Bournville Vlllage Trust Group CONSOUDATED FINANCIAL STATEMENTS for the year ended 31 December 2020 RegSstered Charity No.. 219260 INDEX Pagels Operating and Financial Remew 2-35 Report of the Board of Trustees 35-42 Infomation 43-44 Independent AuditorL4 Report to the Trustees 45-48 Consolldated and Trust stst8m8nts of Comprehenslve Income 49 Consolidat8d and Trust statemants of Financial Posltion 50 Statement of Changes in Reserrfes 51 Consolidated and Trust Statements of Cash Flows 52 Accounting Pollcies 53-61 Not88 to the Financial Statements 62-85 Pagell Operatlng and Flnanclal Review The Trustees of the Bournville Village Trust Group hav& pleasure in submitting their annual report and financial statements for the year ended 31 December 2020. This r8POrt is about 2020, so r8aders of these accounts should be aware that from March 2020 to the end of this report in December 2020, our communities, tenants, stakeholders and staff were all living through the Covid 19 pandemic. We are thankful to everyono who helped us continue with our mission through the pandemic and who has stepped forward to help our communities. Our mission is to create and sustain communities where people can thrive, and we have be&n humbled by the resilience and fortitude we have s88n all around us. About BVT BVT was established by George Cadbury In 1900 to provid8 quality housing accommodation on affordable temis to those in housing n88d. Those residents who could afford to buy their own homes were able lo do so, but olhars were let on rents that were within the means of the average family. This philosophy still applies today and we have ov8r th8 years expanded our services into Shropshire and cenlral Birmingham. At the end of 2020, the Group owns 3.318 units of accommodation which are let on social housing rents to thos8 in housing need. Rent levels are sel by a government fonnula, but will tend to be around 25% to 500/0 lower than market rents for similar properties. BWHS propertie5 were specrfically aimed at workers of Cadbury Brothers Limit8d (now known as Mondelez UK Limited). This remains the case today with priority given to current employees of the company and their families. Bournville is wid81y acknowledged as one of th8 first examples of the garden city movement and is today one of the most desirable suburbs of Birmingham. Bournville was one of the first exampl8s of a mixed tenure community and the Trustees firmly believe that this approach has stood the test of time, avoiding unfair stigma thal the uninformed often apply to social housing. 8VT is keen lo promote the mixed tenure model as a sustainable way for housing development in the future. Where possible we have recreated this mixed tenure in our other communities. Page | 2 The Bournville Village Trusl Group comprises: . 8ournville Village Trust (Bvr) Bournville Almshouse Trust (BAT) Bournville Village Developments Ltd (BVD) Bournville Works Houslng Society Ltd (BWHS) Bournville Village Trust is the parent body, based in Bournville. Binningham. Bvf is a charity and a Registered Provider (RP). its principal activits8s are.. The Provision of social housing withln the Bournville 8slat8 and over 700 homes in Telford and central Binningham Management ofthe Boumville Estate, comprising over 7,000 properties togelher with stewardship services in Lightmoor and La￿aY villages in Telford. Management of a commercial portfolio of offices, shops and h8alth facilitl8s in Birmingham and Telford Iv) Community Investment through the provision of community halls, sports and recreation facilities, the delivery of seprfices around financial inclusion. health and wellbeing and digital inclusion. Iv) Providing management and maint8nance services to a number of registered providers and olh8r organisation8. Management of around 3,000 acres of agricultural land around the South- West outskirts of Birmingham. Boumville Almshouse Trust is also a charitable provider of social housing based in Bournville, Birmingham. BAT manages 97 properties in total, 33 of which are Almshouses. preferential status is given to retired employees of Cadbury. seeking affordable accommodation. The remaining 64 properties are Endowment Houses, surpluses from which help to support the Gontributions made by the residents of the Almshouses. BAT is accounted for as a r8Stricted reserve within the BVT financial statements. Bournville Village Developments Ltd is a company that Is co-ordinating th8 development of a new urban village at Lightmoor in Telford. This village is being jointly developed and funded with Homes England. When the village is completed, it Page13 is expected to comprise around 1,000 properties125% of which are to be let on an affordable basis), a primary school with community hall. shops and areas of open space. The first four phases are now complete, from a six phase total project, with currently owning 205 properties. A new school was completed in 2010 and is run by the Borough of Telford & Wrekin whilst BVT is responsible for running the Community facilities which are an integral part of the school. The Village Centre also includes an office utilised by B￿ and 4 comm8rcial units. BWHS is a Registered Provider owning 313 propert18s in Boumville. The Truslees of BVT are also the Trustees of BWHS. The Impact of Coronavlrus on Bvr This report is writlen in June 2021 and whilst we seem to be thankfully nearing the end of the worst stages of the pandemic, w8 recognise there remain uncertainties. BVT already had in place a detailed 30 year busin8ss plan, which we regularly use for stress testing to 8nsure we can weather shocks from 8 variety of potential scenarios, with a pandemic being one such consideration. Combined with pre-planned mitlgats'on actlons and clear rul8s as to when we would enact such mitigation, BVT has be8n w811 placed to react and suprfive th8 pandemic as it has unfolded so far. We have used ourfinancial plan to model the irnpact the pand8mic has had and the potential impact we believe it will continue to have. We have also considered what impact further spikes in Infection and lockdowns could have. In each of our operational areas. we have considered the best case, worst case and most likely outcome. given what we know al present. We have in place mitigation actions based on countering each outcome and are ready to enact these mitigations as soon as it becomes clear that our current projections ar6 potentially no longer valid. Cash Flow- we along with many organisatlons expect our cash flow to be reduced due to Coronavirus. The factors that are likely to reduce our incomlng cash are set out below. has a slandard working capital requirement of £1.5m. This is the amount of readily available cash we feel we need to manag8 our planned spend of£29rn per year. As Trustees considered there to be a nsk to our cash income, we have drawn down one rolling credit facility we already had in place, but unused. This means in March 2021 we were holding £12.9m in cash. We have no expectation that we will need anywhere near this level of cash, but with interest ratas at an historic low, we are comfortable holding this for security reasons alone. Page | 4 We also relain a furth8r unused credit facility for £1 Om and with our overall debt level having been reduced over the last 3 years, we know we can sustain 8 much higher level of debt if required. Soclal Houslng Rental Income- in 2020 BVT brought in £21.1m in rent from social housing and a similar18vel is expected in 2021. It is clear that many families will find th8mselves in financial difficultles due to the pandemic and expected subsequent recession. This will make paying rent a Challenge for many. However, BVT charge only social rents and this means our average rent charge is just £97 per week, which is often 500 lower than a market rent and 200kn lower than the affordable rents charged by many Housing associations. As a consequence our rent will be 100°/0 covered by Universal Credit if any tenant has to make a claim for support. Whilst we expect to see a ris8 in arrears as new Universal Credit Claims arè processed, we do expect to receive most rent du8 Within 2021. We have provided welfare benefit and debt advice where customers have needed support. Inéicalions in April and May support our forecast that we will not See too larg8 an increase in bad debts in 2021 and that we can match any such increased loss with savings. Vold8- dunng the height of the pandemic we stopped all lettings and ceased repair work on void properties. We were abl8 to return lo repair work and to assist those in housing nged by returning lo remote lettings, as the restrictions and Government advice changed. This has allowed us to keep the increase in void losses to reasonably low level and we do not foresee such losses having any significant impact on BVTS financial performance in 2021. Commerclal Renl - BVT has a relatively extensive commerci81 portfolio and many of our commercial tenants experienced some level of hardship due to the pandemic. We supported our commercial tenants with information and advice and facilitsting access lo Governmental support. We are also offered flexibility by negotiating changed payment schedules and the use of rent deposits to cover some rent periods. This along with the skill and dedication of our commercial tenants has allowed the vast majority to survive the pandemic as vibranl business entities. We still acknowledge that some of our commercial community may be unable lo weather the longer temi financial impact, so we have expected increased bad debts in our planning and this shows us that il does not have a significant impact on our overall financial viability. Agricultural Estatgs Income- BVT operate a large agricultural estate and we have been working closely with our tenants to understand the impact of the pandemic on their businesses. Based on this we have modelled out potential losses and reconfigured our revenue ￿paIrS programme to match the potential loss. This means we are confident we will not have a material change in our net surplus position in relation to the Agricultural Estate in 2021 and can reschedule repairs plans over the next few years, without impacting on our tenant's ability to undertake their businesses. Page 15 Herltage- BVT run Selly Manor Mus8um and the pandemiG means this has had to c105e to the public and may be closed for some time yet. We have modelled out th8 additional subsidy that we will be required to make to support the Museum and it fits within our plans without a major overall impact. This additional subsidy will again be drawn from BW'S commercial incorne. Care Homes- BW now run just one nursing home and we have opened negotiations with potential partners to transfer this home to the management of another care specialist company. We believe this will be in the b8St int8rest of our residents and staff. However, we have in our 2021 and long term financial plans included continuing to run this Home with a subsidy from BVT, so we know its future is safe. even if we cannot progress the transfer. Interest Rates - continues to benefit from low interest rates, but we have in our stress testing ensured our business plans are robust enough to accornmodat8 sudden and extensiv8 rises in rates. R8palr8- we were for a while unable to cary our all repairs due to Govemment guid81ines and the need lo keep our Tenants and Staff safe. We are now back undertaking the full range of repairs and catching up on the backlog that developed. We have accommodated in our plans the full catch up of the backlog in 2021. Planned Malntenance- we had an extensive programm8 of planned maintenance schedulad for 2020, but the restrictions meant some of this could not be delivered. We have rescheduled our plans to ensure all work missed is picked up in a timely fashion and we have a very extensive programme ready lo run in 2021. Ovèrall - BVT Trustees set an internal target for surplus generalion as part of the 2021 budget setting. As al the end of April 2021, we have been able to show that with all known and anticipated Coronavirus impacts factored in, we are still able to forecast finishing 2021 within close proximity of this largel. This allows us to b8 confident that we remain a very viable entity with capacity to manage further shocks to our operation, should the pandemic produce further waves of infection and should furth8r lockdowns be required. Corporate Plan Introduction In 2020 we commenced and new corporate plan, guid8d by our founder George Cadbury's vision. our corporate plan sets our aims values and plans for the next 10 years <2020-20291. Page16 A foresighted social r8fom18r. George Cadbury valued faimess and integrity. He was brave and innovative and worked, not in isolation, but in partnership with others to help people thrive. Our Corporate Plan is inspired by his values yet influenced from what we have learnt from list8ning lo residents, staff, partners and civic leaders and by understanding the changes that we see around us ￿gionallY and nationally. The Corporate Plan outlinas our mission, the aims that will achieve this mission. the key projects and activities that we will undertake to deliver our aims and the outcomes we will use lo measure ourselves against. Our Mission Creating and sustaining communities where people can thrive We want P8op18 to thrive and reach their full potential and we are determined to build slrong organisation, driven by our values, to achieve this. We will build on our solid foundation and be inspired by our legacy, but won't be afraid to be bold and innovats've and try new things to meet the needs of people today and into the future. We wlll achieve our rnlsslon through a numb8r of distinct aims, which will be well planned and focus8d. We will spend years one to three exploring and refreshing. years four to six delivering and year's seven to ten achieving and excelling. Pa8e | 7 Our Strategic Aims Place4haplng: Creating and maintaining distinctiva. environmentally sustainable plac8S. Communlty bulldlng: Building strong and inclusive communities. Champlonlng People: Removing barriers and helplng people to achieve their true potential. Provldlng great homes: Providing homes and delivering great services. Bulldlng organl•atlonal and flnanclal strength: Building a strong organisation driven by clear values. Sharlng our oxperlence: Learning, sharing and influenclng others. Our Values Partnershlp- we work with others to achieve great things Falrness - we treat people as individuals by exercising the right approach al the rfght tlme (!_ Quallty- we are clear about whal we do and we do it well Integrlty- we do the right thing Innovatlon- look for new and better ways of doing things. Page | 8 Our Ke strate l¢Ob ectlves 1 Place4haping To achieve our aim of creating and maintaining distinctive. environmentally sustainable places, we will.. 1. R8fr8sh and publish our vision for the design and development of distinctive and environmentally sustainable places. 2. Review the design. character and futur8 environmental sustainability of each of our communities in partnership with residents; capturing and delivering outcomes through forward-looking design guides and n8ighbouthood plans. 3. Deliver stewardship services that ar8 shaped by residents, valued by all customers and create clean and green neighbourhoods. 4. Ensure our community buildings are modem, well-maintained, efficiently operalad and meet the needs of the community. 5. Mak8 our parks and open spaces welcoming and accessib18 for the community to improve people's health and wellbeing. They will be environmentally-friendly and promote biodiversity. 6. Deliver our vision for places by successfully compl8ting Lightmoor Village and College Green health village. 7. Create a long-term str8t8gy for the use of our agricultural estate, making sure there is a strong financial and social return. How dld we do In 20207 In 2020 we commenced an extensiv8 consultation on the Design Guide in Boumville. This will help us capture the wishes and desires of our communities and deliver a revised guide thal will help drive up compliance. Commenced a comprehensive review of our approach to plac8-shaping through the development of a new Design Chart8r that will set out our vision for the design. dgvelopmenl and management of distinctive, environmentally sustainable places. The stay local requirement that has been in operation through most of 2020, has seen our communities explore their neighbourhood and use our parks and open spaces to an even greater extent. We tried to keep all our spaces open, whenever that was in line with Government guidelines and whenever it has Page19 been safe and allowed we hav8 k8pt our Landscaplng Team working on making spaces safe and enjoyable. We have not collected many satisfaction figures in 2020, as it has been a difficult year to assess activities and lo ask for customer engagement, but v will look lo ensure we return to getting full feedback as soon as is possible in 2021. We are pleased that the final stage of College Green, that being the delivery of the Community Health and Wellbeing Centre, progressed well in 2020 and In March 2021, th8 Cenlre opened to the Community. The d8velopmentofLightmoorVillage did pause in 2020 due to safety concems linked to the pandemic, but operations did r8commence and we are back on track. We were pleased to take into our ownership 8 new properties on Lightmoor in 2020 and all have been18t as social rented homes. 2 Community building To achieve our aim of building strong and inclusive communities. we will: 1. Support and champion opportunities for people to be involved in leading things that ar8 important in their local community and deliver tham. 2. Make sure people can, and ar8 abl8 to, be fully involved in shaping our services and project8. 3. Develop our rol8 as a community anchor to facilitate partnerships that se8 people and agencies work together on issues that matter lo the community. 4. Support and build capacity through volunteering to deliver programmes and activities that a￿ important lo the community, especially those that promote cohesion, community spirit and wellbeing. 5. Make sure there is a slrong voluntary and community sector. 6. Support young people to have a voice and be involved In their community. 7. Make sure our community buildings are well run and provide opportunities for community activitie5. Page | 10 How dld we do in 20207 Although many of our Community facilities were dosed due to the pandemic, we provided support and coordination wilhin our communit18S to enable local community organisalions lo connect and help local people coping with the impact of the pandemic. This included promoting opportunities for volunteers and signposting organisations to grants and other support. This has built strong network within communities that will continue into the year5 ahead. We are also supporting the newly formed Northfield Stralegic Partnership. We deliver8d a small grants programme and supported over 15 local charities and community groups. Our other grants programme supported the delivery of services and programmes thorough our local partners. We are a member of Citizens UK, whidi has provides a voice for local communities across Birmingham. Our co118agues and local residents have been abl8 to Sha￿ their views with others ecross Ihe city. We were successful in finding new ways to engage with people to improve our servic8s, for example over 1,500 people actively engaged in Ihe design guide review in Bimiingham. 3 Championing people To achieve our aim of removing barriers 8nd h81ping people to achieve their full potential, we will.. 1. Improve the health and wellbeing of people through community-bas8d programmes, inspired by our founder's commitment to people. 2. Understand and tackle the root causes of povety and promote access to seNlces and support that is responsible and sustainabl8. 3. Seek funding and work in partnership with others to deliv8r programmes that champion people. 4. Understand and deliver se￿iCeS that improve the health and wellbeing of older p80ple 5. Take an evidence-based approach to our work to ensure we understand our impact and achieve value for money. PaBe | 11 6. Understand and deliverservices to enable young peopl8 to achieve theirtrue potential, through education and exploration. How dld we do in 20207 This is an area of development for BVT in the Corporate Plan. Whilst we are yet to set out our long-lerm strategy, we both delivered directly. and partnered with other organisations to deliver support services to local communities. Our befriending service reached over 800 households through a tal8phone support s8Diice provided by a cross s8Ction of colleagues at BVT. We strengthened ourwelfare and financial inclusion team to provide support to people in our local communllles experienced fi'nancial difficulties. We are also one of seven partners in Binningham's Community Anchor Network and have worked with partners around employment, training and use of procurement lo support local businesses. 4 Providing great hom8S To achieve our aim of providing homes and delivering great Services, we will.. 1. Provid8 new homes that meet the naads and aspirations of people and communlties. 2. Make sure there is a supported housing offer in the communities that we work, through dired delivery and partnerships with specialist experts. 3. Deliver good quality and value for money housing and maintenance services, shaped by customers. 4. Actively manage our housing assets. making sura they contlnue to meet customer need, are w811 maintained and affordable to live in. 5. Renew our housing offer to meet the thanging needs of older people. 6. Develop a pathway into housing that helps younger people get acc8SS to their first home. 7. Prevent homalessness by supporting customers to befinancially resilient and sustsin their tenancy. Page | 12 How dld we do in 20207 We spent a great deal of tlme in 2020 scoping out the programmes for new windows, doors and boilers th81 we could provide ft)r our tenants homes and preparing tenders to ensure we had the best value for money in the delivery, when we could retum to our programme. We know that this will start to make an impact in improving 8n8rgy performance ralings when we are able to deliver in 2021 and beyond. We maintained 1 OOYO ten8nt satisfaction with the leltings we made in 2020 and we will continue to drive hard to keep satisfaction at this level. 5 Building organisational and financial strength To achieve our aim of building a strong organisation driven by our values, we will: 1. Build financial strength and discipllne and have a clear approach to value for money in everything we do. 2. Be an employer of choice. developing and inv8Sting in our staff. 3. Make sure our culture, approach and b8haviour reflects our values. 4. Invest in technology to Increase efficiency and effectiven8ss in everything that we do. 5. Delivergood governance, meeting legal and regulatory and health and saf8ly Compliance. 6. Build profit for purpose by strangthening our commercial offer to increase financial capacity to invest in our charitable activities. How dld we do In 20207 During 2020 we carried on with our work in building a strong performance managemenl and continuous improvement frame work that supports our value for money strategy We have set targets for 2021 for our key perfomianc8 indicators and financial metrics. As we embed our approach to Vfm, this will allow us to set even mor8 chall8nging targets in future years. The value for money section of this report and the sector score card will help you see how we currently compare to our peers. Page | 13 Whilst having to suddenly mov8 from being a mainly Offi￿ based organisation to a home working on8 in 2020 was a challenge. we are pleased that our systems allowed us to immediately set up all staff with facilities at home to access all they needed to perform their duties and keep BVT delivering. We ar8 committed to continuous improvement, so we are always seeking further improvements, but we are pleased the work we had put into our communication and IT systems meant we could assist our tenants and communilies at almost normal levels throughout the various lockdowns in 2020. In 2020 we agaln revlewed our gander pay gap and continue lo consider new ways to assist women into areas of work where Ihay ar8 underrepresented, such as our in our maintenanc8 team. In 2020 w8 continued to develop our organisational development strategy and this will be delivered from 2021 onwards. We publlshed a staff satisfactlon survey in January 2021. This showed 970kn of our staff would recommend BVT as an employer. 95¥0 of staff were satisfied with BVT as an employer, with 92 % feeling inspired by our corporate aims and values. Whilst there is alvMy8 more we can do lo improve how we engage with our divers8 workforce, we do believe these figures show we are on the right path. 6 Sharing our experience To achieve our aim of learning, sharing and influencing others, we will: 1. Recognise our strong heritage and solid socially guided foundations that have led to our success. 2. Promote the importance of garden villages and good urban design. 3. Promot8 study visits and lake opportunities to share our unique story. 4. Revisit George Cadbury's inspiring Rules of Hgalth document to influence mod8m approach to the promotion of health and wellbeing. 5. Sharo what we learn from the work that we do to help people to thrive with others. 6. Deliver a h8ritage service through S811y Manor Museum, the Carillon, our archive library and visits. Pa8e | 14 How dld we do In 20207 Sadly the pandemic and the nature of our heritage sites meant there was little we could do in terms of physical visits in 2020. Our team did not18t this deter them, however. and th8 team at Selly Manor developed an on line teaching pack that has been used widaly across the UK. We are still at the exploring phase of our corporate plan in most of the other areas in sharing our experience. but supporting other local agenci8s during the pandernic, such as diverting our landscaping team lo deliverfor localfoodbanks has certainly shown us how much we can leam from others. Many of our staff who are not normally involved in frontline support respondad lo the pand8mic by volunteering to assist where they could and whether it was Finance staff making Befriending calls, Landscapers delivering food par¢81s. or IT staff helping wilh ourwinterwell campaign, we hav8 had a great opportunity to gel further involved with our communitl8s and partner organisations. Our staff have also gained greatly from the experience and response we have had. Summa of Financial Performance The Statement of Comprehensive Income for the year ended 31st December 2020, shows a group loss of £1.75m compared to a group surplus of £0.85m for 2019. The main issues to note are.. Under the accounting requirements, the Group now has to account for the falr value of its portrolio of interest rate hedging instruments. Details of these hedging instruments are set out in not8 16. The movement in the fair value of these hedging instruments over the cours8 of the year is reflecl8d in the Statement of Comprehensive Income. The mov8m8nt for 2020 was a negative value of £3.75m compared to a negalive movement of £2.21m for 2019. Such movements ￿fleCt the changing market expectations regarding future interest rates. In 2020 BVT changed the lifecycles of some capital components in our homes. We reduced the expected life of kitchens from 25 to 20 years, boilers from 20 to 15 years and heating distribution systems from 40 to 30 years. This added to an Increase depreciation charge in 2020, which was £1.57m more costly than in 2019. Whilst the above issues impacted our surplus position for 2020, we a￿ happy that our operational perfomiance was strong and not dissimilar to previous years. Page | 15 Treasu Mana ement Trustees have approved a Treasury Policy which sets oul the key treasury management poliGies and praclic8s for the Group. This policy was completely renewed in 2020. It sets out clear guidelines for BI￿ on all treasury matters. The Group had lotsl housing loans of £99 million at the end of 2020, compared to £92.5m at the end of 2019. BVT also has further available facilities in place of £10m. It is worth noting that £1 Om of the £99m yearend debt is a Rolling Credit Facility that was drawn solely as a contingency against any cashflow issues thrown up by the pandemic. This contingancy rernains unused and we have no current 8XP8Ctation it will b8 r8quired. In 2020 tha Trust8es took the decision to drawdown £1 Om from a rolling credit facility. to acl as a buffer in case the pandemic caused any cash flow issues. This was slill in place at the 8nd of 2020, $0 our cash holdings were £13.9m compared to £3.8m in 2019. These funding facilit18s will b8 sufficient lo fund the groups currenl business plan through to completion. There will be a need lo refinance som8 maturing loans in 2022, the facilities for which BVT will arrange in 2021. Any further funding requirements will only b8 identified following the further refinement of development and investment plans. Bvf uses stand-alone interest rate derivatives to manage th8 int8rest risk on the loan portfolio, having secured the required wid8r-range powers from our Regulator. All interest rate derivatives are authorised by tha Financ8 Commitlee, in line with the overall strategy which is to hedge at least 112 of the portfolio, with the overall level of h8dging to be at a level that besl supports the delivery of the BVT business plan. As at 31 December 2020 the balance of the loan portfolio was 73.5% hedgedlfixed and 26.50/0 unh8dg8d. Our Treasury Policy requires thal adequate funds are availab18 at all limes to enable BVT to meel its business and service objectives for at least the following 24 months. BVT utilise external treasury manag8ment support and aévice to ensure we offer the best value for money possible in our Treasury Management. Due to the pandemiG Bwf have allowed the time before we need to have refinancing for our 2022 maturing loans to reduce to18SS than 24 months, but that refinancing has now been tendered for and chosen and is expected to be in place by June 2021, Cash Flow Management Cash flows for the period are set out In the Statement of Cash Flows in the financial statements. The Group has a strong cash inflow from operating activities. This is Page | 16 used to service the interest payments on the loans that have b8en taken out and also to partly fund the Capital improvement programme. The balance of the capital improvement programme as well as the development programme are funded from capital receipts and loans. In 2020 due to concerns that potential cash flow issues could occur, due to th8 pandemics impact on the operation of Financial Institutions, BVT has chosen lo hold much higher levels of cash than is normal. Due to very low interest ratas, this has been an economically sensible decision. Covenants All loan covenants ware met and our 30 year flnanclal forecast demonstrates that BVT can meet all future covenant requirements. rf Interest Cover on our tightest measure was 219Vo which exceeds the 140% target. < Gearing was 53.5¥o against a maxirnum level of 65 % (please note this calculation is different lo the Gearing calculation required by the sector score card shown later in these accoun151 O Debl per unit was £28.994 per unil against a maximum of £35,426. Our Value for Mone Strate 8VT r8cognises its responsibility to achieve Value for Money {VfM) from all its activities, in order to provide all our customers with the highest possible level of s8rvice at the most cost-effeclive price. This means seeks to keep value for money at the forefront of our thoughts and activities in all we do and it remalns standard agenda item for all team meetings. We recognise that Vfm is not just about cutting costs, but is about the balance between 8conomy, efficiency and effectiveness. Its about.. Procuring goods and Services as economically as possible. whilst ensuring that the quality of those goods and s8rvices meets our expectations and ensures our tenant's safety is maintained. Also, allowing manag8rs to consider factors such as preference to local suppliers in determining their procurement choices. Examining how wa V￿rk and whether that can be done more efficiently either through simplifying our working practices or making bett8r use of new technology. Delivering community services through our partners, recognising that not all services need to be d&livered directly by BVT, but enabling and signposting to Page | 17 existing services or helping support new s8rvices g8t off th8 grourKI. Raviewing the feedback from our customers to see how effective our services are in meeting their needs and constantly looking at how w8 can do more to improve or expand those services. The main methods that Truste8s used lo assess WM across BVT are as follows'.- Scrutinising the draft budgets and business plans. ensuring that such budgets and business plans meet key financial targets as w811 as deliver a reasonable level of headroom against funding covenants. Setting the relevant key financial targ8ts and updating these as necessary to reflect changing market and economic conditions, by a process of regular review by the Board and Finance Committee. Revlewing all major capital investment dacisions and considerlng the subsequent benefits realisats'on reports to check that the anticipated benefits have b88n delivered. Reviewing benchmarking data. This b8nchmarking data now includes the Sector Score Card (cover8d in detail later in this report), which the Trustees of BVT find very useful in addressing all aspects of our Core business and in challenging ourselves to demonstrate Vfm. Considering organisational change. The Trustees regularly consider organisalional change and whilst there is currently no appetite for a merger, as Trustees have not identified how doing so would furth8r our aims and objectives, this will remain an open topic of discussion. will always consider any approach for merger where synergy can be found and where clear value match is in place. In all aspects of service delivery BVT Trustees consid8r how and who is best placed to deliver, and this is reflected in our new Corporate Plan with Partnership Working being one of our key values. Trustees have previously considered and continue to consider through the various Committ88S the value and risk of those activities outside our social housing core. During 2020 in depth Gonsideration was given to the risk and reward of our supported housing offer and Trustees made the decision to seek to exit care provision. We are now in disGus5ion to transfer the running or our last remaining Nursing Home to another specialist provider Page | 18 Value for Money Overvlew In late 2018 we started a strategic review of our Organisation and our servic8S, guided by our founder George Cadbury's vision. Lead by our Trustees, this review allowed us lo work closely with our Tenants and other stakeholders in producing our Corporate Plan 2020-2029. The review and development of the Corporate Plan have of cours8 had an impact on our ability to demonstrate value for money perfomiance since 2018, with target setting being limited in its scope. However, the plan will now give focus lo our drive to increasing value for money in the future. During the strategic review it was necessary to pause or reduce certain activitl8s. as W8 sought to ensure that their delivery was value for monay and would promot&. rather than inhibit our new Corporate Plan once it was ready. This step back from deliv8ry at th8 usual pace in some areas. 15 reflected in our Vfm metrics during this period. Alongsid8 this new Corporate Plan development, in 2017 BVT had to acknow18dg8 that the impact of the Government ￿nt reduction programme and th8 continued high costs of Bvf's charitable community activities, as well as the increasing costs of our development programme, meant we had to take som8 immediate action to cut costs and ensure the long term financial viability of BVT, these actions are also reflected in our Vfm metrics. Clearfy our Corporat8 Plan which started in 2020, has been irnpacled by the pandemic, which certainly prevented some plans, such as the roll out of our much enhanced planned maintenance programme occurring fully in 2020. However, we were still able lo do a lot of work and hav8 in our financial plans for 2021 and beyond made sure we have accommodated the catch up on all delivery that was delayed. The first three years of our corporate plan are to explore and refresh what we do and there has been much work delivered on this in 2020. We have been engaging with our communities exlensively, especially in relation to matters such as the Design Guide, which impacts greatly on our garden villages and sets parameters on many aspects of BW'S delivery. We have also been building a better shared understanding of how the various components of BVT fit tog8ther. As a complex Organisation which has grown organically for over a century, we need lo reassess how all our parts fit together and how each can best contribute to delivering our new Corporate Plan. We have been developing our organisallonal structure to enhance clarity. accountabilily and transparency. We now have one Departmenl who focus on all matters around our people, one Department vtho have oversight of our all of our property asset5, we have centrali5ed sorne function5 and rollèd out a service improvement methodology that will eventually see every Team scrutinised and improved. Having a single Assets Management Department was important to h8lp us simplify landlord health and safety compliance and improvernents. but also to allow us to Page | 19 better understand how our assets perfomi, this allows us to S88 what perfomis well. vthat is not so good and needs some work and what may no longer have a place in Birr. As part of our strategic review. we have refr8sh8d our organisation values. Thls was not simply rewording Bwf's traditional value5. but a real challenge to all we hold dear, 50 we could ensure was fit for a changing world and be the radical social reforming organisation that George Cadbury built. These refreshed values have allowed us to build a better understanding of the workforce we ne8d and how w8 can Gontinu& to make BI￿ a work place that attracts the best value driven individuals, who can y￿rk with our communities to drive our plans forward. Page | 20 Sector Scorecard The table below is known as the "Sector Scorecard" an initiative to benchmark Housing Associations perfomianc8 using 15 measures that are specifically required to be published annually. BVT welcomes this initiative and in this our third year using these measures the Trustees hav8 found the exercise insightful and are comrnitted to using these and other measures to assist in improving our future p8rformanc8. In 2019 Bwf benchmarked themselves against the Placeshapers Group of Housing association5. This gave us over 100 P88rs who are also committed to building communities and not simply houses. Due to changes in Group Members, it is not possible to recreate this exact group in 2020, but V￿ continue to use the whole Placeshapers Group as a benchmark. 1 EBITDA MRI le8 % Interest) VIM m￿rIC- Iopprallng iurplul I ltsficNI- lov8rdll GalnllloB81 on dl4wo91 olfflxgd a¥$• Ihouslna propBrtifiJl- AmDrtiBed PDvimm8nl aianl- Granl taken lo Inccffle + lrferest re¢eNab￿ ana dhor Incorne- Capllallg8d m8h)F ropfiirs oxpondlture for pwlod + Totsl d9prlc￿lk)n chBrg81 DI￿d￿￿ tyIC8ph81188d Inl8ro81 In houBlna prw•rtknB + Interqst pwy4tykn fi￿n¢1￿ co&t8 2- Gganng= (Nel ¢ebl * c*￿Tr9 01h￿s1￿j prcp8rtk881 x 1fpJ. Whero Not D8bl=18hort.t•rm * LotvJ18rm foani- Cash#nd coghequival8nl* +AmNnts to group und•rtBkJwJ + FInan￿e￿a8￿0￿198l￿*n8l. where￿n0 vwlue oftKyJilnu rrtopfjrtl•B - fixud 888818.. ￿OU81n0 prcy0rtl￿ al cos1 IP•rfod 8ndl l Tingible fixed BB88ts.' HouBlng Pwrtles at velual*?n IPerk)d Or￿)1 3- RelnvgElmBnl- tProperflo8 Acqulreé (lolal ttou8lrHJ prowll•BI + D￿￿10pm￿l of naw prop*leB (toll htyJ8ln9 proporflo•l * Works lo Exlsilro Itolal houJln9 PWgrt1O81 + Cap1181￿0d Iniom81 Ilotal hw8lno WOpert￿$) + Scheme• Ilot81 hou8* prop6ts811 Dlvlded by IHou8lng prop•rtles 81 c051 (Peiiod and1* Hou81ry FYop8rt18* 41 Yaluallon (Perfod end 4- Relumon C8pII81 Employ8d= IA + Bl x 10D. Whele A-. Relum Iopernlng ¥Ur￿￿1 IldefiGIII (Lwgralll IDcludln998ln Illosul on dl8pos¥ ol r￿ed o•¥el$ IhDuJlng w)pèrtYdil + Share of ¢per81Sng 9uTrIu8lldeflcill In I￿￿1 ￿ntur•I or MyoGiates18nd pilal omwoyod trotd flxad 8SB811 + Totpl curr￿1 w¥8t•- currenll14bll￿g&I Ov8thèad& 88 A % of lumower- IdfnUflo¢ IMI flwre I￿t•￿ In th• 2018 ￿tIor xorecarf %va8 IncorTect, Ths ha• been rrYrKted. Trustees understand that the unique nature of 8wr and the wide range of activities we do, from housing, to agricultural estates, to museum activities and historic buildings, does make soma simple benchmarks harder to interpral, but W8 are committed to ensuring Ihey h81p us drive our value for money agenda. Page | 21 ¥4 ¥4 E gi y4**#£ g g k8 r c G C c 10 000 Buslness Health Clearly any organisation must balance achieving their aims wilh the risk that pushing their finanGial boundaries brings, Bvf is no different. The Trustee Board of BVT have set out a clear position in relation to risk and hav8 golden rules. which define how close to our financial boundaries w8 may go before we have to pull back and reassess our plans. In 2017 BVT cama as close to our maximum debt level and minimum income level as Trustees were prepared lo go. so you will se& r8fl8cled throughout our Vfm rnetrics the changes that Board required to adjust our position. In 2018 wè paused some aspects of our plann8d maintenance programme as v worked on our Corporate Plan, and as we discussed new standards around voids and r8pairs with Tenant Representatives. This was also n8cassary as we 8djusted to managing the impact of the rent reduction regime. This helped boost our Interest Cov8r to levels that gave sufficient headroom over Bank Covenant requirements, but il was always a short term reduction with a clear plan lo ramp up planned maintenance, which includes it8ms such as new bathrooms. kitchens, boilers, windows and doors. This ramping up of planned maintenance started in 2020. but was somewhat delayed due to access issues caused by ihe pandemic, so you see its impact clearer in our 2021 and 2022 targets. Alongside reducing planned mainlenance for a short period, we have also been working hard on the basics of valu8 for money. Our investment in centralised procurem8nl management has paid dividends and we have s08n significant improvements in services Standards, whilst lowerlng costs. One simple example of this in action is a saving of £20,000 achieved on on8 consultancy service in relation to the on-going development of Lightmoor. Here, we still achieved excellent services quality, bul through good procurement practices delivered real value. Thore ara literally dozens of such examples across 8VT. This Truste818d drive to improve our business health from 2017 can be cleady seen In our Operating Margin improv8m8nt between 2018 and 2019. In 2020 we reduced the lifecycle of many of our housing components. This means we acknowledged our plan to replace boilers. heating systems. kitchens and windows more regularly. This change means we have to add more depreciation into our accounts. so our operaling margins a￿ down, but the Interest Cover, which exclude5 this accountancy tool continued to ris8. To help readers view the impact of this depreciation chang8 we have shown figures for operating margins for 2019 and 2018 restated below the unadjusted figures, with this lifecycle change retrospectively applied. In 2020 we suffered very significant losses on our Ca￿ and support servi￿$ as we sought to keep our residenls safe during the pandemic. This impactod on our operating margins in 2020, but despite this we still performed better overall that we did in 2019. In 2020 we took the difficult decision to close our last remaining Registered Care Home, a5 Ihe Trustees recognised it did not offer sufficient reward in terms of either finances our social value, to warrant the management input it required and the risk it brought through its operation. This reduction in loss making services Is a Page | 24 continuation of our efficiency drive in Non-social Housing adivities, which will help driv8 up our overall operating margin. Our targets for operating margins in 2021 and 2022 are dramatically impacted by our ramping up of our planned rnaintenance programme. In 2020 we were only able to spend £1.5m on new compon8nts for our homes, but in 2021 we will spend £3.7m and in 2022 £3.5m. This will spend will continue to increase with our plan to spend £4.9m in 2023 and £6.1m In 2024. We are able to increase and maintain spend at th8S8 lev81s, as we have improved our business health and reduced our debt levels. Development Capaclty and Supply BVT invested very heavily for an organisation of our size prior to 2017, with th8 development of our new garden village in Lightmoor and our investment in the Lawlay community being at the forefront of this. The Trustees of BVT were always clear that as the Lighlmoor project neared its and there would always be a fallow period for 8VT as we took stock and sought to reduce debt levels and increase surpluses, following ty￿ decades of investment. Thls decislon Is clearfy reflected in our development metrics. We have seen g8aring fall from 630/0 in 2019, 10 550kn in 2020, with a target of 49¥0 by 2022. This will still leave BVT above the sector average, so our Trustees have set a long tem financial plan that will continue to see debt levels fall and development kept at low levels for the near fulure. Trustees will continue to monitor this position and are ready to recommence development as soon as our debt18V81, financial health and the right opportunity com8 together. There will be a major review of medium t8rm development opportunities in S8p18mb8r 2021. 2020 did see Iow8r levels of new homes delivery in Lightmoor than planned, as th8 site was closeé for safely reasons during the height of the pandemic, but we will catch up and deliver all the promised homes. Effectlve Asset Investment As part of our strategic review BVT o)mmitted to a stock condition review, using external experts lo support us. This has allowed us to develop a new 30 year stock investment programme, which we have costed, and included in our plans and commenced delivery of. We are using our Asset Grading model, which was developed in 2019 with the support of external consultants, to assess wh8re extensive planned maintenance is due at a propety which is underperfomiing financially. This allows us to review this property and assess If committing to refurbishmenl is the correct approach. The pandemic prevented much of our planned delivery in 2020, but for large investment prograrnmes such as our window replacement scheme. we were still able to run tenders, ensuring we got Ihe highest specification for the best price; get the contract in place and be ready to start delivery in 2021. The delay also allowed BVT to run a pilot and ensure that our plans worked well with our design guide and would fit within the requirements of our conservation areas. Updated w1nd0v￿ have been a Page | 25 clearly expressed requirement from our Tenants. so BVT are keen to gel this delivery advancing quickly. W8 have in 2020 enhanced our Property S8rvices Team, who deliver our repairs and some of our component replacemènts in house. This has started the process of scaling them up to deliver more of our planned maintenance programm8, but by delivering some in house and some via externally tendered contractors we are able to assure ourselves that both sides are delivering real value for money. In 2019 we did report customer satisfaction with repairs in our Vfm report. This isn't possible for the end of 2020, as the pandemic has prevented normal d81ivery. however, we are able lo review the other two metrics we gave in this s8Ction in 2019. In 2019 we said - "Percentage of Tenants satisfied with the standard of their new home on letting, was 800/0 at the start of 2019. This had risen to 1000A by the end of 2019.. We maintained this through 2020 and despite the diffi'culb'es of the pandemic, we again achieved a 100% satisfacts'on rating. In 2019 we said- .3. Gas services were costing 8vr £224 each at the start of 2019. by the end we have raduced this to £158 for a batter quality of service" By the end of 2020 we have reduced the cost of 8 3. service to £140. The main aim Ihroughout the pandemic has of course b8en to keep our communities safe, and we are pleasad lo report that keep our landlord compliance standards high and are grateful to all our Tenants who worked with us to arrange safe access. During 2020 w8 furth8r advanced our understanding of our ass8t performanc8, building on the work we had develop8d with external consultants to grade our social housing assets by performance, by adding an in house analyst. This is important to BVT, as our garden village ethos and commitm8nt lo holistic community development m88ns we cannot slmply dispose of underperforming properties. Our Trustees are very aware of the challenges this commitment brings and il is part of the reason we started developing a market rented pilot in 2020, which will be delivered in 2021 and from which we will seek to learn how this may help us find new balance. In 2020 we commissioned an extensiv8 valuation exercise of all of our community, agricultural and commercial property assets. This will advance our ongoing r8VI8W of how we deliver valu8 for money in these areas and that revlew will progress through 2021. In Telford we commissioned a review of the sinking funds linked to the Lawley and Lightmoor Estates, so we can continue to work with Residents to improve our value for money in stewardship delivery. That work will be finalised in 2021. Outcomes Understandably as a community based Organisalion the pandemic saw us invest more than ever in supporting our communities during 2020. There were many activities we Gouldn't do and many of our community ha115 sadly remained closed, Page | 26 but with supporting local food banks. running befriending schernes and our Wint8r Well campaign, that saw us supporting families with heating and food vouchers, wa were still able to deliver much in 2020 and subsequently still saw our community spend rise. W8 plan to increase community spend further in 2021 and 2022 and will be looking at developing some social value measures as we do so, so that we can demonstrate the WM of these vital activities. Generally we were pleased in 2020 to keep all our basic activities running and we were so proud of our communitlas and staff all of whom went the extra mile to keep things going. We did as much as possible to keep repairs running, our parks open and safe, housing management operational and to support of commercial and agricultural tenants through a difficult year. We were especially proud that we kept voids being lel and helped some individuals and families find a new long term home during a challenging time. We also committed more resources to custom8r support to offer more help and advic8 on accessing benefits and keeping families saf8. Reinv8Stm8nt was low in 2020, as we could not deliver our planned new homes, with the Lightmoor site closed for some time due lo the pandemic. We were also prevented from delivering much of our planned maintenance programme for safety reasons. However, we did plan ahead for 2021 and beyond, so with our planned maintenance programme hitting planned targets in 2021 we will see reinvestment jump to 60/0 in 2021 and 5% in 2022. Operatlng Efflclencles In 2020 we managed to again reduce our headline social housing cost P8r unit. However, we will see Ihis rise in 2021 and 2022 as w8 launch into our new programm8 of investing in our homes and as we commit to spending more on supporting our communlties. The Trustees of BVT see this rise in h8adline cost as acceptable for now, given the reasons behind it, bul they are clear that Bvf will be looking to reducing this cost over lime to n8arer th8 b8nchmark of our Peers. Management costs per social housing unil have risen in 2020 with a higher spend on housing manag8menl, as we picked up some one off r8dundancy costs and also invested in tenant support during the pandemic. Management costs per social housing until will reduce back in 2021 and we anticipate remaining at a lower cost than our Peers. However, headline social housing cost per unit will remain higher that our Peers and whilst the Board know the drivers for this and are accepting of il for now, it will remain under close review with action anticipated in the near future. BW'S seNice charge costs are higher than our Peers, as we include the care costs of our specialist Nursing Care Home. There 15 a review of this provision and we exp8Ct to see changes in 2021. Generally w8 are confident that wo provide good value for money in relation to general needs housing Service Gharges. has b88n working hard on addressing repairs costs, with some of the work going on in component replacement expected to help us reduce the number of repair Page | 27 visits we make per property Per year, but this wll take some time as we are determined to keep satisfaction levels high whilst we look to @ffectively r8duce costs. We have targets to reduce this cost in 2021 and 2022 and anticipate this being a continuing area of improvement. Major repair costs for have seen too low a spend as we have been reviewing our strategy and delivery. Clearfy our target for 2021 and 2022 is a significant incraase in spend as we start our major investment programme in naw windows, kitchens, bathrooms and olhor wmponents. Overheads as a percentage of tumover have been below th8 sector average for BVT, but as we look to manage mor8 delivery and ensure we are driving efficiency and effectiveness throughout our areas of work, we are planning lo spend more and move towards the sector average in 2021 and 2022. It is worth noting that 2021 overheads are higher than usual due to our deployment of a pandemic conting8ncy, which we hope in practice will not need to be ulilised. The percentage of rent collected remains high for BVT and we are grateful to our tenants for working with us in this area. Actlons for 2021 Overview Clearly 2020 was not a normal year and whilst we did what we could to drive efficiency, economy and effectiveness, there were limits imposed by th8 pandemic conditions we worked under. In 2021 we hope that the seo)nd half ofthe y8ar will see a retum lo more nomal conditions, but clearly the pandemic will continue to influence our environment for some tlme. We will. however, continue to seek ways to dellver Vfm and our corporate plan in innovative ways. Buslness Health We will ensure that our operating margins remain positive and our Interest cover offers good headroom above banking covenants, whilst we deliver our normal activity and our new planned maintenance programm8. We will continue our r8vi8w on non-soci81 housing activities and ensure that risk and reward are balanced. As previously covered we anticipate transferring our remaining Nursing Home to a specialist provider in 2021, as the Board have identified this as the best route to continue with high quality dglivery of the seNice, withoul the risk to BVT. Also in 2021 w8 wlll be running scenario plans with the Twstee B08rd to review further how we are investing in our assets and what development opportunities are worthy of further exploration. As we have more developed plans for our debt position over time and great clarity on the investment needed in existing stock. we 11 in 2021 be able to commence looking at refreshing the Boards stated risk Page | 28 appetite position and d8temiining how future development opportunities fit within this. We will start our pilot rnarket rent proj8Ct, to see how this may help BVT maintsin its garden village ethos. whilst ensurin9 we are driving real value from our asset base and not inhibiting development opportunities any further than absolutely necessary. The Trustee Board are well aware that not disposing of assets that are not fully economic for strategic reasons. does require BVT to be innovaliv8 and exploring market rent will just be on8 avenue we will explore. Development In 2021 we will continue with the final stages of Lightmoor, but have no further dev81opment planned, whilst we continue to ￿dUce our gearing18vel and explore th8 scenario plans we have detailed earlier. We will in 2021 continue lo maintain our agricultural estat8 as we know this has potential for long term development and does offer a reasonable financial return. We will, however, explor8 areas that do not sit in our st￿legicallY important geographic areas, to see If better economy could be achieved for through sales or small scale development. At all stages our Board will assure itself we are making the right decisions by looking at all options carefully planned and 51otted into our 30 year financial plan, so the financial impact can b8 c18arly seen. Effectlve Asset Investment 2021 will see BVT draft our Enwronment818nd Sustainability Strategy, as we seek to belter understand how we can ensur8 our housing stock, much of which is historic and in conservation areas. meets the environmental expeclalions of the future. This will eventually 90 on to form a cor8 of our future asset investment stralegy and 30 financial planning, but for now we are at th8 early exploratory stages. We will also be refreshing our asset appraisal data that we developed in 2019 and 2020 to bring It up to date and to start looking at non-housing assets, such as garage sites. We will be using our refreshed risk appetite and development review to consider how and where we invest in our comrnercial portfolio and how BI￿ Can best judge the returns and risks that would g8nerale against our alternative Opllons. Future Actlvlty Plans As the pandemic is far from over we will have to recognise there will still be constraints in 2021, $0 we will at all levels be looking to maintain our performance levels at those of 2020 at least and improve where we can. We know that our tenants will continue lo require increasing support with financial inclusion advice to manage debt levels for BVT and to support familias, so we will Page | 29 keep this at an enhanced level through 2021. with this being ￿lIeded in our management costs. We will also be looking to invest in additional IT resources for this 8rea in 202110 improve efficiency. Thi5 area will remain under review, however, and we will continue to assess is this if the most economic method of suppOr￿n9 our tenants. We will continue lo increase our investment in our communitl8s in 2021, with a number of projects set to develop. We will again, however, be looking to start reviews into social value being delivered, so as we emerge from the pandemic we can look to demonstrate that we are delivering the biggest social return for our investment. We will continue with our extensive raview of our estates and stewardship servic8S. We will have reviewed all the sinking fund plans for Lawlay and Lightmoor by early 2021 and will be looking to aller staffing arrangements in line with what our Comrnunities have told us they want delivered. We will be expècting this work to drwe up customer satisfaction with Bwf's offer and once we are clear of the pandemic we will look to set a new bas81ine that we can measure progr8ss against. We will be continuing with our Great Services review in 2021. with ev8ry seNice having been assessed in 2020, to see what lev81 of review it requires. In this area, Customer Services in the form of both our customer contact centre and our ov8rall corporate approach will undergo a fundamental review in 2021. Operatlng Efflclencles Having established our detalled corporate plan and 30 year budget we will be using benchmarking to assess which areas lo focus our value for money drive on in 2021. We will be using overarching infomiation such as Headline Social Housing C05t per Unit to give us a general larget to focus on, but then will be drilling down into the individual metrics that make up this top line numb8r to establish where the work should be focused to achi8ve the grealesl gain5. This will develop a number of lower level targets that wll be feed into our 30 year plan, via our 3 year budget 89tling process, to give us new targets at the lop level for Trustees lo r8Vl8w and critically assess. We will be seeking to involve front line staff in this process as they know th8ir areas best and as we need to ensure they own the targals and are on board with our delivery plan5. By developing our extensive KPI'S to match these targets we will develop a Vfm dashboard that can b8 used by the Executiva T&am to drive performance and by Trustees to challenge the organisation. This proc8ss will allow to sel the stretch targets we have been unable to map out in the last couple of years. whilst we had to focus on establishment changes and of course managing the pandemic. We arg claar that true Vfm is not simply cost cutting bul the effective, economic and efficient delivery of our corporate aims, so at no stage will BVT deviat8 from our values in our actions. Page130 Other Value for Mone Metrics BVT uses over 130 monthly key p8rfomiance indicators {KPls) which are reviewed by the Ex8CUtive Team to monitor performan￿ arKI to drive Vfm. We believe all of these indicators are important metrics, and we are especially keen to use metrics to monitor and drive our strategic plan, so we regularly produce and utilise KPI in areas key to our plan. Placeshaplng We have many areas being developed under placeshaping thal will allow th8 development of KPIS in the future, such as satisfaction with our Stewardship Services and or Parks and Open Spaces. The pandemic in 2020 did make the collection of some data and the delivery of some services very challenging, so we will deliver mor8 on KPI'S in this area in 2021. Communlty Bulldlng We are continuing to dev81op a range of KPIS to help drive us towards our strategic goa15 in respect to Community Building. One example of our use of Vfm measures In this area relates to our Anti-social b8haviour service. At the end of 2019 940/0 of our Tenants were satisfied with th8 SUPPOrt given in anti-social behaviour cases, however, by the end of 2020 this had fallen lo 70Yo, although it did peak at 1000A at the end of Quarter 3 in 2020. Thi5 would seem lo indicate a reduction in performance, however, we recognise that durlng the April 2020, which was the first lockdown period, we saw ASB cases spike to 10 tim8s higher than they were in Decemb8r 2019. This is an understandable issue as communities adjusted to the requirement to b8 Stay at home. However. we still maintained 790/0 satisfaction with our ASB support during that Quarter. This is a good example where we delivered a suddenly vastly expanded service, whilst maintaining an acceptable level of satisfaction for the same cost. We will use the lessons we learned from managing in the crisis situation to improve what we do as we r8turn to normality. Provldlng Great Homes This ar8a of KPIS is understandably our most extensive and would be the most familiar to people involved in social housing, as it covers our customer services. repairs, lettings and voids. In this area the pandemic restrictions hit hard during 2020 and for periods we could not carry our repairs. let homes or deliver our planning home improvement programme. Thi5 meant for Much of 2020 we could not collect the usual 5talistics on how we were performing. Page | 31 We did make sure we kept our tenants safe throughout and we ensured 95Vo of emergency repairs were d81ivered on the day they were reported, right through the year, which was well ahead of our 85°/o target. We ensured gas servicing continued 8nd delivered 3. gas servicing and repairs for an average cost of £161 throughout the year, which 15 below our £175 target. We also achieved same day gas repairs on emergency gas issues in 910/0 of cases, throughout the y8ar. Elsowhera in our great homes delivery we also maintained the qualily standards we sel in 2019. In December 2020 1000/0 of tenants were satisfied wth the standard of the new home they were offered, this is th8 same as December 2019. We also found 100Q/o of our tenants were happy with our allocations process, which is the same as December 2019. Th8 maintaining of high quality standards was achieved even though we had to change to remote lettings due to lockdown requirements. Bulldlng Organlsatlonal Strength In this area we look at KPIS for HR, Flnance, Health and Safety, ICT, Complaint Handling and other matters key to our core operational ability. Areas for Im rovement Th8 Trustees of BITh are committed to improving our homes to tha highest standards and recognise that we often run with higher day to day repair costs, as there may not have been sufficient historic investment in modernising our homes. This message has been relayed clearty by our residents in our many engagement sesslons and is the driver behind our enhanced planned maintenance programme and our revamp of our in-house repairs service. We recognise it will take some time for investments in new windows. doors, boilers, kitchens. bathrooms and roofs, to flow through to reduced day to day repair costs, but we have heard what our customers want and are committed lo delivering it. Constitution and Governance The Trustees have adopted the NHF Code of Governance and are satisfied that in all material respects, they comply with the code The only area where BVT vary tho standard practice within the code is that non-official Trustees do not serve a fixed Page | 32 temi of office. This was one of the issues considered by Campbell Tickell in their review of governance carried out during 2014. Campbell Tickell recognised that BVTS Deed of Foundation severely limits BW.3 ability lo enforce fixed terms of office. As explained below, up to 9 of the 12 Trustees are required to be descendants of George or Richard Cadbury and it would be very difficult to meet this requirement if Trustees were only allowed to serve for a certain period of time. Therefore Campbell Tickell recommended that adopts a system of Trustee election, rather than fix8d terms of office, in order that Trustees can ensure that their governance arrangements are in order. The first elections look place during 2015 and have continued each year since. Three of the non-descendant Trustee places are nominated by;" The Britain Yearfy Maeting of the Society of Friends The City Council of Birmingham The University of Birmingham The Trustees meet at least 4 times a year. The Trustees have a Governance Committee whose principal functions are: (a) To review the composition of the Board of Trustees and its Committees in terms of the required range of skills and experience contained therein. (bl To consid8r policies on governance matters and to monitor the implementation of these policies. (c> To consider the quality of reports. minutes, opportunitie5 for members to contribute, effectiveness of contributions and support from officers. (dl To consider Complian￿ with our chosen code of governance and compliance with the Regulatory Codes issued by the Regulator of Social Housing. le) To consider the outcom8s of the trustee appraisal proc85S Wlth particular emphasis on training and development needs of Board and Committee members. (fl To r8view the recruitment and induction procedures for new Board and Committee members. (g) To review the effecliveness of governanc8 arrangements within the Trust6 subsidiaries. Page | 33 The Truste&s have a wide range of experience covering business, finance. car8, health, environm8nlal and community affairs. Trustees have several sub- committees Covering: . Housing & Community Seprfices Estate Management Telford Estates and Development Finance Property Services and 08velopment Audit & Risk Governance Remuneration Trustees {who hold office durlng thls parlod wore) A R Allen FCA - Chair D J Cadbury MSC. DSW, CQSW R V J Cadbury CBE, MA N Cadbury BA, Barrister at Law C Bowman, AGSM (appointed March 2020) A McKittrick BA (Hon5), MPhil Prof. P Luml8y BDS, FDSRCPS, MDentSc, PhD. FDSRCS C Cadbury MA- Vice Chair M Cadbury MA, MSC, MBA, PhD (Appointed March 2020) Prof. J Nolan Bsc. MSC, DEnglHon), C.Eng, F.l.Struct.E. F.l.C.E. Councillor P Griffiths m.soc Sc. B.Soc.Sc,D.S.W., C.Q.S.W. C Coulson BA Hons Executlvè Team Peter Richmond - Chief Executive David Robinson BA {Hons), ACMA, CGMA, FRSA- Director of Finance & IT Annette Homer FCIH, FCMI - Director of Housing and Community Greg Lakin - MRICS, MCIOB. PG DMS- Director of Assets Arthur Tsang- Director of Community Helen Harvey, Bsc {Hons), MBA. FCIH, MCIPD- Director of People and Performance, and Company Secretary Page | 34 Employee Involvement In order to provide for consultation between management and 8mployees on matters of concern to employees, the Joint Consultative Cornmittee (JCC) was established many years ago. The Committee ¢ompris8S Staff members and managers, including the Chi8f Executive. JCC meetings are generally held at least three times per year and in 2020 the JCC discussed areas such as employee wellbeing, flexible working. agile working, gender pay gap, staff conference. pènsions and health and safely. Publlc Beneflt The Trustees confirm that they hav8 referred to the guidance contained in the Charity Commission,$ g8n8ral guidance on public benefit when reviewing the aims and objectives of BVT and in planning future activities. The Trustees have concluded that the BVT s aims and objectives contribute b8nefits in many ways, includlng the following: provision of rented houslng accommodation to th08e in housing need provision of community facilities and services provision of advice and support to residents Statement of Board'8 Res onsibilities In res re ort and the financial statements ect of the Board, Registered Provider leglslatlon requires the Trustees to prepar8 financial statements for each financial year which give a true and fair view of tha slate of the Group and BVT as at the end of the financial year and of the income and expenditure of the Group and BVT for the year ended on that date. In preparing those financial statements, suitable accounting polici8s have been used, framed to the best of the TrusteesJ(nowledge and belief, by reference to reasonable and prudent judgements and estimates and applied consistently. Th8 Trustees prepare the financlal statements in accordance with United Kingdom Generally Accepted Accounling Practice IUnit8d Kingdom Accounling Standards and applicable law), Applicable accounting standards have been followed, The Trustees are also required to indicate where the financial statements are prepared other than on the basis that the Group and are going concerns. The Trus18es are responsible for ensuring that arrangements are made for keeping proper books of account with respect to the Group $ and BVT,g transactions and assets and liabilities. and for maintaining a satisfactory system of control over the Group g and BVTL4 books of account and transactions. The financial statements Poge | 35 have been prepared in accordance with the ￿quirements of th8 Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. The Trustees are also responsible for ensuring that arrangements are made to safeguard the assets of the Group and BVT and hence for taking reasonable steps for th8 prevantlon and detection of fraud and oth8r l￿egUlarl118s. The Trustees are responsible for the maintenance and integrity of th8 group and financial information included on the 8oumville Village Trust website. L8gislation in the United Kingdom governing the preparation and dissemination of financlal Statements may differ from leglslalion in other jurisdictions. Polltlcal and Charitable Donatlons 8VT is a charitable organisalion and as such we made no contributions lo political organisalions. To furlher the charitable aims of BVT we made charitable donations to other Charitable Organisations who have sorne connection lo the Group, of £42.197 (2019: £16,818) Alongside this Bwf offered Partner Organisats'ons, who furthered our charitable aims, accommodation that had equals a benefit in kind donation valued £19,800 {2019 £19,800). Dlsclosure of Informatlon to the Audltor Trustees who wer8 in office on the date of approval of these financial statements have confirmed, as f8r as they are aware, that there is no relevant audit infomation of which the auditor is unaware. Each of the Trustees have confirmed that they have tak8n all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit infomats'on and to establish that it has been communicated lo the auditor. Audltor The Trustees resolved that RSM UK Audit LLP be reappointed as auditor. RSM UK Audit LLP has indicated ils willingness to continu8 in office. Internal Control and Assurance Statement This statement sets out th8 evldence officers have collated on the effectiveness of internal controls throughout 2020. Bvf's system of intemal controls encompasses a number of elements that together facilitate an effective and efficient business, enabling BVT to respond to a vari8ty of operational. financial, and commercial risks. These elements are: Page | 36 Policies and Procedures Business Planning, Budgeting and Performance Managementl Regular Reporting Strategic Risk & Assurance Register Operational Risk & Assurance Registers Audit & Risk Committee Internal Audit Programme External Audit Prograrnme Third Party Reports Compliance with relevant legislatson Pollcles and Procedure8 A series of pollcles and other documents underpin the internal control process and writt8n procedures support these policies and documents wh8r8 appropriate. These include rules, standing orders and financial r8gulation5 that are regularly reviewed and approved by the Board. They are supported by other major documents and practices such as the Business Plan, codes of conduct, a performance management framework, management delegation systems, employment contracts, appraisals and monitoring processes and on8-tOThone reviews During 2020 w8 continued to a review a significant number of policles. with a particular focus on health and safety policies. We continue to carry out process mapping to id8ntify where efficiency and effecliven8ss could be increased. This was initi811y with BPS but extended to Estates SeNices as part of carrying out its full service review and has been applied lo aspects af BW'5 asset management activities. Buslness Plannlng, Budgetlng and Performance Managemenu Regular Reportlng The annual business planning and budgeting process for 2020 was based on achieving the strategic objectives in the Corporate Plan and managing the key risks that might impact on achieving this. There was r8gular reporting of both risk and perform8nce across BVT throughout the year. Standardised report templates are in place to ensure that information is presented clearly and consis18ntly across key issues. A robust, business-led approach to a quarterfy performance reporting cyd8 and reporting from a suite of KPI measures is firmly 8Stablished and includes a specific suite of KPIS for landlord health and safety compliance. In 2020 BVT again enhanced financial planning, with a complele rebuild of the 30 year financial plan. This included changing assumplions to better reflect the pandemic and its potential longer term impact. There has been complete automation of BW'S financial covenants, so the plan and all the various sensitivity Page | 37 reviews and stress tests immediately show the impact that drifting from the plan could have on each Bank covenant. These enhancements have allowed us to strengthen treasury planning and Trustees were able to identify clearly what refinancing is required for known needs and also to estimate how they could allow opportunities to be accommodated as they arise, in the most cost effective way. The advanced str8SS t8Sting we have been running for some years was updated, but 2020 saw the addition of d8tsiled up to date valuations of all BVT non-housing stock. This allows Trustees to develop even more detailed mitigation strategies and to assure themselves that we do not risk our core social housing stock. The detailed stress testing run ha5 enabled Trustees to understand Bvf's financial position clearly and also understand the impact of various financial scenarios on its financial viability and has resulted in very clear indicators for ensuring: lal there is access to sufficient liquidity at all times Ib) financial forecasts are based on appropriate and reasonable assumptions (c) effective systems are in place to monitor and accurately report on the delivery of our plans Idl the financial and other implications of risks to the delivery of plans are onsider8d (e) we monitor, report on and comply with our fUnderS￿0Vanants strateglc Rlgk & Assurance Reglster A Strategic Risk & Assurance Register is compiled and updated by the Executive Team to help lo facilitate the identification, assessm8nt and ongoing monitoring of risks significant to the organisation. also considering the need for further mitigation. The Register has been presented each quarter in 2020 to the Audit & Risk Committe8 and annually to Trustees, with a Risk & Assurance Dashboard being presented to them each quarter so that they mainlain ￿gUlar oversight of slratègic risks. An annual self-assessment carried out during the year against the Chartered Insts'tute of Internal Auditors IIIA) Risk Maturity Framework to establish 8W's risk maturity on a scale from risk naive to risk enabled showed that that BVT has relained its 'risk managed, rats-ng and ha5 moved slightly more towards a 'risk mature, rating. Operational Rlsk & Assurance Register5 Operational Risk & Assurance Registers are in place ané are updated quarterly by the relevant director to help to facilitate the identification. a55essment and Page | 38 ongoing monitoring of risks significant to the department, also considering the need for further mitigation. The registers have been formally reviewed by the relevant committees in the last quarterof2020 and were presented to Audit & Risk Committee for information and assurance, in accordance with our Risk & Assurance Strategy in April 2021. Audlt & Rlsk Commlttee The Audit & Risk Committee alert Trustees to any emerging issues or concerns it has. In addition, the committee oversees intemal audit, ext8mal audit and managemant responses as required in its ravi8w of internal controls. The committee is therefore w811-placed lo provide advice and assuranc8 to Trustees on the effectiveness of the internal control system, including the organisation's system for the management of risk including the scope and effectiveness of the strategy. policies and procedures. Since th8 Committee was sel up in 2017 it has developed ils role and b8come an established part of the oversight of internal controls. It m8t 4 times during 2020 and also held a joint m88ting with the Finance Committee. The minutes ofall thes8 meetings have been presented to the Board of Trustees. As part of good govemance the Chair of this Committ￿ h8s met with both our Extemal and Intemal Auditors outsid8 of the commfftee meetings lo g8in indepgndent 8ssuranc8 on B VTS controls over its business. Intèrnal Audlt Programme Internal audit is an important element of the internal control process. Apart from its normal risk driven programrne ofwork, including r8commending irnprovemenls lo seNice areas, intemal audit is responsible for aspec15 of the annual review of the effectlV8ness of the internal control system within the organisation, giving an independent objective assessment of the 8ffectiven8ss of the risk management and control processes operating at BVT. The internal audit programme for 2020 was fully dellvered with the exception of the value for money audit, which was deferred to allow a value for money project to complete Pfior lo auditing. This programme of audits included a follow-up on the recommendations that re5ulled from the GDPR audit that took place in 2019. The follow-up found that there ware two recommendations outstanding relating to the completion of the Data Inventory and the electronic and offsite storage files that required reviewing in line with the Document Retention Schedule. Thes8 recommendations are inter-linked and one cannot be completed without the other. The original targel for completion of these recommendations was 31st August 2020, this was then revised to 31 st December 2020 following a review of progress and resource availability. Page | 39 The review of electronic files has now been completed and we have a new Shared Network Drive which is clear of all obsolete information. New protocols are being devaloped to ensure the effective ongoing management of this shared area. A significant amount of progress has been made with the recalling and reviewng of our offsite storage files (836 boxes recalled and reviewed so far), with 217 high priority boxes still to review before they are scanned onto our electronic filing system. The Data Inventory will then be updat8d wilh those files we are Continuing to keep offsite. Whilst work is continuing beyond the stated deadlin8 of 31st December 2020, we wor8 hopeful Ihat it would be comp18t8d c8rtainly before the end of Q1 2021, however given the nature of the task and the current COVID Operating environment it is more likely that this will now be completed for Q3 2021 Mazars audit opinion was as follows." - In our 0￿.n￿n, Boumvi118 Villagè Tmst h88 in p18ce an appmpnate framewo￿ for Idenlifying, evaluating and m8n8ging the signif￿ant risks faced by the organisalion. In r8sp8cI of the argas of activity whKh w8 reviewed, and subject to lhe weaknessas identified and reported in our internal audit reports Boumvi118 Vi118ge TNst has an 8dequate, effective and reliable framework of int8m81 control and effective risk man8gem8nt8ndgov6rn8nce proc8ss8s which pmvides ￿8$Onable assuranc8 r8garding the effective and eIr￿len1 achi8vement of the org8nisalion's objectives. No instances of actual or susp8¢ted fraud have been encount&red during our audit work. Audit & Risk Committ88 look a robust role In temis of ensuring scrutiny and oversight of both the tracking and implementation of internal audit recommendations through regular and more detailed reporting of any outstanding fundamental recommendations as part of the quarterfy Risk & Assurance reports. External Audit External audit provide5 feedback to the Trustees on the operatlon of the intemal financial controls reviewed as part of the annual audil. In April 2020, RSM UK issued their latest Audit Findings Report, based on Bvf's 2019 financial statements. For the sixteenth consecutive year, Ihey reported that there We￿ no internal control weaknesses that they needed to highlight to Trustees. 8￿. BVD and BWHS all r8C8ived a clean audit opinion and there have been no disagreements with management regarding financial reporting for the purF)05e of issuing the audit report. Page | 40 Thlrd Party Reports External assessments and advice provide additional and useful assurance. Major sources include regulatory judgements., Care Quality Standards (CQC); and indeper)denl advice around governanc8, treasury management. health and safety and supported housing. Extemal expertise and impartiality plays an important role in in supporting Bwf to review aspacls of its work. During 2020 BW usad axternal consultants to support review of Bvf's Vfm Strategy, carry out assessments of our community spaces and health & safety checks, capital valuations of commercial and agricultural portfolios, building insurance valuations. commercial marketing reports, negotiating new comm8rcial leases and commercial rent revlews In terms of Care & Supported Housing, Sellywood House was last insp8Cted by the Care Quality Commission {CQCI in November 2019. The overall rating for th8 service was 'Good' across all assessment areas. Th8 Sellywood House report was received by the Housing & Community Services Committee. There w8re no inspections in 2020 due to the coronavirus pandemic. In March 2020 the Regulator for Social Housing IRSHI regraded Bw's govemance rating from G2 to G1. 8￿'S G1 IV1 ratings were both reconfirmed in December 2020 following the RSH'S stablllty checks. Compllance wlth relevant loglslatlon We confim our compllance wlth r8levant18gi8lation in a number of ways: monthly KPI monitoring ( a number of KPI targets are set to achieve18gal compliance) regular review of policies to ensure they reflect curr8nt18gislation constant scanning of trade press for updates and altend8nce at major conferences horizon scanning as part of monthly risk discussions to Id8ntify any new 18gislalion internal and extemal audits relevant employees are required to mainlain professional accreditation, which includes remaining up to date with relevant statutory requirements use of legal advisors for more complex legal issues that are either beyond the professional capacity of BVT employ88s. or to seek an opinion on our interpretation of legislation and attendan￿ al legal briefings exlemal competent advisor for health and safety list of relevant legislation provided annually to support this statement Page | 41 There is a section for compliance with relevant legislation in BW'5 stsndard report template so that any issues or concerns are clearly highlighted to Trustees and Committees. Other Polnts to note Coronavirus Pandemic For the majorily of 2020 was managing its activities alongside responding to the Coronavirus Pandemic. Throughout this period Trustees were kepl fully briefed by setting out the key risks and how these were being managed with additional monthly meetings during quarter 2. Along with other social landlords, B provided 4-weekly Coronavirus Operational Response Survey returns to the RSH. The RSH reports ￿suIt1ng from each of these surveys showed that the impact on BVT was similar to other landlords. Our recovery from this impact has been positive, with services at near normal levels by the end of 2020. Effectivene88 of Controls Our risk and control mechanisms are generally eff8Ctive. This annual intarnal controls certification process has not highlighted any issues that were not previously identified through normal management processes. The Executive learn has reviewed the effectiveness of the system of internal controls, including the sources of assuranc8 agreed by the Board. Th8re Is sufficient evidence to confirm that adequate systems of internal control are in place and operated throughout the y8ar. Reserves All surpluses genorated are reinvested to meet the Groups principal objectives, therefore, the reserves that the Group has accumulated hav8 b88n largely invested in its housing and other propertie5 and are not represented by cash balances. The rationale for certain restricted r8serves is explained within the Accounting Policies on page 59. Fixed Assets Details of the changes in fixed assets are Set out in note 7 to the financial statements. Page | 42 Information Regl$ter8d Offlce 350 Boumwlle Lane Boumville Bimiingham B30 1QY Homes England R•glstratlon Number L0702 Regl8ternd Charlty Number 219260 Audltor RSM UK Audit LLP Chartered Accountants St Philips Point Temple Row Birmingham 82 SAF Bankers Lloyds Bank PIC 142 Edgbaston Park Road Bimlngharn B152TY Sollcltors Eversheds LLP 115 Colmore Row Blmiingham B3 3AL Page | 43 By order of the Trustees Helen Harvey Secretary 10th June 2021 Page | 44 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BOURNVILLE VILLAGE TRUST Oplnion We have audited the financial statements of Baurnville Village Trust (the 'Association'l for the year ended 31 December 2020 which comprise the con501idaled and Assjciation Slatement ol Financial Activities. the Balance Sheet, the Cash Flow Siatement and notes to the financial statements, including significant acBoLJnting policies, The financial reportiny framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards Including FRS 102 "The Financi81 Reponing Slandaid applicable In thé UK and Republic of Ire13nd' (United Kingdom Generally Accepted Aecounling Practice). In our opinion the financial statements.. give a true and lair view of the 518le ol the group and Association's attairs as al 31 DeceTnber 2020 and of Ils it)come and expandilure lor the year then ended.. have been properly prepared In accordance with United Kingdorn Generally Ae¢epted Ar.counling Practice, have been prepared In acGord3nce with the requirerTients Ol the Charities Act 2011. the Housing and Regeneration Act 2008 and the Accounting Dire¢tion lor Private Registered Providers ol Social Housing ?.019. Basis fnr opinion We have beeii appointed as auditors under section 151 of the Charities Act 2011 and report In accordance with regulations made under seciioii 154 01 that Act. We conducted our audit In accordanre willi Inlernaliona1 Standards on Auditing IUKI IISAS IUKII an applicable law. Our responsibilities under those standards are further described In the Audiltsr's respDnsibi11lies lor the audit ol the financial statemen15 section ol our report. We are Independent of the Association in accordance with Ihtr ethic31 requirements that are relevant to OLir audil ol the financial $13lements In the UK. includirig the FRC'S Ethical Standard, and we have lullilled our other ethical responsibilities iri accordancè with these requirefflents. We believe thal the audit evidence we have obtained Is sullicienl and appiopriale lo provide a basis lor our opinion. Conclusions relutiny to going concein In aLidiling the financial slatemenls. we have. con¢luded Ihal the Trustees use of the goino concern basis ol aCCOLinling IN Ihe preparalion of the financial siatemenls Is appropiiale. Based on the woi'k we have pertormed, w& have not idenlilied any material uncertainties rel8ling lo events or condition5 1fv81. individually or colleciively, may cast significant doubt on Ihe Association's ability to continue as a going concern lor a period of al least twelve months from when the financial Statements are aulhorised lor 15sue. Our respon5ibilibes and the responsibilities of the frustees with respect lo going concern are descnbed in the relevant sections of tI115 repDrl. Olh8r Inforniatloii The olher Information Gomprises the Inlorrnalion Included In the annual report, other than the financial 51alements and our audiloi s report Ihereon. The trustees are iesponsible for the other Information contained within the annual report Our opinion on the finaiicial stalernents dDes not cover the other information and, we do not express aiiy lorrn ol assurance conclusion thereon. Page | 45 Our responsibility is lo re8cI the other inlorrnalion and. in doing so, consider whether the other inlom)alion Is materially incon513tenl with the financial statèments or our knowledge obtained in the course of the audit or othetwise app8ars to be materially misslaled. If we identify such matèrial inconsistencies or app8fènt matèrial misslalements, we are required to dgl8miine wh8lh8r this gives rise lo a material misslatemenl in the financial statèm8nls themselves. If, based Dn the work we have performed. we conclude that there is a matèrial m1551alemenl of thi5 other inlormation. we are roquired lo report that fact. We have nothing to r8POrt in this regard. Mattors on whlch w• ar• requlr8d ta roport by exception We h8ve nothing lo report in r8spect ol the following mallers where the Chari1185 Act 2011 require5 113 to report to you if, in our opinion.. the information given in the Trustees, Report Is inGonsislenl in any material respect with the flnanci81 sl8lements', or sufficient accounllng record5 have not been kepl.. or Ihe financial slalemen15 are nol in agreement wllh the 8CCOUTillng Tecord5 and returns., or we have not received all tho information and explan81ion5 we require lor our audit. R•spon$lbllltles of Trust¢•$ AB explained MO￿ lully in the Tru81885' responsibilities stalernent. 591 oul on pagg 35 10 36, the Trustegs are responsible for the preparation ol the financial 6lalem6nls and for balng satisfied that they give a Iruo and fair view, and lor such inl8rnal control as th8 Trustees d8tarrnin8 Br8 nec8ssary lo onable lh& preparation ol linancial slalemenls that are Irge from m8leiial mis81alem8nl, whelhar duè lo fraud or errw. In preparing the financial 5taternents, the Trustees are responsible lor assessing the Association's ability to continue as a going concern. disclosing, as applicable, mattgrs r8lat8d to going concem and using the going concern ba515 of accounting unless the Trustees either intend lo liquidate the A88ocialion or to Gea59 operations, or have no reali81ic att8m8tlV8 bul lo do so. Auditor's r•spDnsibilities for the audlt of the financlal statements Our objgclive8 ar8 lo obtain r8a80nable assurance about whether the flnancial 8tglements 88 a whole are free from materi81 mi88t81emenl, whether due lo fraud or error, and to issue an auditor's report that includes our opinion. Rga$on4blg assur8nce is a high level ol assurance, bul is not a guarant89 th818n audit conducled in accordance With ISAS IUKI will always detect a material mi5Stal6ment whgn it gxists. Misst8lem8nts ¢on arisg Irom fraud or error 8nd are considered material if, indiwdu8lly or In Ihg aggrega18, Ihgy could reasonably b8 8xpecled lo Influence the economic decisions of user5 taken on the b88is ol these finanGial statemgnts. Tho extént to whl¢h tho audit was considered capable of detoctlnp Srregularlt108, In¢luding fraud Irregularities are instances of non-complrance wlh laws and r8gulations. The obj8ctlve8 of our audit are to obtain suificienl appropriate audit ovidence regarding compliance with laws and r8gulo1ion5 that havg a dlr8ct effect on the delerminalion of material amounts and disclosure8 In the financlal statements, lo perform audit procedures to help idenlify instance8 of non-compliance with other laws and regulations that may have a materi81 effect on the financial statements, and to respond appropriately lo idenllfied or su8pect&d non-complianGe with laws and regulallon8 identified during the audit. In relaiion to fra￿1. the oblectiV88 of ouraudil are to identify and assgss the rfsk of m8t8rial misslalemenl of the financial 3talements due to fraud, to ob18in sufficient appropriate audit evidence regarding th Pa8e | 46 assessed risks ol matgriBI misslatèm8nt due lo fraud through designing and implementing appropriate responses and to respond appropriatèly to fraud or suspected Iraud idenlrfied during the audlt. Howev8r, il is the primary responsibility of management. with the oversighl of those charged with governance, lo ensure thal th8 anlity'.A operations are conducted in accordance with the provisions of laws and regulations and for the prevontion and d8tection of fraud. In identif￿ng and assessing risks of material misstatement in r05pe¢l of irregularilie$, induding fraud. th8 audit engagement 18am'. obtained an undgrstanding of tha nature ol tha soclor, Includlng tho lagal and regulatory Iram8work that the AssocAalion operates In and how th8 Association is complying with the legal and regulaloTy fram8work', inquired of management, and th080 charge¢J with governanc8. about Ih8ir own Id8ntllic81ion and as38ssmenl of the risks of irregul8ri1188. including ony known actual, 8Usp8cled or alleged in81ance8 of Iraud., dlsCU5sed mallers 8bout non TANGIBLE FIXED ASSETS- HOUSING PROPERTIES Housin9 properb88 8r8 properties for the provision of social housing and are principally proper￿e6 available for rent a 8hared ownership. Completeil housing and 8h8red ownership properties a￿ stated at cost less aeeumulated (Jepr8ciatloTh and imp8irrrKgnt k)$ses. Agricutturo, commerclal, ecthmunlty, eommunal, and Offi￿ buildi￿￿& Bre 8tsted at Cost le88 accumulated depreciation and impairment losses. 98t Includes the c06t of acquiriThJ land and bulldings, Br￿ expenditure incurT8d during the developrnenl period. Work8 to B￿StIng properties whtch repla￿ 8 ¢ornponent that has be8n treated seporately lor depredBtlon purposes, alDng with th058 works that enhance the economK benèfits of tho &ssats, am c8pitBli8ed 98 improvements. Such enhaThcern8n18 can occur bf Improvements rosult in gilhor.. An increa88 In rental incom8', A m918rlal reduction in future maintenance CO818,' A 3ignfficBnl e¥tenBlon lo the Ilfe olthe property. ShBr8d own8rBhlp prcyert166 are split proportionally b8fv488n fix8d 8888ts and current a68818 based on the 618ment relating lo exp8Cted first tranche sale8. The fir61 tranche proportion is classed as a Current assttt and rdated 8algS proceèds are Included In turnover. The romalning alement 1$ ¢1o¥¥eiJ ps a fixed as8el and included in hou6ing prgperties 81 c061, less any prowsions needed for depre¢i81ion or irnp8imion¢. Where Ihfr lir81 Ir&nche has befrn sdd p￿or lo the ac4uisilion of prop8rti88. th988 are included in fflxed a89èts only. SOCIAL HOUSINGAND OTHER GOVERNMENT GRMTS Where deveh)pments have bèan financad wholly or partly by social hou61rtg and other grants, tho amount ol th8 grant recolv8é ha# btèn Includgd 88 deferred income and recognls¢d In Tumover over Ihg o¥1imaled u8eful life of ¢he 8550Ciated a$$¢t Blruclure Inol landl, under Ihg hccw818 fT¥)dg1. Soclgl HouBing Granl ISHGI received for items of c08t afe wrillen olf in the Sialtsment of Cornprehgn8ive Inc¥)me as part of Tumover. W￿n SHG In respect of housing prop8rtie8 in th8 Cournt of e0n$lr￿tw ¥￿eed8 the tr)tal c081 to dale ol th088 houslng propgrtieB, the eXC8B816 8hown as a eurrent118blllty. SHG must be reeyel8d by tl)è As8OCi8ts'on under cgrtaln condltkjng, Ir a property is sold, or If another relvvant event t&k8s placè. In these ¢a¥es, the SHG can be us8d lor project8 approved by Ihg H￿¢5 &nglBnd. However, SHG rnay hgve to be repaid if certain conditlOTIS are not m8t. 11 grant IB not r8quSred to be recyckgd or repalé, any unhmortised graTrt18 recognisèd as Tumov8r. In c8rt8in drcum8tances, SHG may ba ropgyabl8, and. in thAt •v•nl, 18 rettsrdèd as Iubtsrdlnatgd unsecured repayable debt. Fr88hold land or 8888ts undèr constructlon are not depreclated. The groi¢p 8epar8t•ly id•nlifits maiJr cornponen18 01 Ils hou81ng propert188 8nd ch8rgas dapraciaiion 10 88 to vrrite. down thè cosl of ￿ch component to Its estimated r68idu•l value. on B ¥tr8ight Ilne b￿13 over the foll￿n9 years., Years Slwclure Kilehèn Bathroom Windows C8ntr81 Hèating Bgilers Rewiring Front Doors Roots rh)or Entry Sytt¢rn¥ s*￿re￿O 100 -150 20 30 30 30 15 30 30 15 8VT consid8T8 ea¢h commgrd81 agricultural property And assat indivldu8lly and 8ppli88 the most 8ppropri8te depr8cialion rale to the asset, ba58d on a fair asse58rn8nt of its useful gconcmic Ilfe. Page 54 Bournville Village Trust Group ACCOUNnNG POLICIES Icontlnu•dl The Group have revl8weé tts deprecialk)n policy and ¢haryJed Ihe u8eful economic lives of kit¢h8ns, ￿1ndowS. central hèaling 8nd botlars. ThL% wa8 part of a complete rewlew of our asset management strateoy encompassing b8St practice nd rev￿1n9 life cycles of ttsmponents based on changes in technology and product quality. W8 8180 IiBtened to the Vie￿ ol our tenan18 hthich led to a de¢i8ion to retlace compo￿nts g f￿r¥ frequent ba818. The Group 8189 introduced r8wriThJ, thjors. door entry 8yStems and roofs 85 n8w componen15 as our ass81 m8nac8meTht Strategy h1gh4wJht￿ Some significant B￿nd on these 8re8 8 a8 part of our planned maintentnce Cyc￿. Hlstorically expandrturè on Ihesa cornponents has been ol a remedial nature and therefo￿ no prior year 8dju¥tm8nt w&$ n88ded on th8 inlroducb'on of th888 as naw compon8nt6. Th8 introduction of those componen15 has increasad th8 d8pr8c18￿.0n chargè by £4.572 but reduc￿ the overall charge lo the Group and Tru8t Statement of Comprehenslve Incnme by a net of £101,IX)8. The table beknv 8how8 the compari80n ol origln818nd r8vi8ed u8eful economic IIv88 and Ihe irKrga88 in daprèciallon In th8 current y8Ar Ak a rèsult alt￿ L*èrKJ•. Revl$8d ChtrJinal UEL UEL Incre888 in Depr8ciatlon Group Cornwngnt Klt¢hen6 Wln(k)ws Central Hegting Boiler8 25 40 40 20 611,970 190,319 133,638 601,439 1 S37 366 15 Rwi8od OrPJlnal VEL UEL IrKroa8a In Dèpr8ei8tion Tru8t ComF(Jnent Kltthé Wlndo%Yd C8ntrBI Hèaling Boil*M 25 40 40 20 20 30 30 15 543,953 165,000 125,085 557,533 1391 $51 IMPAIRMENT OF FIXED ASSETS An 86ses6ment 18 madt At éach rèporting dal* ol wha(h•r thara 8N Indiealons that a fixed a566t lirncludlng housirvd properties) may b8 Impaired or that an Impaimient loss previously recogni3eé has fully or partially rovers￿. If such lTrJic8ts'tsnB 9￿¥1, lh¥ group g¥tIMat￿ the r8¢Ov8rab￿ amount ol the auat. Shortfalls bglween th¢ ￿rryIng valu? of fixgd a¥89ls and thair reeov•r&blo Arnounts, baing the higher of lair v8lue les8 costs to Sell and value.in.use of the a58et based on it¥ 8er¥ice polential, Bre recognisgd 98 Impairment 1098es In the Inctsmè and •xpèndltura account. R8cogniBed imp8irm8nt 105885 are rev8rs8é if, arKI only il, the reasons for the imp8imient loss h8ve ¢8a8ed ¢0 atpty. Reversals of Impalrment losses are recc¥Jnised in 5ncome and expendiiure. On reversal of An Impairmant k)sB, the depr8aation or amortisation is hdjustgd to allocato the assgt s ￿viSed carrylng amount Iless any residual valu?) over ilg remaiDing ugeful life. Page 55 Bournville Village Trust Group ACCOUNTING POLICIES Icontlnuedl OTHER TANGIBLE FIXED ASSETS Tangibla fixod 98¥91s are initially measured at cost. net ol depreda￿on and any Impalrmènl *)ssèg. Depreclaiion 1$ prowded on 811 tangible fixed 8s$81s. other than fieehDld land and inv851rn8nt properties, at ra18s calculated lo writ8 off the cost of each osset to rt8 esllmated residu#l value on a 8traight line b&si8 over rts e￿cted useful life a8 folbwB'. Computer E4uipm8nl Fixtu￿3 and Fittlngs 4 years 4 yèttrs Residual value 1$ calcu18ted on prices prevailiry al th8 r8￿rt￿ng d818. 8ft8r 8Stim8ted c08ts of dlsp08al, for th8 a8Bet a8 It wew al thè bge and in tht condition expected &t the end of its useful lile. PROPERTIES UNDER CONSTRUCTION Prop8rt188 in the couF¥e of construction are c8rrl8d 8t COBt, 1888 any Klentilkgble Impairment 1088. Co8t Includ•1 professional 1889 and other directly allriLiulable c06t5 that are n8ce558ry to brlng the prop8rty tr& its OP8rating condltion. D8preciatKJn commence8 when the pr9Pgrties gr8 rgady for their intended use. BORROWING COSTS Borrowng costs ar8 èXPM8•d Ai Ineurred unl888 they 8fe c8plt81kn¢J 51 dSrectly attn"butable to a d8vebprnenl schem8. Borrowing costs are capil8li68d from the start ol construciion through to thè limo the development ij ￿M￿919d and h8nded 0¥8r to management. C0818 diwclly eonnacted *ith Ihg rBl¥lng of finan￿ are deduded from ban8 ￿tten off ovenly over tho Ilfv of the loan In the Income and expendllure 8ccount. FIXED ASSET INVESTMENTS Th8r• arn two olern¢ntB to fixed asoet inve81rnent8. InveBlment of Sub81dlary reprn8•nl8 the falr valua of the proeoads for the acquig11ion ol BWHS as &14 J8nu&ry 2011 wh8n the organisBtion b8carne a subsidiary of 8￿. This becarne deemed cost golng fortvard. The THFC Intsrest Servlce Reserve equate8 to an Invastment raqulred undor tha lems of our ThFC ljan and the fund8 are currenuy Invested in bank deposlt accounts. Th8 5nteresl r08èrvè 18 silltd at eoBt ￿th any accrued interest being credited to thts Jlatemenl of wmprgh¢n¥lve income. STOCKS AND WORK IN PROGRESS Stoc*8 and work Sn progress are 8t8tgd 8t Ihg low•r of eo#t and net rgall¥ablo valug. Lontrtèmi projects, notably the Lightmoor project undertakon Ihrough Bourrnvlllè Vlllog¢ Dèvalopmenls are asstBsod on a wntracl-by-contracl ba81s and reflected In the Incoma and Exp8n4llurg A¢count by re￿rdIng tumover and ￿lated costs 08 conlrael Activity progr88588. Tumover 18 88certBined in a manner 8ppropd8te to Ihe slag8 ol completion of the ¢ontr8Ct, and crv(Jit taken for 8urplu8 eorned to dale when tho outcoma ol Ihe eontraet can bè as5t8Std w￿h roasonablè cgrtainty. The amount by which turnover èxcèads payments on account is ¢18¥8ified a$ "amunl8 re¢ov8rBble on contracts and includ8d in d8btors,' lo the gxienl Ihat payments on account 8xcg8d relev8nl turnover, lh6 exc688 18 in¢lu¢Jed 88 a creditor. The amount of long tem contr8cls. at cost net of armunt5 tr8n5f8rr8d to cost of SB188, 1881 provI61on lor fores6ègbla108888 and payments on ￿￿oUnt not matched ￿th turnover. 18 Included wllhln 8tock6. Page 56 Bournvllle Vlllage Trust Group ACCOUNTING POUCIES (Contin￿dI VALUE ADDED TAX Boumvijlg VillAg$ Trusi aThJ Boumvlll8 Villaga Davok)pmonts Ltd are both rOg￿ter￿j forVAT purpoBes. Boumvilb Villago Trust 18 only &bl8 lo r8e0￿r a rglalivgly sm811 wreanlagg olVAT on Its expendlture, as th8 rnBjorily of it8 iftcome IB 8X8mpl for VAT purpos¢8. Thgrgforg, ex￿ndItur¥ 18 81*)wn indusivg ol VAT with the inpul VAT recovered éeducled from relevant expendSlure. BOUM￿lIe Vlllag8 Oevelopments Limited ￿ able to r8cover Bll VAT on it8 8XP8nditur8. AB B result. exp8ndilufe is $tM)wn net ofVAT and VAT recoverbble shown as a debtor. Bournville Works Htyjsing Soclely Is not registered for VAT purpKJ9es and18 therefore unable to recover any VAT on bt8 expenditure. Therefore, expendilure l¥ shown Inclu¥1￿ of VAT. LEASES ¢TrERATING LEASES Annual rentals are Charged to Income and expendilurg 9 8trnl9ht Ilro bo$15 ovorthe lea￿ tem). EMPLOYEE BENEFITS The co818 of 8hort.t8rm •mployee b8nefth are re¢ognlwl a8 011gbilily and an expen￿. The be&1 e81im•te of thtr axpendilure requlred to settle on obligation for lerminalion benefits IB reccgni8ed imrnedialtty a6 an ewen6e when the group 1$ d$rntsnslrably wmrnlttod to Iomilnalo th9 gmploymont of an employee or to provlde tefmhna￿0n benefits. RETIREMENT BENEFITS D8fin8d contribul'on planB For d8ffn8d eontdbutk)n 8cheme8 the arrK)unt charged to Income and expendllure 18 tho conldbullorffj payabl¢ In tho yeor. Differencos behyeen ¢onlritsulion8 pay8blt In th• ￿&r and contrfbullon# 8elu8lly p81d are a8 either aecru8ls or prepayrnenl8. Dafirbod b8n•fil plans The Group p8rtiClP819s in g mulll*mployar d•finid b8naflt Jchomè. th8 Cadbury lAC￿d81•Z P8n8lon Fund. For tho Cadbury Mondelw p￿810Th Fund, eontrfbulions are rocogni8ad In Ineorne and expendlture in the perfod to which they relate ao there is Insufficient Inform81ion availablè to U8è d8fin8d bènÈlt Atcountlng. A liabillty 18 recognlsed for conthbutions aflslng from an 8gmmenl wlh the rnulll-employei plan that determin66 how the gr(￿p will fund a dtficit. Contrtbulion¥ Pr¢ dig¢ounlgd when thgy are not axptscled to bè sottlad wholly within 12 months ol thg pedod end. The rate uued to discount the contributions to their pres8nt v8lu8 is b88ed on market yieldB ts high qualily ¢orwr&ts bond8 with termB 8nd curr•ncK88 CO￿181+nI *llh thos8 at thg end b8nrfit obli￿110￿. Pjoe 57 Bournville Village Trust Group ACCOUNTING POLICIES (cont1n￿*d} SALE OF HOUSING AND OTHER PROPERTIES AND THE SALE OF LANO BVT has 1101801d any housing or other properties for the purpJ58s of fvnding ngw dev81oprnents. Wo do nol, the￿kn, f6cognSsa the cost and Burplu598 on 881¢¥ a8 0￿ra￿'r9 Acthvity. FINANCIAL INSTRUMENTS The Sctiety h88 elecled to apply the prO￿810n8 of sect￿)n¥ 11 Basic Financial Instrumenls-' qnd Settion 12 Other Finand81 Instruments I￿U$S￿l FRS 102. in lull. to 811 of its financial in8trurneTrtB. Financial assets hnd financial ligbilltig¥ ore r9￿gnised when Ihe Group becom88 a paty to th8 t))ntraclual prow8ion8 01 th8 in5trurn8nl, and are off$et only when the Group currontty has 8 lagally anlorcoabla rlght to sèt off tha r8eognis8d 8mount8 and intends to settle on a net basls, or to rtr81ise the assttt gnd setlle th8 liability simultoneousty. Flnan¢i81 DB8ets D8btorB Rentsl, trode, group hnd othèr debtors which ar8 r8C8ivab18 ¥￿thIn on8 year and Ithich do not constilvte 8 f+nanring trgngadion arg Initl8lly mea8ured at tho tran88clion prKe. Rental ¢Jablors arts $ub8equenlly measured at amortis6é cost. belng the tron8acUon pfice leBs any amounts 98ttltd and Any Impairment10¥8g¥. Whera tho 8rrangemènt ￿th thè dabtor wn¥litute8 g fln8ncing transaction. the debtor 18 initsally ond sub88qu8nUy m888ufed at tho prgwgnt Vglu? ol fuluro payments dl8coun¢ed at a market rate ol Interest for a 81mllar debt Sn8trument. A provi31on for Impalrmenl ol debtors 18 88tabllsh8d wh8n thafè Is obl•clivè 8vhlèncè that thè Amount$ dug will not b¥ collecte(J according lo the origln81 toms ol thè eontrACt. Impairment 1058gB are recoanlsed In proflt or 108s for the •xee8B ol the ¢?rrying valu? of the r8nlal or trade debtor over th8 pre88nt value ol the future cash flows tli8countsd u8ing th8 orlglnal effective intere81 rate. SubBequenl rav8rsa18 of an Impalrm•nt loats that oblècuvtly rèlats to an 8vènl occurrfng oher the Impalrmgnl1088 was r•cyJgni••d, am reccgni80d immedlately in proflt or IQBB. Pag9 58 Bournvllle Vlllage Trust Group ACCOUNTING POLICIES Icontlnwidl FIn￿￿la1 liabilitie8 Trod8 credrtors Trade, group and other cr•(Iltors payable wlthln one year that do not constitute 8 financilva tran88Ct#Jn ar8 I￿￿'al￿ ffle88ured al th8 tronsaction price and Subsequently measured at amortised eost, being the transaction price les8 any amounts s8tlled. whe￿ the arrangement wth a cre(litor constitute6 8 financiThJ tran￿cts.0n, the credrtor 13 InitlBIIy and 5ub88quenUy measurgd at tha present valu• of lulure payments di8¢0unled at a rnarket rale of interest for a similar instrurn8nt. Botrobwngs BoThngs are Initt<y recoJni¥ed ot thg trpn8arUon pr￿, Indudlng tra￿aCt￿)n c08t8. and 8ub88quontly rne88ured at amortlsed cost u81ng the effective interest method. Interest 8xpen88 is r8CO9ni88d on th8 bas15 of the effective intefft8l method and is includèd in intorest payable ané olh•r slm11areh8rg￿. Derecognits"on ol lin8nei81 assals anil liabiliti A fin8ncial Basel 18 derecogni58d only th8n th8 ccffitrnctual rights to cash llowd exF4ro or are 66ttled. or 8ubs¢anll8lly all the rlsks and roworé8 of ownership are transferr8d to 8noth8r p8ty. or if $0rn8 significant rI8ks aryj rèw8rdB of ownershlp arè r¢18inad but the eontrol ol th& a$8&1 h88 transferred to another party thal18 able to sell the as6el ID its entir8ty to an unr918led third party. A flnancipl lijbility lor part Ihèreofl 1$ dorectyanised when the obligBlion 8p6clfved In the contr8ct IB di8charged, cancell8d or explreB. Derfv8tive8 D8rlvAtfv88 am lnlt1811y rgcognl8ed 81 fair value on the date a derfvallv8 conlract IB enl8red Into and are sutoequ8ntly re. m8a8ured to fair vAlu•, al èach rèportlThJ dalè. Fglr valu• gains and 108888 are recogn18ed through incornè an expen¢Jitur8. PROVISIONS Provi6ions are rKognlBed when the group h8¥ an obllgatlon at th8 rgpgrtlng date 8 result of 8 pa8t avent which 1118 proba￿• wll r88uII in the Iran8fer ol 8conomk benefit6 and that obligOtion can be estirna18d reliBbly. Provl•loTh8 are rnea8urnd at the best e8timole of Ihe arnouTr16 required to 8etlle the obllgallon. Where the gff•cl ol tha tlm8 value of mn8y18 malarial, Iht prow$ion 18 ba￿ on th• pr8g•nl v8lu• ol tho88 amount8, di8counted at the pre-t•x discount rale that reflects the ri8ks specific lo the liabi1Sty. The unwinding of the di3count i¥ recLyni8ed ￿thIn Interest p8yAbb and Elmllarehargo•. Pagg 59 Bournvllle Vlllag• Trust Group AccouimNG POLICIES Icontlnuodl RESERVES Thè gr¢xJp eBtabllshes restrlcted funds for the spe￿fIC Purp￿￿8 where their ug0 18 8ubject to restrictions imposed by third parties. RESTRICTED RESERVES (NOTE 191 SUPPORTED HOUSING FUND Th18 restricted werve repre8ents fiJnd8 to cover the replacement of furnlture and equlpmènl ar￿ any major r8P8ifB neede(J In any ol the Trust4 supportad hou$iTha 8¢horn￿. FUTURE MAINTENANCE RESERVE Thls reseN6 r8pr8S8nl8 th8 combined total of all the slnklng funds that 8VT Mds to fund our luturè maintenance commitment6 In the areas In which ￿ work. BAT RESERVE This res8rve repr888nt8 tha net assals of Bournville Alm¥hou8e Tru31, whlch under a unl￿n9 OIreC￿0￿ from th• Chanty Commi8Blon, 18 now accounted through th16 feBldctad reaerw. ELIZA BEECH FUND This r88erv8 rgpr888n18 funds to pro￿d8 re81denl8 018AT￿th •xcJJmlon8 #nd othèr •ntsrtalnm•nt. SHROPSHIRE PROJECT RESERVE Some communlly events generate incom* to lund 8po¢1fl¢ Pfolocts or gvents that otherw168 *vuldntihappen. COMMUNITY INFRASTRUCTURE RESERVE Th18 18 a lund hddlng funds th8( mayonly b• ulèd for thtt than￿Ment of Lavley Vlllage. vlil EILEEN HEWER RESERVE Thi8 fund 18 U8ed to P8y for actmdei th• M¥klent repre??ntatIV￿ ol L￿eY Belect lor cemmunity advaneamnl. LVCA RESERVE The Lawley Village Community A880caltbn moy ¢all on thi• fund to support ccfflmunity activity. Bl¢>DIVERSITY RESERVE This fund hold8 8 (k)n8tion lortho adv•n¢•monl of bi¢AivvJrslly In BoumiAlle L18RARY FLIND RESERV& Thls fund ho1tt8 8 donatb)n rae•iv8d to support the Llbrary and Archlvo. Paga 60 Bournville Willage Trust Group ACCOUNnNG POLICIES Icontlnuodl ENDOWMENT RESERVES Thls rgS8rvg represents the pgrmanent endowment of the charity aB beouealhed by th8 Founder. CRITICAL ACCOUNTING ESTIMATES AAD AREAS OF JUDGEMENT Estlmaias and luégomants are cOn￿nu01fy evaluated and are based on hi6tOriC818xperi8r￿8 and other factors. including expecl8lions of futurg events that are belièved lo be re•sonable under the circum8tance8. CrilKal 8¢covntsrfftJ estlm81gs and assumptlon$ The group mBka8 88tirnat85 and aasurnpt￿nS coneéming tha fut￿rts. Th8 ￿$￿I￿ng accounllng e8tirnatès ènd assumption8 will, by defi'nition. seldorn equal the relatgd 8¢bJ81 r8¥ult8. The 08tlffl#taS and assumption6 th8t h8vg slgnmcallt risk of Eauslng a material adl4JStrnent to the C8cryirva 8moun¢s of 8sB&t& and liabilities within the ne￿ financial year 8Tr di6CUS8ed bebw. U8efvl economiG lrfe of18ngiblg Trxed assols Tanglble fixed asse18 8r8 depreciated over thelr u¥eful Ilves 88 F¢r th8 accountlng poI￿Y note. Th8 useful economlc IIv85 of property components are in Ilne with the currant rnalnlenance programrn8 and arg rg-a8508sed annuolly to take Into xcounl ts¢hndtsaital inrtovatiC418nd product Ilf• cyd•8. Imp81M￿nt olhou&lnpwoWle3 RaMewB for Irnpalrfflenl ol h¢uslng pro￿rtia$ 8r• carriad otst when a trfgger ha8 orKurred aThJ any Impalrmenl In a cash generating unlt18 recogni88d by 8 charge lo the Stalern¢nt of Comprehènslvè Incom$. Impairment Is recognised wh¢rÈ the carrying valuè ol 8 ca8h generating unlt exceeds the hSgher of its ngt reg1is8b18 valuè or 118 V81ua In u8e. A h generating unit IB no￿allY 8 9fDUP ol propertki8 at ￿h￿rne lavel wh088 C86h Income can be 8eparalely Idgntlfild. BVTdevelowont expenGlitur6 Development •xpenéiture Is c8pllalised in Ilne with the accounting policy. Inltial c8pitali8ation ol cos18 18 ba8ed on managernenlo ludggrnent that 8 development 8chame Is likgly lo proceed. CoBI8 captta118ed In IhlB way arè r•gularfy rev1￿￿ and any cost idenufied aj abortiv& are tharged in the S18tem8nl ol ComprghBn3ive Income. P•n81on D18coiint FoGlor The discount lactor wed lrt c81culation ol thè pgnslon fund Ilablllty18 ba8ed on the yleld for a bond takèn out by THFC with a roaturily dale of 2023, which cTrinrid•s with thè final yèar In whlch th* Tnnt 18 required to make a d¢li¢lt ¢onlributlon. ISg8 Notes 18 and 241 D6blors D8bloT8 arè basèd on th• 8mounl8 OlJt81anding in our ledg8rs al the end of the financial year, le80 Bny Pfovision lor bad deb15. The prDvision lor rent arrears is based on all former ten8nt8 arr88￿ plus 75% of all current ten8nl 8rrear8 that rèmain outstanding for mra than B w￿k8. (See nole 16al BBl8nce8 due from group undertaklngs are 8sse8se(J ot the end of each year to en6ure Ih81 Ihe ijebt18 Ne0￿rabl• in hjll. Ir there Is arry doubt that th¥ dotyt b*ill tsg lully rgcov8rgd. a Pfovl6lon w)uld be made, to reduce the debt to th• ankn'Eipated rocowrBble amunl. Page 61 Bournville Village Trust Group NOTES TO THE HNANCIAL STATEMENTS for th• y•ir •nd•d 31 D•c•mb•r2020 TURNOVER, COST OF SALES, OPERATING COSTS AND OPERATING SURPLUS Contlnulng actfvlll••-Group 2020 2019 OpwutirvJ Operalmo C05t¥ Su￿lUsI Ioefidtl OF4rsts'ng Operating Costs Swplu81 Tumover Tumover £D(hJ £0 £wo Elloo $o¢l•l Hou•lnB Advlil•8 In￿rne and eX￿nditU frc(n 8ttial ho￿l￿gI01￿n￿s 22,805 117.r891 5,566 22,64B 116,0381 6,610 Oth•r Soclal Houilftg Flrsl trgnche 8hared ownershlp ￿100 so￿lCesto third part Profil share 8rrnnggmonl Crynmunty8¢tiwlie• 233 579 223 11961 15401 1251 15531 37 33 198 14971 745 320 234 15631 15681 1251 1553 182 12481 14981 Non 8oc6ol Hou•lng Acti￿¢1•8 Murket renllng Agricultural letting8 Ealale mana9em8nt CommorclBI léttiw• Bu8ine$J Oevelopmenl Selly Manor rnUBeum L8nd IraThsaclion8 P•n8ion fwd co816 C••W Ihlrd 475 607 1,431 970 11421 IfjBS1 12,1271 14881 12591 11981 333 1781 16981 1991 15781 12.1071 14601 1291 19041 473 1,203 933 12591 85 453 118 1,293 12291 453 1301 132 1301 141 1301 1301 11501 125 TOTAL 28.042 122,6161 5,426 28.712 122,559 8,153 Page 62 Boumvill¢ Village Trust Group NOTES TO THE FINANCIAL STATEMENTS lortho year•Ad•d 31 Decomb•r 2020 TUFINOVER. COST OF SALES, OPERATING COSTS OPERATING SURPLUS Contlnubng actl¥lth•. Tru•t 2020 2019 Cyor8llng Owrating Co8t# Surplu (Defiutl Op8r81ing Operating Surplus1 (Defiull Tuffjob TUft￿r £OLX) £K)oD £iOOO £(pJo £IDOO Sodal Houilw AGtlvlll•• Irthme 8nd ex￿NdIt￿ra Irom souol hou$lno léiings 21,383 116.7191 21,2B7 115,598 5,889 oth•r80¢1•l Hou•lno A¢1￿1￿1•* FI￿1 Ir8nche shared 0￿￿¥hiP 5ql•s lo third pF*tie8 Proni sharè 8rrangBment Commun￿0¢1￿1￿•S 11981 15461 1251 15531 37 565 198 14971 745 985 234 55 15631 15681 1251 15531 419 223 58 14981 Non40¢l•l HoyAlng Actl¥lll•• Morkel rentlng Agricultuial18ttlngs E•tstg managomont Commer¢i81 leiting$ BusinosD devolopmonl Sdly Monor M￿￿lIM Land Iransuclicnts Penslon lund cost8 Sw¥iw to third partie 476 11421 16851 12,1271 14861 12591 11981 333 1781 16881 1991 15781 12.1071 369 1291 18761 473 549 1,231 933 1.459 970 12591 85 453 118 1,293 12291 453 132 1301 11301 1301 11501 125 146 TOTAL 27,180 122,OBOI 5,084 28,044 122,1191 5.925 P898 63 Bournvlll• Vlllage TNst Group MOTE8TOTTrEHfI￿c￿L8rATEl￿l1¥ IDrth• swr•Dd•dJl O•¢•vA¥w301• IURI40VER, CI)STOFSALES. CPEFi&TINO COSTSANO OPERAT*4GgIJRPLtsSl￿rn*￿ldl P•rtc￿* ￿1n¢0mland •7¥•nd￿r•*￿n1Qll￿l 2020 T&4 £ffjo Eorx) IlIIINO￿ER FROM3OCALHCXJ8NG LETnNGS RODI [￿aN￿nItor￿￿￿1 17A5J 1.089 2.397 c￿0￿y 2JD7 *JEfRENTAL INCOUE 17,7C4 2.3D7 l.ws 22,481 Sod￿hOu￿r￿J￿In¢#m￿I1IIlthn la4 )24 TURN¢)VER FRo￿8(￿l•L￿C1j$1￿ LE￿ING9 17.893 ExpEN￿TU￿￿4￿￿4L KJU81NG LErriNG8 2.763 222 21Y 439 3>79 e71 8wYu rkn¥Tg•fyJN• 2* J217 JA37 IJ7B Pknn•o 17 dob 3,973 4JJ OftsiuT••￿rkn 36 OPEIiAnNGCO8TI ON HWSINiILeThiNQS 273 IT23B OPEFWnNGeuRPLUS1IOEF￿ifi0N SOCIAL HryJ3ING LEfnNGS .37B 404 130 R•ni lo•l￿t0￿ 43 Pap04 Bourn￿11• Vlllage Trust Group MOTE8TOThE FIN￿Cl•L3TATE￿￿F1Ts fOfih•y•at•hdod 31 D•wthr202D nJRNOVEA. CO8Tf* S￿￿8. OP8PATINGCOSTS1tr4DOPEPAnNG SURPLUS l¢tr￿u*jI 2018 wmmod o*Ar yopkn w￿rnDda1 T¢ TuR￿VERF￿0￿ SC￿11LHCA1s￿G LETrI￿3 Roni w¢d¥**l¬ofvo*8 1,182 18.435 Comond wpwrtth•Tg 2.￿1 NET RENTAL INCOM 17,140 319 WANOVER FROMSc￿l￿LM0Us￿G LErriNGS 17.J¥ 371 EFEK)ITURE ON soc￿ HCYJSINGLEThN08 270 44 3.487 205 ind wJprthcNh 2Wg 2.a41 3.199 1,113 1,e07 11111 1,138 B•¢ dobli of wop•r¥oi 32• C•ENAfiNG C08T8 ON SOCIAL HOUSINQ LErriNG8 11A27 16,W8 CPEAATINGSURPLUSI(OEFICITI ON SOU HQUSINfj LE￿ING8 s,e 106 479 126 6.610 17 104 TM O•W•*knclwopv¥••fvom X19&)2020114v•toth•TrJu¢knkn g••xcounikng Bourn￿119 Vlllago Tru8t Group tIOTesToYHE FINANeLdLSTATEhEiifd for¢￿ y••r•nthd J1 V•¢•thr2W IURNOVER. COSTOFS•IES, (FEFi&TING COSTSANDopeRATING 8URPLUS Iconihug01 8knpwrt•d htyJWvJ Houll)JSx w*Np £Dfy) £000 £th)o TURNOVER FROM SOCL4L kK)USING LEfTING8 Rqntr￿Ib* fflei 17,Wl 28e Cllrnxrfj 2.397 2,397 NETRENTAL INCOME 2,397 1.gT5 21,(O7 170 316 TURN0￿ER FROM3CtWL HOu8INGLE￿1NG9 2.QJ 409 21.383 E>PENDITURE ON ￿K￿LHo￿61NG LErriNGS 2.•4 222 439 e40 3.4e4 wpportoo RL¥Juni 3.341 47 d•b 10 394 4,184 fthg• 26 QPERATINGCO8T8ON gOCtAL HOUSING LErriNGS 11. 273 0￿RATIN0$uHpluSIlOEFK[rlONs0c￿L CYJSING LEThING 4,476 Th• 2Q1•to2020lB¢WbJth•i•4u￿￿•1n thirfpTCmY(ornponert•. e6 Bournvlli• Vlll¥g• Tru•t Group NOTE$TOTHE FI1*￿¢￿+18fA7El￿1iT8 forth•wv•nd•d31 D•Eqn*•r202 IURNOVER.COST OF S￿£$. OPERATINGCOST8th0 OPEPATIN03URPLUSl¢w*wdl P•r*ui•r• •Th1wP•ndknknrnK￿￿l 2019 qd Hl¥J￿ry lvl rpBapkn nJRIIOVERFROM SOCM Hou81￿ LETTING5 15.$81 232 1,1 17.9$2 2,831 NETRENTAL INCOME 15.7•3 2.VJ1 9oc*hOu¥nggr•Thtw￿rt* 21 TLIINDVFR FRCW30CWL H¢U$INQ LErn￿38 E*FENYMThRE ON ￿lILHoUS1NGLETnNGS 270 449 ark 2,Y9 J.)S9 Z.34• IlnomAID*)on(* Pknnpd mHknlqD¥r )rwh d d(*41 3,173 1,SJ1 23 2,741 22J 225 OPERATINQeOST$ IY4 SOCL4L w￿SING LErriNGS 10.957 I,￿0 OPERITING 8VRPLU8 1(OEFflTI ON80CI HOUSING LEThINGS 479 126 R•nibJ*ith•to¥o 17 Th• ulrrtrffj￿ [Tom2019to￿ S*4E•]un*FKI￿pl Bournville Village Trust Group NOTE8 TO THE FINANCIAL STATEMENTS for the year ended 31 December 2020 2 ACCOMMODATION IN ￿NAGEMENT AND DEVELOPMENT Group 2020 Numbar Trust 2020 Number 2019 Number 2019 Number UNITS OWNED AT YEAR END.. General ￿8dS hwsing Shared owner8hip Supported Housing Housing for older people Market rente¢J 3,318 144 22 262 58 3,804 3,309 146 24 282 59 3,800 3,005 144 22 262 58 3,491 2.996 24 282 59 3.48 UNITS IN IAANAGEMENT AT YEAR ENO.. General needs hou81ng Shared ownership Supportèd Housing Housi￿ for olJ¢r people M8rkel renlod 3.469 3,469 144 146 24 262 59 22 282 58 3,955 24 3.955 3,951 Thg al)ove number6 InfthJd8 12712019,127) unil• ownad by BW bul rnan8ged by other a680clalion8, INTEREST RECEIVABLE AND SIMILAR INCOME Group 2020 £000 Trust 2020 £000 2019 £000 2019 EOOO In￿re81 on bank dgpoBIIs Intere81 on Intgrcompany loan6 Other inlere8t r8celvaNe 18 18 173 46 181 121 121 25 44 225 INTEREST PAYABLE AND SIMILAR CHARGES Group 2020 Tw¥t 2Q20 2019 £n¢)o 2019 Inleresl arisifQ on.. Bank108n8 and ovgrdrefts Olhor Loan5 Inte¥esl & Flnanclng Co818- P8n8*Jn 2,838 1,208 29 3,205 1,201 57 2,838 1.213 29 3,205 1,217 57 4,075 4,483 4,080 4,479 Page 68 Boumvlllo Vlllage Trust Group NOTES TO THE FINAJICIAL 8TATEAIENTS for th• y••r ended 31 D•c•mb•r 2Q20 5 OPEiATING SURPLUS Group 2020 TN8t 2020 £oJo 2019 2019 £wo Operating surplus is stated after charging I l¢rgditingl'. Deprecolion of olher t8ngble fYAed as8ets Depreeialion of hc*J6ina propertl¢$ Depreciation of non-h(xJsinc propgrt Operating lease ren1818 Arnortsalion of grant Exc¥ptbn81 decrease in pènsi￿ éèflclt li8bS1ity 170 4,727 424 183 13261 170 180 2,830 413 141 3,106 413 141 13191 17861 424 183 13181 17861 F4è8 payoblo lo RSM UK Audit LLP and a88￿1al8& In re8F*Ct of both audlt and non-audbt 8eNlce8 ar8 a• Audil 69rylceB- Blatulory aL*il of tho company 47 41 3B 32 Other 8ervits8'. All other n￿-aUdit 8•NiE•S 5a SUFIPLUS ON &4LE OF FIXED ASSETS Group & Tru61 2020 Sale of Sale 01 ol S81• 01 lousing L8nd Other Fixgd Hou8ing Properties As8018 PropertK85 £000 £000 £000 2019 Sale ol Salg or Land Other F As8etJ £000 £0 DI•po881 prrxK8ed8 CarryirvJ valuo ol flx•d 8888ts C06t ol 591 105 11CK)I 580 1,202 19911 1481 373 10 131 1161 141 185 373 PwJe 69 Bournville Village Trust Group NOTES TO THE FINANCIAL STATEMENTS lor the ypar endod 31 DK•ml)v 2020 6 EMPLOYEES The av•r8g• monlhty numb8r of pgr8on$ lindud1￿ dlr8CtOfsI emtyoyod by the TruBt and Group expre8¥8d in ful time equNalenls duriry th8 yBarwa8'. Group 2020 No. 120 71 86 Trust 2020 No. 120 71 2019 No. 11è 75 2019 No. Off￿8 and m8napBmont Housing support and car MalnlenanGO 75 257 256 257 256 The 8bM fvjures are calcul8i•d on the number of 8taff gmpb>*d In the Group and Tfust, worklng a standard 37 hour working ￿￿k lor the majority of$l8ff 8nd a Bl8ndard 39 hour week lor maintenance staff . The calculBlion h48 Ilone on a month by month ba8t¥ Bnd then averaged out over Ihe courBe ol the year. staff costs for th• above per80ns'. Group 2020 Tru8t 2020 Ei( 2019 £000 2019 W8998 and sg18rie8 Rgdun4Bw P8yment8 Soci818ecurily coBIs Defined benefil pension Daline¢J contribution Pen￿an ¢oJt Oihor penskin costs Movement on pgn¥Dn thfich provl6lon 8,176 63 750 628 343 30 7,633 132 8.176 63 750 628 343 7,633 132 595 595 30 17881 17861 9.990 8,562 9,990 8,562 The lull tlm8 8qufvalent number ol staff hvho recefve(J remuneratKJn ovef £60,(KK) (Inel￿[n) dirncthl.. Group 2020 No. TN8t 2020 2019 No. 2019 £60,(M)o- t70,OC t70,￿l- £80,000 £80,001- t90,000 E90,IKJ1- £100,000 £1CKI,001- £110,000 £120,001 . £130.000 £130,001 £140,000 £140,001- £150,C The bandiws atthi& include rgdund4ncy payments a8 delalled staff costs above. DIRECTORS In respect of thè dlrèctors IBvf 8xecullve team) who are con8ld•rnd lo b8 thè k•y ManBgemenl P8rEonn8101 Bwrnville Vill8g8 Trust.. Gr￿p 2020 £000 Tryst 2020 £,000 2019 £000 2019 £aOD RemuneratK)n and f8e8 Company conlributKJns to p8￿10n 8ehome8 Cornpen88tion for loss ofoffice Money v81ue of benefits in kind 650 49 10 51 534 41 10 43 650 49 10 51 41 10 43 628 760 628 Page 70 Bournville Village Trust Group NOTES TO THE FINANCIAL 8TATEMENT8 for thg year gndod 31 0q￿rnber 2020 Group 2020 Tru6t 2020 2019 2019 Thv nurnL*T of dlrectors to wthom r8tir8ment beneffta 8re acerulng under.. Defined contr1t￿tknn schemes Hlgh881 paid dir¢rtor 2020 2019 £000 £iOOO Rèmunorallon Company conlribulion• to yroion ieh•m81 132 io 129 10 142 139 Th8 h￿￿•1 paKI diroctor In 2020 th? Chi•1 Ex•¢utNo. Chknf Executiv• 18 a m•mbar of the 8vr PenskJn8aver 8cheme and BVT made F•n8h?n contribu￿on9 01 £9,848 In 2020.12019.. £9.7031 other paymenlg are m*Je to Tru•tee8 Other than 88 dat#i18d bebw.. 2020 2019 Tru$leg paymgnl¥ wpriBo of.. TnJ$lss $xpgni 1,541 8,969 Page 71 Boumvllle Vlllage Trust Group NOTES TOTHE FINANCIAL 8TATEMENTS forth• y•ar•nd•d 31 DKorr*•r 2020 78 TANG18LE FIXED ASSETS- HOUSING PROPERTIES IPr8doMin￿uY hoho*Jl- GROUP Hou￿n9 properti•s h8ld for leltirvJ Shgred ¢*+nerstNp prwrti&S CA)nslnKlion Propertkns I 2020 Total £,DOO £0 £0 £.DOO At 1 January Addiuons Comwjntrnl rgpIwr9monlB and Im[￿Ornents Propertlo8 acquSr8d Comw)nÈni diipo•AI& Property dI5PO8alN TrBn4fer loelhorflM8d 868818 Tran•ftr to ￿￿onI 0868 179.585 8.307 141 48 188.033 48 1,450 773 19051 11921 1,450 773 19051 11971 At 310wcembqr 180.825 8.115 189 188,929 D0pro¢￿t￿n 8nd impairrn•nt Al 1 Jan￿ry ChBrge for y•ar Componenl dl8POB Property dlap088 Transfei io olherfixed auetB Tianslor io curronl 888818 130.5401 14,3581 17821 131,3021 22 22 20 28 20 28 Al 31 D¢¢¢mber 134.2ff21 18531 135,0551 NET BOOK VALUE Al 31 D0￿me•r 2020 146.423 7.282 189 153.874 Al 31 Decembèr2019 149,04S 7,545 156,731 Boumville Villago Trust Group NOTES TO THE FINANCIAL STATEMENTS for tho year•nd•d 31 D•c•mb•r 2020 TANGIBLE FIXED ASSETS- HOUSING PROPERTIES (P￿10Ml￿snlty fr68hobJl- TRUST Housing pft)petUas Id for 1oMlng EO Shared ovmership proF4rt188 Properties In c(xJr8& of construction £iODO 2020 Total C081 Al 1 JJnu&ry Addlttons Compment row￿￿￿18 And 1mkyov￿ents Properlgj fio4ulrad Compmenl dispoualB Property di8po8818 Trgn¥fer tts Dthar T￿ed 088810 Tran8f•r lo current auel8 188.220 8.307 141 176.808 48 1.354 773 1.354 7T3 18561 11921 11971 119T At 31 D8cwnb8r 189.213 8.115 189 177,517 D8PF8clatlon 8nd ImpairThnt At 1 January Chaille lor ￿r Compononl 4SBpo8AI8 Propèrty d18PO8als Tr￿8[￿ to O￿or fixed a•set• Tr8n8f8f to Cufrenl gsoeiE 127,5721 13,9821 810 17621 128,3341 14,0751 610 22 20 28 22 20 28 Al 3100¢ombor 130,8761 18531 131,7291 NET BOOK VALVE Al 31 O•c•mb•r 2020 138,337 7,282 145,788 At 31 oK￿ber 2019 140.648 7,545 141 148,334 P6gg n Boumville Vlllaga Trust Group NOTES TO THE FINANCIAL STATEAIENTS lorth• y•argndgd 31 DeE•rnb•r 2020 EXPEWDITURE ON WORKS TO EXBTING PROPERTIES Grtyjp 2020 Enoo Trust 2020 £)X)O 2019 ETKJD 2019 £fjoo lrnprovom8rn*rsrk capithl*•d Cernwnonts ￿pi￿rISed Amount8 charyed to incom8 and •y4)andllur• 159 1,244 8.384 87 1,281 5,586 133 1,040 5,967 1,360 5,768 7.238 7.166 8,940 7,140 TOT￿ GPAMfs RECEIVED Grwp 2020 £000 Tru•t 2020 ETrJO 2019 £DJo 2019 Totsl 0Jmu1•1￿9 4mwn16 rKofved or recelvoble 131 D•c•mt•r'. ¢•pl￿1 gra 36.027 36,039 35,OT3 35.085 FINANCE COSTS Grwp 2020 £iOOO Tru81 2020 EOOO 2019 rooo 2019 £￿0 Agora¢Alo a￿￿Unt of fina￿e colts Included in th8 of hou$ino prwft ènd comrThJn818re46 In noto 7b 2,800 2,800 2,800 2.800 2,800 2,8CrtI Pago 74 eJo# o*ooo 000 Bournvill• Village Trust Group NOTES TO THE FINANCIAL 8TATeMENTS for the year onded 31 D8c•mb•r 2020 FIXED ASSET INVESTMENTS Group- COBI Inl0ra8t SeNIc Reserve Investrnent in SubsidiAry Total eooo At 1 J8nuary 2020 Interest ¢￿dited 1,046 Al 31 De￿mbar 2020 1,053 1,053 TnJ$t- C08t Intere61 Servlce Re8e É.000 Investment In Subsidiary Éooo Tot81 At 1 J8TrJary 2020 Interg81 credited 8,400 9,446 Al 31 Decembgr 2020 1,053 8.400 9,453 PROPERTIES FOR SALE 2020 £DJO 2019 £.000 Group & Tru8t Shared obvnerBhlp propgrtie$ PropertleB expgctfjd to bg 8old In the current 169 169 101 10 STOCK 2020 £000 2019 £ocxi Group Maledals and eon8um8blo¥ Work in progrè58 1,333 1,313 1.337 1,314 Tru8t MBlori81s and wn8umable8 Pag8 16 Boumville Village Trust Group NOTES TO THE FINANCIAL STATEMENTS lor th• yoar •nd•d 31 D0￿M￿r 2020 Gmup Trust 11 DEBTORS 2020 £￿0 2019 £DOO 2020 Éooo 2019 £.000 Amount• falllnq dug wSthln ong y••r'. Gr085 R&ntal Arr8ar8 Housing NoTr￿81n9 Market rented SupFM)rted hw8i Shared o%W￿r8￿1p 1.D01 527 14 71 12 88B 946 527 14 71 12 844 10 58 10 L688'. Provi81)n lor bad 8ThJ d(￿btful debts 16331 14931 16291 14921 992 912 941 Balance Ifom managed a880cla￿on8 Balanch due ffom group undertakln Pr8payrnunts and accNed income othèr dtbttys 2.254 453 477 2.150 453 479 1,931 4,132 3,990 12 CREDITORS.. AMOUNTS FALLING DUE WITHIN ONE YEAR Group Tru81 2020 £noo 2019 £'.000 2020 £000 2019 £IC#)O bank loans (note 171 Rant And sèNie• chgrg•8 ree•fved In advance Rtcydèd cawl81 gr8nl lund8 IN)ta 141 DeloNed ￿pItal gran18 Inole 151 Trade creditor8 B81grKes due to managed associqlbni B8l&rKe due to group undertaklngs Oth•r 18X8tion and 8¢XKg18gcurlly c08t8 VAT Other ¢r¢dSlor8 A￿rual8 and deferred Irwme 3,500 634 117 326 3,500 807 114 318 73 3,588 547 99 318 371 763 2,015 161 121 425 2.725 573 102 783 2,571 182 108 426 2.667 181 426 3.272 425 3.325 9,339 9.789 11,250 Pagg 77 Bournvllle Vlllag• Trust Group NOTES TO THE FINANCIAL STATEMENTS lor th• y••r •nded 31 D•e•mb8r 2020 13 CREDITORS.. AMOUNTS FALLING DLJE AFfER MORE THAN ONE Y&AR GKwp Tw¥t 2020 £,DOO 2019 £noo 2020 £Doo 2019 £iOIJO Bank Loans IrKJle 171 Loan arranqemonl Iaea Deferffjd In￿rne Recycle(J Caprtal Grant Fund Irrtjle 141 Delarrad cbpilal grant Inole ?S} 95,460 17441 409 55 30.593 88,960 18171 513 58 30,929 95,460 17441 409 55 29.814 88.960 18171 513 58 30,142 12S.7T3 119,643 124,594 118,856 Indu¢J•d in cr8d5tors are.. Group Trust 2020 £000 2019 £DOO 2020 £.000 2019 £DOO Amount8 fepayaNe by In8talmgnl¥ falin9 due In 1098 Ihan r￿e years 27.825 17,799 27.825 17,799 Amaun18 ￿p9￿bIg by in8tdmgntg lalllng due after rnorg than five year8 61,13S 54,747 51,135 54,747 Amounts repay￿￿0 other Ihan by in¥l8lmen16 laulng duè 8ft$r murg IhBn flvo year8 20,OCKI 20,0(M) 20.CV) 20.¢XiO Lé8$ arnount¥ repayybl? In ￿83 than one y 13,5001 13.5861 13,SODI 13,5861 95.460 88,960 95,480 88.960 14 RECYCLED CAPITAL GRANT FUND Fund8 P8rtalnlng to rts actlvlt*8 wllhin 8r•a8 coverod by. Group Tr￿t HCA 2020 £000 HCA 2019 HCA 2020 £(oo HCA 2019 Op•nlng balan Input8 lo RCGF: A8 al 1 Jan￿ry Grants r8cycled Inlerest accn*d 160 12 118 157 12 113 Clo•lng b4lanc• 172 160 169 167 Amounts 3 ￿ar$ old or older where repayThgnt may be requ1￿￿.. 102 102 99 Page 78 Bournville Village Trust Group NOTES TO THE FINANCIAL STATEMENTS forlh• ￿•r •nded 31 Decernbor 2020 15 DEFERRED CAPITAL GPANTS Grcxjp 2020 £ts)o Tnbst 2020 £DOO 2019 £noo 2019 As al 1 January Amortis8tion in year Tr8n¥lgr to recycled capital gr8nl fund Wrilg back of amortj'satm on prcferty éi5PO801 31,255 13261 31.818 13191 1441 30,460 13181 30.815 1441 As at 31 Decfjm￿r 30,919 31.255 30.132 30,480 18 FINANCIAL INSTRUMENTS Group and Trust 2020 £N))o 2019 £0 Fln•nd•l IlabllltloB', Measured a118* vahje thr￿gh profll or bjss At 1 January 25,691 23,478 3,745 2.213 At 31 December 29,436 25,fj91 Int•r••t r•t• •w•p• Th8 Group h88 t8ken out a number of Snlere6¢ rale hedglr4J arrgryemen¢8 98 Part ol thp Trgosury Management Strpl89y whlch 8e•ks io achlevè 8 mlx of fixed and varlabk rale k>an6 ￿thIn the overall portfok•. All of ihè ￿￿OIn0 In8twmenl8 are $18nd 8lone inloro¥l rate 8wap8 which have been laken out 0￿1 the188115 year8 8nd which have fixed rale8 of Inlef981 verylng bgtwggn 4.14% and 5.81%. At 31 Docamber 2020, Ihe total nomlnal value ol kn18re61 rale hedalnG in8lrumenl$ w88 £51.5rn12019 £51.5ml. The fair Val￿ ol Ih888 h8dglng in81rumenl8 ha8 been cal￿1818d by B￿8 Tre88ury Management 8dvi￿r8. ATFS. uslry propn8tary pdelng Inlom)alk)n and Bnalytical software u8ed under licenc8 Irom Bloomberg Flnanct LP. Th8 lair value is b8$ed on the dlfference between the fixed rale of the $w8p as against tho expected rate of 3m LIBOR at each quarterty poyrnent date Ihrough to the malurity ol gach 8WgP. 1fja Fln8neKql 888ets Grow) TrwJl 2020 2019 £noo 2020 £coo 2019 e'ooo Debt Instruments rne88tsred at 8nlOrtised c06t'. R8nl d8btcrt Other debto Cash 1,662 791 13,917 1,409 1,017 3,773 1,604 1,381 1,020 3,520 13,661 16.370 6.199 16,059 S,￿1 Finanty81 liabillts'os Moaiurod at aft￿rt￿ed eost,, 92,546 371 763 2.015 2,154 Trade Crgditys Babnces Oue lo Man8g8d Assttiation8 BBlancas Due lo Grtyjp Compan*6 Other Creditor5 90 388 763 73 2,571 2.136 2,732 2.751 102.466 96.448 104,424 97,849 Page 79 Boumville Village Trust Group NOTES TO THE FINANCIAL STATEMENTS for th• onded 31 Decernber 2020 17 BORROWINGS GfOUP Tru8t 2020 £.000 2019 £000 2020 £000 2019 £000 Credltor$.' 8moun16 falling wllhln ona ￿91.. 88nk k)an8 3.500 3,586 3.500 3,588 3,500 3.586 3.500 3,586 Credttors.. omount8 lalllno 8rt8r rnorg than ong ygar. 8ank loan5 95,4 88,9SO 95, 88.960 95,46D 95. 8B,960 Total 98,960 92.546 98,geo Housing knans 4re 58cured by 8p8riflc ch8rge8 on the Group8 hou81ro propert￿6 and are repa￿ble at rate8 01 inier08t bviween 1.04% End 12.86%. The n81 thok v81ue Secured lo lenders 18 £84,093,000. or the am￿JntS due In more than Ih• ￿r8 or more, £20,CIX).OC¥)12019'. £20.LYX),0001 Yo whdly repaya￿8 by lump 8um in mor• than fw• y•arn. The rgmalnder repayatskn by In8talmenl8. 18 PROVISIONS FOR LIABILITIES Group gnd Tru31 2020 Pons￿N £iWO 2019 P*ns1011 £000 A6 at 1 Jonu8ry Paid In year Unwinding ol dltywunt Dg¢r¢B8¢ In p8ymeTrl otAkJollon 1,252 15391 29 2,520 15391 57 1786 A8 al 31 Decembar 742 1252 The pensions doficil pa￿On￿ prgvi¥v)n wa8 plac8 lo ￿pre3ent Ihe net presenl value of the commilment lo the multiomploygr C8dbury Monddez Pen￿on Fund In re8pect of po8t deflcits. In 2019 thè lrfenniAI 8elu8rK41 v81ubtion of the schem8 8howed that the hl8torlc defecl fallen to a non-molerial amount. Thi8 ènds th• r8qulr8m•nt on to make p8yments towards rethcing this historic dafeet. Ho%**ver, BVT are required to 8UPPOrt the Pension Truslees In Ihelr efforts to d6-fis* thè sehome and we have agreed a $L*edU￿ of payments in relati¢￿ lo Ihl8. Ihal 11 occur in 2020,2021 and 2022. We h8ve retaln8d 8 proVi8￿n of a 5ufflclent amounl lo cover Iheso a9￿8￿ payments. BVT h88 U88d a di8count rate of 2.25%12019.. 2.25%) whKh appKoxim&teu rnarket yekJB for high quBlily eDrporgt6 bonds Isa• natè 241. P8g8 80 %gg E 5% '151 Iiii 1111 ! Il 11 Boumville Village Trust Group NOTES T07HE FINANCIALSTATEMENTS fortho yoHr•nd•d 31 D•c•mbw 2020 INCOME AND EXPENOITURE RESERVE Group Trust 2W20 2019 £orKJ 2020 Enl 20t9 EDC Al 1 January Swplus forlhe Trnnsf4F to FOBlricted reeeTh8• 2D.e80 20.600 852 15721 20.846 20.631 11,CrfS1 11,C651 At 31 DKeTr*)w 18.06e 20.880 17.862 20.848 21 RECONCILIATION OF SURPLUS IIDEFICITI TO NET CASH GENERATEO FROM OPERATIONS Group 2D20 Truii 2019 2019 £oTrJ £wo SuWu41 lorlhg ￿Or AdluElrnenli for. IM￿lIment D8pw&lluD ol langlble fixad ArTh)rthsaIr￿ ol ¢8pit¥l or•ni Surplus on of •518L• In￿reSt rgGqlv4blq Inte￿81 coBla Mowomenl In valw offinanc￿l Ir*urr•nt• P•nilon 4•hdi r•k189• 11,7471 789 223 3.699 223 3.423 5.322 132BI 16221 1251 4,075 3.745 4.915 15451 1441 4,463 2,213 17b61 16221 11981 4,080 3,745 16151 4,479 2,213 17861 Op•rnliw caih now8 b•for• mry•M￿lI InTrthng uptt•l 10.422 0.756 9,681 9,200 mqnt In it0￿￿ Mov•m4N In debtor¥ Mov•m•nl In credllo 78 1T2 535 458 516 17741 Cq•h 9•r￿ted fmm O¥Mtb 9.685 10.849 10,138 CASH ANO CASH EQUIVALENTS ¢3roup Trujl 2020 £DDO 2019 £fjoo 2020 £000 2019 Calh and ¢aBh gqufv810nlB r•prnll•nt. ash at b•nk Damsnd deposll• Induded ¥￿thIn fall￿ dua h k*¥s th•n (x)ts yoar Inole 121 13,917 3,773 13,861 3,520 16841 17631 13,2SSI 12,7781 13.233 3.OID 10AC 742 Dem4nd dqpowLq r•pF•8enl amount8 ow•J to manogod 4110t￿Oni Ind oroup ￿￿panI9&, AN￿Ys18 OF CHANGES IN NET CÉ8T Grw> Al 1 J8n 2020 Ca8h I1￿ Oihqr Mn ¢4sh chdw6 £000 At31 Dth 2020 £wo £0 Ca6h ind equ￿¥￿￿nt•-. CaBh •1 bank Dern￿tt deposits Inc￿49￿ wlhin G￿litor6 IBlliw due in one year1rrf)￿ 121 3.773 10.144 13.917 17831 79 10841 Prye 82 Bournville Villag• Trust Group 3,010 10,223 13,233 8orrLYI￿ll94." Debt due wtNn one wr cknbt •ft•r on•y••r 13,586 188,960 3,686 I10.1￿) 13.5Tr)1 13,5001 195.4601 1¥2,5461 16,4141 198.9601 Total 189.5361 3.809 185.7271 Trwl AllJ•n 2020 £rA)D C•oh (Xhar non cMh Al 31 Doc 2020 tfjoo £000 C•uh ond uih •q&val•nts'. ¢J•h 81 bank Oam&nd deposlis InC￿¢y*j ￿thIn Cred￿0￿ l•lllw du• ln Kry than onowrlnote 1ZI 3,520 13.e61 12,7781 13.2551 742 10,4C O•bt t￿thIn om O•bl 8lt•r on•￿•r 13,5861 188,9601 3,088 110,rts) 13.5Q)I 3,500 13.SQ)I 195,4601 192,5481 16.4141 198,9601 Total 191,8041 3,250 188.5541 22 CIP￿AL COPImITME￿r9 Gmup 2020 En 2019 Elloo 2020 2019 EO pltsl exwndllure ￿ntract•j for bul rKIl prO￿¢•d tr In th• 570 1,026 S70 Exp•ndltute aLlhorh8d ty Trwiow bul not contr*￿1 3.￿3 Th• abova commiim•nt¥ ¥￿11 b• funded thr￿h r•i•rw)I, *jrp￿•B9•n•rn￿ And drawthjvffji of b8n la￿1￿￿•B. Prfe 83 Boumvllle Vlllago Trust Group OTE8 70 ThE FWANCIAL 8TATEMENT8 forth• y4ar •Thd•d 310•cornb•r2020 23 OTHER FINANCIAL COMIAITMENTS- GROUP AMD TRUST T￿1 total futuro rnln1muml03￿ paymenls LwKIBrTh)nuncelLqb￿ op8Rlry frJrfL¥Bd assets 4r045 fdh3ws'. Group Trual othar 2020 Other 2019 £000 Amounts du8.. Wilhln one ￿ar 8Att¥Bgn c*)fr and fve year4 Mora Ihjn fivo y8ar8 43 183 176 33 392 RETIREK4ENT BENEFIT5 Up until 31 2010, •11 •18ft the Group wore ellulLqo lo lThn the Cadbury P•nslon Fu￿. Unlil Juty 2001, 8t•ll wor8 oIHJible lo iolh Ihv final salDry ich8me whkh wo8 a rnulll ornpby*f a¢h0mo, bul wa8 then cth•d to ngw gnlrgnts. Frtym Juty 20D1. woro loln Ihi CHOICES pBn6h)n 8chgw• wN¢* Is 8180 8 muld ampkn￿l bA￿d on 8v•rage eamingi. From 1 Aprl 2010, now 8t•ff ar• oligiblo lo Ioln IhA 8Vt P•n•ioTh8•wr •ch8mè. whlch defin? contflbuivjn 4th•rr• up I+wough Legal & Goneral, In Aprtl 2016. Iho Cadèury P•Duion Ful￿ rner9￿ with the Mond81gz UK R•llr•m•nl Banefll Plan to foim Ihe Cadt￿ry Mundelez P•nJlon Fun¢. The l•wyi lorrn•l v8luallon of the fund way und•rtgkon •1 5 Aprll 2019 ty a prolo104inal qu811 aclu#ry. Wlllls Towel¥ Walbon. 11 wai Id•nlin•d th81 th6 ¥chvrne had • polll i•r¥ica d&fldl of £5m al th16 da￿. bul I coniinu41ion of 8are8d deflcil reductk?n contrlbullons 1116 OXPe¢tod Ihal delkil hav• r•rrrf)￿d In Ju 201D. ecth•mo morDber8 h8ve 49reqd lo Tollow th• Prfncip•l Ernplwr In moklnq conunued addllional pe￿￿nt4 Into tho llchem• lo 011 Iho Tru81ee$ ￿ luthèr d•-ri8k the ichBrno for Ihe protoctyon of qll Empl￿ra and Klember5. Bvf m•d• add1d￿￿1 wlrtbuYon• of£121.(KQ In 2020 ond wlll makg ￿th•r 01£330.000 h 2021 and £3&).0￿ In 2022. In •v8nl ora delaull tyoth•r g111￿ fund, 8VT ¢￿Id potentt￿ly ￿ l*l• I￿• ihw? ollhelr h'•blWIIw. Foi Iho8• 8mploi*É• WI￿ rymiin In th• In81 J•Lgry •chom•. th• Graup conlrtbullon8 al th• r•t• 0147.8% abov• the Nl k￿r ••mino8 Ilmh ILELI 10 31lll March 2020, Irom Awl 20￿ th￿ mle ro¥e lo 58.3% Ind Mmln•d li Ihls thro￿h￿l 202D. Emplo￿¢ conldbthNJny rnmainod 01 S% throughout both 201?8nd 2020. For lh￿ ampb￿ in Ihp Cftdbvry E•mlrvJJ P￿Tr. the Group p81d ecrtlrfbuibni it th• ro10 9145.2% •tsovo the Nl lty¥er •Brnlngs Iimll lo 3181 2020, from APDI 2020 thi8 r81e ro8e ￿ 53.8% and r•mainad at lh￿ ihmughoul 2020. EmplDyQe contributions rom•lwJ a19% Ihmughoul both 2019 2020. Thw• ar• Ihrn• dWl•r•nl sect￿n9 of tho CHOICES schomo. The Group pald ¢wlrfbuWonB LP to a M￿muM of 48.1% 01 pens￿¥￿0 p&yihrouyhDUtthv year. Emlos*0 conlrlbutDns trcm 2% to 8% thro￿￿￿1 the >*8r, For the BVT P8n81Tr76aver 6ch8mB, th• Group pAhJ cikilrfbuuoni 81 the r8¢8 of 8% 01 pen8knJLqo pay ltr th• ￿ttr. with rn•mbgrA wnlrlbviino a• rN¢h 85 th•y Ilkqd llublqct lo• minimurn ￿t￿mI￿On 014% ofp•n8K)n¥L4e pay. ThB b?Jl •$brn•te ol contnbuknLW to b• lu Ihe xhem•i lor 2021 vd £1,165,000 ￿ul th8 £330.000 doficrt Conlrfbutb) d•tal￿d #bo￿. It is not PDas1￿¢ to KteDlify the gh8ty ol und•dwng asjatts and IKrybiliI￿9 ol tho Cadbury Pen￿￿ Fund b*oNJing 10 IndI￿ou￿ pEiticipBting empbyers. Duo to th8 nslure of the $¢heme8. the IncomB and ExpendNure account chorqe lor the uDd8r FRS1D2 rwe8•nts the employer comribjtion pa￿b￿. From Jants8ry 2014, Bvr bogBn lo auto-enrd its 81aff into 8 new of tho BVT PanskinxJ¥er ¥chome. Conlrlbuiknn8 10 Ihli 8ehem8 ¥0 5% ernployBQ canIn￿lIOnS 3% ￿p￿y￿r cunldbuiion. 84 Bournvllle Vlllage Trust Group NOTESTO THE FINANCIAL STATEMENT8 for th•yYar•ftdod 31 D•￿m￿&r20I RETIREMENT BENEF￿¥ (Mnllnugdl FINANCNL ASSUMPTIONS Thi financial W￿U8110n olthe C•Jbury Mondelaz P8nllion F￿d Y40re a• lolb)w8'.- 2020 3)19 % p.a. % p.a. 4,0 3.DS 3.95 Dkc0LW￿ Rata Pre feb￿rnerbt POEI reliremenl 3.05 3.95 Rate of8•kqry Incfg•MA CPI Infl•bon RPI inflg 25 CONTIMGENT LIABILITIES Thgrg Hro nD contiwenl Ilabllille8 ai th8 b￿ance sh8è1 date. REL4TEO PARTYTFi4NSACTIONS 100% ofihq iswuqd •h•r8 e8piW arnounb.ng lo E1Q), 018wm¥lll• Vilb3• D•v•bpmènts LlTrwl•d IBVDI. a comp•ny IncorpDralod In Ervjand and Wakn6 BVD li In th• ctrordnlllK)n and COn8VUCllon cl an ulben wllage 81 Liwlrnollr In Tallor¢. hdps to ft&￿ •rme ol tho working Capit￿ rowlramonls of BVD wwj hal •¥08d 810on f4clUly lor thls puipcie. •131112120, thg out11￿dI￿a bfjL4￿ on tsi¢x•J 81 £2.26m12019 £2.10ml, ￿T. thB roll￿nI tran￿￿¢￿$ ￿1b BournvllknVlll8w O&v•lopm•nth.' 2020 2019 S•lary coow r•Gh•ry•d to BVD Inter￿1 coslo Cha￿0d lo BVD Pt• & post pknnlr¥a GOI￿ rocharg￿l 10 4T,454 173,343 1208,0001 eo.182 180,516 1390.(#JOI Each Bvf Tw•loe 1 JhJr• out of th• toi•l 324 In 1s•uo ol BoUm￿l￿g Work• Houllng Socl•ty Ltd IBWHSI, charllobl8 R&glsierod Provklel ol soclal hou#ir4J, rtytswrod undor the Coop•r*i¥• •nd CornmunNy Boneffil 8ock*Ue8 Act 2014. BWHS bacRrnD B llubsldiory ol Bvf In 2011 end In 2018 pul In pkgco a colormlnoy$ ￿￿rd affIng•m￿l wh•raby lh¥ Tru•t•o8 ol IoDk Dvqr Irom th• BWHS M0n•QOfflOTht CommittrA. Èx•rnFlion bwn token under FRS102 from th• rnquirnmonl lo d18dow Ir•nu8clv)ni with P￿d•r*ub0￿￿lQFIm. giytts gnnual grnnie lo Avonrroft Mu¥fjum. 8 ReglBlerod Ch8dty, from SU￿lU88$ modo on r•nt81 Incomo fr9rn commgrci81 prDPertvaB granted to Birr by th• Croft TruBI. vthich prewouBly own8d Avoncron Museum. ThiB aUPPDrt h88 C￿lin￿•d In 2020 And IB £12,5￿ pBr Bnnurn. A150 In 2020 lollLWllry a roquo81 for urgonl Tingncial support uupwjrt 41 th• Board lov•1 m*• by Avoncroft Museum to Bvf. Po18 Rlehmond (Chiyl Exo¢uUwl Bnd DBvld Robinjon IFlnanco t>rqdorl loirHJd Tw•lg9 Board of Av￿Cloft In unpaKI p)6111on8. Th• Bvr Tru$t444 ￿80 approved 4 one tsfl addrtlDnal gr8nt of £25,OQO to Awjnuoft P•J& 85