000 and one (1) member of staff, the CEO, who earned between £80,000–£90,000.

The CEO is the highest paid director whose remuneration for the year, including salaries, bonuses and pension contribution was between £90,000–£100,000.

5 Employee information

The average full-time equivalent number of persons, including directors, employed by Stoll during the year was:

Administration
Communications
Fundraising
Housing
Support
Staff costs for the above persons were:
Wages & Salaries
Social Security Costs
Other Pension Costs
Average No of Employees
Average number of employees		 2022
Number
7
1
3
8
11
30
2022
£
1,131,909
112,313
74,650
1,318,872

2022
36		 2021
Number
(restated*)
8
1
3
7
14
33
2021
£
(restated*)
1,105,213
108,095
79,791
1,293,099
2021
36

*where appropriate the 2021 figures have been updated to ensure consistency with the 2022 figures.

40

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

6
Interest receivable and similar income
Bank interest
7
Interest payable and similar charges
Bank loans
Less: amounts capitalised
Unwinding of discount on multi-employer pension scheme
liability
8
Surplus for the year is stated after charging:
Depreciation
- housing properties
- other assets
Auditor’s remuneration (excluding VAT)
- In respect of the external audit
- In respect of tax advice
- In respect of preparation of accounts
Operating lease rentals
- Plant and machinery
- Land and buildings		 2022
£
10,781
2022
£
(195,979)
-
(195,979)
(15,000)
(210,979)
2022
£
579,499
23,790
19,800
1,500
10,387
-		 2021
£
613
2021
£
(199,459)
-
(199,459)
(8,000)
(207,459)
2021
£
549,706
19,475
15,500
-
3,250
27,241
-

41

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

9 Tangible Fixed Assets

Tangible Fixed
Assets - Housing
Properties		 31-Mar-22
Freehold
properties		 Under
Construction		 Leasehold
Properties		 Total
£ £ £ £
Cost
At 1 April 2021
Revaluation
Additions- property
acquisition &
development
Additions-
replacement
components
Disposals		 39,139,042
139,722
428,933
(123,959)		 -
388,111
-
-		 1,124,156

-

-
(13,055)		 40,263,198
527,833
428,933
(137,014)
Cost at 31 March
2021		 39,583,740 388,111 1,111,100 41,082,950
Depreciation
At 1 April 2021
Charge for the year
Released on
disposal		 6,926,055
554,329
(123,959)		 -
-
-		 364,218
25,170
(13,055)		 7,290,273
579,499
(137,014)
At 31st March
2022		 (7,356,425) - (376,333) (7,732,758)
Net book value
At 31st March
2022		 32,227,314 388,111 734,767
33,350,192
Net book value
At 31 March 2021		 32,212,988 - 759,938 32,972,926

42

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

10 Property, plant and equipment - other

Cost
At 1 April 2021
Additions
Disposals
Cost at 31 March 2022
Depreciation
At 1 April 2021
Charge for the year
Disposals
At 31st March 2022
Net Book Value
At 31st March 2022
At 31 March 2021		 Freehold land
& Buildings
£
Fixtures, Fittings
& equipment
£
Motor Vehicles
£
Total
£
393,662
306,332
45,975
745,969
-
43,842
-
43,842
-
(6,058)
(45,975)
(52,033)
393,662
344,116
-
737,778
212,803
297,159
45,975
555,937
7,873
15,917
-
23,790
-
(6,058)
(45,975)
(52,033)
(220,676)
(307,018)
-
(527,694)
172,986
37,098
-
210,084
180,860
9,171
-
190,031

43

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

11
Debtors
Arrears of rent and service charge
Less: provision for bad and doubtful debts
Net rental arrears
Prepayments
Accrued income
Debtors
Other debtors
12
Creditors:amounts falling due within one year
Bank borrowings (Note 14)
Rents received in advance
Trade Creditors
Other Creditors
Other taxes & social securities
Accruals & deferred income
Multi-Employer Pension Scheme
Deferred Capital Grant (Note 15)
Other deferred capital grant
13
Creditors:amounts falling due after more than one year
Bank borrowings (Note 14)
Other loans (Note 14)
Grant (Note 15)
Other grant
Multi-Employer Pension Scheme
Deferred Grant		 2022
£
220,902
(111,035)
109,866
100,139
143,069
8,425
2,018
363,517
2022
£
379,512
114,524
380,828
7,224
49,513
527,642
101,913
212,920
107,148		 2021
£
179,600
(87,600)
92,001
55,454
114,749
16,733
16,191
295,129
2021
£
227,214
103,314
136,952
72,287
5,296
552,395
90,000
212,920
94,648
1,620,026
2021
£
6,599,545
312,500
16,794,979
5,329,357
666,000
145,124
29,847,505
1,881,224
2022
£
6,316,121
208,335
16,582,059
5,377,209
391,087
72,562
28,947,372

44

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

14 Financial instruments

Stoll’s financial instruments comprise cash, bank borrowings and items such as trade creditors and debtors which arise directly from its operations. The main purpose of these financial instruments is to provide finance for Stoll’s operations.

Stoll’s operations expose it to a variety of financial risks including credit risk, liquidity risk and interest rate risk. The Trustees have delegated the responsibility for monitoring financial risk management to a sub-committee of the Board of Trustees, the Audit and Risk Committee.

Credit risk

Stoll’s credit risk is primarily attributable to its inability to make payments on its loans or the interest associated with the loan. Close financial monitoring in meeting its lenders covenants is performed quarterly, and reported to the Finance and to the Audit and Risk Committee so that, for example, risk of failure to meet lender covenants is mitigated.

Liquidity risk

Stoll’s liquidity risk is primarily the increase in rent arrears due to welfare reform and an enforcement of a 1% rent reduction on housing associations over the next five years.

Stoll has a Rent Allocations Policy that involves appropriate credit checks on potential tenants before flats are let out.

Interest rate risk

Stoll has both interest-bearing cash investments and interest bearing liabilities. Interest bearing assets comprise cash as well as debt which earn interest at a variable rate. Stoll’s cash investments earned interest at a fixed rate of 1%.

The carrying values of Stoll’s financial assets and liabilities are summarised by category below:

2022 2021
£ £
Financial assets:
Measured at undiscounted amounts receivable
• Debtors 322,642
 295,129
Financial liabilities:
Measured at amortised cost
• Loans repayable 6,903,967 7,264,259
Measured at undiscounted amounts receivable
• Trade creditors 7,225 136,952
Stoll’s income, expense, gains and losses in respect of the financial instruments are summarised
below:
Interest income and expense
• Total interest income for financial assets at amortised - -
cost
Total interest expense for financial liabilities at
 210,979 207,459
amortised cost

45

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

14 Financial instruments (continued)

Details of the terms of Stoll’s borrowings are disclosed below:

Housing loans
One year or less
One to two years
Two to five years
Over five years
Total housing loan
Less repayable within one year
Total housing loan falling due after more than one year		 2022
£
379,512
422,990
1,018,973
5,082,493
6,903,967
(379,512)
6,524,456		 2021
£
352,214
352,214
999,577
5,560,254
7,264,259
(352,214)
6,912,045

The loans from Crown are secured by specific charges on the company's housing properties, with interest being charged at rates of 9.375% - 11.500%. The life of these varies from 17 years to 20 years.

The loans from Nationwide are secured by charges on specified housing units in Fulham. Interest was charged previously at LIBOR rates but the transition to SONIA was made in January 2022, with interest being charged now at of 2.5% + BOE rates. These loans are expected to be repaid by September 2039.

The loan from The Royal British Legion is secured over 36 flats at Wessex House, with interest being charged at a rate of 4% and repaid at 10% per annum.

The loan from Charities Aid Foundation Bank (CAF) is secured over the 36 flats in Chiswick with interest being charged at a rate of 2.75% + BOE rate and repaid over 25 years.

A loan from Charity Bank is secured over the 20 flats in Banstead with interest being charged at a rate of 2.5%+ BOE rate and repaid over 25 years.

The organisation has commenced rationalising these securities.

15
Deferred capital grants
At 1 April
Grants receivable in the year
Transferred to other capital grants
Release to income in the year
Balance at 31 March
Classified as:
Amounts to be released within one year
Amounts to be released in more than one year		 2022
£
17,007,899
-
-
(212,920)
16,794,979
212,920
16,582,059
16,794,979		 2021
£
17,220,819
-
-
(212,920)
17,007,900
212,920
16,794,979
17,007,900

46

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

16 Reserves (excluding investment revaluation)

Income and Expenditure
As at 1 April 2021
Surplus for the year
Transfer between funds
As at 31 March 2022
Analysed as:
Invested in housing properties
Development
Restricted Funds
General		 2022
£
3,853,580
597,417
18,997
4,469,995
3,743,591
-
96,153
630,251
4,469,995		 2021
£
3,666,613
186,967
3,853,580
3,516,825
0
128,500
208,255
3,853,580

17 Members

Stoll is a company limited by guarantee registered under the Companies Act 2006. It has no equity or non-equity share capital. Membership confers no rights to any form of financial return.

18 Capital commitments

We have further capital commitments for Fire Safety Works at our Chiswick site of £72.4k in the next financial year 2022-23 (we have spent £205k at this site for the financial year ending March 2022).

19 Operating lease commitments

At year end Stoll had future minimum lease payments under non-cancellable leases are as follows:


Leases which expire:
No later than one year
Between two and five years		 2022
Vehicles &
Office
Equipment
£
10,387
-
10,387		 2021
Vehicles &
Office
Equipment
£
16,854
10,387
27,241

47

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

20 Related Party transactions

  1. One Tenant Trustee serves on Stoll's Board of Trustees. The normal chargeable rent is applied.

Rent for the year

£ 10,368

2. The Charity applied and received a grant from Queen Mary Roehampton Trust where the ex-CEO was a trustee

Grant

£ 30,000

Key management are those persons having authority and responsibility for planning, controlling and directing the activities of the group, or in relation to the company, the company. In the opinion of the Board of Trustees of the Association the key management are:

The remuneration paid to key management personnel is disclosed in note 4.

21 Pension

Below is information provided by the Social Housing Pension Scheme in respect of the Defined Benefit Scheme of which Stoll is a member.

Contingent Liability

We have been notified by the Trustee of the Scheme that it has performed a review of the changes made to the Scheme’s benefits over the years and the result is that there is uncertainty surrounding some of these changes. The Trustee has been advised to seek clarification from the Court on these items. This process is ongoing, and the matter is unlikely to be resolved before the end of 2024 at the earliest. It is recognised that this could potentially impact the value of Scheme liabilities, but until Court directions are received, it is not possible to calculate the impact of this issue, particularly on an individual employer basis, with any accuracy at this time. No adjustment has been made in these financial statements in respect of this potential issue.

FOR THE PERIOD FROM 31 MARCH 2021 TO 31 MARCH 2022

FAIR VALUE OF PLAN ASSETS, PRESENT VALUE OF DEFINED BENEFIT OBLIGATION, AND DEFINED BENEFIT ASSET (LIABILITY)

AND DEFINED BENEFIT ASSET (LIABILITY)
31/03/2022 31/03/2021
(£000s) (£000s)
Fair value of plan assets
3,125		 3,228
Present value of defined benefit obligation
3,618		 3,984
Surplus (deficit) in plan
(493)		 (756)
Unrecognised surplus
-		 -
Defined benefit asset (liability) to be recognised
(493)		 (756)
Deferred tax
-		 -
Net defined benefit asset (liability) to be recognised
-		 -

48

RECONCILIATION OF THE IMPACT OF THE ASSET CEILING

Period from
31 March 2021
to
31/03/2022
(£000s)
Impact of asset ceiling at start of period -
Effect of the asset ceiling included in net interest cost
-
Actuarial losses (gains) on asset ceiling
-
Impact of asset ceiling at end of period
-

RECONCILIATION OF OPENING AND CLOSING BALANCES OF THE DEFINED BENEFIT OBLIGATION

OBLIGATION
Period from
31 March
2021 to
31/03/2022
(£000s)
Defined benefit obligation at start of period 3,984
Current service cost 9
Expenses 5
Interest expense 85
Member contributions 5
Actuarial losses (gains) due to scheme experience (10)
Actuarial losses (gains) due to changes in demographic assumptions (58)
Actuarial losses (gains) due to changes in financial assumptions (275)
Benefits paid and expenses (127)
Liabilities acquired in a business combination -
Liabilities extinguished on settlements -
Losses (gains) on curtailments -
Losses (gains) due to benefit changes -
Exchange rate changes -
Defined benefit obligation at end of period 3,618

49

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

PLANASSETS
Period
from
31 March
2021 to
31/03/2022
(£000s)
Fair value of plan assets at start of period 3,228
Interest income 70
Experience on plan assets (excluding amounts included in interest income) -
gain (loss)
(162)
Employer contributions 111
Member contributions 5
Benefits paid and expenses (127)
Assets acquired in a business combination -
Assets distributed on settlements -
Exchange rate changes -
Fair value of plan assets at end of period 3,125

The actual return on plan assets (including any changes in share of assets) over the period from 31 March 2021 to 31 March 2022 was (£92,000)

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

(SOCI)
Period
from
31 March
2021 to
31/03/2022
(£000s)
Current service cost 9
Expenses 5
Net interest expense 15
Losses (gains) on business combinations -
Losses (gains) on settlements -
Losses (gains) on curtailments -
Losses (gains) due to benefit changes -
Defined benefit costs recognised in Statement of Comprehensive Income
(SoCI)		 29

50

DEFINED BENEFIT COSTS RECOGNISED IN OTHER COMPREHENSIVE INCOME (OCI)

Period from
31 March 2021
to
31/03/2022
(£000s)
Experience on plan assets (excluding amounts included in net interest cost) -
gain (loss)		 (162)
Experience gains and losses arising on the plan liabilities - gain (loss) 10
Effects of changes in the demographic assumptions underlying the present
value of the defined benefit obligation - gain (loss)		 58
Effects of changes in the financial assumptions underlying the present value of
the defined benefit obligation - gain (loss)		 275
Total actuarial gains and losses (before restriction due to some of the surplus
not being recognisable) - gain (loss)		 181
Effects of changes in the amount of surplus that is not recoverable (excluding
amounts included in net interest cost) - gain (loss) -
Total amount recognised in Other Comprehensive Income - gain (loss) 181

ASSETS

ASSETS
31/03/2022 31/03/2021
(£000s) (£000s)
Global Equity 600 514
Absolute Return 125 178
Distressed Opportunities 112 93
Credit Relative Value 104 102
Alternative Risk Premia 103 122
Fund of Hedge Funds - -
Emerging Markets Debt 91 130
Risk Sharing 103 118
Insurance-Linked Securities 73 78
Property 84 67
Infrastructure 223 215
Private Debt 80 77
Opportunistic Illiquid Credit 105 82
High Yield 27 97
Opportunistic Credit 11 88
Cash 11 -
Corporate Bond Fund 208 191
Liquid Credit - 39
Long Lease Property 80 63
Secured Income 116 134

51

Liability Driven Investment 872 820
Currency Hedging (12) -
Net Current Assets 9 20
Total assets 3,125 3,228

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

KEY ASSUMPTIONS

KEY ASSUMPTIONS
31/03/2022 31/03/2021
% per annum % per annum
Discount Rate 2.79 2.17
Inflation (RPI) 3.59 3.28
Inflation (CPI) 3.20 2.86
Salary Growth 4.20 3.86
Allowance for commutation of pension for cash at retirement 75% of
maximum
allowance		 75% of maximum
allowance

The mortality assumptions adopted at 31 March 2022 imply the following life expectancies:

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

NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued

52

22 Restricted Fund

Name of
Donor		 Type of Restriction Opening
balance
as at 1st
April 2021
Income		 Expenditure Transfer Restricted
Funds
Balance
ABF The
Soldiers' Charity		 Support - Mansions 22,500 43,567 40,653 25,414
Anonymous General Support 100,000 100,000 -
BAE Systems Health and Wellbeing -
Centenary Lodge		 2,500 2,500 -
Cemex Veterans' Nomination
Scheme		 20,000 20,000 -
Childwick Trust Support staff 15,000 5,000 10,000
Worshipful
Company of
Coopers		 Independent Living
Support		 3,000 3,000 -
FiMT (Forces In
Mind Trust)		 No Homeless Veterans
Campaign		 - 17,175 17,175 -
Forces Support Capital grant for Fire
Safety Works		 100,000 150,000 (250,000) -
Hammersmith
United		 Covid Support - 1,000 1,000 -
Headley Court Wounded Injured and
Sick Support		 72,562 72,562 -
LB Hounslow Covid Support 25,000 14,583 10,417
Queen Mary's
Roehampton
Trust		 Support – Fulham
scheme		 - 30,500 30,500 -
Royal Air Force
Benevolent Fund		 Support activities 6,000 6,000 11,000 1,000
Royal Navy and
Royal Marines
Charity		 Support activities 0 30,000 30,000 -
Royal Signals
Charity		 Health and Wellbeing 1,250 1,250 -
The Armed
Forces Covenant
Fund Trust		 Core Funding for
Veteran Support		 - 85,312 42,656 42,656
The Armed
Forces Covenant
Fund Trust		 Supporting veterans and
families impacted by
the Afghanistan conflict		 17,500 17,500 -
The Armed
Forces Covenant
Fund Trust		 Covid Support 1,750 1,750 -
The Drapers
Charitable Fund		 Health and Wellbeing 0 20,000 13,333 6,667
Trinity House Support activities 5,000 5,000 -
The Veterans
Foundation		 Covid Support 30,000 30,000 -
Total Restricted
Funds		 128,500 677,116 459,463 (250,000) 96,153

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NOTES TO THE ACCOUNTS for the year ended 31 March 2022 (continued)

The Fire Safety capital grant of £250k was received from Forces Support.

We received a charity grant of £362,810 over five years from Headley Court in 2020 (we have two years remaining of £145,124 that is recognised in Deferred income).

23 Unrestricted reserves

The balance of income for unrestricted purposes came from our fundraising activity .

**Name of Donor ** Type of
**Restriction **		 Amount
donated
Wraith Real Estate 5,000
BigSleepOut Chelsea Supporters’ Trust 20,159
Other under £5k unrestricted donations 19,967
45,126

24 Capital Funds

There were no grants received from donors in this financial year for capital purposes.

Capital grants
Balance as at 1 April 2021
Grants received in the year
Released to income in the year
Balance as at 31st March 2022
Classified as:
Amounts to be released within one
year (note 13)
Amounts to be released in more than
one year (note 14)
 Aldershot
£
5,240,600
-
(84,800)		 MoD re
bathrooms
£
183,405
-
(9,848)		 Total
£
5,424,005
-
(94,648)
5,155,800 173,557 5,329,357
84,800
5,071,000
 9,848
163,709		 94,648
5,234,709
5,155,800 173,557 5,329,357

The grant from the Ministry of Defence (MoD) received in the financial year 2014/15 was spent on refurbishing twenty-five bathrooms for veterans. The grants received in relation to the Aldershot development are now fully released.

54