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|~Note 27)|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| ## ## ## ## ## ## ## ## ## ## ## |CV
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Pn| |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| ||||||||||||||||||||C|S|| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| ||||||||||||||||||||C0||| |||||||||||||||||||||I/I|| ||||||||||||||||||||U||| |||||ODO|CV
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P3| ## ## |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%| ## ## ## ## ## ## ## ## ## ## ## ## ## ## ##