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2021-03-31-accounts

The Papworth Trust Report and Accounts 31 March 2021

**CONTENTS ** **PAGE **
Chair'sreview
Trustees'report 2-22
Strategicreport 23-32
StatementofTrustees'responsibilities 33
IndependentAuditor'sReport 34- 38
Statementofcomprehensiveincome andchangesinreserves 39
Balancesheet 40
Cashflowstatement 4l
Notestothe accounts 42-78
Honorarypersonnel,Trusteesandseniormanagers 79
PrincipaladvisersandPapworthTrustinformation 80
Registration
Number
**TRUST STATUS: **
Aregisteredcharity 211234
Acompanylimitedbyguarantee 148906
Aprivateregisteredprovider LH1648

Category **Description of Risk ** **Estimated **
**Financial Exposure **
SocialHousingPensionLiability.Historically £0.75mto£1.5m
therehasbeensignificantvolatilityanda
minimumcashliabilityhasbeenidentified.
**l.Potential ** Thereisalsothelikelihoodof futureactuarial
**Future ** assumptionchanges
**Obligations ** CapitalInvestments-ownfundsrequiredto None atpresent
-
bereservedtocomplete projects fundingplansin
placetomeet
requirements
Careservicedelivery.Challenging operating £150k
2. Operational
**challenges **
model,risktoachievingfinancial
improvementplan
Stress-testingandsensitivityofbudget
£250kto£600k
projections
**Category ** **Description of Risk ** **Estimated **
**Financial Exposure **
Reductioninvoluntaryfunding.Reserve £450kto£650k
neededtomanage anytransitiontoreduced
funding environment
3. Transitional
**arrangements **
Fundsrequiredtomanagetransitions
betweencontracts-noneanticipatedat
present
4. Funding Identificationofreservestofundfuture
**planned ** shortfalls-nonerequiredthatarenot
**service ** alreadyincludedinthebudget
**shortfalls **
Impairmentriskoffixedassets.Realisable £550k
valuemaybelessthanin-use valuefor
5. Asset
**valuation risk **
specialistassets
Repaymentofsocialhousinggrants,should
thesenotberecycledeffectively
£400k
DowngradeinvaluationofInvestment £lmto£2m
portfolio

**Value for Money Metrics ** **2020/21 ** 2019/20 **SPBM **
**median **
Reinvestment 1.6% l.l% 2.1%
Newsupplydelivered 0.2% 0.5% 0.0%
Gearing 19.8% 22.6% 10.8%
Interestcover 373% 271% 310%
SocialHousingcostperunit £.6,013 £5,700 £4,372
Operatingmargin(socialhousing) 12.6% 13.1% 15.9%
Returnoncapitalemployed 1.5% 1.4% 2.5%

**2020/21 ** **2019/20 ** **SPBM **
Supportedhousing £6,860 £6,435 £11,925
Generalneedshousing £3,618 £3,613 £3,878
Allhousing £.6,013 £5.700 £4,372

**2020/21 ** **2019/20 ** **SPBM **
Supportedhousing 7.9% 8.9% 9.3%
Generalneedshousing 31.4% 29.6% 16.6%
Allhousing 12.6% 13.1% 15.9%

**2021 ** 2020
**£000's ** £000's
Turnover 13,383 12,647
Operatingcosts (11,320) (11,368)
Operatingsurplus 2,063 1,279
Profit/(Loss)onsaleoffixed assets l 884
Exceptionalincome 67 263
Interestpayable (491) (613)
Investmentgains/(losses) 1,826 (358)
**Surplus for the year ** 3,466 1,455

**Key risk ** **Responses to the risk ** **Responses to the risk **
**Government austerity measures ** Activetrackingandmonitoringofnational
**and public sector finances ** policyandlocalmarkets
Governmentausteritymeasures Closeengagementandpartneringwith
andlocalauthorityspending commissionersofservices
reviewshaveagreaterimpacton Carefulscenario andsensitivityplanning
thefinancialsustainabilityofsome
servicesthanplanned
Effectiverenegotiationofcontracts
**Cost base increases unable to be ** 'Openbook'negotiationswith
**supported ** commissioners
Therateofcostincreasesdueto Serviceefficiencies,includingtechnology
nationallivingwageandother deployment,usedtomaximiseresource
employmentrelatedcosts utilisation
becomesunsustainableforthe Recruitmentandretentionofstaffprioritised
Trust tominimiseattrition
**Impactof Covid-19 pandemic ** Actively engagewithcommissioningbodies
Thelong-termimpactofthecovid- toensurealignmentofserviceprovision,with
19 pandemic,inparticularin fundingtosupport
relationtothewayweareableto Developourcommunity-basedservice
deliverourservices,couldhavean deliverymodelwithinOWL(DayServices)
impactonthefinancial Continuetostrengthenourremoteworking
sustainabilityofouroperations andtechnologysupportedwaysofworking
acrosstheTrust
**Ability to effectively structure the ** Deliverappropriatestrategicassetdisposals
**long-term financing plan ** tosupporttheplan
Abilitytogeneratesufficientcash Increasedvisibilityoflong-termcapital
flowstomeetcapitalandre- maintenancefundingrequiredfollowing
financing obligationswillbemore completionofstockconditionsurveysforour
challengingwithreductionin housingandcommercialbuildings
volumes,andingeneratingvalue Secureand drawnewlendingfacility
fromassetsales Completescenario analysisandsecure
contingencyfinancingarrangements
**Key risk ** **Responses to the risk ** **Responses to the risk **
**Breach of regulations ** Deployedarisk-basedQualityAssurance
TheTrustworkswithvulnerable Framework,withfocuson highlyregulated
peopleinanumberofhighly areas suchasCareprioritised
regulated environments.Abreach Thestrengthening ofaself-assessmentmodel
ofregulationscouldleadto tocreategreaterlocalaccountability,as
significantreputationaldamage. wellasindependentscrutiny
Thoughthelikelihoodislow,the Effectivereporting,safeguardingand
impactcouldbeveryhigh whistle-blowingpoliciesandproceduresin
place,aspartofastructuredpolicyregister,
withscheduledreviewpoints
**Future service provision not ** Closemonitoring and active dialoguewith
**adapted sufficiently ** commissioners
Inachangingfundingand Testingof futuremodelsofservicedeliveryto
commissioninglandscape, meetchangingcustomerneeds,withinthe
operatingmodelsneedtoadapt anticipatedfundingframework
sothatservicedeliveryremains Increaseagilityofprovisionbypursuingour
effectiveforthepriceandservice DigitalRoadmap and developingamore
designthatcommissionerswill effectiveassetstrategy,togetherwith
support recruitmentofsuitablyskilledstaff todiversify
ouroffering
**Defined Benefitpension liability ** Activeuseofaccountingtooltotrack
**increases significantly ** liability
Actuarialassumptionsmade,and Provisionofreservestoseekto mitigate
assetvaluationvolatility,givesrise impactofanychangesinvaluation
toconsiderableuncertaintyof experienced
futurevaluationsand deficit Completionofcashflowstress-testing
contributions analysisandliquiditycontingencyplanning
**Value of investment portfolio ** Fundsplacedinasuitablydiversified
**significantly decreases ** portfolio,managedbyqualifiedinvestment
Listedinvestmentvolatility, managers
particularlyinresponsetoworld ScrutinybytheInvestmentCommittee,
economiceventsandglobal includingactiveconsiderationof the
issues,suchastheCovid-19 mandateforgeographicbase,sterling
pandemic,mayhaveanadverse weighting,investmenttype and
impactonthe generalreserves Environmental,SocialandGovernance
heldbytheTrust considerations
**Key risk ** **Responses to the risk ** **Responses to the risk **
**Varrier-Jones Foundation donation ** Regularreviewofreservesandcashflow
**not maintained. ** scenarioanalysesandmitigating actions
Lossofrentalincomeforthe Seektosecurealonger-termagreementon
Varrier-JonesFoundation(VJF), thelevelofrecurrentfinancinginorderto
followingthemoveofPapworth providestability,adjustingcommitments
Hospitalandattritionfollowing accordingly
Covid-19,coupledwithanadverse Seektobuildalternativesourcesof
impactonVJF'sinvestment
returns,
unrestrictedfundingtomaintainflexibility
reducesannual incomeexpected
andthereforefundsavailablefor
distribution
Exploitnew waysofworkingto explorecost
savingsthatcouldbeachievedthrough
rationalisationofpremises

The Papworth Trust Report ond Accounls for the year ended 31 March 2021 Use of our report This reporl is made solely lo the company's members. as a body, in occordance with Chapter 3 of Porl 16 of the Companies Act 2006. Our audit work has been undertoken so Ihat we might state lo fhe compony's members Ihose malters we are required lo slate lo Ihem in on auditor's report and for no other purpose. To the fullest extent permitted by law. we do not accept or assume responsibility lo anyone olher than fhe company and the company's members as a body, for our audit work, for this report. or for Ihe opinions we have formed. LJIL LLf Laiagh Jeanroy (Senior Statutory Auditor) For ond on behalf of RSM UK Audil LLP. Statutory Audilor Chartered Accountants Blenheim House Newmarket Road Bury St Edmunds Suff olk IP33 3SB f Se-pfr￿￿ 2oLI 38

202 2020
Note £000's £000's
Turnover 3 13,383 12,647
Operatingcosts 3 (11,320) (11,368)
**Operating surplus ** 2,063 1,279
Profit ondisposaloftangiblefixedassets 8 884
Exceptionalincome 9 67 263
Interestpayable andsimilarcharges 10 (491) (613)
Gains/(losses)oninvestments 1,826 (358)
Surplus for the year 3,466 1,455
Movementindefined benefitpension 23 (3,170) 2,797
scheme
Total Comprehensiveincome 296 4,252

2021 2020
£000's £000's
BalanceatlApril 22,836 18,584
Surplusfortheyear 3,466 1,455
(Increase)/decreaseinDefinedBenefitPension (3,170) 2,797
liability
Balanceat31March 23,132 22,836
**Balance Sheet ** Notes 2021 2020
£000's £000's
**Fixed Assets **
HousingProperties 11 38,068 38,367
OtherFixedAssets 12 3,263 3,503
Investments 13 9,605 7,753
EndowmentFundAssets 14 417 399
**Total fixed assets ** 51,353 50,022
**Current Assets **
Assetsheldfordisposal l5 137 277
Debtors-amountsfallingduewithinoneyear 16 1,183 978
Cashandcashequivalents 2,195 1,665
3,515 2,920
**Creditors: **
Amountsfalling duewithinoneyear l7 (3,254) (2,974)
**Net current assets/ (liabilities) ** 261 (54)
**Total assets less current liabilities ** 51,614 49,968
**Creditors: **
Amountsfalling dueaftermorethanoneyear 18-19 (23,304) (24,642)
**Provisions for liabilities and charges **
Pensionliabilities 23 (4,972) (2.,323)
OtherProvisions 22 (206) (167)
**Net assets ** 23,132 22,836
**Reserves **
RestrictedReserves 2.553 2,681
EndowmentFundsReserves 417 399
UnrestrictedReserves:
DesignatedReserves 14,426 13,531
GeneralReserves 5,736 6,225
TotalUnrestrictedreserves 20,162 19,756
**Total Reserves ** 26 23,132 22,836

2021 2020
£000's £000's
Cashflowsfromoperatingactivities
Operatingsurplus 2,063 1,279
_Adjustment for: _
Remeasurementofpensionsliability 30 45
Exceptionalincome 67 263
Cashsurplusfromsale ofsocialhousing 147
Receiptofsocialhousing grant 15
Depreciation 1,452 1,458
Impairmentcharge 110
Amortisationofgrants (370) (377)
(Increase)/decreaseintradeandotherdebtors (205) 124
Increase/(decrease)intradeandothercreditors 249 (510)
Pensionsdeficitpaymentsmade (594) (566)
Netcashinflow 2,839 1,841
Interestpaid (443) (490)
Cashflowsfrominvestingactivities
Proceedsfromdisposaloffixedassets l 1,451
Acquisitionof tangiblefixedassets (969) (1,253)
Netcashinflow/(outflow)frominvestingactivities (968) 198
Cashflowsfromfinancingactivities
SettlementofDWPloan (507)
Repaymentofborrowing (898) (856)
Netcashoutflowfromfinancing activities (898) (1,363)
NetIncrease)/(decrease)incash 530 186
Cashandcashequivalentsat1April 1,665 1,479
Cashandcashequivalentsat31March 2,195 1,665

Electricalinstallation 40years
Windowsanddoors 30years
Heating(excludingboilers),plumbingandventilation 30years
Bathrooms 20years
Boilers 15years
Kitchens 15years
Flooring 1Oyears
Freehold buildings(non-housing) 50years
Leaseholdimprovements overthelife of thelease
Motorvehicles 4-6years
Plant,machineryandfixtures 3-15years
Officeequipment 5-10years

3Social Housing 2021 2021 2021 2020
General Supported Total Total
Needs Housing
£000's £000's £000's £000's
Rentreceivable(netofservicecharges) 913 2,603 3,516 3,441
Profitondisposalsocialhousingassets - 77 77
Servicecharges - 964 964 946
**Net rents receivable ** 913 3,644 4,557 4,387
Otherincome - - - 2
**Total income from lettings ** 913 3,644 4,557 4,389
**Expenditure on lettingactivities **
Management (255) (707) (962) (950)
Services (2) (270) (272) (314)
Routinemaintenance (187) (1271) (1,458) (1,253)
Plannedmaintenance (l l) (31) (42) (98)
Baddebts (2) (9) (11) (47)
Depreciationofhousing properties (165) (1,057) (1,222) (1,130)
Impairment charges (110)
Depreciationofotherhousingassets (4) (10) (14) (21)
**Total expenditure on lettings ** (626) (3,355) (3,981) (3,890)
**Operating surplus on lettings ** 287 289 576 466
VoidLosses(includedwithinthe above) (2) (53) (55) (54)

3Social housing and other activities continued 2021
Turnover Costofsales Operating Operating
/delivery Costs Surplus
£000's £000's £000's £000's
**Social housing lettings **
Generalneeds 913 (424) (202) 287
Supportedhousing 3,644 (2,783) (572) 289
4,557 (3,207) (774) 576
**Other social housing activities **
Otherhousingactivities 23 (105) (82)
AmortisedgrantIncome 370 370
393 (105) 288
**Non-social housing activities **
Workservices 1,421 (1,463) (42)
Careservices 3,160 (3,345) (185)
OppurtunitiesWithoutLimits 1,286 (1,392) (106)
Policy&Communications (104) (104)
BusinessDevelopment (189) (189)
Varrier-JonesFoundationdonation 1,720 1,720
Fundraising 413 (53) 360
EnablingServices(Management,Finance,IT,HRandFacilities) 149 (618) (469)
Investmentincome 284 (40) 244
Re-measurement ofdefinedbenefitpensionliability (30) (30)
8,433 (6,293) (941) 1,199
**Total social housing and non-housing activity surplus ** **13,383 ** **(9,605) ** **(1,715) ** 2,063
Gainondisposalofassets l
Exceptional income 67
Interestpayable (491)
Gainoninvestments 1,826
**Surplus for year ** **3,466 **
51

3Social housing and other activities continued 2020
Turnover Cost ofsales Operating Operating
/delivery Costs Surplus
£000's £000's £000's £000's
**Social housing lettings **
Generalneeds 895 (434) (196) 265
Supportedhousing 3,492 (2,746) (545) 201
4,387 (3,180) (741) 466
**Other social housing activities **
Otherhousingincome 78 (147) (69)
AmortisedgrantIncome 377 377
455 (147) 308
**Non-social housing activities **
Workservices 1,487 (1,585) (98)
Careservices 2.621 (2,871) (250)
OppurtunitiesWithoutLimits 1,411 (1,532) (121)
Policy&Communications (85) (85)
BusinessDevelopment (212) (212)
Fundraising 174 (50) 124
Varrier-JonesFoundationdonation 1,685 1,685
EnablingServices(Management,Finance,IT,HRandFacilities) 163 (871) (708)
Investmentincome 264 (49) 215
Re-measurement ofdefinedbenefitpensionliability (45) (45)
7,805 (6,087) (1,213) 505
**Total social housing and non-housing activity surplus/(deficit) ** **12,647 ** **(9,414) ** **(1,954) ** **1,279 **
Gainondisposalofassets 884
Exceptional income 263
Interestpayable (613)
Lossoninvestments (358)
**Surplus for year ** **1,455 **

2021 2020
General Supported
Total
Needs Housing
Housing
(units) (units) (units) (units)
**Number of units ** 173 490
663
663
Ownedandmanaged 173 486
659
659
Managedonbehalfofothers 4 4 4
173 490
663
663
5 **Expenses and auditor's remuneration **
2021 2020
£000's £000's
Includedintheprofitandlossaccount arethefollowing:
Depreciationon housingproperties 1,153 1,130
Lossonreplacementofcomponentassets 56
Impairmentofhousing properties 110
Depreciationonotherfixedassets 299 328
Profitonsaleofotherfixedassets 884
Costsofoperatingleases 86 88
Auditor'sremuneration:
Auditof thesefinancialstatements 26 24
26 24

2021 2020
Staffcosts £000's £000's
Wagesandsalaries 5,871 5,141
Socialsecuritycosts 487 410
Pensioncosts 202 235
6,560 5,786
2021 2020
Number Number
The averagenumberofpersonsemployedbytheTrust
(including directors)duringtheyearwas asfollows:
Averageheadcount 232 219
Averagefull-timeequivalentemployees 204 187
2021 2020
Bands
£60,000-£70,000
£70,001-£80.000
£80,001-£90,000
£90,001-£100,000
£100,001-£110,000
£110,001-£120,000

2021 2020
£000's £000's
AggregateemolumentspaidtoDirectors 301 291
Pension 30 31
331 322
TotalemolumentspaidtothehighestpaidDirector 112 112
TotalnumberofpaidDirectors 4 3
NumberofDirectorsinthedefinedbenefit pensionscheme
2021 2020
£000's £000's
Proceedsfromsaleofassets 1,451
Costofdisposals (567)
884
2021 2020
£000's £000's
CoronavirusJobretentionscheme 67
Saleofhospitalpre-emptionrights 263
67 263

2021 2020
£000's £000's
Interestpayable onfinancial liabilities 443 490
Interestpayable ontheunwindingof thenetpensiondeficit 48 123
liability
491 613

**11Housing properties ** General Supporting Capital Total
Needs living workin
progress
£000's £000's £000's £000's
Cost
BalanceatlApril2020 6.610 49,914 108 56,632
Acquisitions 452 423 35 910
Allocationofworkinprogress 54 54 (108)
Disposals (89) (84) - (l73)
Balanceat31March2021 7,027 50,307 35 57,369
Depreciation
BalanceatlApril2020 3,005 15,260 - 18,265
Depreciationchargeforyear 198 955 - 1,153
Disposals (52) (65) - (117)
Balanceat31March2021 3,151 16,150 - 19,301
Netbookvalue
At31March2021 3,876 34,157 35 38,068
--
--
At31March2020 3,605 34,654 108 38,367

**12 Other fixed assets ** Land& Motor ITAssets OtherFixed Total
Buildings Vehicles Assets
£000's £000's £000's £000's £000's
Cost
BalanceatlApril2020 5,735 271 302 286 6,594
Acquisitions 28 11 20 - 59
Disposals (15) - - (15)
Balanceat31March2021 5,763 267 322 286 6,638
Depreciation
BalanceatlApril2020 2,501 151 208 231 4,637
Depreciationchargeforyear 199 30 55 15 299
Disposals - (15) - - (15)
Balanceat31March2021 2,700 166 263 246 3,375
Netbookvalue
At31March2021 3,063 101 59 40 3,263
At31March2020 3,234 120 94 55 3,503

**Market Value **
2021 2020
£000's £000's
At1April 7,753 8,111
Additions 3,097 2.036
Disposals (2,679) (2,003)
Realisedgains 256 113
Unrealised&othermovements 1,178 (504)
MarketValue at31March 9,605 7,753
**Historical cost of assets **
2021 2020
£000's £000's
Historicalcostofassets 8,024 7,596
Unrealisedgains 1,581 157
MarketValueat31March 9,605 7,753
**Held as follows: **
2021 2020
£000's £000's
Cash&cashequivalents 56 234
FixedIncome 1,234 1,183
UKEquities 2,041 1,377
Global Equities 5.256 3,793
AlternativeInvestments 1,018 1,166
MarketValueat31March 9,605 7,753
**14 Endowment Fund Assets **
2021 2020
£000's £000's
Cash 159 156
Investments 101 83
Property 157 160
417 399

2021 2020
£000's £000's
Housingproperty - 140
Commercialproperty 137 137
137 277
AttheBalanceSheetdatetheTrustheldnohousingpropertiesforsale(2020:One).One
oftheTrust'scommercialpremisesisbeing activelymarketedforsaleinIpswich,
followingitsclosureasanoperationalfacilityin2019.There arealsoanumberof surplus
assets,withlittle ornocarryingvalue,withinthevillageofPapworthEverardforwhich
disposal isbeingsought.
**16 Debtors **
2021 2020
£000's £000's
Trade debtors 314 467
Prepaymentsandaccruedincome 627 321
Tenantarrears 87 108
Otherdebtors 155 82
1,183 978
**Tenant Arrears: **
2021 2020
£'000 £'000
Currenttenantarrears 87 106
-lessprovisionforbad and doubtfuldebts
Formertenantarrears 63 87
-lessprovisionforbadanddoubtfuldebts (63) (85)
87 108

2021 2020
£000's £000's
Loans(note20) 938 898
Tradecreditors 216 271
Othertaxationandsocialsecurity 191 125
Othercreditors 415 316
Rentsreceivedinadvance 209 200
Accrualsanddeferredincome 883 762
Recycledcapitalgrantsfund 402 402
3,254 2,974
18 Creditors: amounts falling due after more than one year
2021 2020
£000's £000's
Loans(note19) 12,614 13,552
Deferred grantincome 10,690 11,090
23,304 24,642
Deferred grant income
2021 2020
£000's £000's
Recycledcapitalgrantsfund 402 402
SocialHousingGrants 10,655 11,025
Othergrants 35 35
Other 30
11,092 11,492
Amountsfallingduewithinoneyear 402 432
Amountsfallingdueaftermorethanoneyear 10,690 11,060
11,092 11,492

2021 2020
£000's £000's
**Cost **
Costat1April 19,434 19,419
Additions/disposalsinyear - 15
Costat31March 19,434 19,434
**Amortisation **
Amortisationat1April 8,374 8,003
Amortisationincomeinyear 370 371
Amortisationat31March 8,744 8,374
DeferredGrantincome 10,690 11,060
**Recycled Capital Grant Fund **
2021 2020
£000's £000's
At1April 402 401
Utilisedintheyear
InterestCreditedtothefund
At31March 402 402
Duewithinoneyear 402 402
Due aftermorethanoneyear
402 402

2021 2020
£000's £000's
Secured bankloans
Duewithinoneyear 938 898
Due betweenoneandtwoyears 990 948
Duebetweentwoandfiveyears 3,244 3,102
Dueingreaterthanfiveyears 8,380 9,502
13,552 14,450
**Outstanding Loans by Lender **
2021 2020
£000's £000's
OrchardBrook 464 480
Lloyds 2.871 2,980
RoyalBankofScotland 5,663 6,178
Barclays 4,554 4,812
13,552 14,450

**Interest rate ** **End of fixed rate period ** **£000's **
Fixed3.91% December2039 1,987
Fixed2.68% December2039 884
**Interest rate ** **End of fixed rate period ** **£000's **
Fixed5.66% September2021 465
Fixed7.09% September2024 428
Fixed6.97% November2024 160
Fixed4.57% July2026 400
Fixed4.74% February2027 1,000
Fixed3.61% March2027 900
Variable0.53% 2,310
**Interest rate ** **End of fixed rate period ** **£000 **
Fixed3.43% July2038 1,800
Variable0.29% 2,000
Variable0.28% 700

2021 2020
£000's £000's
NetdebtatlApril 12,785 13,827
Cashflowsinperiod (530) 1,898
Repaymentofborrowing (898) (856)
Balance at31March 11,357 12,785
Netdebtmadeupasfollows:
Loansdueinlessthanoneyear 938 898
Loansdueinmorethanoneyear 12,614 13,552
Cashheld (2,195) (1,665)
Netdebtheld 11,357 12,785
**2Other Provisions **
2021 2020
£000's £000's
Balance atlApril 167 143
Provisionsmadeduringtheyear 39 57
Provisionsusedduringtheyear (33)
Balanceat31March 206 167

31March 31March
2021 2020
£000's £000's
Fairvalueofplanassets 18,226 16,048
Presentvalueofdefinedbenefitobligation (23,198) (18,371)
Definedbenefit(liability)toberecognised (4,972) (2,323)

31March 31March
2021 2020
£000's £000's
Defined benefitobligationatlApril 18,371 20,899
Currentservicecost - 45
Expenses 25 23
Interestexpense 427 487
Membercontributions - 14
Actuarial losses/(gains)duetoschemeexperience (131) 81
Actuarial losses/(gains)duetochangesin
demographicassumptions
84 (183)
Actuarial(gains)/lossesduetochangesinfinancial
assumptions
4,797 (2,646)
Benefitsandexpensespaid (375) (349)
Defined benefitobligationat31March 23,198 18,371

31March 31March
2021 2020
£000's £000's
Fairvalueofplan assetsatlApril 16,048 15,404
Interestincome 379 364
Experience onplanassets(excludingamountsincluded
ininterestincome)-gain(loss)
1,580 49
Contributionsbyemployer 594 566
Contributionsbyplanparticipants 14
Benefitspaid andexpenses (375) (349)
Fairvalueofplanassetsat31March 18,226 16,048
31March 31March
2021 2020
£000's £000's
Currentservicecost 45
Expenses 25 23
Netinterestexpense 48 123
Definedbenefitcoststo berecognised 73 191

**Defined BenefitCosts Recognised in the Statement of Changes ** **in Reserves **
31March 31March
2021 2020
£000's £000's
Experienceonplanassets(excludingamountsincluded
innetinterestcost)
1,580 49
Experiencegainsandlossesarising ontheplanliabilities 131 (81)
Effectsofchangesinthe demographicassumptions
underlyingthe presentvalueof thedefinedbenefit (84) 183
obligation
Effectsofchangesinthefinancialassumptions
underlyingthe presentvalueofthe definedbenefit (4,797) 2,646
obligation
(3,170) 2,797
**Plan Assets **
31March 31March
2021 2020
£000's £000's
Globalequity 2,905 2,347
Absolutereturn 1,006 837
Distressedopportunities 526 309
Creditrelativevalue 573 440
Alternativeriskpremia 686 1,122
Fundofhedgefunds 2 9
Emergingmarketsdebt 736 486
Risksharing 663 542
Insurance-linkedsecurities 438 493
Property 379 354
Infrastructure 1,215 1,194
Privatedebt 435 323
OpportunisticIlliquidCredit 463 388
HighYeild 546
OpportunisticCredit 500
CorporateBondFund 1,077 915
Liquidcredit 218 7
Longlease property 357 278
Securedincome 758 609
Liabilitydriveninvestment 4,632 5,326
Currentassets 111 69
18,226 16,048

31March 31March
2021 2020
%perannum %perannum
Discountrate 2.2 2.35
Inflation(RPI) 3.25 2.56
Inflation(CPI) 2.87 1.56
SalaryGrowth 2.87 2.0
Allowanceforcommutationofpensionforcashat
retirement
75%of
maximum
allowance
75%of
maximum
allowance
31 March 31March
2021 2020
Life Life
expectancy expectancy
(years) (years)
Maleretiringin2020 21.6 21.5
Femaleretiringin2020 23.5 23.3
Maleretiringin2040 22.9 22.9
Femaleretiringin2040 25.l 24.5
**24Operating Leases **
2021 2020
£000's £000's
Futureminimumleasepaymentsdueareasfollows:
Lessthanoneyear 82 56
Betweenoneandfiveyears 88 64
170 120

**26 Reserves **
**Movement in funds **
**At 31 ** **Income ** **Expenditure ** **Investment ** **Other ** **At 31 **
**March ** **March 2021 **
**2020 **
General 6,225 12,562 (9,473) 1,808 (5,386) 5,736
Reserves:
Designated
funds:
FixedassetFund 13.53 (1,349) 2,244 14,426
Restricted
Funds:
Capitalfund 2,492 5 (166) 2,331
BuildingBetter 732 (732)
Opportunities
Leicesterageing 28 (28)
together
OtherHousing 32 32
funds
FirstStepsto 57 37 (19) 75
success
Covidrecovery 57 (53) 4
funds
GardenStudios **46 ** **46 **
Otherfunds 72 8 (15) **65 **
Endowment **399 ** 3 (3) **18 ** **417 **
Funds
**22,836 ** **13,450 ** (11,810) **1,826 ** **(3,170) ** **23,132 **

**Analysis of Net ** **Assets between ** **Funds **
**General ** **Designated ** **Restricted ** **Endowment ** **Total **
**Reserves ** **Reserves ** **Reserves ** **fund ** **Reserves **
FixedAssets 9,605 39,068 2,263 417 51,353
Current 3,225 290 3,515
Assets
Liabilitiesdue
(1916)
(1,338) (3,254)
within1year
Liabilitiesdue
(4,972)
(23,304) (28,276)
afterone
year
Provisionsfor (206) (206)
liabilities
Total 5,736 14,426 2,553 417 23,132

**28 Value for Money Metrics **
28.1
**Reinvestment **
2021 2020
£000's £000's
Reinvestmentin housingstockisasfollows
Acquisition&development
ofhousingproperties
19
Capitalworkstoexistingproperties 910 631
Totalreinvestment 910 650
HistoricalcostofHousingProperties 57,369 56,632
Percentageofreinvestment 1.6% 1.1%
28.2
**New Supply delivered **
2021 2020
Newsupplydeliveredisasfollows:
Newgeneralneedsunits
Newsupportedlivingunits 4
Totalnewunits 4
TotalUnitsowned 659 659
Percentageofnewsupply 0.2% 0.5%

28.3
**Gearing **
2021 2020
£000's £000's
Gearingismadeupasfollows:
Loansdueinlessthanoneyear 938 898
Loansdueinmorethanoneyear 12,614 13,552
Cashheld (2,195) (1,665)
Netdebtheld ll,357 12,785
HistoricalcostofHousingProperties 57,369 56,632
Gearing 19.8% 22.6%
28.4
**Interest cover **
2021 2020
£000's £000's
EBITDAMRIismadeupasfollows:
OperatingSurplusforSocialHousingActivities 576 576
AddbackdepreciationforHousingUnits 1,153 1,130
LessAmortisationofgovernmentgrants (370) (377)
1,359 1,329
Interestpayable 443 490
EBITDAMRI 307% 271%

28.5
**Social Housingcosts per unit **
2021 2020
£000's £000's
Perunithousingcostsismadeupasfollows:
Managementcosts 950 972
Maintenancecosts 787 714
Servicechargecosts 1,022 963
Depreciation 1,222 1,130
3,981 3,779
Totalnumberofunits 662 663
Totalcostper unit 6.0 5.7

2021 2020
£000's £000's
Operatingmarginismadeupasfollows
Operatingsurplusfromgeneralneeds 287 265
Operatingsurplusfromsupportingliving 289 311
TotalOperatingSurplus 576 576
Revenuefromgeneralneeds 913 895
Revenuefromsupportedliving 3,644 3,492
Totalrevenue 4,557 4,387
Operatingmarginfromgeneralneeds 31.4% 29.6%
Operatingmarginfromsupportedliving 7.9% 8.9%
Totaloperatingmargin 12.6% 13.1%

28.8
**Returnon Capital Employed (ROCE) **
2021 2020
£000's £000's
ROCEismadeupasfollows
OperatingSurplusforSocialHousingActivities 576 576
Lossondisposalof fixedassets (15)
Adjustedoperatingsurplus 576 56l
Netbookvalueofhousingproperties 38,068 38,477
Currentassets 3,516 2,941
Currentliabilities (3,254) (2,576)
Totalassetslesscurrentliabilities 38,330 38,842
ROCE 1.5% 1.4%