2023-03-31-accounts - The Papworth Trust

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The Papworth Trust Report and Accounts 31 March 2023

CONTENTS						PAGE
Chair's review
Trustees' report						2 —21
Strategic report						22- 32
Statement ofTrustees'		responsibilities				33
Independent Auditor's		Report				34-38
Statement of comprehensive			income and changes		in reserves	39
Balance sheet						40
Cash flow statement						41
Notes to the accounts						42- 79
Honorary personnel,	Trustees and			senior managers		80
Principal advisers and		Papworth		Trust information		81
Principal donors and		supporters				82

TRUST STATUS:
A registered charity		211234
A company limited	by guarantee	148906
A private registered	provider	LH1648

Category	Description of Risk						Estimated
							Financial	Exposure
							of risk
	Social Housing Pension		Liability. There is		a		P.377k
	potential 8233m claim		against The	Pensions
	Trust (TPT), the fund	managers for SHPS,
	relating to the application of inflation rates to
	benefits historically.	This is not reflected			in	the
	TPT valuation, and	is being disputed by			TPT,
	however it would be prudent to reserve				for
	our share of risk to	our	own funds.
	Capital Investments	—own funds required				to	None at	present—
1. Potential	be reserved to complete projects						funding plans			in
Future							place to	meet
Obligations							requirements.			This
							could change
							once we	have		an
							assessment		of
							requirements		to
							meet net	zero
							compliance
	SHPS liability increases		following actuarial				2800k to	R1,500k
	review at next triennial		valuation,	as of	Sept
	2023, expected to	be	known Oct	2024
	Care service delivery.		Challenging	operating			275k to R150k
2. Operational	model, risk to achieving financial
challenges	improvement plan	and sustainable		operating
	model

The Papworth	The Papworth	Trust	Trust
Report and	Accounts for the year ended 31 March 2023
Category					Description of Risk		Estimated
							Financial Exposure
							of risk
					Reduction in voluntary funding. Reserve		R200I&
					needed to manage any transition to reduced
					funding environment
					Inflation levels significantly exceed those		2100kto 2200k
					budgeted, adversely impacting the cost
					base of the organisation
					Stress testing and sensitivity of budget		R500I&
					projections not captured above
3. Transitional					Funds required to manage transitions		none anticipated
arrangements					between contracts		at present
4. Funding					Identification of reserves to fund future		none required		that
planned					shortfalls		are not already
service							included in	the
shortfalls							budget
					Impairment risk of fixed assets. Realisable		R1,000I&
					value may be less than in-use value for
5. Asset					specialist assets
valuation		risk			Repayment of social housing grants, should these not be recycled effectively		R125k
					Downgrade in valuation of Investment		R1,000k to K2,000k
					portfolio
From this assessment					the Trustees have concluded that they		need to hold
general reserves			for risks arising from operating activities			in the target range of
24.2m to K6.1m, Current general reserves stand at $7.1m, as							at 31»March	2023.
Given the desire			to		maintain a modest buffer to allow the Trust to react to
unplanned	growth				opportunities, the continued uncertainty		over inflation,
particularly	affecting our housing capital and maintenance						expenditure,	and
continuing	upwards				wage inflationary pressures, the Trustees		do not feel that		any
steps are required				to reduce this level of reserves at this point. The level of
general reserves			is	monitored carefully against our long-term			plan to assess
whether any		excess is permanent or temporary in nature,				and programme
delivery will	be structured accordingly,

Value for Money	Metrics	2022/23	2021/22	SPBM
				median
Reinvestment		2.7/0	1.7/o	3,9/o
New supply delivered		1.5%%uo	0.0/o	0.0/o
Gearing		17.2%%uo	17.4/o	14.6/o
Interest cover		274%%uo	322%%uo	1 69%%uo
Social Housing cost per unit		K6,403	f6,271	%5,188
Operating margin	(social housing)	9.8/o	8.7%%uo	12.9/o
Return on capital	employed	1 .2%%uo	1.0%%uo	1.9/o

		2022/23	2021/22	SPBM
Supported	housing	27,146	X7,031	$10,943
General needs housing		24,111	P.4,119	K4,498
All housing		26,403	K6,271	R5,188

		2022/23	2021/22	SPBM
Supported	housing	6,6%	5.1%	10.7%
General needs housing		23.3%	22,7%	18.0%
		9.8%	8.7%	12.9%
All housing

hown in th	e table below:
		2023	2022
		K'000s	K'000s
Turnover		14,444	14,771
Operating	costs	(13,250)	(13,049)
Operating	surplus	1,194	1,722
Profit/(loss)	on sale of fixed assets	677	(133)
Impairment	of assets	(1,040)
Interest payable		(545)	(483)
Investment	(losses) /gains	(591)	320
(Deficit)/surplus for the year		(305)	1,426

				'
Key risk			Re	sponses to the risk
Macro-economic challenges
Rising inflation and interest rates,			~	Careful consideration	of the mix of	fixed	versus
coupled	with downward			floating interest rate	borrowing
pressure	on public sector		~	Active tracking and	monitoring of national
finances	and failure to			policy and local markets with pro-active			steps
adequately fund public services				taken to preserve workforce levels
may cause us to not be able		to	~	Close engagement	and partnering	with
fund the	service adequately	to		commissioners, with	active negotiation		on
deliver a	safe and sustainable			scope, scale and value of service delivery
service			~	Effective renegotiation of contracts

Key risk	Responses to the risk	Responses to the risk
Staff recruitment challenges
Inability to recruit and retain a	~	Extensive benchmarking exercise conducted		to
diverse and appropriately skilled		re-align reward packages, where appropriate
staff cohort who are innovative	~	Greater focus on well-being
and support our values, at an affordable rate to meet existing and future organisational needs. Loss ofa key member of staff.	~ o	Development pathways opened up for staff with potential to grow with the organisation Succession plans and business continuity plans established to mitigate any single key person /
		function dependency
Breach ofdata security
Increased use of digital	~	Clear, regularly reviewed organisational
channels risks breaches of data		policies
or security, putting customers,	~	Mandatory training requirements in place
staff, volunteers and the	~	Achieved Cyber Essentials accreditation.
organisation at risk,	~	Reviewing data governance, management
		and protection, drafting improved policies	and
		practices, supported by the establishment	ofa
		data governance working group.
		Testing of Business Continuity, including regular
		penetration testing, with agreed actions
		monitored by the Executive Team
External environment continues
to drive up costs to maintain our
housing stock
Need to invest to improve decency and thermal efficiency of our housing, and to meet 2050	~	Long-term financing plan, informed by condition surveys and asset management reviews
net zero targets, may be	~	Regular stress testing of our financing plans
challenging to finance, caused	~	3 year capital procurement programme set
by lack of cash generation in	~	Impact assessments conducted for all poorly
the business, plus cost uncertainties, and may lead to tenant complaints and / or		performing stock and appraisals / action plans being developed
intervention by the regulator
Climate change impacts
potentially affecting asset
valuations and restitution costs
Flooding / subsidence risks / global warming brings increased financial pressures	~	Maintain effective insurance and build reserves to insulate organisation against potential costs

Key risk		Responses to the risk	Responses to the risk
Breach of regulations
The Trust works with vulnerable		~	Deployed a risk-based Assurance Framework,
people in a number of highly			with focus on highly regulated areas such as
regulated environments. A			Care prioritised
breach of regulations could		~	Review and ongoing strengthening of our self-
lead to a downgrade of			assessment model to create greater local
assessment and / or significant			accountability, as well as independent scrutiny
reputational damage. Though the likelihood is low, the impact could be very high.		~	Effective reporting, safeguarding and whistle- blowing policies and procedures in place, as part ofa structured policy register, with
Health and Safety regulation			scheduled review points
breach
Planned asset disposals not
achieved.			Asset disposals are planned with significant
Challenging development			lead time in order to ensure funds are
landscape leads to failure to			generated at value
achieve planned asset		~	Further loan finance facility already in place to
disposals, deliver the capital			mitigate likelihood and impact
programme and capital developments and may result insufficient cash to meet liabilities, resulting in loan covenant / overdraft breach	in	e ~	Regular stress testing of our financing plans and robust liquidity contingency planning Working with experts and Partners to optimise development / disposal opportunities
Defined Benefit pension liability
increases significantly		~	Active use of accounting tool to track liability
Actuarial assumptions made,			Provision of reserves to seek to mitigate impact
and asset valuation volatility,			of any changes in valuation experienced
gives rise to considerable uncertainty of future valuations and deficit contributions		~	Completion of cash flow stress-testing analysis and liquidity contingency planning
Social Housing Pension Scheme
benefits review		~	Engagement with The Pensions Trust, who
Additional financial liabilities			administer the scheme, to track and evaluate,
accrue to the Trust as a			and participation in member engagement
consequence of the SHPS			process
Benefit Review case being 'lost'
could result in our financing
plans being inadequate

Key risk			Responses to the risk	Responses to the risk
Value of investment		portfolio
significantly	decreases			Funds placed in a suitably diversified	portfolio,
Material devaluation		in		managed by qualified investment managers
investment	portfolio	or reserves	~	Scrutiny by the Joint Investment Committee,
and/or decline in returns and				including active consideration of the	mandate
asset values due to challenging world economic environment				for geographic base, sterling weighting, investment type and Environmental, Social and
				Governance considerations
			~	Careful consideration of the appropriate		risk
				tolerance for our investment portfolio
Significant	reduction	in voluntary
income			~	Regular review of reserves and cash	flow
leading to	an inability to			scenarios undertaken to stress-test
maintain services or		support	~	Seek to secure a longer-term agreement		on
functions				the level of recurrent financing from	VJF	in
				order to provide stability, adjusting
				commitments accordingly.
			~	Seek to build alternative sources of unrestricted
				funding to maintain flexibility

					2023	2022
				Note	R'000s	f.'000s
Turnover					14,444	14,771
Operating	costs				(13,250)	(13,049)
Operating	surplus				1,194	1,722
Profit/(loss)	on disposal	of tangible	fixed		677	(133)
assets
Impairment	of Assets			10	(1,040)
Interest payable and		similar charges		9	(545)	(483)
(Losses)/gains on investments					(591)	320
(Deficit)/surplus for the year					(305)	1,426
Movement	in defined	benefit pension		22	(835)	2,124
scheme
Total Comprehensive		income			(1,140)	3,550

tatement o	f C	hanges	in Reserves
				2023	2022
				E'000s	R'000s
Balance at	1 April			26,682	23,132
(Deficit)/surplus		for the year		(305)	1,426
(Increase)/decrease			in Defined Benefit Pension	(835)	2,124
liability
Balance at	31	March		25,542	26,682

Balance Sheet			Notes	2023	2022
				R'000s	R'000s
Fixed Assets
Housing Properties			10	37,429	37,814
Other Fixed Assets			ll	2,682	2,833
Investments			12	9,358	9,932
Endowment Fund	Assets		13	424	428
Total fixed assets				49,893	51,007
Current Assets
Assets held for disposal			14	137	137
Debtors —amounts	falling due within one year		15	1,129	1,375
Cash and cash equivalents				3,254	2,425
				4,520	3,937
Creditors:
Amounts falling due within one year			16	3,508	3,654
Net current assets/	(liabilities)			1,012	283
Total assets less current		liabilities		50,905	51,290
Creditors:
Amounts falling due after more than one year			17-18	(22,498)	(21,924)
Provisions for liabilities and charges
Pension liabilities			22	(2,662)	(2,463)
Other Provisions			21	(203)	(221)
Net assets				25,542	26,682
Reserves
Restricted Reserves				2,352	2,525
Endowment Funds	Reserves			424	428
Unrestricted Reserves:
Designated Reserves				15,662	17,283
General Reserves				7 104	6 446
Total Unrestricted	reserves			22,766	23,729
Total Reserves			25	25,542	26,682

ash Flow Statement
			2023	2022
			R'000s	K'000s
Cash flows from operating	activities
Operating surplus			1,194	1,722
Adjustment for:
Remeasurement of pensions liability			(59)	(106)
Depreciation			1,192	1,452
Impairment charge
Amortisation of grants			(368)	(370)
Decrease/(increase) in trade and		other debtors	246	(193)
(Decrease)/increase in trade and		other creditors	(214)	350
Pensions deficit payments	made		(684)	(512)
Net cash inflow			1,307	2,343
Interest paid			468)	377
Cash flows from investing	activities
Proceeds from disposal of	fixed assets		695	298
Acquisition of tangible fixed assets			(1,697)	(1,065)
Net cash (outflow) from investing		activities	1,002	767
Cash flows from financing	activities		2,000
Repayment of borrowing			(1,008)	(969)
Net cash outflow from financing activities			992	969
Net Increase in cash			829	230
Cash and cash equivalents	at 1 April		2,425	2,195
Cash and cash equivalents	at 31	March	3,254	2,425


Structure				50-80 years
Roof				50 years
Electrical	installation			40 years
Windows	and doors			30years
Heating	(excluding	boilers), plumbing	and ventilation	30 years
Bathrooms				20 years
Boilers				15years
Kitchens				15years
Flooring				10years

depreciated. The	estimated useful lives	are as follows:
Freehold buildings	(non-housing)	50years
Leasehold improvements		over the life of the lease
Motor vehicles		4-6 years
Plant, machinery	and fixtures	3-15years
Office equipment		5-10years

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Report and Accounts f		or t	he year e	nded	31 Marc	h 2023
4 Housing Stock
							2023	2022
				General		Supported	Total
					Needs	Housing
				Housing
					(units)	(units)	(units)	(units)
Number of units					173	500	673	663
Owned and managed					173	496	669	659
Managed on behalf of		others				4	4	4
					173	500	673	663
5 Expenses and auditor's		remuneration
							2023	2022
							R'000s	R'000s
Included in the Statement			of Comprehensive		Income
account are the following:
Depreciation on housing		properties					1,230	1,187
Loss on replacement of		component		assets			16	66
Impairment of housing	properties						1,040
Depreciation on other	fixed assets						246	264
(Profit)/loss on sale of other			fixed assets				(677)	67
Costs of operating leases							83	93
Auditor's remuneration:
Audit of these financial		statements					32	28
							32	28

					2023	2022
Staff costs					2'000s	R'000s
Wages and salaries					6,529	6,618
Social security	costs				588	578
Pension costs					204	209
					7,321	7,405
					2023	2022
					Number	Number
The average	number	of persons employed		by the Trust
(including directors)		during	the year was as	follows:
Average headcount					250	249
Average full-time equivalent			employees		221	220

elated pay and benefits in kind but excludi mployer and any termination costs paid).	ng pension contributions paid by t	he
	2023	2022
Bands
P.60,000-270,000
870,001-280,000
280,001-%90,000
290,001-2100,000
F100,001-R110,000
1110,001-2120,000

rustee roles	are u	nrem	u	nerated.
						2023	2022
						R'000s	R'000s
Aggregate	emoluments			paid to Directors		383	425
Pension						36	43
						419	468
Total emoluments		paid		to the highest paid Director		116	112
Total number of		paid	Directors
Number of	Directors		in	the defined	benefit pension scheme

Profit on disposal oftangible fixed assets
	2023	2022
	R'000s	R'000s
Proceeds from sale of assets	695	98
Cost of disposals	(18)	(231)
	677	(133)

Interest	payable	an	d similar	char	ges
							2023	2022
							K'000s	R'000s
Interest	payable	on	financial	liabilities			486	377
Interest	payable	on	the unwinding		of the net pension	deficit	59	106
liability
							545	483

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12Investments Market Value
		2023	2022
		R'000s	R'000s
At 1 April		9,932	9,605
Additions		3,649	3,019
Disposals		(3,701)	(3,273)
Realised gains		393	749
Unrealised (losses)		(915)	(428)
Unrealised K other movements			260
Market Value at 31 March		9,358	9,932
Historical cost of assets
		2023	2022
		R'000s	R'000s
Historical cost	of assets	8,898	8,698
Unrealised gains		460	1,234
Market Value	at 31 March	9,358	9,932
Held as follows:
		2023	2022
		K'000s	R'000s
Cash L cash equivalents		274	327
Fixed Income		1,576	1,045
UK Equities		1,779	2,120
Global Equities		4,400	4,866
Alternative Investments		1,329	1,574
Market Value	at 31 March	9,358	9,932
13Endowment	Fund Assets
		2023	2022
		R'000s	R'000s
Cash		162	159
Investments		106	112
Property		156	157
		424	428

		2022	2021
		R'000s	f.'000s
Commercial	property	137	137
		137	137

			2023	2022
			E'000s	Z'000s
Trade debtors			578	559
Prepayments	and accrued income		414	724
Tenant arrears			125	61
Other debtors			12	31
			1,129	1,375
enant Arrears:
			2022	2022
			R'000	R'000
Current tenant	arrears		125	61
—less provision	for bad and doubtful	debts
Former tenant	arrears		58	50
—less provision	for bad and doubtful	debts	(58)	(50)
			125	61

			2023	2022
			R'000s	R'000s
Loans (note 19)			1,028	978
Trade creditors			412	397
Other taxation and social security			161	190
Other creditors			842	841
Rents received	in advance		150	157
Accruals and deferred income			790	971
Recycled capital grants fund			125	120
			3,508	3,654
17Creditors: amounts		falling due after more than one year
			2023	2022
			R'000s	R'000s
Loans (note 19)			12,546	11,604
Deferred grant	income		9,952	10,320
			22,498	21,924
Deferred grant income
			2023	2022
			R'000s	K'000s
Recycled capital grants fund			125	120
Social Housing	Grants		9,929	10,293
Other grants			23	27
			10,077	10,440
Amounts falling	due within one year		125	120
Amounts falling	due	after more than one year	9,952	10,320
			10,077	10,440

18Social Housing Grants	18Social Housing Grants
Housing Grants due after one year
		2023	2022
		2'000s	R'000s
Cost
Cost at 1 April		19,434	19,434
Additions/ disposals	in year
Cost at 31 March		19,434	19,434
Amortisation
Amortisation at 1 April		9, I 14	8,744
Amortisation income	in year	368	370
Amortisation at 31 March		9,482	9,114
Deferred Grant income		9,952	10,320
Recycled Capital Grant Fund
		2023	2022
		R'000s	R'000s
At 1 April		120	402
Utilised in the year
Disposed of in year			(283)
Interest Credited to the fund			1
At 31 March		125	120
Due within one year		125	120
Due after more than	one year
		125	120

				2023	2022
				K'000s	R'000s
Secured	bank		loans
Due within		one year		1,028	978
Due between			one and two years	1,016	1,029
Due between			two and five years	3,287	3,353
Due in greater			than five years	8,243	7,223
				13,574	12,583
Outstanding		Loans by Lender
				2023	2022
				R'000s	R'000s
Orchard	Brook			428	447
Lloyds				2,638	2,762
National	Westminister Bank Plc			4,508	5,124
Barclays				4,000	4,250
Tnodos				2,000
				13,574	12,583

Interest rate	End offixed rate period	R'000s
Fixed 11.47%	December 2034	428

ertain properties owned b	y Papworth Trust. Outstanding balances are a	s follows:
Interest rate	End offixed rate period	R'000s
Fixed 3.91%	December 2039	1,832
Fixed 2.68%	December 2039	806

utstanding loans of R4.5m	are held as of 31 March	2023 and details are	as follows;
Interest rate	End offixed	rate period	K'000s
Fixed 7.09%	September	2024	196
Fixed 6.97%	November	2024	86
Fixed 4.57%	July 2026		400
Fixed 4.74%	February 2027		1,000
Fixed 3.61%	March 2027		900
Variable 4.55%			1,926

re as follows:
Interest rate	End offixed rate period	f000
Fixed 3.43%	July 2038	1,600
Variable 4.49%		2,400

Interest rate	End offixed rate period	R'000s
Fixed 4.39%	July 2027	2,000

20 Analysis of Net Debt
		2023	2022
		R'000s	P.'000s
Net debt at I April		10,158	11,357
Cash flows in period		(829)	(230)
Loan borrowings		2,000
Repayment of borrowing		(1,008)	(969)
Balance at 31 March		10,321	10,158
Net debt made up as	follows:
Loans due in less than	one year	1,028	978
Loans due in more than one year		12,546	1 l,605
Cash held		(3,253)	(2,425)
Net debt held		10,321	10,158
21 Other Provisions
		2023	2022
		R'000s	R'000s
Balance at 1 April		221	206
Provisions made during	the year	17	69
Provisions used during	the year	(17)	(54)
Balance at 31 March		221	221

			31 March	31 March
			2023	2022
			2'000s	R'000s
Fair value of plan assets			12,904	20,042
Present value of	defined	benefit obligation	(15,566)	(22,505)
Defined benefit	(liability)	to be recognised	(2,662)	(2,463)

					31 March	31 March
					2022	2022
					R'000s	R'000s
Defined	benefit obligation	at	1 April		22,505	23,198
Current service cost
Expenses					25	22
Interest expense					622	509
Member	contributions
Actuarial	losses / (gains) due		to scheme	experience	54	1,258
Actuarial (gains) / losses due demographic assumptions			to changes	in	(36)	(353)
Actuarial (gains) / losses due assumptions			to changes	in financial	(7,212)	(1,788)
Benefits	and expenses paid				(392)	(341)
Defined	benefit obligation	at	31 March		15,566	22,505

Reconciliation of Opening	and Closin	g Balance	s ofthe Fair	Value of Plan Ass	ets
				31 March	31 March
				2023	2022
				R'000s	E'000s
Fair value of plan assets at	1 April			20,042	18,226
Interest income				563	403
Experience on plan assets (excluding in interest income) —gain (loss)		amounts	included	(8,029)	1,241
Contributions by employer				720	513
Contributions by plan participants
Benefits paid and expenses				(392)	(341)
Fair value of plan assets at	31 March			12,904	20,042

	31 March	31 March
	2023	2022
	R'000s	R'000s
Expenses	25	22
Net interest expense	59	106
Defined benefit costs to be recognised	84	128

Defined Be	nefit Costs Recognised in th	e Statem	ent of Ch	ange	s in Reserves
					31 March	31 March
					2023	2022
					R'000s	R'000s
Experience net interest	on plan assets (excluding cost)	amounts	included	in	(8,029)	1,241
Experience	gains and losses arising on	the plan	liabilities		(54)	(1,258)
Effects of changes in the demographic		assumptions
underlying	the present value of the defined benefit				36	353
obligation
Effects of changes in the financial assumptions underlying the present value of the defined benefit obligation					7,212	1,788
					(835)	2,124

Plan Assets
			31 March	31 March
			2023	2022
			R'000s	R'000s
Global equity			241	3,846
Absolute return			140	804
Distressed opportunities			391	717
Credit relative	value		487	666
Alternative risk	premia		24	661
Fund of hedge	funds
Emerging markets debt			69	583
Risk sharing			950	660
Insurance- linked securities			326	467
Property			555	541
Infrastructure			1,474	1,428
Private debt			574	514
Opportunistic	llliquid	Credit	552	673
High Yield			45	173
Opportunistic	Credit		1	71
Cash			93	68
Corporate Bond Fund				1,337
Liquid credit
Long lease property			389	516
Secured income			592	747
Liability driven	investment		5,943	5,592
Currency Hedging			25	(78)
Current assets			33	56
			12,904	20,042

				31 March	31 March
				2023	2022
				%per annum	%per annum
Discount	rate			4.85	2.79
Inflation	(RPI)			3.18	3.51
Inflation	(CPI)			2.78	3.16
Salary Growth				3.78	4.16
Allowance for commutation retirement		of pension	for cash at	75%of maximum	75%of maximum
				allowance	allowance

			31 March	31 March
			2022	2022
			Life	Life
			expectancy	expectancy
			(years)	(years)
Male retiring	in	2023	21.0	21, 1
Female retiring		in 2023	23.4	23.7
Male retiring	in	2043	22.2	22.4
Female retiring		in 2043	24.9	25.2
23 Operating	Leases

				2023	2022
				R'000s	R'000s
Future	minimum	lease payments	due are as follows:
Less than one year				69	69
Between one and five years				81	5l
				150	120

K'000s	At 31	Income	Expenditure	Investment	Other	At 31
	March					March
	2022					2023
General	6,446	13,952	(9,253)	(591)	(3,450)	7,104
Reserves:
Desicenated
funds:
Fixed asset Fund	15,262	368	(4,254)		2,961	14,337
Pension	2,021				(696)	1,325
Liabilities
Restricted
Funds:
Capital fund	2,185	25	(139)			2,071
Other Housing	32					32
funds
First Steps to	91	32	(53)			70
success
Covid recovery	17		(3)			14
funds
Garden Studios	57		(8)			49
Wellbeing	45					45
Other funds	98	67	(94)			71
Endowment	428				(4)	424
Funds
	26,682	14444	(13,804)	(591)	(1,189)	25,542

'E'000s		General	Designated	Restricted	Endowment	Total
		Reserves	Reserves	Reserves	fund	Reserves
Fixed Assets		9,358	38,041	2,070	424	49,893
Current		4,152		282		4,434
Assets
Liabilities		(2,271)	(1,152)			(3,423)
due within	1
year
Liabilities		(1,272)	(21,227)			(22,499)
due after
one year
Pension		(2,662)				(2,662)
Liabilities
Other		(201)				(201)
liabilities
Total		7,104	15,662	2,352	424	25,542

27Val	ue for Money M	etric	s
27.1	Reinvestment
				2023	2022
				R'000s	R'000s
Reinvestment in housing			stock is as follows:
Capital works to existing			properties	1,646	999
Total	reinvestment			1,646	999
Historical cost of Housing			Properties	60,046	58,238
Percentage of reinvestment				2.7%	1.7%
27.2	New Supply delivered
				2023	2022
New	supply delivered	is	as follows:
New	supported living	units		10
Total	new units			10
Total	Units owned			669	659
Percentage of new		supply		1.5%	0,0%

27.3 Gearing	27.3 Gearing
						2023	2022
						E'000s	R'000s
Gearing is	made	up as follows:
Loans due	in less	than one year				1,028	978
Loans due	in more than one year					12,546	11,605
Cash held						(3,253)	(2,425)
Net debt held						10,321	10,158
Historical cost of		Housing Properties				60,046	58,238
Gearing						17.2%	17.4%
27.4 Interest cover
						2023	2022
						R'000s	R'000s
EBITDA MRI	is made up		as follows;
Operating	Surplus	for Social Housing			Activities	468	395
Add back	depreciation		for Housing		Units	1,230	1,187
Less Amortisation		of government		grants		(368)	(370)
						1,330	1,212
Interest payable						486	377
EBITDA MR I						274%	322%

27 Value for Money Metrics continued	27 Value for Money Metrics continued	27 Value for Money Metrics continued
27.5 Social Housing costs per unit
			2023	2022
			R'000s	R'000s
Per unit housing		costs is made up as follows:
Management		costs	790	931
Maintenance	costs		788	725
Service charge		costs	1,476	1,315
Depreciation			1,230	1,187
			4,284	4,158
Total number		of units	669	663
Total cost per		unit	6,4	6.3

					2023	2022
					R'000s	P.'000s
Operating	margin	is made up as		follows
Operating	surplus	from	general needs		216	209
Operating	surplus	from supporting		living	252	186
Total Operating Surplus					468	395
Revenue	from general needs				927	922
Revenue	from supported		living		3,825	3,630
Tota I revenue					4,752	4,552
Operating	margin	from	general needs		23.3%	32.7%
Operating	margin	from	supported	living	6.6%	5.1%
Total operating margin					9.8%	8.7%

7.8 Re	turn on Ca	pital Em	ployed (R	OCE)
					2023	2022
					R'000s	2'000s
ROCE is	made up	as follows
Operating Surplus		for Social Housing		Activities	468	395
Adjusted	operating	surplus			468	395
Net book value of		housing	properties		37,429	37,814
Current	assets				4,434	3,938
Current	liabilities				(3,422)	(3,654)
Total assets less current liabilities					38,441	38,098
ROCE					1.2%	1.0%