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2024-03-31-accounts

HOUSING PATHWAYS TRUST

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31[ST] MARCH 2024

Social Housing Regulator No. A0376 Charity Registered No. 211053

Housing Pathways Trust

Financial Statements

For The Year Ended 31st March 2024

Index

Pages
Annual Report of the Trustees 1 – 18
Independent Auditors’ Report 19 – 21
Statement of Financial Activities 22
Balance Sheet 23
Statement of Cash Flows 24 – 25
Notes to Financial Statements 26 – 46

Page 1

Housing Pathways Trust

Annual Report of The Trustees

For The Year Ended 31st March 2024

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY

Charity Registration

Housing Pathways Trust is governed by a Scheme issued by the Charity Commissioners for England and Wales on the 18[th] May 2000 (consolidating Ealing Consolidated Charities, Bowman and Taylor Trust, Bowman and Others: Brentford Trust and Bowman Ecclesiastical Trust into The Ealing and Brentford Consolidated Charity, since renamed), as amended by resolution dated 24[th] March 2011 and as amended by a further Scheme issued on the 5[th] January 2012.

On 1[st] April 2022 the Charity Commission approved the merger of Housing Pathways Trust, Almshouse & Eleemosynary Charity and Pathways Jubilee Charity. The merged charity is known as Housing Pathways Trust (Charity number 211053) and a new scheme was issued on the 1[st] April 2022.

The charity is registered with the Regulator of Social Housing as a Registered Provider (No. A0376).

Principal and Administration Address

Registered office: 33 Dean Court Bowmans Court Ealing, London W13 9YU

Trustees

Rev. Mark Melluish Ex-Officio, Chair Ms Isabella Rossi Mr Matthew Doyle Retired 16[th] October 2023 Ms Andrea Joseph Mr Joshua Reddaway Mr Andrew Jefford Retired 14[th] March 2023 Ms Fiona Howie Appointed 13[th] July 2023 Ms Tycia Riley Appointed 13[th] July 2023 Ms Alison Pegg Appointed 9[th] February 2024

Custodian Trustees:

Title to the charity’s housing properties and investment properties is vested in the Official Custodian for Charities on behalf of Housing Pathways Trust.

Page 2

Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY (continued)

Officers and advisors

Chief Executive Officer and management team

Steve McNaughton is employed as the Chief Executive on a part-time basis.

The operational manager Mike Smart left Housing Pathways Trust (HPT) in March 2023. A Senior Property Manager, Eoin Donnelly, was appointed in November 2023.

Bolaji Omotade was the Head of Finance & Company Secretary. She left Pathways in August 2024.

Principal Advisors

Principal Auditors

Knox Cropper LLP Chartered Accountants 65 Leadenhall Street London EC3A 2AD

Principal Bankers

National Westminster Bank Plc 1 The Mall Ealing London W5 2PL

Principal Solicitors

Devonshires 30 Finsbury Circus London EC2M 7DT

Principal Investment Managers

Rathbones (formerly Investec Wealth & Investment Limited) 30 Gresham Street London EC2V 7QN, United Kingdom

Page 3

Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing Document

Housing Pathways Trust is an unincorporated charity which is governed by a Scheme issued by the Charity Commissioners for England and Wales on 31st March 2022, effective from 1st April 2022. This Scheme represented the merger of Almshouse & Eleemosynary Charity and Pathways Jubilee Charity into Housing Pathways Trust. This Scheme replaced previous Schemes dated 18th May 2000, as amended by resolution dated 24th March 2011, and 5th January 2012.

The Charity is the consolidation of a number of smaller charities dating back to the sixteenth century with the areas of benefit incorporating the London Borough of Ealing and the town of Brentford. Under the new Scheme, the area of benefit is expanded, as set out in the Objects on page 4, in line with the location of almshouse properties now owned by the Charity.

How Trustees are Recruited, Appointed, Inducted and Trained

The Charity’s Scheme provides for two ex-officio trustees, being the vicar for the time being of the ecclesiastical parish of St John with St James, West Ealing and the Rector for the time being of the ecclesiastical parish of St Paul's, Brentford, or their substitute. Additionally, the Archdeacon of Northolt may nominate one trustee.

There are no geographical restrictions on trustees’ appointment and applications from persons living in Greater London boroughs, particularly where we have a presence, are welcomed. Vacancies are advertised in national media and across local networks. Applicants for trustee vacancies are interviewed by the Chair of the Board and at least one other trustee, usually from the nominations committee. New trustees have an induction session which covers core areas of the business.

Existing trustees also have access to ongoing training opportunities, to assist them in fulfilling their roles and responsibilities. In addition to the Board meetings, trustees attend an annual review day, which allows for detailed discussions on strategic planning issues.

Organisation and Management

The day-to-day management of the Charity is delegated to the Chief Executive and staff team. The Chief Executive reports to the Chair and the Board of Trustees of Housing Pathways Trust.

Housing Pathways Trust provides a full management service to King George V Memorial Houses, including all operational, administrative, and financial functions, for which it charges a management fee.

The Housing Pathways Trust Board usually meets six times a year to agree strategy, oversee operations, manage risk, and consider the financial standing of the Charity. In addition to the main meetings of the Board of Trustees, there are the following sub-committees which focus on specific areas of the business in more detail: Audit and Risk, Grants and Nominations. Governance matters are dealt with by the main Board, except that the nominations sub- committee oversees the recruitment of new Trustees.

The Board and each sub-committee have an agreed Terms of Reference, detailing their purpose and responsibilities. The key decision-making protocols are contained in the Committees’ terms of reference and the Financial Standing orders, the latter being reviewed by the Audit and Risk Committee annually.

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Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

During the year, the two board members who retired from the board were appointed as co-optees to the committees. Janets Weekes was appointed as a co-optee to the Audit & Risk Committee and Katherine Yentumi was appointed to the Grant Committee as a co-optee.

The board considers a range of peer organisations’ pay reviews as a benchmark, and the overall economic and regulatory conditions in which the Charity is expected to operate in the coming year. In assessing the April 2023 staff pay review, the prevailing CPI rate, the cost-of-living crisis, and its possible effect on the economy in general and house prices and rents in particular were considered.

Staff are responsible for carrying out the strategy agreed by the Board and the Chief Executive may act within the constraints of the overall expense budget agreed by the Board. The management team during the year is comprised in addition to the Chief Executive, a Housing team, and a Finance team.

OBJECTIVES AND ACTIVITIES

Objects

The objectives of the charity are:

Branch 1 (as amended by the Charity Commission order of 1[st] April 2022):

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Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

OBJECTIVES AND ACTIVITIES (continued)

Branch 2

The objects of branch 2 are to further the religious and other charitable work of the Church of England in the London Borough of Ealing.

Branch 3

The objects of branch 3 are to promote the education of children who are in need of financial assistance and are resident in the London Borough of Ealing.

Charity’s Aims

The Charity’s aims are to manage and improve performance to achieve Value for Money and better economies of scale in order to compare well with the best in our sector.

Activities

The trustees have had regard to Charity Commission guidance on public benefit. The Charity’s activities (as below listed) meet the two key principles of public benefit as set out in Charities and Public Benefit which are that:

Housing for Older People

The Charity owns and manages 234 units of housing accommodation across sixteen sites based in London borough of Ealing, Enfield, Greenwich, Hackney, Haringey, Newham, Waltham Forest, and Wandsworth which are let to older people who meet the below qualifying criteria: -

A further 8 units are let to general needs residents. The weekly maintenance contribution (i.e. the housing charge for the accommodation) is set in accordance with the Social Housing Regulator‘s rent formula. Additionally, there are 13 units let privately at market rents because older residents could not be found, or they were considered unsuitable for social housing use.

In total the charity owns and manages 255 units (2023: 255 units) of accommodation consisting of 234 for older people across 16 sites, 8 general needs units across 2 sites and 13 units (2023: 13 units) let on private rents. The increase from the prior year reflects the merger with Pathways Jubilee Charity and Almshouse and Eleemosynary Charity.

Allotments

The Charity owns two large allotment sites in Ealing which are let to residents of the borough. A committee of plot-holders manages each of these. The Charity offers concessions for people on a low income whilst others pay the full rent.

Ealing Green

The Charity owns the freehold of a building overlooking Ealing Green and adjacent to the Ealing Broadway Shopping Centre. The building consists of a small parade of 8 shops with 13 apartments above. The flats are all let on long leases, whilst the shops are let on a fixed term of 10 years with various expiry dates.

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Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

OBJECTIVES AND ACTIVITIES (Continued)

Grants

Surplus income generated from the above retail activity at Ealing Green funds the Charity’s main grants programme in Branch 1.

Grants are also provided under:

The main grants programme covers Ealing, Brentford, and its neighbourhood. The grant giving policy contributes to our aims and objectives as it covers a number of criteria so that we consider applications from organisations or projects that:

REVIEW OF ACHIEVEMENTS AND PERFORMANCE

Distributive grants

Overall grants awarded by Housing Pathways Trust in 2023-24 amounted to £134,849 (2023: £88,086).

The main Pathways Grants programme is funded from the net rental income derived from our commercial shops at The Green, Ealing.

Our main programme strategy is to fund work which benefits people in communities. We support full cost recovery and will consider giving grants for up to 3 years for organisations that are able to demonstrate that they have monitored and evaluated their work, have learned lessons and refined their approach, and have achieved their stated results. However, we do generally limit our programme to small organisations defined as those with an annual income of less than £100,000 a year.

Main programme recipients were as follows:

Recipients: Project Grant
Creative Mile The Creative Mile is an arts trail in Brentford, bringing artists, makers
and community together in 16 venues, over 3 days in September. 70
plus artists usually isolated and working alone, exhibit and sell their
work. The local community who will benefit include residents and visitors
who will engage with artists and build relationships.		 £3,600
Into the Light The funding enabled Into the Light to alleviate the negative
consequences of those experienced abuse by:		 £2,166

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Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

Housing Pathways Trust
Annual Report of the Trustees
For The Year Ended 31st March 2024
• Providing group support, psycho-educational courses, workshops,
information & resources and one to one work for women and men who
have been abused as children.
• Offering training, workshops and seminars to the partners, carers and
families of men and women who have been sexually abused.
• Increasing public awareness on issues relating to sexual abuse of men
and women as children.
Gurnell Grove
Community Trust		 The Gurnell Grove Community Trust, known as “The Grove Community”
is a church based organisation which aims to see community
transformed, lives changed and hope restored on the deprived Gurnell
Grove Estate in Ealing.		 £9,814
Positive Impact
Community		 Positive Impact Community works with Black and Minority Ethnic
community who are affected by mental health illnesses, learning
disability, those with drug addiction, and other mainstream drugs. Their
mission is to challenge the Black and Minority Ethnic community’s
perceived views about mental health, particularly Somali, Arabs and
Muslim Minorities, including shame and negative stigma through
education, and liaise between Ealing Mental Health Teams and Black
and Minority Ethnic young people, and their families		 £16,000
Ealing Mencap The funding supported the provision of an advice worker to provide
advice and support to people with learning, and other disabilities, to fully
enjoy their rights and provide opportunities for them to live as
independently as possible		 £5,000
Ealing and
Hounslow
Community
Voluntary Service		 Digital inclusion project established at West Ealing Community Managed
Library (W13) and extended across Ealing (W5) and Hanwell (W7) to
place devices into the most vulnerable sections of the community,
empowering residents with digital access and reducing digital isolation
and exclusion.		 £10,000
Women’s Trust Grant to help sustain Woman’s Trust capacity to deliver one-to-one
specialist domestic abuse counselling to support women from Ealing
(W5, W7 or W13 postcodes). The grant specifically enabled 9 women
to access services. The project helps women explore, understand, and
overcome their experiences of domestic abuse.		 £10,000
Bless Community
Church		 Bless Community Church’s grant funding was for the following
purposes:
1. To fund 'Playtime' young families’ work - a weekly gathering for
young children and their parents / carers.
2. To fund 'Playtime Plus' parents mentoring / support group
3. To provide essential training for staff and volunteers		 £29,300
Welshore
Community Hub		 The Hub’s aims are to increase networking between formerly isolated
groups, to promote values of equity, inclusiveness, participation co-
operation, and to support and develop residents’ groups, thereby
empowering residents and resident groups to influence and transform
public policies and services, and all factors affecting the conditions of
their lives. The grant specifically helped maintain the operation of the
foodbank operated by the charity		 £10,000

Page 8

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Housing Pathways Trust
Annual Report of the Trustees
For The Year Ended 31st March 2024
Centre For
Armenian Advice &
Information		 Support towards the cost of employing an advice worker (and running
costs). The Advice Worker provides 1-to-1 advice to Armenian people
annually living in Ealing and Hounslow on complex situations involving
welfare benefits, money, housing, and employment issues, so that in
total 550+ people annually can get help 5 days per week, 48 weeks per
year, whether they approach CAIA in person, by phone or online.		 £10,000
St Mellitus Hanwell The charitable aim of the organisation overall is to promote the whole
mission of the church in its local area. This includes welcoming all those
in our local community, and looking to meet their physical, mental and
emotional needs. The funding was for a project to renovate and equip
a garden space in order to allow activities and enable outcomes that are
not currently possible for the relevant groups in our community.		 £10,000
BEfriend BEfriend were funded a contribution towards their flagship project
BEfriend Ealing. Over a 12-month period, support was provided to up
to 100 people over the age of 65 experiencing chronic and prolonged
loneliness and isolation due to age, frailty, disability, or poor health, to
feel less lonely and more connected to the wider community.		 £10,000
Znaniye Foundation Znaniye Foundation sought funding for their Self-Expression and Youth
Engagement Programme, which specifically targets the needs of local
Ealing students aged 5 to 15. The overarching aim of the programme is
to provide a safe and nurturing environment for young people, enabling
them to explore their emotions, develop social skills, and
address prevalent issues within the community. By offering a weekly
outlet for self-expression, Znaniye Foundation aim to create a positive
environment that fosters community integration, overcomes isolation,
and provides opportunities for disadvantaged youth.		 £8,970
Unspent grant returned by grantee £(6,350)
£128,499

Distributive grants (continued)

Branch 2 grants are administered by the Ealing Deanery Synod, who handle all grant administration including seeking and assessing applications, deciding on grant recipients, carrying out all appropriate monitoring, and providing subsequent grant evaluations for scrutiny purposes. In 2023-24 the Synod was granted £17,582 (2023: £22,670) to award to their agreed recipients. Whilst each of the grants is small in value, there is a real and very beneficial impact on the churches involved and their level of outreach.

Church Community Project Amount
St Mary's, Ealing South Ealing Community Food Cupboard £750
The Ascension, Hanger Hill with St
Mary’s West Twyford		 Parish publicity to new or hard to access
housing		 £2,000
St Paul’s Ealing Ealing Community School of English £1,500
St Barnabas, Pitshanger Children's Worker for Noisy Mass £1,500
St Martin's, West Acton Support for Ukrainian refugee £300

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Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

St Dunstan’s, East Acton Garden Club and Muddy Church £2,000
St Dunstan’s, East Acton Acton Asylum Seeker drop-in £2,000
Holy Cross, Greenford Internal notice boards £1,000
Christ the Redeemer Southall Loop system incorporating the audio system £2,000
All Hallows, Greenford All Hallows Community Jubilee Party £2,000
St Thomas Hanwell Church Hall Notice Board £2,000
St Mellitus with St Mark New external notice boards £1,620
St John’s Southall Parish Food Hub £2,000
St George's, Southall Youth Discipleship Cells £2,000
TOTAL APPROVED £17,582

Housing for Older People

In 2023-24 we housed 19 new residents in our Almshouse accommodation for older people.

During the year we completed improvements to properties, including:

Commercial Property

Our commercial property consists of a parade of shops at 19 to 26 The Green, with 13 apartments above, all let on 125-year leases. It is a well-known local landmark, on a busy route into Ealing Broadway, and is in a conservation area.

Compared to the previous year, impacted by the Covid-19 pandemic, the businesses occupying the commercial premises have recovered positively.

During the year a member of the property management team was delegated with the responsibility of liaising with the commercial tenants and our commercial advisors Willmotts Estates. This has resulted in a significant reduction in rent arrears; optimising rent levels; and improved allocation of vacant premises.

Investments

The Charity’s investment portfolios managed by Investec produced total returns after fees of 8.89% and 7.37% compared to the benchmarks returns of 15.84% and 10.37%. Similar gains were suffered on the Charity’s holdings in M&G and CCLA managed funds.

Page 10

Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

REVIEW OF ACHIEVEMENTS AND PERFORMANCE (continued)

Allotments

Demand for our allotments remains high and over-subscribed. The day-to-day responsibility for allotment management is in the hands of plot-holders committees, the Ealing Dean Allotment Society, and the Haslemere Allotments Association, under a management agreement signed between the Charity and each committee. The allotment committees are paid a management fee to fund day-to-day maintenance and administration and the Charity pays for major works. The arrangements are working very well, and we are appreciative of the efforts of the two committees.

The Allotments has proved a real sanctuary for plot holders. the allotments provided a vital open space where people could get fresh air, exercise and, of course, grow their own healthy fruit and vegetables. The allotment site offered a refuge where you could talk to your plot neighbours and friends. Many plot holders said it was a ‘lifeline’ for both their physical and mental health.

VALUE FOR MONEY (VFM)

Our aim is to deliver services of the right quality economically, efficiently, and effectively, thus meeting the needs of our residents and all other stakeholders. Housing Pathways Trust is committed to continuously improving our VFM for our residents in all aspects of our business.

Assessment of how Housing Pathways Trust is achieving value for money

An overarching strategic objectives it to ensure Value for Money is embedded across all areas of the business. The board’s approach to delivering value for money is one that considers quality; resident satisfaction; and price. When assessing value for money the charity will aim to measure the impact on the lives of residents; the quality of service delivery; the impact on the organisations capacity to ensure compliance with regulatory and legislative requirements; and will assess the long term viability of the property portfolio.

The following examples illustrate the approach to value for money during the year:

Governance:

The biggest single contributory VFM action was the merger of Pathways’ legacy charities approved by the Charity Commission on 30 March 2022. The merger created a platform to enable the charity to embark on a programme of reducing overheads and streamlining service delivery.

Trustees approved a revised VFM strategy in April 2023. Board reports and financial reviews routinely measure the impact of value for money by balancing cost, quality and resident satisfaction. The Charity has the facility to compare costs and satisfaction by being an active member of an established bench-marking group and forging links with similar sized housing organisations. The Association is affiliated to a number of professional and trade bodies to keep abreast of best practice and significant sector wide developments.

Housing Pathways Trust is a charity regulated by both the Charity Commission and the Regulator of Social Housing. As a registered provider of social housing the charity has adopted the 2020 National Housing Federation Code of Governance. A self-assessment against the code scored a 96% compliance score.

Financial performance: Total arrears for the year was 4% of the annual debit across all tenures. The total includes money owed by housing benefit. This figure compares favourably to other multi-tenure social landlords. The number of empty properties requiring refurbishment increased during the year. This resulted in an increase in the income lost due to properties being empty pending refurbishment and repair. An improved allocations process has been adopted by the team and new contractors have been engaged with the objective of delivering improvements in voids and allocations.

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Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

Managing property assets: As a small provider of housing the team are able to maintain accurate and up to date records relating to stock condition. The data collected has enabled effective long term planning to ensure properties are safe, well-maintained and remain relevant to changing market demands.

Employee skills: The charity invests in employee development and has a multi-disciplinary property management team. The skill set of employees. Staff are encouraged to learn and develop to the mutual benefit of themselves and the business. Housing staff are trained to possess a broad knowledge of housing related disciplines to ensure the properties are maintained and managed to a high standard.

Landlord Property Compliance: The charity has a robust approach to landlord property compliance, achieving 100% across key areas that are reported to each meeting of the board. This approach ensures the safety and security of residents, protecting the organisation from adverse litigation and publicity. This has been augmented by the introduction of new software and delegating the reporting of compliance performance to a member of staff.

Technological investment: Since 2022 the charity has invested in API (Application programming interface) technology. API applications interface with one another, are low cost, and deliver significant efficiencies, in particular relating to financial administration. The technology has enhanced communications and enabled staff to work flexibly, targeting resources where most needed.

Operational Efficiencies: Since 2021 the composition of the senior management team has reduced from 4 employees to 2.5 employees. Salary and pension represent 19.2% of turnover, below the median benchmarked median of 21%. This increases to 22.8% when the costs of temporary agency staff is included in the data. There is a strategy in place to reduce agency costs to ensure overall staff costs are 19% of turnover.

When possible the association will seek to develop and harness in house skills. This is demonstrated by ongoing training of staff in identifying property defects and ensuring buildings are compliant with health and safety legislation.

During the year grant administration was streamlined and at the same time the volume and value of applications increased compared to the previous year. Grants administration is subject to an independent review in 2024. It is expected the recommendations contained in the review report will enable the charity to continue improvements to the way in which the grants programme is marketed and administered.

Resident satisfaction: The charity aims to deliver excellent services combined with safe, secure and well maintained housing. This social purpose of the charity reduces demand on statutory services allowing resources to be deployed elsewhere. During the year the charity reinforced the commitment to listening to residents and delivering resident focused services. The 3[rd] annual resident conference held in May 2023 was the best attended conference to date. The ‘you said, we did’ culture embraced by the team built confidence and trust in the services provided. Anecdotal evidence received during the year recorded an increase in resident satisfaction. This increase was affirmed with the publication of an independent resident survey report recording an overall satisfaction score of 89%. This score compared favourably to peers and was a significant improvement on the previous 2020 survey recording 77% overall satisfaction.

Complaints: As a registered provider of social housing the charity has adopted the Housing Ombudsman complaints handling code. During the year the charity received 10 complaints, 7 of which were received by residents. 6 of the total complaints related to customer service and 2 of the total complaints related to communication.

Procurement: During the year the organisation made progress with reducing utility bills and obtaining refunds from utility providers. New contractors have been engaged to support the charity delivering VFM objectives. This is best illustrated with the engagement of new fencing contractor that reduced the cost of installing new fencing by 50%.

The VFM reporting and analysis is now focused on the seven key metrics which are used for comparison across the sector. The peer group median used comprised 34 smaller housing associations primarily providing

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Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

Housing for Older People accommodation nationally and of which 20 members’ data was included in the calculation.

Value for Money Key Metrics

Value for Money Key Metrics
HfOP
peer
group
2023-24		 Housing
Pathways
Trust
1. Reinvestment %
Considers the investment in properties (existing stock as
well as new supply) as a percentage of the value of total
properties held.		 3.10% 3.81%
2. New Supply Delivered %
The number of new social housing and non-social housing
homes that have been acquired or developed in the year as
a proportion of total social housing and non-social housing
homes owned at period end.
A. New supply delivered (Social housing homes)
B. New supply delivered (Non-social housing homes)		 0%
0%		 0%
0%
3. Gearing %
Assesses how much of the adjusted assets are made up of
debt and the degree of dependence on debt finance.		 7.842% (3.89)%
4. Earnings Before Interest, Tax, Depreciation,
Amortisation, Major Repairs Included (EBITDA MRI)
Interest Cover %.
A key indicator for liquidity and investment capacity.
Measures the level of surplus generated compared to
interest payable		 319.02% 104%
5. Social Housing Cost Per Unit
The headline social housing cost per unit as defined by the
Regulator		 £6915 £8,426
6. Operating Margin%
Demonstrates the profitability of operating assets before
exceptional expenses are taken into account. Increasing
margins are one way to improve the financial efficiency of a
business.
A. Operating Margin (social housing lettings only)
B. Operating Margin (overall) after adjusting for impairment
and merger costs		 10.9% (9.66)%
0.7%
7. ROCE %
Compares the operating surplus to total assets less current
liabilities. An assessment of the efficient investment of
capital resources.		 2.2% (0.07)%

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Housing Pathways Trust

Annual Report of The Trustees

For The Year Ended 31st March 2024

VALUE FOR MONEY (continued)

The Charity’s VFM metrics around Gearing and EBITDA compare favourably to its peer group, a reflection of the relatively low level of borrowing. However, the metrics for Operating Margin and ROCE are not so favourable which reflects the Charity’s non-housing activities including grant-giving. Cost pressures in respect of maintenance and services have caused an increase in cost per unit and a decline in social housing lettings operating margin.

Key Performance Indicators (KPIs)

As members of the Housing for Older People benchmarking group, run by Acuity, which comprises about 34 similarly sized housing providers. We have access to a range of KPIs, both for the immediate group and national comparisons with Housemark, enabling us to compare performance and share good practice to drive improvements and reporting to stakeholders. The KPIs cover areas of organisational performance including resident satisfaction, value for money, repairs, lettings, voids, and compliance but they also provide benchmarking information on areas such as average working days lost due to staff sickness days.

TENANT SATISFACTION MEASURES

Housing Pathways Trust is an alms-house provider registered is a registered provider of social housing regulated by the Regulator of Social Housing (RSH). On 1 April 2023 the RSH published a new system for assessing how well social housing landlords in England are doing at providing good quality homes and services. The system is referred to as tenant satisfaction measures (TSM’s). The measures are a list of indicators that social housing landlords must report on.

TSMs collected from Housing Pathways Trust resident perception survey

TSMs generated from Housing Pathways Trust management information

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Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

FINANCIAL REVIEW

The Charity recorded a net movement in funds of £224,298 (2023: £(391,931)). Net Income before investment movements amounted to £4,443 (2023: £263,868) whilst investment movements were positive with gains on investments of £257,855 and compared to losses on investments of 248,299 and losses on investment properties of £376,500 in the prior year.

Within the net movement in funds, the Charity made a deficit on Almshouse Accommodation of £267,630 (2023: deficit of £143,115). Non-social housing activities including allotments, commercial properties produced income of £543,862 (2023: £527,425) and income from fixed asset investments amounted to £144,456 (2023: £127,276). Grants payable and associated costs were £181,224 (2023: £109,370). After interest, investment fees and movement in the fair value of the investment properties and fixed asset investments, the charity ended the year with a net income of £262,298 (2023: net expenditure of £360,931). Actuarial movements on the Social Housing Pension Scheme amounted to losses of £38,000 compared to losses of £31,000 in 2023.

Reserves Policy and Reserves

Designated reserves are maintained in accordance with guidance issued by the National Almshouse Association for the cyclical maintenance and repair of the properties. Details of the designated reserves can be found in note 20. The Trustees continue to review the Charity’s reserves.

Total Funds at 31st March 2024 of £21,935,388 (2022: £21,711,090) comprising Restricted Funds of £3,109,943 (2023: £3,173,691), Permanent Endowment Funds of £14,435,536 (2023: £13,538,705) and Unrestricted Funds of £4,389,909 (2023: £4,998,694) including Designated Funds of £2,453,482 (2023: £2,341,262) including a grant reserve of £269,073, and maintenance reserves totalling £2,184,409.

The level of maintenance reserves is considered adequate to cover any such costs that are likely to be charged to the revenue account. General funds amount to £1,936,427 and are in place to ensure ongoing trading in the event of any material loss of income, and as a result of the need to build up liquidity to fund future capital costs of Planned Maintenance and expansion of our housing stock. After making allowance for tangible fixed assets used for the charity’s activities, reserves amounted to £1,737,184.

Investment Policy

The investment policy lodged with Investec is to invest prudently in a broad range of fixed interest securities and equities, which are quoted on a Registered Investment Exchange, and unit trusts, within an agreed range of percentage holdings for each class of investment. A Balanced objective has been adopted, seeking long term real return on capital as well as income. Companies engaging in or earning more than 10% of their profits from “home collected credit” represent the only ethical restriction in force. The charity also has investments in the M&G Charity Multi Asset Fund and M&G Equities Investment Funds which both seek a combined income and capital real return. The investment policy will be reviewed in March 2025.

Risk Management

The major risks to which the Charity is exposed, as identified by the Trustees, are regularly reviewed. In addition, the Trustees have put in place systems, policies, and procedures to mitigate these risks once they are identified and assessed. All reports presented to Board and sub-committees include an executive summary of risk which cross refers to the risks identified in the key risks register.

The key risks and uncertainties facing the charity cover several areas of operation and are controlled using procedures and sub-committee overview. The audit and risk committee agree the internal audit cycle with the next internal audit due to take place 2025. The audit and risk committee review the risk register at least annually. Key risks to the charity include ongoing inflationary pressures impacting the cost to maintain the property portfolio; compliance with landlord health and safety legislation including fire, damp and mould; and compliance with the regulatory framework set out by the regulators. Other risks identified are breach of legislation or covenants, ability of residents to maintain payments and misappropriation of funds through fraud.

Page 15

Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

Fraud

The Board has a policy on fraud covering prevention, detection and reporting of fraud and the recovery of assets. The Chair and Audit and Risk Committee Chair are notified immediately of any attempted fraud.

Anti-bribery policy statement

We seek to maintain the highest standards of ethics and integrity in the way we conduct our business. We recognise that bribery and corruption in all its forms, is illegal and unacceptable. Our bribery policy statement has been integrated into our code of conduct and our gifts and hospitality policy, adopted by the Board, signed by the Chair and Chief Executive. We expect our business partners to adopt a similar approach to bribery or corruption.

FUTURE PLANS

Our key priorities are to:

The Board is in the process of reviewing Housing Pathways Trust’s asset management strategy alongside developing a revised 25 years financial plan that will underpin the ambitions set out in the asset management plan. We will continue to seek to reduce our cost base and improve Value for Money in accordance with the standard whilst driving and improving performance against the seven key metrics year on year.

STATEMENT OF TRUSTEES’ RESPONSIBILITIES

Law applicable to charities in England and Wales and Registered Social Housing legislation requires the Trustees to prepare financial statements for each financial year, which give a true and fair view of the state of affairs of the charity at the year end and of the surplus or deficit of the charity for that period. In preparing those financial statements at the year end, the Trustees should follow best practice and:

The Trustees are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Charity and to enable them to ensure that the financial statements comply with the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Social Housing 2022. The Trustees are responsible for taking reasonable steps to safeguard the assets of the Charity and for the prevention and detection of fraud and other irregularities.

AUDITORS

Knox Cropper LLP have expressed their willingness to continue in office and a resolution for their reappointment is deferred to the next Board meeting – November 2023.

The Board of Housing Pathways Trust would like to record their particular appreciation of the assistance provided by Matthew Elkins and his colleagues at Knox Cropper.

TRUSTEES’ STATEMENT ON INTERNAL FINANCIAL CONTROLS

The Trustees acknowledge their ultimate responsibility for ensuring that Housing Pathways Trust has in place a system of controls that is appropriate to the various business environments in which it operates.

Page 16

Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

These controls are designed to give reasonable assurance with respect to:

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

CHAIR’S REPORT

Pathways feels like a family of friends, from the great relationships between staff in the office through to the friendly chats that I hear between staff and residents.

This last year has seen our ‘customer satisfaction’ survey come back with some very encouraging facts. We have improved in all areas of service to our community. Repairs are being actioned faster with our residents suggesting that the service has improved. Complaints are down in number and if they do come in are being dealt with quickly and efficiently.

Overall, everyone is feeling we as an organisation are providing a really good service.

None of this would be possible without a settled staff team and a good board of trustees. A huge thank you must first go to our CEO, Steve McNaughton who has helped to lead Pathways in a way that makes us better in so many ways. However it’s not just Steve but our wonderful staff who work so well together.

Then of course there are the Board members who all give of their time to ensure that we are in a secure financial place and are investing in the areas we should be.

Page 17

Housing Pathways Trust Annual Report of the Trustees For The Year Ended 31st March 2024

CHAIR’S REPORT (continued)

Our priority as Pathways is always to have the care and wellbeing of our residents at the forefront of everything we do. We want to ensure that our residents have the security of a good home that is looked after and safe to live in. This is why we are investing so much in our repairs and property development.

This report shows that we are in a healthy place as an organisation to deliver all that we aspire to deliver and I encourage you in the reading of it.

Approved by the Board of Directors at its meeting on Tuesday 24 September 2024 and signed on its behalf by:

Mark Melluish

Mark Melluish

Mark Melluish (Sep 27, 2024 20:41 GMT+1) Chair of Housing Pathways Trust

Page 18

Housing Pathways Trust

Independent Auditor’s Report to the Trustees of Housing Pathways Trust

For The Year Ended 31st March 2024

Opinion

We have audited the financial statements of Housing Pathways Trust (the ‘charity’) for the year ended 31st March 2024 which comprise the statement of financial activities, the balance sheet, the statement of cash flows, and notes to the financial statements, including a summary of 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 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 charity 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 Board’s 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.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The trustees are responsible for the other information.

Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Page 19

Housing Pathways Trust

Independent Auditor’s Report to the Trustees of Housing Pathways Trust

For The Year Ended 31st March 2024

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion:

Responsibilities of the trustees

As explained more fully in the trustees’ responsibilities statement set out on page 15, the trustees are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the trustees are responsible for assessing the charity’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 charity or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under section 144 of the Charities Act 2011 and report in accordance with the Act and relevant regulations made or having effect thereunder.

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.

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

Page 20

Housing Pathways Trust

Independent Auditor’s Report to the Trustees of Housing Pathways Trust

For The Year Ended 31st March 2024

Auditor’s responsibilities for the audit of the financial statements (continued)

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

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

Use of our report

This report is made solely to the charity’s trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008. Our audit work has been undertaken, so that we might state to the charity’s trustees 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 charity and the charity’s trustees as a body, for our audit work, for this report or for the opinions we have formed.

Knox Cropper LLP Chartered Accountants and Statutory Auditors 65 Leadenhall Street London EC3A 2AD

__ 2024

Knox Cropper LLP is eligible for appointment as auditor of the Charity by virtue of its eligibility for appointment as auditor of a company under section 1212 of the Companies Act 2006.

Page 21

Housing Pathways Trust

Statement of Financial Activities

For The Year Ended 31st March 2024

Notes
Income from
Donations and Grants
Charitable Activities
2
Almshouse Accommodation
Allotments
Other Trading Activities
3
Investments
4
Other
Expenditure on
Raising Funds
5
Charitable Activities
6
Almshouse Accommodation
Allotments
Grant making
Gains/(losses) on investments
15
Gains/(losses) on investment properties
11
Net income/(expenditure)
Actuarial gains/(losses)
23
Transfers between funds
20
Net movement in funds
Funds brought forward 1st April 2023
Funds carried forward 31st March 2024		 Notes
Income from
Donations and Grants
Charitable Activities
2
Almshouse Accommodation
Allotments
Other Trading Activities
3
Investments
4
Other
Expenditure on
Raising Funds
5
Charitable Activities
6
Almshouse Accommodation
Allotments
Grant making
Gains/(losses) on investments
15
Gains/(losses) on investment properties
11
Net income/(expenditure)
Actuarial gains/(losses)
23
Transfers between funds
20
Net movement in funds
Funds brought forward 1st April 2023
Funds carried forward 31st March 2024		 2024
Unrestricted
Restricted
Endowment
Total
funds
funds
funds
funds
£
£
£
£
2,320
-
-
2,320
1,820,172
-
-
1,820,172
23,918
-
-
23,918
210,111
-
-
210,111
445,657
8,632
-
454,289
-
-
-
-
2,502,178
8,632
-
2,510,810
202,029
1,929
5,659
209,617
1,689,339
83,366
315,097
2,087,802
26,244
-
1,480
27,724
180,695
-
529
181,224
2,098,307
85,295
322,765
2,506,367
206,070
12,915
38,870
257,855
-
-
-
-
609,941
(63,748)
(283,895)
262,298
(38,000)
-
-
(38,000)
(1,180,726)
-
1,180,726
-
(608,785)
(63,748)
896,831
224,298
4,998,694
3,173,691
13,538,705
21,711,090
4,389,909
3,109,943
14,435,536
21,935,388		 2023
Unrestricted
Restricted
Endowment
Total
funds
funds
funds
funds
£
£
£
£
2,000
-
-
2,000
1,762,406
-
-
1,762,406
12,724
-
-
12,724
224,746
-
-
224,746
409,141
8,090
-
417,231
-
-
-
-
2,411,017
8,090
-
2,419,107
109,934
1,921
5,635
117,490
1,542,324
85,280
277,917
1,905,521
21,378
-
1,480
22,858
108,841
-
529
109,370
1,782,477
87,201
285,561
2,155,239
(192,916)
(13,075)
(42,308)
(248,299)
-
-
(376,500)
(376,500)
435,624
(92,186)
(704,369)
(360,931)
(31,000)
-
-
(31,000)
(4,866,671)
-
4,866,671
-
(4,462,047)
(92,186)
4,162,302
(391,931)
9,460,741
3,265,877
9,376,403
22,103,021
4,998,694
3,173,691
13,538,705
21,711,090

Page 22

Housing Pathways Trust

Balance Sheet

As At 31st March 2024

Notes
Fixed Assets
Housing Properties
10
Investment Properties
11
Other Fixed Assets
12
Social Investments
14
Investments
15
Current Assets
Trade and Other Debtors
16
Cash and Cash Equivalents
Creditors: Amounts falling due
within one year
17
Net Current Assets
Total Assets less Current
Liabilities
Creditors: Amounts falling due
after more than one year
18
Provisions for liabilities
23
Net Assets
Funds
Permanent Endowment
20
Restricted Funds
20
Unrestricted Funds
20
Total Funds		 2024
£
£
11,675,740
4,413,500
1,357,082
-
4,686,026
22,132,348
201,595
1,220,751
1,422,346
(673,185)
749,161
22,881,509
(786,121)
(160,000)
£21,935,388
14,435,536
3,109,943
4,389,909
£21,935,388		 2023
£
£
11,623,708
4,413,500
1,385,988
-
4,373,678
21,796,874
280,487
1,892,232
2,172,719
(670,804)
1,501,915
23,298,789
(1,433,699)
(154,000)
£21,711,090
13,538,705
3,173,691
4,998,694
£21,711,090		 2023
£
£
11,623,708
4,413,500
1,385,988
-
4,373,678
21,796,874
280,487
1,892,232
2,172,719
(670,804)
1,501,915
23,298,789
(1,433,699)
(154,000)
£21,711,090
13,538,705
3,173,691
4,998,694
£21,711,090
21,796,874
1,501,915
23,298,789
(1,433,699)
(154,000)
£21,711,090
13,538,705
3,173,691
4,998,694
£21,711,090

The financial statements were approved by the Trustees on …………………………………2024 and signed on its behalf by:

Mark Melluish

Mark Melluish (Sep 27, 2024 20:41 GMT+1)

Mark Melluish (Chair)

Trustee

Joshua Reddaway Joshua Reddaway (Sep 27, 2024 18:02 GMT+1)

Joshua Reddaway (Chair of audit and risk committee)

Trustee

Page 23

Housing Pathways Trust

Statement Of Cash Flows

For The Year Ended 31st March 2024

Notes
Net Cash generated from Operating Activities
A
Cash Flows from Investing Activities
Capitalised works to existing housing properties
Purchase of other fixed assets
Repayments of Social Investments
Proceeds from sale of investments
Additions to investments
Investment management fees
Investment income and bank interest received
Net Cash generated from/(used in) Investing Activities
Cash Flows from Financing Activities
Interest paid
Repayment of Loans
Net Cash (used in)/generated from Financing Activities
Net Change in Cash and Cash Equivalents
Cash and Cash Equivalents at the beginning of the
year
Cash and Cash Equivalents at the end of the year
B
A
Cash Flows from Operating Activities
Net Income/(Expenditure) for the year
Depreciation
Income from Investments
Interest Payable
Investment management fees
Decrease/(Increase) in Debtors
Increase/(Decrease) in Creditors
(Decrease)/Increase in Pension Provision
Disposal of fixed assets
Reversal of impairment of Social Investments
(Gains)/Losses on Investments
Revaluation of investment property
B
Cash and Cash Equivalents
Bank Balances
Investment Managers Cash		 2024
£
543,225
(444,996)
(3,000)
-
534,012
(553,009)
(20,025)
133,004
(354,014)
(96,837)
(738,190)
(835,027)
(645,816)
1,914,483
£1,268,667
262,298
391,242
(144,456)
102,837
20,025
80,513
92,993
(38,000)
33,628
-
(257,855)
-
543,225
1,220,751
47,916
1,268,667		 2023
£
618,157
(184,426)
(31,235)
436
1,944,029
(2,121,167)
(19,330)
115,739
(295,954)
(67,533)
(75,064)
(142,597)
179,606
1,734,877
£1,914,483
(360,931)
368,460
(127,276)
71,533
19,330
(104,235)
151,329
(38,000)
13,584
(436)
248,299
376,500
618,157
1,892,232
22,251
1,914,483

Page 24

Housing Pathways Trust

Statement Of Cash Flows

For The Year Ended 31st March 2024

Reconciliation of Net Debt

Reconciliation of Net Debt
Cash and Cash equivalents
Loans falling due within one year
Loans falling due after more than one year
Total		 At 01.04.23
£
1,914,483
(122,803)
(1,381,823)
409,857		 Cash Flows
£
(645,817)
58,487
679,703
92,373		 At 31.03.24
£
1,268,667
(64,316)
(702,120)
£502,231

Page 25

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

1. Accounting Policies

(a) Status

Housing Pathways Trust is an unincorporated charity registered in England and Wales, registration number 211053. The principal office address is disclosed on page 1 of the annual report. The presentational currency is the Pound Sterling (£).

(b) Basis of Accounting and Assessment of Going Concern:

The financial statements have been prepared in accordance with the Statement of Recommended Practice: Accounting and Reporting by Charities, in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) (second edition issued in October 2019), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The accounts comply with the Charities Act 2011, the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing in England 2022. The accounts are prepared on the historical cost basis of accounting unless otherwise stated in the relevant accounting policy.

The financial statements have been prepared to give a ‘true and fair’ view and have departed from the Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a ‘true and fair view’. This departure has involved following Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) Second Edition issued in October 2019 rather than the Accounting and Reporting by Charities: Statement of Recommended Practice effective from 1 April 2005 which has since been withdrawn.

The Charity constitutes a public benefit entity as defined by FRS 102. The Trustees consider there are no material uncertainties about the Charity’s ability to continue as a going concern.

(c) Income

All income is recognised once the Charity has entitlement to the income, it is probable that the income will be received, and the amount of income receivable can be measured reliably.

Income from Almshouse Accommodation represents weekly maintenance and service contributions receivable from residents and is recognised on an accruals basis.

Investment income is earned through holding assets for investment purposes such as shares and property and includes dividends and interest and rents and service charges from investment properties. Interest income is recognised using the effective interest method and dividend income is recognised as the Charity's right to receive payment is established. The Charity considers it is not practical to identify investment management costs incurred within collective investment schemes managed by M&G and CCLA with reasonable accuracy and thus the investment income is reported net of these costs. Rental income is recognised straight line over the term of the lease and service charges are recognised on an accruals basis.

Social Housing Capital grants are recognised using the performance model and recognised when receivable, or in the period in which a scheme is completed where the amount of the grant has been determined. Social Housing Grants are treated as restricted funds and reflected in the Fixed Asset Fund.

Page 26

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

1. Accounting Policies (continued)

(d) Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources.

(e) Housing Properties

Housing properties are measured at cost less accumulated depreciation and impairment losses. For housing properties acquired before 1st April 1978, market value as at that date is deemed to be cost. All subsequent acquisitions of housing properties or improvements to existing stock are measured at cost.

The cost of completed housing properties (net of the cost of land) is depreciated over the useful life of the properties. Properties are accounted for on a component cost basis with each component being depreciated over its estimated economic life. The principal components identified, and the depreciation rate applied to each component are set out below:

Land - not depreciated
Main fabric - Over 70 years
Roof structure and covering - Over 70 years
Windows & external doors - Over 30 years
Gas boilers - Over 15 years
Kitchen - Over 20 years
Bathrooms/WCs - Over 30 years
Mechanical systems - Over 30 years
Electrics - Over 40 years
Fire alarms/warden call - Over 15 years

(f) Investment Properties

Investment properties are measured at fair value at the balance sheet date. These properties are held for rental and are reflected under Investment Properties, as distinct from Social Housing Properties. In accordance with FRS102, no depreciation is charged on the investment properties.

(g) Other Fixed Assets

Allotment land is measured at deemed cost, being previous GAAP revaluations of £390,000 for Northfield Allotment and £355,000 for Haslemere Allotment taken as deemed cost on transition to FRS102. Improvements to the allotment sites are measured at cost less accumulated depreciation. Fixtures, fittings, and equipment are stated at cost less accumulated depreciation. Office property is held for the use of the charity and is measured at cost less accumulated depreciation.

Depreciation is charged in a straight line basis over the expected useful lives of the assets, at the following annual rates:

2% - Allotment Fencing

10% - Furniture & Fittings

33⅓% - Computer Equipment

The Office Property is depreciated on a component basis using the same rates as applied to the Housing Properties.

Page 27

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

1. Accounting Policies (continued)

(h) Investments

Fixed asset investments are a form of basic financial instrument are initially recognised at their transaction value and subsequently measured at their fair value using the closing quoted market price or the share of the Net Asset Value of the fund (if unlisted). All gains and losses are taken to the Statement of Financial Activities as they arise. The Statement of Financial Activities includes all net gains and losses arising on revaluation and disposals throughout the year.

Social investments, comprising a concessionary loan, are measured at cost less impairment.

(i) Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

(j) Cash at bank and in hand

Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account.

(k) Creditors

Liabilities and provisions are recognised when there is an obligation at the Balance Sheet date as a result of a past event, it is probable that a transfer of economic benefit will be required in settlement, and the amount of the settlement can be estimated reliably. Liabilities are recognised at the amount that the Charity anticipates it will pay to settle the debt or the amount it has received as advanced payments for the goods or services it must provide.

(l) Financial Instruments

The Charity only holds basic financial instruments. The financial assets and financial liabilities of the Charity are as follows:

Debtors – trade and other debtors are basic financial instruments and are debt instruments measured at amortised cost as detailed in Note 16. Prepayments are not financial instruments.

Cash at bank – is classified as a basic financial instrument and is measured at face value.

Liabilities – trade creditors and bank loans are classified as financial instruments and are measured at amortised cost as detailed in Notes 17 & 18.

(m) Fund Accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Charity and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for a specific purpose. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Charity for a specific purpose. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Page 28

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

1. Accounting Policies (continued)

(m) Fund Accounting (continued)

Permanent endowment funds are restricted capital funds where there is no power to convert the original capital to income. Expendable endowment funds represent sums which the Trustees intend to retain intact but can if necessary be used in furtherance of the Charity objectives subject to any restrictions imposed by the donor.

(n) Taxation

As a non-profit making body, the charity believes that it is exempt from forms of taxation other than employers' national insurance and value added tax (VAT). The charity partially makes taxable supplies of services and is only able to recover input VAT tax, where this is charged, on items of expenditure relating to these supplies.

(o) Pension Costs

The Charity participates in a multi-employer defined benefit pension scheme providing benefits based on final pensionable pay. This is a funded scheme, and the assets are held separately from those of the charity in separate trustee administered funds.

Pension scheme assets are measured at fair value and liabilities are measured on an actuarial basis using the projected unit method and discounted at a rate equivalent to the current rate of return on a high-quality corporate bond of equivalent term and currency to the liabilities.

The actuarial valuations are obtained at least triennially and are updated at each balance sheet date. The amounts charged to net income/expenditure are the current service costs and gains and losses on settlements and curtailments together with any change in the net defined benefit liability arising from employee service. They are included as part of staff costs. Net interest on the defined benefit liability is shown as a cost in the support cost. The re-measurement of the defined benefit liability is also reported in the statement of financial activities within other gains and losses and is shown in more detail in Note 23 to the accounts.

(p) Significant Management Judgements and Estimation Uncertainties

The following are the critical judgements and key sources of estimation uncertainty that the Board has made in the process of applying the charity’s accounting policies and that have the most significant effect on the amounts recognised in the financial statements:

Fair value of Investment Properties

Investment properties are measured at fair value at each reporting date with changes in fair value recognised in the Statement of Financial Activities. The Trustees assess the fair value of the investment properties based on recent market values. In determining the fair value on this basis, the valuation remains sensitive to fluctuations in the property market.

Identification of housing property components

The charity 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 economic lives. Judgement is used in allocating property costs between components (land, structure, kitchens, bathrooms etc) and in determining the useful economic 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.

Page 29

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

1. Accounting Policies (continued)

(p) Significant Management Judgements and Estimation Uncertainties (continued)

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 changes to decent homes standard requiring frequent replacement of components.

Bad debt provision

A full line by line review of trade debtors is carried out at the end of each month. Whilst every attempt is made to ensure that the bad debt provisions are as accurate as possible, there remains a risk that the provisions do not match the level of debts which ultimately prove to be uncollectible.

Defined Benefit Pension Scheme

As stated in Note 23, the Charity participates in a multi-employer defined benefit pension scheme. The value of the Charity’s share of the net deficit in the scheme is sensitive to fluctuations in bond yields and other actuarial assumptions as detailed in Note 23.

2. Income from Charitable Activities

Almshouse Accommodation
Maintenance contributions
Services contributions
Allotments
Allotment rents
Income from Other Trading Activities
Management Fees
Private Lets
Office rent receivable		 2024
£
1,585,024
235,148
1,820,172
23,918
£1,844,090
17,357
185,254
7,500
£210,111		 2023
£
1,536,856
225,550
1,762,406
12,724
£1,775,130
5,598
207,994
11,154
£224,746

3. Income from Other Trading Activities

Private let income represents the income derived from certain properties within the Charity’s almshouse estate which are temporarily let on short—term licenses at market rates.

4. Income from Investments

Investment Property
Rent receivable
Ground rent receivable
Service charges receivable
Investment Income & Bank Interest		 259,052
3,950
46,831
309,833
144,456
£454,289		 245,904
3,950
40,101
289,955
127,276
£417,231

Page 30

Housing Pathways Trust

Notes To the Financial Statements

Notes To the Financial Statements
For The Year Ended 31st March 2024
5.
Expenditure on Raising Funds
2024
£
Investment management fees
20,025
Support costs – managing KGV
12,582
Investment property costs
Management & support costs
72,960
Maintenance
25,667
Insurance
28,571
Professional fees
38,718
Bad debts
11,094
£209,617		 2023
£
19,330
12,597
73,051
31,935
20,813
11,463
(51,699)
£117,490
  1. Expenditure on Charitable Activities
Almshouse Accommodation
Management & support costs
Services
Maintenance
Depreciation
Disposals
Bad debts
Interest payable
Allotments
Management
Depreciation
Maintenance
Support costs
Grant-making
Grants awarded to institutions
Residents’ Welfare & Hardship Fund
Grants officer costs
Reversal of impairment of concessionary loan
Support costs		 2024
£
654,793
296,204
668,388
359,336
33,628
8,860
66,593
2,087,802
9,936
1,194
4,880
11,714
27,724
146,081
13,450
-
-
21,693
181,224
£2,296,750		 2023
£
662,108
273,953
561,447
340,489
13,584
10,110
43,830
1,905,521
9,935
1,194
-
11,729
22,858
88,086
-
-
(436)
21,720
109,370
£2,037,749

A breakdown of the institutions which were awarded grants during the year can be found in the Report of the Trustees.

Page 31

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

7. Support Costs

Support Costs
Staff costs
Administration
Depreciation of office property
Depreciation of office equipment
Professional fees
Bank charges and sundries
Loan interest
Pension costs and interest
Irrecoverable VAT
Governance costs		 2024
£
2023
£
450,305
433,119
130,499
163,003
17,632
17,633
13,080
8,273
12,017
21,802
3,757
1,558
30,244
23,703
8,975
7,000
42,750
37,387
13,835
10,514
£723,094
£723,992

Included within Governance Costs is auditor’s remuneration for the audit of the financial statements amounting to £11,530 excluding VAT (2023: £10,700 excluding VAT).

8 . Staff Costs

All employees are jointly employed by Housing Pathways Trust and associated Pathways charities, and their costs are recharged across the charities on a set basis reviewed annually. The proportion of staff costs charged to the Charity is as follows:


of staff costs charged to the Charity is as follows:
Wages and salaries
Social security costs
Pension costs
Redundancy
Agency staff & interim contractors		 2024
£
309,403
28,113
25,956
-
86,833
£450,305		 2023
£
244,629
21,640
15,667
9,167
143,711
£434,814

The average weekly numbers of full-time equivalent employees during the year were was 9.5 (2023: 8) and the average number of employees was 11 (2023: 10). There were no employees who received employee benefits in excess of £60,000 (2023: nil).

The remuneration payable to key management personnel for their services to the Charity amounted to £156,518 (2023: £166,791). One trustee, Rev. Mark Melluish, received remuneration of £1,250 for their role as a Chair of Trustees as permitted by the Charity’s governing document.

Page 32

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

9.
Social Housing Lettings
Maintenance contributions
1,585,024
Service charges receivable
235,148
Turnover from Social Housing Letting
1,820,172
Management
629,524
Services
296,204
Routine and Cyclical Maintenance
668,388
Property Depreciation
359,336
Bad debts
8,860
Operating costs of Social Housing Lettings
(1,962,312)
Gain/(Loss) on replacement of components
(33,628)
Operating surplus/(deficit) on Social Housing Lettings
£(175,768)
Net Surplus/(Deficit) on social housing lettings
£(267,630)
Void Losses
£87,956
10.
Fixed Assets Housing Properties
2024
Total
£
Cost
As at 1st April 2023
15,519,394
Works to existing properties
444,996
Disposals
(86,398)
As at 31st March 2024
15,877,992
Depreciation
As at 1st April 2023
3,895,686
Charge for the year
359,336
Disposals
(52,770)
As at 31st March 2023
4,202,252
Net Book Value at 31st March 2024
£11,675,740		 1,585,024
235,148		 1,536,856
225,550
1,762,406
638,962
273,953
561,447
340,489
10,110

(1,824,961)

(13,584)

£(76,139)

£(143,115)
£34,678
2023
Total
£
15,377,898
184,426
(42,930)
15,519,394
3,584,543
340,489
(29,346)
3,895,686
£11,623,708		 1,536,856
225,550
1,820,172 1,762,406
629,524
296,204
668,388
359,336
8,860		 638,962
273,953
561,447
340,489
10,110
(1,962,312) (1,824,961)
(33,628)
£(175,768)		 (13,584)
£(76,139)
£(267,630) £(143,115)
£87,956 £34,678

All Properties are Freehold Properties except for two properties held on long leaseholds (cost £362,731 accumulated depreciation £69,866).

Page 33

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

11. Investment Properties

Fair Value
As at 1st April 2023
Additions
Movement in fair value
As at 31st March 2024		 Ealing Green
£
4,400,000
-
-
£4,400,000		 Vaughan Court
£
13,500
-
-
£13,500		 Total
£
4,413,500
-
-
£4,413,500

The Investment properties were last valued by S Hanton FRICS for Willmotts as at 31st August 2023.

12. Other Fixed Assets

Allotments
Fixtures,
Fittings &
Equipment
Office
£
£
£
Cost
As at 1st April 2023
798,881
48,982
679,846
Additions
3,000
-
-
Disposals
-
-
-
As at 31st March 2024
801,881
48,982
679,846
Depreciation
As at 1st April 2023
12,368
23,548
105,805
On disposals
-
-
-
Charge for the year
1,194
13,080
17,632
As at 31st March 2024
13,562
36,628
123,437
Net Book Value
At 31st March 2024
£788,319
£12,354
£556,409

At 31st March 2023
£786,513
£25,434
£574,041
All 2022 figures in this note represent combined figures.
Capital Grants
2024
£
Aggregate amount received
At 1st April 2023 and 31st March 2024
£5,835,488
Released to Statement of Financial Activities
At 1st April 2023 and 31st March 2024
£5,835,488
Social Housing Grant Carrying Value
£ -		 Total
£
1,527,709
3,000
-
1,530,709
141,721
-
31,906
173,629
£1,357,082
£1,385,988
2023
£
£5,835,488
£5,835,488
£ -

All 2022 figures in this note represent combined figures.

13. Capital Grants

Page 34

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

14. Social Investments

Social Investments
Concessionary loans
At 1st April 2023
Repayments in the year
Reversal of impairment
At 31st March 2024		 2024
£
-
-
-
£ -		 2023
£
-
(436)
436
£ -

Concessionary loans comprise an interest-free loan made to Cultivate London Ltd in 2012. The loan was fully impaired in the year it was granted. The amount outstanding at 31st March 2024 is £47,645 (2023: £47,645).

15. Fixed Asset Investments

Fixed Asset Investments
Fair Value
At 1st April 2023
Additions
Disposals
Unrealised gains/(losses)
At 31st March 2024
Cash Deposits
Fixed Income
Equities and Unit Trust
Property and Alternatives
Cash and Money Market		 2024
Total
£
4,351,427
562,840
(557,796)
281,639
4,638,110
47,916
£4,686,026
294,750
3,948,601
329,359
113,316
£4,686,026		 2023
Total
£
4,413,581
2,130,174
(2,067,929)
(124,399)
Unrestricted
£
4,078,501
505,271
(498,747)
267,434
4,352,459
46,372
£4,398,831
261,601
3,730,108
300,750
106,372
£4,398,831		 Grassroots
£
272,926
57,569
(59,049)
14,205
285,651
1,544
£287,195

33,149
218,493
28,609
6,944
£287,195
4,351,427
22,251
£4,373,678
220,451
3,616,024
414,952
122,251
£4,373,678

Included within Fixed Asset Investments is £4,688,328 (2023: £4,351,427) measured at fair value through net income/(expenditure).

Investments with a carrying value of £557,796 were sold for net proceeds of £534,012, realising losses of £23,784 (2023: carrying value of £2,067,929 sold for net proceeds of £1,944,029, realising losses of £123,900).

Page 35

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

16. Debtors

2024 2023
£ £
Residents’ Contributions 72,652 64,334
Provision for Doubtful Debts (18,970) (10,110)
53,682 54,224
Private Let and Investment Property Debtors 85,188 196,018
Connected parties:
Educational Foundation of Francis Courtney 6,000 3,000
King George V Memorial Houses 21,237 4,665
Prepayments and accrued income 35,488 22,580
£201,595 £280,487
£13,599 of the Prepayments and accrued income total is receivable in more than one year.

17. Creditors: Amounts falling due within one year

Trade Creditors
VAT and Social Security
Connected parties:
Housing Pathways
King George V Memorial Houses
Loans (Note 19)
Grants payable
Deferred income
Accrued expenses & Other Creditors
Deferred income at 1 April
Income recognised in the year
Amounts deferred this year
Deferred income at 31 March		 245,712
16,147
150
-
64,316
19,533
83,366
243,961
£673,185
71,385
(71,385)
83,366
£83,366		 £
166,418
23,114
73,867
-
122,803
8,550
71,385
204,667
£670,804
68,046
(68,046)
71,385
£71,385

Deferred income represents rent and service charges invoiced to tenants of the charity’s investment properties related to periods beyond the balance sheet date.

18. Creditors: Amounts falling due outside one year

Tenant deposits
Loans (Note 19)		 84,001
702,120
£786,121		 51,876
1,381,823
£1,433,699

Page 36

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

19. Loans

Loans
Repayable in less than one year (Note 17)
Repayable in more than one year (Note 18)
Total Loans		 2024
£
64,316
702,120
£766,436		 2023
£
122,803
1,381,823
£1,504,626

The Charity has two loans outstanding:

Page 37

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

For The Year Ended 31st March 2024
20.
Funds
Current Year
Unrestricted Funds
General Funds
Designated Funds
Grants Reserve
Cyclical Repairs and Maintenance Reserve
Extraordinary Repairs Reserve
Restricted Funds
Fixed Asset Fund
Grassroots Fund
Endowment Funds
Permanent Endowment
Prior Year - Combined
Unrestricted Funds
General Funds
Designated Funds
Grants Reserve
Cyclical Repairs and Maintenance Reserve
Extraordinary Repairs Reserve
Restricted Funds
Fixed Asset Fund
Grassroots Fund
Endowment Funds
Permanent Endowment		 Balance at
Gains/(losses)
Other gains
Balance at
1 April 2023
Income
Expenditure
on investments
/(losses)
Transfers
31 March 2024
£
£
£
£
£
£
£
2,657,432
2,460,697
(2,091,147)
128,171
(38,000)
(1,180,726)
1,936,427
269,073
-
-
-
-
-
269,073
459,431
5,517
(952)
10,361
-
-
474,357
1,612,758
35,964
(6,208)
67,538
-
-
1,710,052
4,998,694
2,502,178
(2,098,307)
206,070
(38,000)
(1,180,726)
4,389,909
2,822,108
-
(83,366)
-
-
-
2,738,742
351,583
8,632
(1,929)
12,915
-
-
371,201
3,173,691
8,632
(85,295)
12,915
-
-
3,109,943
13,538,705
-
(322,765)
38,870
-
1,180,726
14,435,536
£21,711,090
£2,510,810
£(2,506,367)
£257,855
£(38,000)
£-
£21,935,388
Balance at
Gains/(losses)
Other gains
Balance at
1 April 2022
Income
Expenditure
on investments
/(losses)
Transfers
31 March 2023
£
£
£
£
£
£
£
7,066,221
2,372,376
(1,775,366)
(108,128)
(31,000)
(4,866,671)
2,657,432
269,073
-
-
-
-
-
269,073
466,515
5,139
(946)
(11,277)
-
-
459,431
1,658,932
33,502
(6,165)
(73,511)
-
-
1,612,758
9,460,741
2,411,017
(1,782,477)
(192,916)
(31,000)
(4,866,671)
4,998,694
2,907,388
-
(85,280)
-
-
-
2,822,108
358,489
8,090
(1,921)
(13,075)
-
-
351,583
3,265,877
8,090
(87,201)
(13,075)
-
-
3,173,691
9,376,403
-
(285,561)
(418,808)
-
4,866,671
13,538,705
£22,103,021
£2,419,107
£(2,155,239)
£(624,799)
£(31,000)
£-
£21,711,090

Page 38

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

20. Funds

Designated Funds

Extraordinary Repair Fund

The Charity maintains an Extraordinary Repair Fund which is sufficient for the purpose of providing for extraordinary repair, improvement, or rebuilding of the almshouses. With the advent of component accounting, major repairs are usually capitalised. The level of the reserve is considered adequate to cover any such costs that are likely to be charged to the revenue account.

Cyclical Repairs and Maintenance Reserve

This fund is based on the charity’s obligation to provide on a continuing basis for the repair and maintenance of their properties based on a planned programme of works and is considered adequate.

Restricted Funds

Grassroots Fund

The Charity set up a restricted fund called the Grassroots Endowment, to ensure the Grassroots project was sustained beyond 2011, when Government funding ceased. Income for the Fund is invested separately, and the balance held as a separate fund.

Fixed Assets Fund

The Fixed Assets Fund represents the proportion of housing properties funded by social housing grant, less the accumulated depreciation attributable to that element of the cost. Social housing grants may be repayable if the charity sells a property or ceases to use it for a qualifying purpose.

Endowment Funds

Permanent Endowment

Under a Charity Commission Scheme dated 18th May 2000 as amended, the four predecessor charities were amalgamated to form the Ealing and Brentford Consolidated Charity which became Housing Pathways Trust in 2012. Under the terms of the Scheme, Housing Pathways Trust’s activities were classified into four branches and the Scheme specifically refers to the assets which represented each branch’s permanent endowment and expendable endowment. The revised Scheme dated 1st April 2022 consolidated the purposes of branches 1 and 2.

21. Net Assets and Funds by Branch

Properties
Investment
Properties
Other Fixed Assets
Investments
Net Current
Assets/ (Liabilities)
Creditors Due
Outside One Year
Provisions for
Liabilities
Permanent
Endowment
Restricted Funds
Designated Funds
Unrestricted Funds		 Branch 1
£
11,675,740
4,413,500
1,357,082
3,718,910
750,455
(786,121)
(160,000)
£20,969,566
13,941,749
2,738,742
2,453,482
1,835,593
£20,969,566		 Branch 2
£
-
-
675,051
(85,745)
-
-
£589,306
490,850
-
-
98,456
£589,306		 Branch 3
£
-
-
-
4,870
445
-
-
£5,315
2,937
-
-
2,378
£5,315		 Restricted
£
-
-
-
287,195
84,006
-
-
£371,201
-
371,201
-
-
£371,201		 Total
£
11,675,740
4,413,500
1,357,082
4,686,026
749,161
(786,121)
(160,000)
£21,935,388
14,435,536
3,109,943
2,453,482
1,936,427
£21,935,388

Page 39

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

22. Net Assets by Funds

Net Assets by Funds
Housing Properties
Investment Properties
Other Fixed Assets
Investments
Net Current Assets/(Liabilities)
Creditors Due Outside One Year
Provisions for Liabilities
Housing Properties
Investment Properties
Other Fixed Assets
Investments
Net Current Assets/(Liabilities)
Creditors Due Outside One Year
Provisions for Liabilities		 Permanent
Endowment
£
8,737,755
4,413,500
1,344,728
705,989
(64,316)
(702,120)
-
£14,435,536
Permanent
Endowment
£
8,598,585
4,413,500
1,360,554
670,692
(122,803)
(1,381,823)
-
£13,538,705		 Restricted
Funds
£
2,738,742
-
-
287,195
84,006
-
-
£3,109,943
Restricted
Funds
£
2,822,108
-
-
276,318
75,265
-
-
£3,173,691		 Unrestricted
Funds
£
199,243
-
12,354
3,692,842
729,471
(84,001)
(160,000)
£4,389,909
Unrestricted
Funds
£
203,015
-
25,434
3,426,668
1,549,453
(51,876)
(154,000)
£4,998,694		 2024
Total
£
11,675,740
4,413,500
1,357,082
4,686,026
749,161
(786,121)
(160,000)
£21,935,388
2023
Total
£
11,623,708
4,413,500
1,385,988
4,373,678
1,501,915
(1,433,699)
(154,000)
£21,711,090

Page 40

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

23. Pension Obligations

Housing Pathways Trust participates in the Social Housing Pension scheme, (SHPS) a multi-employer scheme which provides benefits to some 500 non-associated employers. The scheme is a defined benefit scheme in the UK administered by TPT Retirement Solutions (‘TPT’).

The scheme is classified as a 'last-man standing arrangement'. Therefore, Housing Pathways Trust is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

Present Values of Defined Benefit Obligation, Fair Value of Assets and Defined Benefit Asset/(Liability)


Asset/(Liability)
Fair value of plan assets
Present value of defined benefit obligation
Surplus/(deficit) in plan		 2024
£
660,000
(820,000)
£(160,000)		 2023
£
662,000
(816,000)
£(154,000)

Reconciliation of opening and closing balances of the Defined Benefit Obligation

Defined benefit obligation at start of period
Current service cost
Expenses
Interest expense
Contributions by plan participants
Actuarial losses/(gains) due to scheme experience
Actuarial losses/(gains) due to changes in demographic assumptions
Actuarial losses/(gains) due to changes in financial assumptions
Benefits paid and expenses
Defined benefit obligation at end of period		 2024
£
816,000
-
3,000
39,000
-
3,000
(9,000)
(5,000)
(27,000)
£820,000		 2023
£
1,196,000
3,000
3,000
33,000
2,000
(27,000)
(2,000)
(362,000)
(30,000)
£816,000

Reconciliation of opening and closing balances of the Fair Value of Plan Assets

Fair value of plan assets at start of period
Interest income
Experience on plan assets
Contributions by the employer
Contributions by plan participants
Benefits paid and expenses
Fair value of plan assets at end of period		 2024
£
662,000
33,000
(49,000)
41,000
-
(27,000)
£660,000		 2023
£
1,039,000
29,000
(422,000)
44,000
2,000
(30,000)
£662,000

The actual return of the plan assets (including any changes in share of assets) over the period ended 31 March 2024 was £(16,000).

Page 41

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

23. Pension Obligations (continued)

Defined Benefit costs recognised in Net Income/(Expenditure)

Current service cost
Expenses
Net interest expense
Defined Benefit costs recognised in Other Gains and Losses
Experience on plan assets
Experience gains and losses arising on the plan liabilities
Effects of changes in the demographic assumptions underlying the
present value of the defined benefit obligation
Effects of changes in the financial assumptions underlying the
present value of the defined benefit obligation
Actuarial (loss)/gain recognised in other recognised gains/(losses)		 2024
£
-
3,000
6,000
£9,000
2024
£
(49,000)
(3,000)
9,000
5,000
£(38,000)		 2023
£
3,000
3,000
4,000
£10,000
2023
£
(422,000)
27,000
2,000
362,000
£(31,000)

Page 42

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

23. Pension Obligations (continued)

Assets
Global Equity
Absolute Return
Distressed Opportunities
Credit Relative Value
Alternative Risk Premia
Emerging Markets Debt
Risk Sharing
Insurance-Linked Securities
Property
Infrastructure
Private Debt
Opportunistic Illiquid Credit
High Yield
Private Equity
Long Lease Property
Secured Income
Liability Driven Investment
Currency Hedging
Net Current Assets
Total Assets		 2024
(£000s)
66
26
23
22
21
9
39
3
26
66
26
26
-
1
4
20
268
-
14
£660		 2023
(£000s)
12
7
20
25
1
4
49
17
29
76
29
28
2
-
20
30
305
1
7
£662

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 2023
% per annum		 2023
% per annum
Discount Rate 4.91 4.86
Inflation (RPI) 3.14 3.19
Inflation (CPI) 2.78 2.77
Salary Growth 3.78 3.77
Allowance for commutation of pension for cash at retirement 75% of maximum 75% of maximum
allowance allowance

The mortality assumptions adopted at 31st March 2024 imply the following life expectancies:

Life expectancy at age 65
(Years)
Male retiring in 2024 20.5
Female retiring in 2024 23.0
Male retiring in 2044 21.8
Female retiring in 2044 24.4

Page 43

Housing Pathways Trust

Notes To the Financial Statements

For The Year Ended 31st March 2024

24. Capital Commitments

At 31st March 2024 there were no commitments in relation to the refurbishment of the charity’s properties or otherwise.

25. Contingent Liabilities

There were no contingent liabilities at 31st March 2024 or 31st March 2023, other than that of the potential employer debt on the Pension Scheme (Note 23).

26. Housing Stock

The number of units of housing owned by the Charity at 31st March 2024 and 31st March 2023 were:

Social Housing Accommodation
Alms-houses
General needs
Units let at market rents		 Units Under
Ownership
2024
2023
234
234
8
8
13
13
255
255		 Units Under
Ownership
2024
2023
234
234
8
8
13
13
255
255
255

27. Related Parties

Housing Pathways was until 1st April 2022 the Corporate Trustee of Housing Pathways Trust and since this date has common trustees with the Charity. At 31st March 2024 the Charity owed £150 (2023: £72,855) to Housing Pathways.

The Charity has common trustees with King George V Memorial Houses and provides a management service to that charity. In the year ended 31st March 2024 charged £17,357 was charged. At the year end £21,237 was owed by King George V Memorial Houses to the Charity.

The Charity made a payment on behalf of Educational Foundation of Francis Courtney, with which it has common trustees. At the year end £6,000 was owed to the Charity by Educational Foundation of Francis Courtney.

Two trustees were reimbursed travel expenses amounting to £738 during the year.