Bournville Village Trust Group CONSOLIDATED FINANCIAL STATEMENTS for the year ended 31 December 2022 Registered Charity No: 219260 Homes England Registered No- L0702 INDEX Pagels Information 24 Report of the Board of Trustees Operating and Financial Review 6-34 Independent Auditor's Report to the Trustees 35-38 Consolidated and Trust statements of Comprehensive Income 39 Consolidated and Trust Statements of Financial Position 40 Statement of Change8 in Reseprfes 41 Consolidated and Trust Statements of Cash Flows 42 Accounting Policies 43-50 Notes to the Financial Statements Pagel I Bournvlllo Village Trust Board Members, Executive Directors, Advlsors and Bankers BVT Trustees Chair Vice Chair Other Trustees Adrian Allen FCA (Retired 08112122) Caroline Cadbury MA (Appointed Chair on 08112122) Nigel Cadbury BA, Barrister at Law Claire Bowman Alison McKittrick BA {Hons), MPhil Prof. Philip Lumley BDS, FDSRCPS, MDentSc, PhD, DSRCS (Appointed Vice Chair on 08112122) Matthew Cadbury MA, MSC, MBA, PhD Claudia Coulson 8A (Hons) Alison Fisher Derek Douglas William Cadbury MA(Oxon), GCMA Boumvllle Works Houslng Soclety Trustees Chair Vice Chair Other Trustees Adrian Allen FCA (Retired 08112122) Caroline Cadbury MA (Appointed Chair 08112122) Nigel Cadbury BA, Barrister at Law Claire Bowman Alison McKittrick BA (Hons), MPhil Prof. Philip Lumley BDS, FDSRCPS. MDentSc, PhD, DSRCS (Appointed Vice Chair on 08112122) Matthew Cadbury MA, MSC, MBA, PhD Claudia Coulson BA (Hons) Allson Fisher Derek Douglas William Cadbury MA(Oxon), GCMA Co-optee Bournvllle Vlllage Developments Director & Chair Director & VI￿ Chair Director Adrian Allen FCA (Retired 08112122) Caroline Cadbury MA (Appointed Chair on 08112122) Alison McKittrick BA (Honsl, MPhil PaÉe12 Bournville Village Enterprises Diredor & Chair Director & VI￿ Chair Director Adrian Allen FCA - (Retired 08112122) Caroline Cadbury MA (Appointed Chair on 08112122> Alison McKittrick BA (Hons), MPhil Executive Directors Peter Richmond - Chief Executive David Robinson BA (Hons), ACMA, CGMA, FRSA- Director of Finance & IT Greg Lakin - MRICS, MCIOB. PG DMS- Director of Assets Arthur Tsang - Director of Communities Helen Harvey, Bsc (Hons), MBA, FCIH, MCIPD- Director of People and Perfomance, and Company Secretary Neil Ashford- MRICS - Director of Maintenance Services Registered Offlce 350 Bournville Lane Boumville Bimingham B30 1QY Reglstéréd Number Registered Charity Number- 219260 Registered with the Regulator for Social Housing - L0702 Auditor RSM UK Audit LLP Chartered Accountants 1 Oth Floor 103 Colmore Row Bimiingham B3 3AG Bankers Lloyds Bank PIC 798 Bristol Road South Bimiingham B312NP Page13 Solicitors Eversheds LLP 115 Colmore Row Birmingham 83 3AL Page14 Report of the Board The Board presents its report and audited Financial Ststements for the year ending 31S1 December 2022. This report is about 2022, a year in which our customers. colleagues and partners were living through and operating within the cost-of-living crisis and a post-covid landscape. Vlhilst 2022 was a challenging economic year. much was achieved with positive perfomiance and progress in many areas. We continued to work hard to build financial and organisational strength and were pleased to again be awarded the highest gradings for governance (G1) and viability {V1), following an in-depth assessment by the Regulator for Social Housing. There Is a lot to be proud of as we retlect on 2022 but much to do if we are to continue to work towards our mission of creating and sustaining communities where people can thrive. The infomiation contained in this report together with the Operating and Financlal Review complies with the requirements of the Housing Statement of Recommended Practice (Housing SORP 2018). The Directors of Bournville Village Trust are defined as the Board of Trustees. The Board's responsibilities are set out in these Financial Statements. The statements should be read in conjunction with the audit report on pages 35-38. Bournville Village Trust (°the Trust") is a charity registered with the Charity Commission and a registered social housing provider regulated by the Regulator for Social Housing. (Registered Charity No.. 219260, Regulator for Social Housing Registered No.. L07021 About BVT BVT is a values-led charitable trust, established by George Cadbury in 1900, working to create and sustain communities where people can thrive. We holistically manage estates. provide great homes and deliver community-support services that help people live successful lives. We also seek to make surpluses frorn some of our activities, ploughing this money back into our communities in Central and South Birrningham, and Telford, Our Structure The Boumvllle Village Trust Group comprises., - Boumville Village Trust {Bwf)- Bournville Village Trust is the parent body, based in Bournville, Birmingham. Bwf provides a range of social housing in South Birmingham, Central Birmingham and Telford. We provide estate management in Bournville. Lawley and Lightmoor, to over 7,000 families. We run a number of offices, shops. and health care facilities in our neighbourhoods to ensure our communities have the amenits'es they need. Page | 5 BVT also runs a small number of commercial prernises outside our communities to provide a profit which we reinvest in our neighbourhoods. We manage around 3,000 acres of agricultural land that was gifted to Bwf and that we use in line with the charitable aims of the original donation. We invest in, and work with, our communities to provide services and facilities which assist people to thrive. BVT also provides management and maintenance services to a few registered providers and other organisations. Boumville Almshouse Trust {BAT) - A linked charity, 8AT is 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 Brothers Limited (now known as Mondelez UK Limited), seeking affordable accommodation. The remaining 64 properties are Endowment Houses, surpluses from which help to support the contributions made by the residents of the Almshouses. BAT is accounted for as a restricted resen4e within the BVT financial statements. Bournville Works Housing Society Ltd (BWHS) - BWHS is a Registered Provider owning 313 properties in Bournville. The Trustees of Bltr are also the Trustees of BWHS. BWHS was founded in the same period as BVT and shares the values that BVT aspires to. The main difference between BVT and BWHS on founding was that the BWHS properties were specifically aimed at workers of Cadbury Brolhers Limited (now known as Mondelez UK Limited). This remains the case today with priority given to current employees of the company and their families. Bournville Village Developments Ltd (BVD) - A wholly owned subsidiary of BVT. Bournville Village Developments Ltd is a company that is co-ordinating the development of a modern urban village at Lightmoor In Telford. Bournvllle Village Enterprlses Ltd (BVE) - A wholly owned subsidiary of Blfr. A commercial trading subsidiary set up to undertake market rent activities. BVE leases properties from BVT, lets the home5 at a market rent and then retums the profits to BVT as a year-end donation to invest in our socially rented homes and wider charitable purposes. eratin and Financial Review The operating and financial review has been prepared in accordance with the applicable Accounting Standards in the United Kingdom and the Housing Statement of Recommended Practice (SORP 2018). Page16 eratin Review As one of the Midlands, longest serving independent charitable trusts, we work to deliver six aims (see our Corporate P18n 2020-29 for more detail)-. PlaceBshaplng: Creating and maintaining distinctive, environmentally sustainable places. Community building: Building strong and inclusive communities, Championing People: Removing barriers and helping people to achieve their true potential. Providing great homes: Providing hornes and dellvering great services. Building organlsatlonal and flnanclal strength: Bulldlng a strong organisation driven by clear values. Sharlng our experlence: Learning, sharing and influencing others. Our Values Partnership- we work with others to achieve great things Falrness- we treat people as indlviduals by exercising the right approach at the right time Quality- we are dear about what we do and we do it well Integrlty- we do the right thing Innovation- we look for new and better ways of doing thing5. More information about our aims and values is included within our corporate plan www.bvt.or .ukl ublicationslcor orate- lan-summa -2020-291 Page17 Our Key Strategic Objectives 1 Place-shaping To achieve our aim of creating and maintaining distinctive, environmentally sustainable places, we will.. 1. Refresh and publish our vision for the design and development of distinctive and environmentally sustainable places. 2. Review the design, character and future environmental sustainability of each of our communities in partnership with residents- capturing and delivering outcomes through fonward-looking design guides and neighbourhood plans. 3. Deliver stewardship services that are shaped by residents, valued by all customers and create clean and green neighbourhoods. 4. Ensure our community buildings are modern, well-maintained, efficiently operated and meet the needs of the community. 5. Make our parks and open spaces welcoming and accessible 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 completing Lightmoor Village and College Green health village, 7. Create a long-term strategy for the use of our agricultural estate, making sure there is a strong financial and social retum. How dld wa do In 20227 (the number in brackets after each point allows the reader to cross reference to the aims listed above) Design Charter there has been a great deal of activity to develop policy principals for a new Deslgn Charter. This has led to a recognition that one Charter to cover our diverse neighbourhoods would not be effective. This project will be continued and will be a focus of our new Place Shaping Committee which will begin work in 2023. (21 Environmental Sustainability Strategy much of the baseline research and analysis is now complete, with a detailed analysis of our housing slock, energy perfonnance ratings, nature and biodiversity in place. We are now analysing our carbon footprint through the SHIFT environmental model and plan to complete the strategy in sumtner 2023. (2&31 Estates and Stewardship Service a complete review of the Birmingham Estates Service was completed and with a full understanding of the service Page18 standards required there will be more consultation and consideration in 2023. (2) Heritage Building Review a review was undertaken and work with stakeholders has allowed us to gain a much deeper understanding of what is needed in future. (4) 2 Community buildlng 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 are important in their local community and deliver them. 2. Make sure people can, and are able to, be fully involved in shaping our services and projects. 3. Develop our role as a community anchor to facilitate partnerships that see people and agencies work together on issues that matter to the community. 4. Support and build capacity through volunteering to deliver programmes and activities that are important to the community. especially those that promote cohesion, community spirit and wellbeing. 5, Make sure there is a strong 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 activities. How did wo do In 20227 Community Strategy & Community Plans following a great deal of work, research and consultation a Community Strategy was completed, with the March 2023 Board approving the strategy and its implementation. (1-7) Resident Involvement Strategy - responding to the white paper proposals we have developed a new strategy to set out BVT'S approach to listening to the customer voice, ensuring residents have access to redress and shape how community members can shape services and where we can devolve decision making - such as stewardship services. This Strategy is due for Board review in Autumn 2023. (1&21 3 Championing people To achieve our aim of removing bamers and helping people to achieve their full potential, we will- PaEe19 1. Improve the health and wellbeing of people through community-based programmes, inspired by our founder's commitment to people. 2. Understand and tackle the root causes of poverty and promote access to seNices and support that is responsible and sustainable. 3. Seek funding and work in partnership with others to deliver programmes that champion people. 4. Understand and deliver services that improve the health and wellbeing of older people. 5. Take an evidence-based approach to our work to ensure we understsnd our Impact and achieve value for money. 6. Understand and deliver services to enable young people to achieve theirtrue potential, through education and exploration. How dld we do In 2022? Championing People Strategy - we developed a new strategy building on the outcome from a range of pilot programmes that researched and ￿vieWed existing activities to identify the best future investment into services to help people thrive. This included the development of a clear social value methodology. This strategy was approved by Board review in March 2023. (1- 6) 4 Providlng great homes To achieve our aim of providing homes and delivering great services, we will.. 1. Provide new homes that meet the needs and aspirations of people and communities. 2. Make sure there is a supported housing offer within the comrnunities that we work, through direct 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 sure they continue to meet customer need, are well maintained and affordable to live in. 5. Renew our housing offer to meet the changing needs of older people. Page 110 6. Develop a pathway into housing that helps younger people get access to their first home. 7. Prevent homelessness by supporting customers to be financially resilient and sustain their tenancy. How did we do in 20227 Comprehensive Review of Customer Services & development of a Customer Experience Strategy- we completed phase 1 of this extensive project in 2021. In 2022 we have developed and agreed a new strategy, which is now being implemented a5 part of the 2023 annual plan. (1-71 Maintenance Servlces to take the growih of our in-house maintenance services to the next phase by developing and implementing a programme to deliver planned maintenance, such as fitting new boilers, kitchens and bathrooms, using our own staff. This project was completed and delivery commenced in 2022. (3) Cornfield Stock transfer - we planned to contlnue negotiations with Comfield, a local Housing Co-operative, for the transfer in of 50 homes to ensure the long-tp.mi siiqtAinahilily nf thp. .8r.hpmp. within BVT. The ballol of Comfield residents returned a vote with 96 % in favour of a transfer to BVT and this was subsequently completed in April 2023.11) 5 Building organisatlonal and financial strength To achieve our aim of building a strong organisation driven by our values, we will: 1. Build financial strength and discipline and have a clear approach to value for money in everything we do. 2. Be an employer of choice, developing and investing in our staff. 3. Make sure our cultu￿, approach and behaviour reflects our values. 4. Invest in technology to increase efficiency and effectiveness in everything that we do. 5. Deliver good governance, meeting legal and regulatory and health and safety compliance. 6. Build profit for purpose by strengthening our commerci81 offer to increase financial capacity to invest in our charitable activities. Page | 11 How did we do in 20227 Governance Review - to ensure we have the most effective Govemance in place we commenced phase 2 of our agreed governance review. Supported by an extemal facilitator, this focused on our committee structure and operating arrangements. A new structure was agreed by the Board in December 2022 and we believe this will build on the excellent Governance in place that saw BVT awarded the highest rating for Governance (G11 by the Regulator for Social Housing in March 2022. {5) Market Rented Portfolio - to improve our financial resilience and to ensure we have a range of housing options in our communities we embarked on a pilot market rented project in 2021. In 2022 we successfully developed all the necessary operating procedures and scaled up this portfolio. (6) 6 Sharing our experlence To achieve our aim of leaming, 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. Promote study visits and take opportunities to share our unique story. 4. Revisit George Cadbury's inspiring Rules of Health document to influence a modern approach to the promotion of health and wellbeing. 5. Share what we leam from the work that we do to help people to thrive with others. 6. Deliver a heritage service through Selly Manor Museum. the Carillon, our archiva library and visits. How dld we do In 20227 Heritage Service Revlew- we carried out a comprehensive service review that Identified the future prionties and service model for Heritage. Thi5 allowed the Board to set the correct level of investment that they wish to make into Heritage Services going fo￿rfard and also helped us deliver more whilst attracting new grants and increasing school visits. (6) Page | 12 Financial Review The Statement of Comprehensive Income for the year ended 31st December 2022, shows a group surplus of £23.3m compared to a group surplus of £10.5m for 2021. The main changes to note are: . In line with the requirements of the Housing SORP and in recognition that BVT has, through its subsidiary BVE, commenced letting some properties on a Market Rented Basis, we have reviewed all of our properties to confinm that the category they sit under in our accounts is a fair representation of their purpose. Through this exercise we have established the need to move the homes we are letting on a market rented basis to the category of Investment Properties. Alongside this, in reviewing our commercial and agricultural assets, we have identified 4 shops which we are holding for profit generation purposes. rather than to ensure our communities have access to important amenities in their neighbourhood. Thls means we have recat8gorised these 4 shops as Investment Properties too. All ourother shops, offices and agricultural holdings remain in line with their original social purpose, but this review will be undertaken each year to ensure that remains the case. This review means that following an external revaluation exercise, we are now recognising £4.2m of assets as Investment Properties. Under accounting requirements, the Group has to account for the fair value of its portfolio of interest rate hedging instruments. Details of these hedging instruments are set out in note 17, The movemenl in the fair value of these hedging instruments over the course of the year is reflected in the Statement of Comprehensive Income. The movement for 2022 was a positive value of £17.69m compared to a positive movement of £7.67m for 2021. Such movements reflect the changing market expectations regarding future interest rates. This swing in the valuation of our hedging instruments causes a significant increase in our surplus for 2022. In 2022 we saw our profit share arrangement with the Extra Care Charitable Trust for operations at Bournvllle Gardens rise considerably to £461k, up from £219k in 2021. (see Note 1). In 2022 BVT sold fewer assets (housing properties, land and other assets), £754k compared to 2021 £2.083k. This was mainly due to the sale of Selly Wood House Nursing Home in 2021. BVT does not in the standard course of business sell assets, but we do undertake strategic disposals where assets no longer deliver against our strategic aims. {see Note 5a) Whilst the above accounting action positively impacted our surplus position for 2022, we are happy that our operational perfomiance was strong and in line with expectations and not significantly altered from previous years. In 2022 (£27,367) our Page | 13 tumover was down on 2021 (£27,619), mainly due to the sale of Selly Wood House Nursing Horne in November 2021, and our Group Operating surplus was up from £4.717m in 2021 to £4.962m in 2022 (see Note 11. Treasury Management Trustees have approved a Treasury Policy which sets out the key treasury management policies and practices for the Group. This policy was renewed in 2022. It sets out clear guidelines for Bvf on all treasury matters. The Group had total housing loans of £82.9 million at the end of 2022, compared to £85.5m at the end of 2021 (see Note 18>. Bwf also has further undrawn available facilities in place of £17m. The BVT Group held a cash balance of £3.32m at the end of 2022, compared to £5.58m at the end of 2021. The Board were happy to reduce the cash holdings as the risks of sudden shocks associated with the pandemic reduced (see Note 18). BVT uses stand-alone interest rate derivatives to manage the interest risk on the loan portfolio, having secured the required wider-range powers from our Regulator. All interest rate derivatives are authorised by the Finance Committee, in line with the overall strategy which is to hedge at least 112 of the portfolio, with the overall level of hedging to be at a level that best supports the delivery of the BVT business plan. As at 31 December 2022 the balance of the loan portfolio was 870/0 hedgedifixed and 13¥0 variable. Our Treasury Policy requires that adequate funds are available at all times to enable BVT to meet its business and service objectives for at least the following 24 months. Bwf utili5e external treasury management support and advice to ensure we offer the best value for money possible in our Treasury Management. Having secured a new Rolling Credit Facility from Danske Bank in 2021, BVT has sufficient loan facilities in place to cover our business plan requirements until 2027, with a £5m contingency to cover unexpected events or unforeseen opportunities. 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 used to service the interest payments on the loans that have been taken out and also to partly fund the capital improvement prograrnme. The balance of the capital improvement programme as well as the development programme are funded from capital receipts and loans. Page | 14 Covenants All loan covenants were met and our 30 year financial forecast demonstrates that 81Th can meet all future covenant requirements. O Interest Cover on our tightest measure was 139 % which exceeds the 11 or/i. requirement. 4 Gearing was 53.16 /0 against a maximum level of 660/0 (please note this calculation is different to the Gearing calculation required by the sector score card shown later in these accounts). O Debt per unlt was £24,408 per unit against a maximum of £35,426. Prfnci al Rlsks and Uncertalntles Bvf has a mature risk management framework in action with the 8oard constantly horizon scannlng and managing risk through a risk register. Risks are identified, quantified and managed through 1&1 line management acts'ons, 2nd line intemal oversight and Jtd line external assurance. Thls Includes an extenslve and robust internal audit programme delivered by Mazars. All decisions made by Bltr are in line with the Board's staled risk appetite., Risk Appetlte Statement- 'At B VT, our customers, staff and assets are of vital importance to the success of our organisation. We operate within 8 cautious risk range, which we consider to b8 appropriate for a charitable organisation. We have no appetite for landlord compliance risks or health and safety risks, nor breaches in regulation, which must be tightly controllgd. We also h8ve low risk 8ppetite for financial Ioss and no appetite for covenant non-compliance. However, we wish to grow our business for the benefit of the vulnerable in our society, both now and in the future and are willing to accept some risk within this area, within acceptable financial param8ters and strong internal controls,. The Board of BVT consider the following to be significant risks faced by the Organisation, with significant control and mits'gation actions having been brought to bear in Ihese areas. Economic uncertainty and instability- the Board have plans and mitigation actions to help alleviate the impact of increased and long-term inflation, increasing interest rates, reduced access to and increased cost of funding and rent freezes or cuts implemented by Govemmental policy. Mitigation includes hedging of loans, professional procurement, detailed 30-year financial plans, trigger points for mitigation actions and detailed mitigation plans that can strengthen financial resilience by altering corporate plans. Pressure on the financial resilience of customers - we recognise that fuel costs, food costs, low wage increas8s, and welfare benefit levels all impact on Page115 our customers. BVT assist by identifying early those in financial distress, offering financial inclusion support to help maximise income, delivering energy use reduction assistance programmes. as well as working with partners, such as food banks. Failure in Landlord Health & Safety- Whilst BW has a strong record in landlord health and safety delivery. we know that we can never rest on our laurels and that any failure is unacceptable. Please see the following section for further detail. Condensation, Damp and Mould are rightly high in the priority list of all Social Landlords, following recent tragic events and the highlighting of unac￿ptabIY poor practice in the sector. BVT takes the issue very seriously. We have reached out to our customers through our website and all social media channels to ask them to talk to us and report any issues with damp and mould in their homes. We have also instructed all of our in- house repair operatives to look for any indications of damp issues during their visits. When we gathered information to report to the Regulator for Social Housing in December 2022, we had identified a small number of homes where there was some issue with condensation, damp and mould. Where this is the case we trfangulate against potential causation indicators, EPC rating, property build date, property IoGgtion, property type and further categorise the severity of the issue. We then instigate action to identify the cause of the issue, develop and implement remedi81 action, monitor the situation and review if further action is needed. We are committed to ensuring we communicate effectively with any tenant who has concerns around damp and mould and in 2023 we have added additional resources to specifically manage this communication need. Failure to recruit and retain capable staff - employing and retaining skilled Staff, especially in technical roles, is challenging in the current climate. Bwr seeks to ensure we offer competitive pay and benefits, flexible recruitment, flexible working options and a culture that encourages staff engagement with our mission and apprentlceship schemes that train the next generation. Health and Safet Com Ilance 8VT has no appetite to take any level of risk with health and safety compliance. We require and monitor to ensure that (where applicable)., 100 % of properties have a valid electrical certificate completed with the last 5 years. 1 OOOA of fire risk assessment actions are carried out within the agreed timescale. 100°h of properties have a valid Landlord Gas certificate in place. 100 % of passenger lifts have a valid service certificate in place. 1 OOO/y of properties have a legionella risk assessment in place and all legionella related actions are undertaken within the agreed timescale. Paee | 16 Environment Statement BVT are committed to doing all possible to ensure our hornes reach a minimum EPC rating of C by 2028 and we have financial plans in place to athieve this. The Board see this as a minimum standard and we are working to fully detail our lourney towards carbon neutrality, with estimated costs already included in our 30 year financial plan. Clearfy the historic nature of large elements of BVTS housing stock and the strict conservation area rules we must adhere to add a level of complexity to this journey, but the Board of BW are committed to making this reality. Value for Mone Statement roach to Vfm As a charitable trust with competing demands on our finite resources, we recognise the importance of achieving Value for Mon8y (Vfm). Our Vfm strategy sets out our definition: 'To B VT, Value for Money means achieving our co￿Orate Plan. by using our resources in Ihe most effective, efficient, and economic way, whilst ensuring we live our values in all that we deliver. In 2022, we carried out a strategic review to update our existing 10-year Corporate Plan (2020 - 29). This was a vital component of our value for money approach as it enabled the Trustee Board to debate and reach agreement on the difficult trade-offs that need to be made between: business hcalth, asset investment, future growth & development and the delivery of operational services. Vfm is also embedded into our operational services as part of our approach to continuous improvement. Over the past three years we have developed a suite of performance rneasures for each serrfice area that enables us to measure the effectiveness and efficiency of their operation. We are continuing to develop and enhance our economy measures at a service level. All KPIS and economy measures are captured in our planning and performance framework with front line staff actively involved in setting targets for their service area. Vfm Metrics To help drive Vfm in BVT we use the nine metrics set by the Regulator for Social Housing together with additional metrics. These complernent a range of performan measurement tools in operation across . The tsble on the following 2 pages sets out our trends on past perfomiance, our perfonnance against targets in 2022 and our targets for 2023. We usually set targets over a three-year period but due to the challenges offered by the UK and global economic position we found ourselves experiencing in late Autumn 2022, when targets Page | 17 and budgets are set, along with the below inflation rent settlement, we had to completely recast the 2023 budget to reach an acceptable position, which prevented us from setting three-year budgets and targets. We will retum to this detailed three- year planning in 2023. Following a review of the appropriate Peer Group for B￿ to Benchmark 8gainst, we have adopted a new Peer Group for 2023. We have opted to choose associations based on the following characteristics. At least 50 % of their homes are in the West Midlands. They are a traditional housing association. or any local authority stock transfer occurred al least 12 years ago. They have between 1,500 and 15,000 homes. No more than 5 % of their stock is supported houslng. No more than 150k of their stock is housing for older people. This gave us a group of nine local Housing Associations who are known to us and against who we believe we can fairly benchmark our performance. These Associations are. Aspire Housing Limited Black Country Housing Group Limited Connexus Homes Limited Honeycomb Group Limited Rooftop Housing Group Limited The Pioneer Housing and Comrnunity Group Limited The Wrekin Housing Group Limited Trent & Dove Housing Limited WATMOS Community Homes When reviewing the sector score card it is important to note that Bwf is comparing our December 2022 year end to the March 2022 year end of our Peer Group and the Sector as a whole. This is the most up to date information available for to benchrnark against, but the time difference is an important consider8kn'0n. Page118 Jiiijii iJJiJiJi llllllUllllllllllllBBI lllllll llllllllllllllllllllllllDllDllllllll lllllllllllllllllllllllllllllllll lllllDlllllllllllllllllBllll lllllllll llllllllll llDllllllllllll llllllllllllllllllll llllllllllll Illlllllllllllllllllllllllllllllllll ifyi,I,I Illlll llllll llllll Review of Performance in 2022 and riorities for 2023 Overvlew of 2022 2022 was a challenging year for most organisations and BVT was no exception. We had hoped for a more settled period following the pandemic, which would have been more conducive with our aim of settling into delivering the priorities in the Corporate Plan. However, we quickly came to understsnd that the tight labour market, challenging supply chains, significant rises in inflation, spiralling energy costs and interest rate hikes would make this a difficult year. We saw higher levels of staff tumover than we have ever experienced and difficulty in recruiting staff, particularly in technical roles and skilled maintenance roles. We therefore had to enhance salaries, improve the flexibility of our employment offer, seek new and innovative ways of recruiting, and ensure that BVT remained an employer of choice to compete in a difficult market. All these changes and activities meant that, apart from some specialist technical posts in Asset Management, we have been able to retain and recruit the skilled and committed workforce we need, Demand for services from customers continued to increase, with the cost-of-living crisis and post pandemic catch up, driving higher levels of responsive repairs, increased voids, and general increased demand levels on our customer seNices. Our customers were severely impacted by the cost-of-living crisis and sought increasing levels of support from BVT, especially for the services we provide around financial advice, energy efficiency advice and emergency financial crisis funds. We look decisive action to ensure we could continue to deliver the services our customers needed and meet this increased demand, but this had an impact on our expenditure. We had targeted our overall social housing cost of per unit to be £3,808 in 2022 but ended the year with an actual of £4,527. Whilst there was a very careful approach to cost management, we did not believe that meeting our target by making service level culs to off-set spiralling inflation and interest costs would have been value for money for our customers and instead decided thal we must rneet the increased demand we faced. Moreover, we recognised that making cuts in areas such as repairs and improvements to our homes was not in line with our customers, voice and would in the long-term bring dissatisfaction to them and increased costs to us. Plans for 2023 BVT usually sets budgets for a 3-year period as thls helps us identify the right value for money targets and ensures we are making sure all we spend is furthering our Corporate Plan. However, the economic crisis we faced in late 2022 when the 2023 budgets were being set, with rapidly rising interest rates, spiralling inflation, supply chain Page | 21 pressures, recruitment challenges and a need to set rent increases well below inflation meant we had to take immediate and significant action to ensure our 2023 budget was within our financial capacity. This action was needed to ensure that we could deliver both our vital services and meet our obligations to our Funders, as well as being certain we did not expose ourtenants, homes to risk. Thi5 action meant we could not plan for 3 years in the usual way and that with many cost reduction measures introduced in a short space of time we would need to see how effectively we could operate, prior to setting further value for money targets. To reach a secure and acceptable 2023 budget we renegotiated some loan covenants and started the process of arranging additional loan facilities. This has allowed us to ensure we have the Money and apaclty to invest in our existing homes. We also had to cut expenditure in areas such as community development and restructure our housing teams to ensure we could still deliver this vital work, but at a lower cost. Across BVT we looked for savings. cutting posts where services could be delivered differently and saving on any activities that did not deliver the maximum return in terms of tenant satisfaction or social value. Clearly making such changes was only possible as we spent tlme refreshing our Corpordte Plan and making the difficult trade off decisions between our competing priorities. This review of the Corporate Plan was supported by the outcome of several important service reviews in areas outside of our housing delivery., estate services on the Boumville Estates, Heritage Services and Community Development. These reviews allowed our Board the level of understanding and information that is necessary to make such challenging decisions. Overall, the Board decided that we must maintain our ambitious investrnent programme in our existing homes, make more money available for reactive repairs and customer services, as this was the clear message we re￿iVed from listening to our tenants voice. To do this we had to make cuts in other areas and maintain our corporate overhead at a very low level. The Board also had to decide to look to dispose of some poorly performing assets, convert a small number of vacant properties to market rent, drive for increased returns from our commercial assets and maintain new development spending at a lower level. PaEe122 Business Health Performance in 2022 Our operating margin for social housing improved in 2022, with it being close to our target and better than our Peers and the Sector weighted averages. The overall operating margin for all activities was below our Peers and the sector, but as BVT is a Charitable Trust and operates several loss-making activities such as the management of our historic estates, this is to be expected. Our EBITDA MRI Interest cover was slightly above our Peers, but a little below the sector median. The change in this measure from previous years was planned and expected as we invested more in our homes, with higher interest rates being the main reason we fell short of our target. This all indicates that BVT is in a positive business health position, despite the challenging year that 2022 tumed oul to be. Prlorltiès for 2023 In setting our 2023 budg8t th8 Board of BVT accepted that our costs for repairs, investment in our homes and customer seDiices would all rise, as we are detemiined to deliverwhat our customers want despite rising costs. This means we expect a slight reduction in our business health measures, but lo stay well within parameters that are acceptable to our Board. As we have an extensive programme of investing in our homes for 2023 and beyond, we expect to see a significant reduction in Interest Cover (EBITDA MRI), but have ensured this is well within our Bank Covenants and Golden Rules. Develo ment Ca aclt & Su Perfomiance In 2022 Our new development is centred on the completion of our Lightmoor urban village. In 2022 nine homes were completed, of which three were transferred to BW for sociallaffordable rent. Prloritles for 2023 We expect to see 137 completions in Lightmoor in 2023, of whlch 39 will be for social rent. Effective Asset Mana Perfonnance in 2022 ement BVT again demonstrated a solid retum on capital employed and maintained a very high occupancy level. In 2022 we did have more tenant tumover than is usual for BVT as we saw a catch up of moves following the pandemic, which meant we had higher numbers of voids to deal with. However, despite supply chain and staffing challenges Page | 23 we still maintsined very high occupancy levels. The ratio of responsive repairs to planned maintenance changed. as expected, as we saw our investment in our existing homes increase as planned. Due to inflation. we did, however, see responsive repairs cost far more than planned. Prlorltles for 2023 In 2023 we will be driving hard to keep the number of days properties are empty at or below our target of 32 days. Whilst this has limited financial impact on 8VT due to our low social rents, it has a huge impact on families in housing need who want to move into new hornes as soon as possible. We will also ramp up our planned maintenance spend again in 2023, in line with our 30-year plan and in response to our tenants, voice. Outcomes dellvered Performance In 2022 We were pleased that in 2022. despite significant supply chain challenges, we delivered on our reinvestment programme, ensuring we delivered promised improvements to our tenants, homes. Coming out of the pandemic we find our overall satisfaction rating at 800A. This remains lower than our standing when we went into the pandemic, and we will be pushing hard to listen to our tenants and ensure this improves. We regularly survey our tenants and one question we ask, is 'how satisfied were you with your most recent repairf. The answer to this question leaves us short of our target, with us falling short on getting repairs done right first time certainly contributing to this. Whilst we had a backlog of repairs coming out of the pandemic and faced sorne staffing issues in 2022. we will not accept lower than target performance and will be working to reach our targets in 2023. Prlorltles for 2023 We will be looking to invest rnore than ever in improving our existing homes and we will overcome the challenges we have with recruiting and retaining specialist asset management staff to ensure this is achieved. We will focus on getting more repairs completed first time and will learn from our tenants to ensure we achieve a higher satisfaction rating with each repair undertaken. Page | 24 eratin Efficiencles Perforniance in 2022 Our headline social housing cost per unit rose in 2022 and we we some way (£719 per property) above our target. However, we believed we must deliver the seniices our tenants required despite spiralling inflation causing rapidly rising costs. We ended 2022 with a cost £350 per property above our Peers and £377 above the sector median, but w8 do believe all similar organisation5 will see rising prices push up their cost per unit, so a like-for-like measure at 2022 year-end is likely to show we are closer to the sector average that we appear to be from these figures. Our service charge costs are lower than average, but here we recognise that we are not charging for some services we deliver and that there are some service level improvements our tenants may find beneficial if we were to charge for and deliverthem, such as additional communal cleaning and gardening. Our maintenance cost per unit is high against our peers and the sector and whilst we accepted this in 2022 as we sought to catch up with a pandemic backlog and 8nsur8 improving satisfaction levels, it is an area we continue to work on through training, performance monitoring and recruitment and retention of high quality staff. Prloritles for 2023 We will allow our headline social housing cost per unit and managernent cost per unit to rise as we seek to offer the enhanced service levels our cornmunities need during this economic crisis. We will seek to implement Service charges for new tenants where we have identified that services and satisfaction could be improved by moving nearer to the sector average for service charge costs. Our management cost perunit was slightly above our Peers but below the sector median. We expect to see Ihis rise only slightly in line with general cost increases in 2023. As we delivered more planned maintenance in 2022, we saw some costs shifting from revenue to capital, this trend will continue in 2023 so whilst we will invest more in our homes we will see our maintenance cost per unit, as calculated under this rneasure, reduce slightly. In 2023 we have investment in our existing homes as a major priority so we will see our major repairs cost per unit rise from £1,163 in 2022 to £1,853 in 2023. With cost pressures on BVT at very high levels and to ensure we have sufficient funds to deliver our priorities we will again keep our overheads as a percentage of tumover very low. Our Target for 2023 is well below both our Peers and the sector medians. Whilst financial pressure on our tenants is extremely high we still expect to maintain rent collection levels in 2023 and to keep void loss low. Page | 25 Constitution and Governance BVT is govemed by tts Deed of Foundatlon which was amended in June 2021 to enable aC￿SS to a wider pool of potential trustee candidates by reducing the number of family trustees from 9 to 6, ￿MovIng the nominated positions from The University of Birmingham, The Society of Friends and Birmingham City Council and creating positions for up to 6 independent trustees (2 co-opted) to help to increase the diverslty of BVT'S trustees and to bring in the skills required by the board. The board meets at least 4 times each year and is supported by a range of committees with delegatlons clearly set out in a suite of Temis of Reference approved by the board. There are a number of govemance policies and documents in place to support effective govemance across the group. BVT adopted the National Housing Federation Code of Govemance 2020 in March 2021 and completed an annual self-assessment of compllance with the new Code in early 2022. There is one key area of non-compliance with the Code relating to the terms of office of family trustees. The Deed of Foundation does not apply set terms of office for family trustees but the 6-year rule is applied to independent trustees in compliance with the Code of Governance. Family trustees are subject to annual re- appointment after serving 9 years on the board which takes into consideration individual trustee'5 performance and the skills requirements of the board and committees. assesses Its group compliance with the Regulator for Soclal Housing's Govemance and Financial Viability Standard on an annual basis and certifies that it is compliant with this standard. Employee Involvement To provide for consultation between management and employees on matters of concern to ernployees. a Joint Consultative Committee {JCCI, comprising staff members and managers, including the Chief Executive, meets around 3 times per year. In 2022 the JCC discussed areas such as employee wellbeing, hybrid working, cost of living crisis, personal and professional development and health and safety. Public Benefit The Trustees confirm that they have referred to the guidance contalned in the Charity Commission's general 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 benefits in many ways. including the following: provision of rented housing accommodation to those in housing need provision of community facilities and Services provision of advi￿ and support to residents. Page | 26 Statement of Board's Res fbnancial statements on8ibiliti85 in res ect of the Board's re ort and the Registered Provider legislation requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Group and BVT as at the end of the financial year and of the income and expenditure of the Group and BVT for that period. In preparing those financial statements, suitable accounting policies have been used, framed to the best of the Trustees, knowledge and belief, by reference to reasonable and prudent judgements and estimates and applied conslstently. The Twstees prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Stsndards 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 BVT are going concems. The Trustees are responsible for ensuring that arrangements are mad8 for keeping proper accounting records with respect to the Group's and BVT'S transactions and assets and liabilitie5, and for maintaining a satisfactory system of control over the Group's and BVT'S books of account and transactions. The financial statements have been prepared in accordance with the requirements of the 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 assels of the Group and Bwr and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The Trustees are responsible for the maintenance and integrity of the group and financial information included on the Bournville Village Trust website. Legislation in the United Kingdom goveming the preparation and dissemination of financial statements may differ from legislation in otherjurlsdictions. Polltlcal and Charltable Donatlons Bwf is a charitable organisation and as such we made no contributions to political organisations. To further the charitable aims of BVT we made charitable donations to other Charitable Organisations who have a connection to the Group, of £29,482 (2021: £36,800). Alongside this BVT offered Partner Organisations, who furthered our charitsble aims, accommodation that equals a benefit in kind donation valued at £7,800 (2021: £15,800). Disclosure of Inforniatlon to the Audltor Page | 27 Trustees who were in office on the date of approval of these financial statements have confirmed. as far as they are aware, that there is no relevant audit infomiation of which the auditor is unaware. Each of the Trustees have confirmed that they have taken all the steps that they ought to have taken as Trustees in order to make themselves aware of any relevant audit information and to establish that it has been communicated to the auditor. Auditor Following a formal tender exercise, the Trustees resolved that Beever & Struthers LLP be appointed as auditor for the BVT Group for the 2023 accounting year. Annual Controls Assurance Statement 2022 Introductlon Annual Internal Controls Assurance Statom•nt This statement sets out the evidence officers have collated on the effectiveness of 8VT's systern of intemal controls and encompasses a number of elements that together facilitate an effective and efficient business, enabling Birr to respond to a variety of operational, financial. and commercial risks. These elements are.. Policies and Procedures Data Breaches Business Planning, Budgeting and Performance Managemenv Regular Reporting Strategic Risk & Assurance Register Operational Risk & Assurance Registers Audit & Risk Committee Intemal Audit Programme External Audit Programme Third Party Reports Compliance with relevant legislation Pollcles and Procedures A Series of policies and other documents underpin the intemal control process and written procedures support these policies and documents where appropriate. These include rules, standing orders and financial regulations that are regularly reviewed and approved by the Board. They are supported by other major documents and practlC85 such as the Corporate Plan, codes of conduct, a perf0rrnan￿ management framework, management delegation systems. employment contracts, appraisals and monitoring processes and one-to-one reviews. During 2022 we continued to review a significant number of policies, with particular focus on health and safety policies and these policies are all up to d8te Page | 28 at year-end apart from the Fire Safety Policy as the current (and fit for purpose policy) will be included in a review of all B￿'S core building safety compliance policies to produce one overarching Building Safety Policythatwill encompass the cross-cutting themes of the Building Safety Act. This refreshed document will enable a greater degree of standardisation regarding the varied range of building portfolios operates in. We continue to carry out process mapping to identify where efficiency and effectiveness could be increased. This was particularly applied to aspects of BVT'S payroll, complaints, HR system and financial inclusion activikn'es during 2022. Data Breaches BVT'S Data Protection Officer manage5 and records all data breaches, both intemal and external, that occur. On average, since we began recording, we have 617 data breaches each year. The process for reporting data breaches is set out in the Data Breach Notification Proccdurc. Of the 32 data breaches reported since 2018. 59 % (19) relate to email usage with the use of Autofill specifically causing 28°/0 (91 of those breaches. Most of these breaches were disclosure of information to the wrong recipient and all were considered easily preventable. We are seeing a slight increase in cyber-attackslspam; 5 in total, 2 of those in the past 18 months. We have now achieved Cyber Essentials Plus accreditation and online training has been delivered to all staff to increase awareness of the issues that spam ernalls can cause. We are continually leaming from data breaches. There is no blame associated with breaches and we actively encourage staff to report all instances they are Involved in. All staff continue to receive Data Protectlon and IT Security training which has given thern a good understanding of our Dats Protection policies and processes and also their responsibilities when managing personal data, as well as useful infomiation on IT Security. This training is valid for two years. New staff will undergo the training during their induction. Buslness Plannlng, Budgetlng and Perfomiance Managemenu Regular Reporting The annual business planning and budgeting process for 2022 was based on achieving the strategic objectives in the Corporate Plan and managing the key risks that might impact on achieving this. There was regular reporting of both risk and perfomiance across BVT throughout the year. Slandardised report templates are in pla￿ to ensure that infomiation is presented clearly and consistently across key issues. Page | 29 A robust, business-led approach to a quarterty performance reporting cycle and reporting from a suite of KPI measures is firmly eslablished and includes a specific suite of KPIS for landlord health and safety compliance. In 2022 BVT again enhanced financial planning. with a complete rebuild of the 30-year financial plan. This included new assumptions to better reflect the likely long-term impact of the pandemic, economic crisis and war in Europe. The complete automation of BVT'S financial covenants allowed the 30-year plan to be used by Trustees at their Strategy Days to review a range of financial outcomes, drawn from different delivery option5. This comparison tool helped the Board choose between competing options for Bw's finite financial reSoUr￿s, thereby assisting them in setting the business plan for BVT'S medium term future. The adVan￿d stress testing we have been running for some years was updated, in line with our annual cycle. The detailed stress testing run has enabled Trustees to understand Bwf'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.. a. there is access to sufficient liquidity at all times. b. 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. d. the financial and other implications of risks to the delivery of plans are considered. e. we monitor, report on and comply with our funders, covenants. Strateglc Risk & Assurance RogSster A Strategic Risk & Assurance Register is compiled and updated by the Executive Team to help to facilitate the identification, assessment and ongoing monitoring of risks significant to the organisation, also considering the need for further mitigation. The Register has been presented each quarter in 2022 to the Audit & Risk Committee and to TNst8es. Operational Risk & Assurance Regist8r8 Operational Risk & Assurance Registers are in place and are updated quartedy by the ￿levant director to help to facilitate the identification, assessment and ongoing monitoring of risks significant to the seNice, also considering the need for further mitigation. The registers are reviewed by the relevant committees in accordance with our Risk & Assurance Strategy. Page | 30 Audlt & Rlsk Committee The Audit & Risk Committee alerts Trustees to any emerging issues or concems it has. In addition, the committee oversees internal audit, extemal audit and management responses as required in its review of internal controls. The committee is therefore well-placed to provide advice and assurance to Trustees on the effectiveness of the intemal control system. including the organisation's system for the management of risk including the scope and effectiveness of the strategy. policies and proceéures. Since the Committee was set up in 2017 it has developed its role and has become an established part of the oversight of internal controls. It met 4 times during 2022 and also held a joint meeting with the Finance Committee. The minutes of all these meetings have been presented to the Board of Trustees. As part of good govemance, the Chair of this committee ha5 met with both our Extemal and Intemal Auditors outside of the committee meetings to gain independent assurance on BVT'S controls over its business. Internal Audlt Programme Intemal audit is an important element of the intemal control process. Apart from its normal risk driven programme of worf(, including recommending improvements to service areas, internal audit is responsible for aspects of the annual review of the effectiveness of the intemal control system within the organisation, giving an independent objective assessment of Ihe effectiveness of the risk management and control processes operating at BVT. The internal audit programme for 2022 was fully delivered and an Annual Intemal Audit Assurance Report Was presented to the Audit & Risk Committee in January 2023 and lo the Board of Trustees in March 2023. Mazars audit opinion was as follows.. - On the basis of our internal audit work, our opinion on the framework of governance, risk management. and control is Moderate in its overall adequacy and effectiveness. We noted some areas in which the control environment could be improved, for instance we raised one Highly Important recommend8tion as part of the cyclical Compliance Review recommendations. Of the four strategic audits conducted in 2022, in each case an Adequate assurance lev81 was provided and it was noted there were no reports in 2022 with Limited assurance or where critical recommendations We￿ raised. This and all other matters have been discussed with management, to whom we have made saveral ￿CoMMendatIOns. All of these have been, or are in the process of being addressed, as detailed in our individual reports. The Audit & Risk Committee took a robust role in temis of ensuring scrutiny and oversight of both the tracking and implementation of internal audit recommendations through regular and more delailed reporting of any outstanding fundamental recommendations as part of the quarterly Risk & Assurance report5. Page | 31 Extemal Audit External audit provldes feedback to the Trustees on the operation of the intemal financial controls reviewed as part of the annual audit. In April 2023, RSM UK issued their latest Audit Findings Report. based on BVT'S 2022 financial statements. received a clean audit opinion and there have been no disagreements with management regarding financial reporting for the purpose of issuing the audit report. BW, BVD and BWHS all received a clean audit opinion and there have been no disagreements with management regarding financial reporting for the purpose of issuing the audit report. Thlrd Party Reports External assessments and advice provide additional and useful assurance. Major sources include regulatory judgements and independent advice around govemance, treasury management, health and safety and supported housing. Extemal expertise and impartiality play an important role in supporting BVT to review aspects of its work. During 2022 BVT used extemal parties to support the following.. Preparation for B VT'S regulatory In-Depth Assessment Review of the HR structure Advice on delivery of leadership and management development structural Surveys and Assessments Expert Witnesses to defend Legislative Claims (Section 11 and 82 EPA) Agricultural Valuations Architects - Planning Applications and Advice (ConseNation Areas) Planning and Sustainability experts (Design Charter) Environmental and Sustainability Consultants (Savills and SHIFT Environmental) Exlemal Auditors Retained Independent Health and Safety Consultant (PEMCO) EPC inspections Review of an older persons scheme Treasury- Chatham Financial Legal Advice for Rent Setting & Regulatory Compliance Legal Advice for Treasury & Land Registry Technical Financial Accounting Advice (Tax, VAT, SDLT, Investment Recording) Cyber Security ICT Infrastructure Regulatory Compliance Commercial valuations Page | 32 Commercial sales & marketing advice Commercial rents. lease terms and lettings Commercial dilapidations valuations and negotiations Commercial estate reinstatement valuations and a stock condition sun4ey Market rent valuation and marketing BVT built on achieving Cyber Essentials Accreditation in December 2021, by achieving Cyber Essentials Plus in 2022.This is an externally verified accreditation that BVT'S ICT security arrangements met the standards expected of the highest performing organisations in our industry sector. A regulatory In-Depth Assessment took place in Q1, 2022 and BITh retained its G1N1 ratings. A financial stability check in Q4, 2022 confimied 8￿'S V1 rating. Compllance wlth relevant legislatlon We confirm our compliance with relevant legislation in a number of ways: monthly KPI monitoring (a number of KPI targets are set to achieve legal compliance) regular review of policies to ensure they reflect current18g151ation constant scanning of trade press for updates and attendance at major conferences horizon scannlng as part of monthly risk discussions to Identify any new legislation internal and external audits relevant employees are required to maintain professional accreditation, which includes remaining up to date with relevant statutory requirement5 use of legal advisors for more complex legal issues that are either beyond the professional capacity of BVT employees, or to seek an opinion on our interpretation of legislation and attendance at legal briefings extemal competent advisor for health and safety lists of relevant legislation provided annually to support thls statement are provided to BVT'S Audit & Risk Committee and Board. There is a section for compliance with relevant legislation in 8￿'S standard report template so that any issues or concems are clearfy highlighted to Trustees and Committees. Bvf submitted a self-referral of non-compliance with the Smoke and Carbon Monoxide Alarm Regulations 2022 in November 2022 with a detailed action plan to meet compliance by 30th September 2023. The Regulator confirmed thattaking into account the information provided, Bwf had not breached any of the regulatory standards. Page | 33 Effectiveness of Controls Our risk and control mechanisms are generally effective. This annual internal controls certification process has not highlighted any issues that were not previously identified through nomial management processes. The Executive leam has reviewed the effectiveness of the system of internal controls, including the sources of assurance agreed by the Board. There is sufficient evidence to confirm that adequate systerns of internal control are in pla and operated throughout the year. Reserves All surpluses generated are reinvested to meet the Group's principal objectives, therefore, the reserves that the Group has accumulated have been largely invested in its housing and other properties and are not represented by cash balances. The rationale for certain restricted reserves is explained within the Accounting Policies section. Fixed Assets Details of the changes in fixed assets are set out in Notes 7A and 78 to the financial statements. By order of the Trustees Helen Harvey Secretary 8th June 2023 Page | 34 INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF BOURNVILLE VILLAGE TRUST Opinlon We have audiled the financial statements of 8oumvllle Village Trust (the 'Association') for the year ended 31 December 2022 wh￿h comprise the Consolidated 8nd Trust Statements of Comprehensive Income, the Con501idaled and Trust Statements of Financial Position, the Group and Trust Stslements of Changes in Resetves, the Consolidated and Trust Statement of Cash Flows and notes to the financial Slalemenls, including significant accounling poli¢les. The flnancial reporting framework that ha5 been 8pplied in their preparation is applicable law and United Kingdom Accounting Standards including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting Praclicel. In our opinion the financial slalements.. giv8 a Inje and fair view of the slate of the Group's and Association's affairs as al 31 December 2022 and of Ils Sncome and expenditure for the year then ended-, have been propedy prepared in ac¢or(1ance with United Kingdom Generally Accepted Accounting Practice.. have been prepared in accordance with the rgqulremenls of the Ch8ri1189 Act 2011. the Housing and Regeneration Act 2008 8nd the Accounting Dlrecllon for Private Registered Providers of SoGldl Hoiisiiig 21119 Basis for oplnlon We have been appolnted as auditors under secllon 151 of the CharStles Act 2011 and report in accordance wlth regulatlons made under Section 154 of that Act. We conducted our audlt In accordance with Intemallonal Standards on Audlllng IUKI (ISAS IUKII and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial slalemenls Secllon of our report. We are independent of the A850ciation In accordance wth the ethical requirements that are relevant lo our audit of th8 financlal statements in Ihe UK, including the FRC'S Ethical Standard. and we have fulfilled our other ethical responsibililies in accord8n¢e wlth these requlremenls. We belleva that lh8 audll evldence we havo obtained 1$ $uffi¢ient and appropriate to provide a basi5 for our oplnion. Conclusions relating to going concern In auditing the financSal statements. we have concluded Ihal the Trustees, use of the going concem basi5 of accounting in the preparation of Ihe financial stalements is appropriate. Based on the WOTk we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant d￿bt on the Group and Assocl81ion's ability to continue as a going con¢em for a pe￿0￿ of at least twelve months from when the financial slalemenls are authorised far issue. Our responsibilities and the ￿sponSIbl1111eS of the TnJstee8 wlth respect lo going concern 8r6 descrlbed in the r8levant sections of this report. other informatlon The other information comprises the information included in Ihe annual report, other than the finan¢i81 slalemenls and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements doe5 not cover the other information and, we do not express any form of assurance conclusion Ihereon. Page135 Our responsiblllty is to read the other infomalion and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit or otherwise appears lo be rnalerially misstated. If we identify such material inconsistencies or apparent rnaterial misstatements, we are requI￿d to determine whether this gives rise to a material misstatement in the financial statements Ihemselv8s. If, based on the work we have performed, we conclude that there is a material rnisslalement of this other information, we are required to report that faGt. We have nothing lo report in thi5 regard. Matters on whlch we are required to report by exception We have nothing to report in respect of thé following rnatlers where the Charits'es Act 2011 requires us lo report lo you if, in our opinion.. the information glven in the Trustees. Report is Inconslstent in any material respect with the financial slalements., or sufficient accounting records h8ve not been kept., or the financial statements are not in agreement with the accounting records and relurn8', or we have not r8céiv8d all the informallon and explonatlons wa requir8 for our auélt. Responsibilities of Trustees As explalned more fully in the Trustees, responsSbililies slalement Iset out on pages 27-34. the Trustees are responslble for the preparation of the financial 81alemenls and for belng satisfied that they gbve a true and fair view, and for Such intern81 control as the Tru51ees determine are necessary lo enable the preparation of financi81 statements that are free from m8teri81 misslalement, whether due lo fraud or error. In preparing the financial statements, the Trustees are responsible for assessing the Association's 8bS1ily lo conlinue as 8 going concem, disclosing, as appllcable, mallers related to going concern and using the going concern basis of a¢¢ounling unless the Trustees either intend lo liquidate tho Associallon or lo cease operations, or h8ve no reallstSc alternative bul to do so. Auditor's rèspon5ibililbes for the audit of the financial 5talerneiits Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole r8 free from material misslatemenl, whether due lo fraud or error, and lo issue an auditor's report that includes our opinlon. Reasonable assurance is a high level of assurance, bul is not a guarantee Ihal an audil conducted in accordance with ISAS IUKI will always delecl a materi81 misstatement when il exists, Misstalemenls can arfse from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected lo influence the economic decisions of users taken on the basi5 of Ihese financial statements. The extent to which the audit was considered capable of delecling irregularities, including fraud I￿egUlaritIeS are instances of non-compliance with laws and regulations. The objectives of our audit are lo obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the d81ermination of material amounts and dIs¢losu￿5 in the financial slalemenls. lo perform audit procedures to help idenlrfy instances of non-compliance with other laws and regulations that may have a material effect on the financial sla18menls, and lo respond appropriately to identsfied or suspected non-cornpliance with laws and regulations identified during the audit. In relation lo fraud. the objectives of our audit are to identify and assess the risk of material mlsstatement of the financial statements due to fraud, to obtain sufficlenl appropriate 8udil evidence regarding the Page | 36 assessed risks of malerlal misslatemenl due to fraud through designing and implementing appropriate responses and to respond appropriatety to fraud or Suspected fraud identified during the audit. However, it is the primary responsibility of management, with the oversight of those charged with govemance. to ensure that the enliws operation5 are conducted in aceordance with the provisions of laws and regulatsons and for tho p￿Vention and detection of fraud. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, tha audit engagement team.. obtained an understanding of the nature of the sector, including the legal and regulatory framework that the Group and Association operates In and how the Group and Association are complying with the legal and regulatory framework., inquired of management, and those charged with 9overnance, about their own identification and assessment of the rlsks of irregularities, includin9 any known actual, suspected or alleged instances of fraud.. ¢Jiscussed m8lters about non-compllance with law3 and regulallon$ and how fraud might occur Including assessment of how and where the flnanclal stalemenl8 may be susceptible to fraud. As 8 result of these procedures we consld8r the most significant laws and regulations that have 8 direct impact on the finan¢ial statements are FRS 102, Charities Act 2011, the Housing and Regeneration Act 2008, the Accountlng Direction for Private Registered Providers of Soclal Housing 2019 and tax compliance legislation. We performed audlt procedures lo delecl non-compliances which may have a material impact on the flnanc181 sl8temenls which included reviewing financial stalernenl disclosures. The most signilicanl laws and regulations that have an indirect impact on tha financial 5181emenls are Heallh and Safety al Work Act 1974, the Regulator of Social Housing Regulatory Standards (both Economic and Consumer standards) and the General Dala Protection Regulations as set out in the Data Protection Act 2018. We performed audll procedures lo inquire of management whether the company is in compliance wilh Ihese18w and regulations and inspected correspondence with li¢enging or regulalory authorities. The audit engagement team identified the risk of management override of controls and care and olhor income as the areas where the financial slalemenls were most susceptible to material mi5Stalemenl due to fraud. Audit procedures performed included bul were not limited to lestlng manual joumal enlrles and other adiustmenls, evaluating the busine$$ rationale in relation to signlficant, unusual transactions and iransaclions entered into outside the normal course of business, challenging judgmenls and e51imale5 and detailed gubslanlive sampling testing for revenue. A further description of our responsibilities for the avdil of th8 financial statements is provided on the Financial Reporting Council'5 website al.. https.'Ilwww.frc.org.uklauditorsresponsibililies. Thls des￿lptIon forms part of our auditor's report. Use of our report This report is mada solaly to the RSL charity's tnjstees as a body, in accordance with the Charities Act 2011. Our audit work has been undertaken so that we might slate to the group and ch8rity's trustees those matters we are required to slate lo them In an audltor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the RSL group ané charity and the RSL group and charity's trustees as a body, lor our audit work. for this report, or for the opinions we have formed. Page | 37 ## RSM UK Audit LLP RSM UK Audit LLP Statutory Auditor Chartered Accountants 10th Floor 103 Col more Row Birmingham West Midlands B3 3AG Date: 13 June 2023 RSM UK Audit LLP is eligible to act as an auditor in terms of section 1212 of the Companies Act 2006. Page I 38 Bournville Village Trust Group CONSOLIOATEO TRUST STATEMENTS OF COMPREHENSIVE INCOME ft>r t￿ yejr fjnd•d 31 0oc•mber 2022 Notas Group 2022 £￿00 Trust 2022 £'ooo 2021 £'ooo 2021 £'ooo TLIRNOVER 27,367 27.619 26,469 26.728 Operatrng expendiiure 122,4051 122,9021 121.954? 122.3101 OPERATING SURPLUS 4,962 4,717 4,515 4.416 Surplu5 on 8816 ol houBing 8nd oth8r propert188 Surplus on the sale of land Surplus on sale of othar flx8d a8S8ts Inleresl receivable Inte￿$1 and financlng c08ts Movem8nl in 18ir valu8 ol finaneAAI Instrurn8nt8 ovom&nl In lair value ol inve8trnenl prop*￿e￿ 380 398 141 47 {3,8271 17,695 3,808 360 398 537 537 680 171 13,9631 7.670 218 13,9781 17,695 3,808 13,9601 7,670 17 SURPLVS ON ORDINARY ACTIVITIES 22 23,339 10,517 23,012 10,377 Page 39 Bournville Village Trust Group CONSOUDATED AND TRUST STATEMENTS OF FINANCIAL posmoN ag at 310¢c•mber 2022 Group 2022 TruBt 2022 Nol85 2021 2021 £'ooo rocrf) E'OfrJ £YJoo FIXEDASSETS Tangible assets Housin9 proportie5- Cosl Depreciation 7A 7A 188,932 139,9671 189.459 137,5411 177,246 136,0561 177,990 133,9011 14B,985 151,918 141,190 144,089 Other fixed a588t& Investment properties Fix8d asset Snvastments Restrfcttsd Cash 78 22,503 4,184 18,844 22.503 4.164 8,400 1,040 18,844 8,400 1,041 10 1.040 1.041 176.672 171.603 177,297 172.374 CURRENT ASSETS Siock Debtors C8sh at bank ond In hBnd 879 2.125 3,320 831 1,568 5,582 64 4,215 2.955 24 3,477 5,331 12 8.324 7,981 7.234 8,832 CREDITORS.. Amounts lalllng du8 wlthln one year 13 110,4401 19,5981 113,4221 112,1481 NET CURRENT ASSETS 14,1161 11.6171 16,1881 13,3161 TOTAL ASSETS LESS CURRENT LIABILITIES 172,556 170,186 171,109 189,058 CREDITORS.. Amount$ lalllng due after more than one year Provlsion3 for li8bilrti88- penslons Flnanclal Snstruments at f8iT value 14 1108.7081 19 13221 17 14,0711 1111,6681 18381 121.7661 {107.9441 13221 14,0711 1110,8841 16381 121,7661 TOTAL NET ASSETS 59.455 38,118 58,772 35,760 CAPITAL AND RESERVES Restricted reserve8 Endowrnenlg Income and expendlture rewve 20 7,825 696 50,934 7,218 696 28,2Q2 7.825 696 $0,251 7,218 e96 27,846 21 59,455 36,116 58,772 35,760 The financièl st8t8ments on pages 39 to 75 were Bpproved by tha Trustaes and aulhorised for Issue on 8 June 2023 and were signad on Its behalf by.. C CadI￿ry Chair P Lurnloy - Vice Chair P Richmond Chiof Executive Page 40 Bournville Village Trust Group STATEhlENT OF CHPJIGES IN RESERVES as at 31 D•cember 2022 GrrAJP Income end Restricted expendiiure re88rv8 r88eNe Endowments Toial rooo £'cK)o £'ooo £000 Ba18n￿ at 1 January 2021 18,068 6,835 696 25,599 Surplus for the year 10,517 10,517 Transfer of re8trict8d 8XP8nditur& fr￿ unrestrict8d ￿le[¥0 383 383 Balance at 31 Do¢embèr 2021 28.202 7,218 696 36,116 sU￿lUs for the year 23.339 23,339 Transfer ol re81dded 8XP8ndltura Irom unrestrlcted reserye 607 807 Balance 4$ 31 Dttèmb8r 2022 50.934 7,e25 59,455 Trust IrKorne 8nd R8strlcted •xpandlture reservo res8ry0 Endowmgnls Total £'ooo £'coo £'ooo £'CK)O Bgl&nce at 1 January 2021 17,862 6.835 696 25.393 sU￿lUs for the year 10,367 10,367 Tran8fer ol r•strktad 8xpendlture from unr&trkted r888rv& 383 383 8alanc• at 31 December 2021 27,846 7,218 696 35,760 Surplus for the year 23,012 23.012 Transfer of re6lrfcted expendhure frorn unrestrfcted res81W8 607 607 Balance as 31 D8comber 2022 50,251 7,625 696 58,772 Page 41 Bournville Village Trust Group CONSOLIDATED AND TRUST STATEMENT OF CASH FLOWS forthe year ènded 31 Deceml)•r 2022 Group 2022 £'ooo Tnjst 2022 £'ooo Ngts8 2021 £'c4)0 2021 £'ooo OPERATING ACTIVITIES Net cash géneraled from operatlcffis 22 9.625 10,315 8,267 9.296 Interest paid 13,9651 14,0531 13,9371 13,9771 NET CASH FROM OPERATING ACTIVITIES S,680 6.262 4,330 5,319 CASH FLOW FROM INVESTING AcfiviTIES Acquisldon and ron8truction of tangible flxed 8$8ets Nal proceeds on disposal of tsnglble fixed assèts C8prtal grants repaid Inieresl recthved 16,0011 886 1301 47 14,0911 3,057 11021 19 15,6901 886 1301 218 13,9781 3,148 1991 183 NET CASH USED IN INVESTING ACTIVITIES 15.0961 14,616 17461 CASH FLOW FROM FINANCING ACTIVITIES Loans recelved Loan principal rep8yThents 1,000 13.5951 1,000 13,5951 113,5001 113,5001 NET CASH USED IN FINANCING ACTIVITIES 12.5951 113,5001 12,5951 113,SOOI NET DECREASE IN CASH ANO CASH CASH ANO CASH EQUIVALENTS AT BEGINNING OF YEAR 12,0331 4,878 18.3SS1 13,233 12.8811 1.479 18,9271 10,406 CASH ANO CASH EQUIVALENTS AT END OF YEAR 22 2,845 4.878 11.4021 1,479 Page 42 Boumville Village Trust Group ACCOUNTING POLICIES LEGAL STATUS Bournville Village Trust is an unincorporated charity and 18 an English re9lstered social housing provlder. and is a public benefrt entity. The prfnclp81 Aellvities and operationB are di8cIo8gd In the Report ol the Board of Tru8t8es. The address of ihe TnJsfB reg18tered Offi￿ And prtnclpal place of busine￿ Is 350 Bournville Lane Bournville Birmingham 830 1QY BASIS OF ACCOUNTING Thes8 lin8nci81 st8lernent8 hBve been prepared In accordancé wlth UK Gonerally A￿epted Accounting Prectlce (UK GAAPI including FRS 102 'Tho Financial Reporting Standard applicable in the UK and Republic of IrelBnd' I"FRS1021. the Hou6ing SORP 2018 'Stotement of Recommendod Pracliee lor Registered Housing Provlders" and they cornply with the Accounting Diracllon for Private Registered Provider5 of Swal Housing 2019. They are prepared under the historical cost ¢onvenknon. rnodified to indude certBin fln8ndal Instruments al lalr value. Monetsry arnounts In these financial Blatements 8ro rounded to the neare8t whole £1,0￿, exeopt %there othe￿￿¥¥ Indicated. BASIS OF CONSOLIDATION The Consolidated financlal Stalgmènts Incorporate th06e of the Trust and all ol 51$ subsidlarie6 li.e. enbts'eB that th8 Group controlB through its p¢)wer lo govern the flnanclal and operating pollciès so as to obtain economic benefit51. Subsidiaries acqulr¥d ¢Jurfiiy Ili¥ y¥¢ll di¥ uuii¥Lli¢Jiil¥d uyiiiy Ill￿ yuiLI)as¥ niethod. Thtsir results aro incorporated from the date th81 contrrj p85395. All financi81 Blalements are rnade up to 31 D•cember 2022 All intra group tran8acllon5. b8lallc¢s and unre81i5ed gains on tr8n88Ctlons bettvean group eornpanies Brè dlmln8lad on consolidation. Unreall$8d 108s88 Ar8 olso eliminJled unle$$ th* Ir8n8acUon provld86 evldence ol Ihg impoirm8nl ol the a88el trBnsfefred. GOING CONCERN Under the govamance requiremen18, the Tru51ees confirrn that the 30 year financi81 plan they hav8 In place. along wlth no refinancing concern¥ positive robu81 stres9 le81ing 8nd rniliyuliuTI yS¥iiL4, 1i1¥¥11¥ ilivy i¥¥¥uii&bl6 èAPèknlatk)n that thè Group and Trust have a(Jequ8te resource$ io continue In operational ex16¢encè lor tha forèseeable future. Accordingly they contlnu8 to adopt the golng coneèm b88is In preparing Ihe financial ¥t81em?nl8. TURNOVER AND REVENUE RECOGNITION Tumover represent6 ￿nts 8nd Service charges recelvable in respect of ten8nt8d 18as0h￿d and freehold properties, and arnounts involced In respect ol th8 provSsion ol Se￿CeS to Ihlrd parti88 (nèt of VATI. 11 also includes lumover Irom Shared ownership first tranthe Sales, donatlons, proceeds Irorn land Sales. income lor release of covenant restrictlons. r8venue grants receivable in Ihe pèriod, Income from community activlb"89 and Income from Selly Manor Museum. Rentol Incorne is recognised from th8 point when properties under development reach practical corrpletion or othèrws8 becorne available for letting, llgt ol any VO￿$. Income from f1r5t tranche Sales and land sales is recognised at the point ol legal cornpletim of Ihè Iransactlon. Seryices lo third partlgs 8re recognised at the polnt of servlce d81iv8ry. OTHER INCOME Interest incorne is ac¢rued on 8 tlrr*-appoitioned basis, by rglerencè lo th• principal oulstanding at the effectiv• interest rate. Profil Share BVT W0￿ed with the Extra Care Charitable Twst to develop an 8xtr8 r3re 5cherne lor older people on land owned by Bvr in Bournville Th8 scherne 15 rnanaged and run by the Extra ca￿ Charitable Trust, bul as part of the d8velopmvnt arrangernent BVT Is e￿￿tIo￿ to a share of the profils rAI c8r8 provision within the scherne and of the 8urplus on property buy back and sal88. P8ge 43 Bournville Village Trust Group ACCOU14TING POLICIES leontinuedl TANGIBLE FIXED ASSETS- HOUSING PROPERTIES Housing propertieB ar8 properties for the provision of s¢xlal houslng and ar¢ princ4pally Fffoperties available lor rent and shared ownership. Completed housing and shared ownership woperties are stated at Cost less accumulated depreciatlon and impairment losse5. Agriculture, commerdal, community, communal, and offlce bulldings are 8tsted at cost less accurnul8led depreciatron and Impalrnent103ses. Cosi include3 the cost of acquinng Ihnd ané buildings, and expendrturo Inrurred during the developrnenl period. Wc¥k8 t9 eXi8tyng Properties whith replacè A component that has bEen treatod separately for depreciats.on purposes. along with those works that 8nhance Ihe economlc b8n¢fits of the assets, are e8pll81ised as improvem8nts. Such enhancements can occur rf improvements result in either". An increase in rental income,. A material reduelon In future maintenance costs.. A 8ignth.cant extension lo Ihe life of ¢he propety. Sh8r•d ownership properbes are split proportionally befv48en fixed as58ts and current a55et5 based on the èlam8nt r818tlng lo expected fir81 tranche sale8. The Ilr5t tranche proportion is classed as a current asset and relaled sales proceeds are Indud8d Sn lumov8r. The remalning elem8nt is cl8ssgd as a fixed asset and included In housing propertie6 al cost, les8 any provisions nèeded lor depreciation or impairrnent. Wh8r8 the first tranche has baèn 501d prior to the acquisits'on of properbeB, these ale indud•d In fixed as8ets only. SOCIAL HOUSING AND OTHER GOVERNMENT GRANTS Where developrnents hav? bg¢n ffnanced wholly or partly by social housing and oth8r grants, tho amount of the granl recelved h88 been included as dafarrerl Income and recognised in Turnov?r over the 86tirn8led usalul life of the Associated asset structure Inot landl, under the aEcrug15 model. Social Hou8ing Grant ISHGI recelved lor items ol cost written off In the Statement of Comprehensive Incorne Account 15 included aB part ol Tumover. When SHG In respect ol housing propè￿.•$ In the course of conslrucuon eKeeds Ihe total c08t to date of Iho88 hou91no prop8rU•8, thè 8x¢e83 is shown aB a currenl li8bS111y. SHG mu81 b8 recycled by the A98ocIAts"on under certain condilons, 11 g prpperty 18 Sold. or If another rel8v8nt ￿ent t8ke¥ place. In these cases, the SHG can be used lor projects approved by Homès England. However, SHG may have to bo repaid if cert8Sn condltlc￿s are not mel. If grant 15 not required to be recyclerj or rep8id. any unamortise(I grant Is recogn15ed 08 Tumover. In certaln clTcum81ances, SHG rnBy be repayable. and, In th8t evant, i¥ recorded &8 subor(Jin8ted unsecured r•p8yabl8 d8bl. DEPRECIATION OF HOUSING PROPERTIES Ho¢J8lng propertles &re 8plil be￿een land. Structu￿ an¢ other major cornpontrnts that requirè r8pl2cement over tlme. The land element ol hou61ng propertle5 and housing under th8 course of conslructic*) a￿ not dapreciated. Th& group 8epar8iely Iden￿ri*S the rnajrA componenls ol Its housing properU8s and charges depredallon go as to writ down th8 EOSt of each cOmpC￿ent lo Its 93tSmated residual value, on a straight line basis over the following years.. Years 100 -150 20 30 30 30 15 30 30 60 15 20 Slructrj Kitchen B8throorn Windows Central Heating Boilerg Rgwiring FronVRe8r Doors Roofs DcN)r Entry SyBtem8 Sewerage BVT considers each commercial and agricultural property and 8S5et individually and applies Ihe most appropdate desxeci8lion rate to tha asset, bosèd on A fair 888e8srnent of ils uselul eeonomic life. Page 44 Bournville Village Trust Group ACCOUNTING POLICIES Icontinu•dl In 2020 tha Group r8viewed its depr8ciation policy and changed Ihe useful economic INes of kitchens. windows, cèntral heating and boilers. This was part of a complete review of our asset Manage￿Ent strategy encomp885ing b¢51 practice and reviewing life cycles of ￿[￿POnentS based on changes in technL4ogy and produci quality. We also listened to th8 views of our tenants %thich led to a decision to r8place cornponents on a n￿re frequ8nt basis. This means that d8pr8ciati￿ on these Gomponenls replaced prior io 2020 is ￿1￿lated on net book value 8t 31st December 2019 on Straight line basis over the remaining useful economic life. IMPAIRMENT OF FIXED ASSETS An asBe8srnent 18 m8de 81 eg¢h reporting date of hvhether thgrè Indlcats"on6 that 8 flxed assat (Sncluding housing propertiesl rnay bè ImpaI￿d or that an impairm8nt loss previously recognised hB8 fulty rx parbally reversed. 118uch indiralions exist, the group estimates the recoverable amount ol the asset. Shortfalls between Ihe carrwng value of flxed assets and thelr recov8r8ble amounts. being the hlgh8r of f8lr value les6 costs lo sell and valu8-in-use ol the asset based on its $81VIC8 POtEntiBI. are recognssed as impairment losses in ihe incwe and 8xpanditur• account. Recogn158d imp8im&nl losses are rever50d If, only 11, th• reasons fcf Ihe Impalrmènt loss have ceas8d to Bpply. f¢ev8rs818 01 impaim8nt losses 8r8 recognised In income and expenditure. On ￿Versal of Bn impaim)ent 1058, the deprvclalion or amorti5ation 13 adjusted lo allocate the 8sset'8 revi8ed carrying amount Iless any residual value) over Its maining useful lrfe. OTHER TANGIBLE FIXED ASSETS Tangible fixad asset5 are inits'alty rnea5uréd at cosl, net ol depreci8tion and any Imp8lmienl losse5 OeprecS8tion Is prthviilArt nn 811 IAnoihlfi fixed Assets. oth8r than freehold land and investment propert1¢9. At rates calculated to writa off the C08t of eath as6et to its e81imatod r88hlu81 v81ue on o 8traight Ilne ba81$ over It6 expected useful lif8 as follows.. Computer Equlprnenl Fixtures and Flltin9S 4 years 4 years Residual value ig r8lculated on prices prev8iling 81 thè r•pOt￿ng data, after esllmaled c0818 01 dlwosal, lof the 88s8t 08 If It were 81 the age Ant1 In the condillon expecled 81 the ond ol ils useful Ibfe. Properfe5 cla68ed wlthln agricultural estates, commercial bulldings, cornmunily buildlngs and office8 are split belwoen land, slruclure and other major components that require replacement over lime. The land alernenl ol these propertiès Is not depreciated. The group 58par8laly Identlfles the major cornponenlB of the89 proportie8 and charge8 depre￿atIOn on th888 In Iln8 wtth thè d8pr8Clation ol housing propertles. The 2020 review tsf dèpr•clatk)n pollcy and change in u¥eful economle IIv88 ol kllcheng. windows. eantrAI hoating and boilers also Bpplied to these 88sels. This meBns thal dopr8CIBtion on these components replaced prfor lo 2020 is cBlculBled on net value 813161 December 2019 on 8 Straight Ilne b081s over Ihe remaining usèful economic life. PROPERTIES UNDER CONSTRUCTION Properties in the course of constrUc￿.0n are carried at cost, lass any identifiable impairm?nt 1055. Cost includes professional feès and othar directly attributable coyt5 th8t are necessary lo bn'ng the property lo Its operatlng condilion. Depwl8llon commences %then the properbes are rèady for theSr Int•nded use. BORROWING COSTS Borrowing Costs are expensed as incurred L4nl8SS they a￿ capltalised if directly attributable to a developmenl scherne. Borrowing costs are capllalised frorn Ihe start of construclion through to the time the developmgnt is completed and handed over as available for occupats'on. C05t5 directly CDnnected with the raising of fin8nce are deducted from loan5 and wrltten off aventy over the life of the108n in the income an(J expenditure account. INVESTMENT PROPERTIES Inv98trnont propertles consist of cornrnercial propertie5 and Ma￿et rented propertl85 not held lor social benefit or for use in the business. Iwweslment prop8rt18s are measured at cost on initial recognition and subsequently carried at fair valug determined annually by qualffied valuèrs and dertV8d from Ihe current m8rk8t ￿ntS And inveslrrent property welds lor comparable real estate, adju5t8d il necessary for any difference in the nature, locatlon or condition of th8 5pecilic asset. No deprecia￿'On is provided. Changes in fair value are recogni5ed in incom8 or eypendiluie. Page 45 Bournville Village Trust Group ACCOUNTING POLICIES Icontlnuodl FIXED ASSET INVESTMENTS Therè arè two elements lo fixed asset inv88tments. Inveslfflent of Subsidiary ￿preSentS the fabr valu8 ol thg procoeds for the acquisition of BWHS as at 4 January 2011 when th8 organisation became a subsidiary of BW, This becarne deemed C05t gThng folward. The THFC Interest SeNice Reserve eqvates to an investment required under the lernis ol our THFC loan and the funds are Eurrently invested in bank deposlt accounts. The interest reserve is slated 81 cost wfrth any accrued inleregt being credited lo the statement of comprehensive income. STOCKS ANO WORK IN PROGRESS Stock8 and work In progress are slated al Ihe lower of Cost and net realisable value. Long.terrn projects, notsbly the Ll9hlFnoor projgct undertaken through Boumville Village Developments are assessed on conlr8Ct-by-conlracl bèsis and ￿flected in the Incom8 and Expenditure Accotsnl by recording tvmover and related costs 8 contract activity progrèsses. Turnover is ascertained in 8 manner appropriatB lo the slag8 of cornpl8tion of the contract, and credit taken lor surplus garned to datfj when the outcome of th@ contract can b& assessed with r88son8ble certainty The arnount by which tumovar exe8ed8 P8yTnents on account Is cl883bfied 83 "amounts recoverable on contr8ctB' 8nd included In debtors,. lo th& extenl that payrnants on 8ccounl excead r•l8vant tumover. the excess is included as 8 creéi¢or. The amouni ol long tefft ¢onlracts, at cost nèl of amounts transferred to cost o15ale5. leSB provision for foreseeable loss•s and payTnents on account nol malched wth turnover. is in¢lu¢Jed within stocks. VALUE ADDEO TAX Boumville Village Trust and Boumville Village Developmenta Ltd Bre both regisl8rnd for VAT puTroses. BWHS and BVE rg not VAT Regislered. Bournvllle Village Trust Is onfy Bble to recover a relatively sm811 percentsge ol VAT on Its axptrnditu￿, as the rnajorfty ol Its Incorne is exempt for VAT purposes. Therefore, expencjiture Is shown Inclusive ol VAT with the input VAT recovered deduct8d from relevant expendltur•. 8oumville Village Developments Limited is able to r8covet all VAT ¢Jn its 8xp•ndlture. A5 9 re8uII, expendltur81s shown net of VAT and VAT recover4bl6 Shown 89 a debtor. Bournville Worts Housing Soci8ty is not re9lBlered lor VAT purposes and Is Iherelore unable to r8¢ov•r eny VAT cn Its expenditurè. Therefo￿, expenditurels shown inclusive of VAT, LEASES OPEFiATING LEASES Annual renl818 ar• tharged to Incorne and expendlturg on 8 8tr8ight Ilne baJis ovar th8 IèAAe lerm. EMPLOYEE BENEFITS The ¢oBtB of short-temi employee bgneflt6 are recognisaé a5 a liabllity and an expense. The best estlmote ol the expenditure requlred to setue #n Obl￿atIon for termination b8nèfits is r8cogni3ed imrnedlalely as an expense when the grwp Is demonstrably commltted to termlnate Ihe employrnent ol An èmployee or lo provide lamiinBlion benefits. RETIREMENT BENEFITS Deflned contdbutlon plans For defined conldbullon sch8m8s the arnount charged to in(x)rn8 and expenditure is the contribuiions PByable in the year. Differ¢nces between contributions payable in the yeaf and contributions actually pald are shovm 8s either accrksals or prep8yments. Defin8¢1 benefit plans Thè group does not participate In any active d8fin8d benefit plans. BVT is a member of the cl¢K8ed Cadbury Mondelez Pensil￿ Fund, there are no active rnpmber5 8nd no conlribub.ons ara paid . A liability is recognisèd lor payments arising Irom an agreement with the mulli-employer plan Ih8t determines how th8 group will lund a deficll. Contributions a￿ discounted when they 8rè not expected lo be settled wholly within 12 month5 of the period end. The rate used to discount the contributions to thèir present value is based on market y181ds for high quality corkK)rate bonds with tem)s and currenci8s ￿nSistent with those at the 8nd benefit obligations. Page 46 Bournville Village Trust Group ACCOUNnNG POLICIES Icontinuèdl FINANCIAL INSTRUMENTS BW has ele¢tsd to apply the provision8 01 59dion$ 11 'aa￿e Flnancral Instruments. and S8Ct¢on 12 '0ther Financial In5trumants Issues. of FRS 102. in full, lo all of its lfjnancial In5trurnents. Financ4818sset5 and financi81 liabilities are recognised when the Group becomes a party to tha conlraclual provisions or the in8tnJm8llt. and ar• offset only when the Group curr8lltly has a legally enforceable right to set off Ihe recogni3ed amounts and intends lo selue on a nel ba515, or lo roalise the asset and settle the lia￿lIty yimultAneously. FINANCIAL ASSETS Debtors Rental and trade debtors which 8re receivable wrthln one year and which do not constiiute a fillancing Iran5aclion are Initially me88ured at tt)a transaction price. R8ntal debtor5 are subsequently measured al an*Jrtised cost, being the transacbon priceless any amounts sewed and any IM￿lTment losse9. Where Ihe 8rrang8rn8nt wth rental or trade debtors cunstitules a financing transacbon, the debtor is inili8lly and sub5gquenily me8sur8d at the present v8lu• ol future payments discounted at B markèt rat• ol inlerasl for 8 slrnllar dobl irnstrument. A provislon for lrnpairmenl gf debtor5 16 eslabllshed when Ihere is objective 8vldence that th8 amounts due I￿11 nol be collected according to the original terms ol Ihe contract. Imp81￿ent 51)sses are recognised in profil or10gs lor Iha excess ol Ihe catyng value of the ientBI Dr trade debtor over the present valuo ol the future cash flows dlscounted uslng the Original effectiv8 inlar8sl r8ta. Subsequent revorsals of an lrnpairment loss Ihal objectively relate to an •v•nt occurring after th* impalrmenl ioss was recogni6ed, are recogni50d imm6dlat8ly in profil or Ios8. FINANCIAL LIABILITIES Trade credlior5 Trad8 creditors payable ￿￿thIn one year that do not con&Mut• A flnancing tr8n8&ctlon are InlUBlly mea8ur8d 81 the trans8cllon prlce and subsequently me8sured 8t amortl8od cost, b81ng the Iransacticm price less any 8mounts settled. Where the Brr8nGemenl wlth a trade credltor constiluteB a finandng transac￿On, Ihe Creditor is Inillally and subsequently Measured at th8 prèsent valuo ol future PayTr•nl3 dl$¢oynted 81 o ma￿et rate ol intere3t lor a sirnilor in81rum•nt, Borrowlngs Flnrmwing% arA Inillally rArnoniMd At Ihft IrAnAar.tlon price, includ￿9 transaction ¢v818. ond $ubsequently me8surad at 8rn0rt138d cosl using Ihg effèctive Interest method. lnIe￿￿t expènsè 18 r8cogni8ed on the baB16 of the ¥ffecUve Intsresl methoé and 18 includÈé In Interest payable and other simllar tharga5. Derecognrtion ol Ilnandal a95et5 and li8bililie$ A financial a58at Is de￿cognised only when th8 contractual rfghls to cash flow8 expire or art settled, or subBtantially all th8 risk5 and reward5 of i)wner5hlp are transferred tD another paty. or if some 51gnific8nl risks and rewards of ownership are relalned but the control of th8 ass8t has Ir8nslerred lo another party th81 18 able to sell lh8 assel in its entirety to an unrelated third party. A financig111abS1ity lor part thereof) is derecogn15ed whan th8 oblwJ81ion sperified in lh8 contmct is di8ch8rged, cancelled or èxpire9. Dedvatlv88 Derlvatives are initially recr4nls8d at lalr value on the date a deriv8tive contract is entered into and are subSBquently measured to fair value. al each rèportlng dale. Fair value gains and 1055es are recognised through incoTne and expendllure. PROVISIONS Provi8iMs Are recognised when Ihe group hBs an obligation 81 the reporting date 35 8 result of a past evenl which it is pffjbAblè will result In the transfer of gwnomic benefils and that obligation cBn be estim8led ro1i8bly. Provisions are measured at the b88t estirnate of the amounts required to setue the obligation. Where the effect of th8 time value of money 15 materia1, the provislon Is based on the present valuè of those ary￿unts, discounted al the pra-tax discount rate that reflects tha risks specific to the liability. The unwindhg of the discount is recogniged wthin interest payable and similar ch8r9es. Page 47 Bournville Village Trust Group ACCOUNTING POLICIES Icontlnuedl RESERVES Th8 group est8bli8he8 reBtricied funds lor the spedfic purposes where their use is subject to r88tn'ctsons irnposed by thSrd parties. RESTRICTED RESERVES (NOTE 201 SUPPORTEO HOUSING FUND Thi5 restricted resetve repr8s8nls funds to CtsV8r thg replace￿nt ol fumitvre and equipment and any malor rep8lr5 needed in 8ny of th8 Trust's supported housing 5chernes. FUTURE MAINTENANCE RESERVE This reserve rep￿sentS the cornbined total ol all the sinklng fund8 that BVT holds to fund our future maint8nanc8 Commitments in the areas in w*ich we work. BAT RESERVE This reserve represents Ihe nel assets ol Bournville AJmshouEe TruEt. whlch und8r B Uniting Direction frorn Ihe Charity Commi$$Son, 18 now 8¢counled through this restncted reserve. ELIZA BEECH FUND This ￿SerVe represents funds to provmde resldents of 8AT wllh éxcursions and other enlertainm8nl. SHROPSHIRE PROJECT RESERVE Some community èvents g•norAle Incorne to fund specific prol8Ct8 or events that olherwisg wouldn't h8ppon. COMMUNITY INFFIASTRUCTURE RESERVE Thls is a fund holdlng funds th8t may only be u88d for the advBncèm8nl of Lawley Vlllage. EILEEN HEWER RESERVE Thls lund Is used to pay lor activi￿88 th& rosident repr•sent8liv¥$ of La￿eY select lor community advancement. LVCA RESERVE The Lawley Village Cornrnunlty Assoclatlon may Call on thls fund to support communlty actlvlly. LIGHTMOOR VAN RESERVE Lightmoor Vlllage aw fundlng a van purchased by BVT. BOURNVILLE HOUSE RESERVE This fund holds 8 donation given to Boumvlle House to providg gym equipment. The project wlll be undertaken dutlng 2023. BIO-DIVERSITY RESERVE This fund holds a donation lor the 8dvancem8nl of blo-diver51ty In Boumvllle LIBRARY FUND RESERVE Th18 fund holds a donation racelved to support tho 8VT Llbrary and ATchlve. ENDOWMENT RESERVES Thi5 reseThe represents thg p&rmangnl endLwmtrnt of the charity a6 bequeolh8d by th& Found8r. CRITICAL ACCOUNTING ESTIMATES AND AREAS OF JUDGEMENT Eslimales and judgement5 are continu811y evaluated and are based on historical •xperi8nce Bnd other 18¢tors, induding expeclatsons of lulure events that Are belleved to be reasonable undei the circum81ances. Criticalaccounling 8sb"males and assumplions The group rnokes estimates and Assurnption8 concerning the future. The resulting 8ccountJng e5tlrnBtes 8nd as8umptions 11. by definilHJn, seldom equal the related 8ctU81 r8sults. The estimates and asSumpt￿)nS that have slgnlfic8nt risk of C8using a rn81erial adjustment to the carwng amounts ol assets and liabilities within the nex¢ financial year are disc￿sSe below. Page 48 Bournville Village Trust Group ACCOUNTING POLICIES Icontinuedl Tangible fixed a&sets Tangible fixed as8el8 are depreciated over ihelr useful lives a5 per the accounting policy note. The useful eccrnmie lives of property components are in line with the current maintenance Ffogramme and are re-asse8sed annually to take into account technologiral Innovation and product life cydes. Impslrmont of non-flnancMI assets Revigw8 lor lrnphimient of housing propertles are c8rrled out when 8 trigger h88 occurred and any irnpairment loss In a cash gan8ratlng unil is recognised by 8 ch8rg8 lo the Sl8t8rn8nl of Comprehen51ve Income. lrnpairment is racognlsed where the carr￿.ng value of 8 C88h 98ner8ting unit exceed5 the higher ol its net realisable value or ils value in use. A generating unil is nomially a group of propertle5 at scheTne level whose cash income can be sep8rately identified. D8v810pn￿nl expertLIItui¥ Developrnent Bxpenditure Is eapltalisad in line wlth the accounting pol*y. Initlal CBplt8llsation of costs Is based on manBgernenfs judgernent that a development Scheme 15 likely to proceed. Cost5 capilalised In Ihis way are regulady viawed and any cost identified as abortive are charged In the Slatemen¢ ol C¢)mprehen¥ive Income. P8nslon Discount Factor The discounl factor vsad in the calcula¢bn of Ihe pon51on fund liability is ba58d on the yleld for a bond tsk8n out by THFC wilh a rn8iurily date of 2023, wh1ch co-lncidts ¥￿th th8 lin81 year in which Ihe Twst is required lo make 8 deficit Contributrc￿. Debtors Oebior8 are based on tho amounts out8tandlng in our ledger6 at Iho end of the fln8nc181 y88r. less any prov151on for bad d8bt8. Tha provlslon lor rent aFr8ar6 Is basgd on all forrner tenanlB arrears plus 75gh ol all current tenant arrears that remaln outslandlng for more than 8 weeks. Balanc88 due from group undertakings are assessed 81 the end of each yg&r to en¥ure that the éebl 18 recoverable in full. 11 thère 19 any doubt that the debt will be lulty rectsver¢d. a provlslon would be ma¢e, lo refluce the debt to the antlcipaled r8¢overable amount. V81u8tlon of Stand Alone Fin8nGlal Derivatives 8VT holds Stand Alone FSnancial DerivBts'ves (Swaps) lor tha purpos6s ol hedglng Interest rale6 on our loans. Thase Swaps are ￿qUIred to be included In thasè accounts al their 'Falr Value., To calculate this "Fair V8lue' we use our Independent Tr88sury Advl3or8 Chatharn FSnandal. who are Industry experts In their field. 11 Is thi$"Fair Valuo. ¢alculat8 by Ghatharn Financlal Ih31 Included In these accounts. Tre8trn&nl ofAoricullur41 Eslalgs, Pmp8rties let to Commercial Organi881ions and Mathef Rented Hom$$ BVT w88 gffted, by Cadbury Farnlly members, ovar many years sectSon8 ol IBnd and properbes that now makè up our Agricultural Eslale8. Whilst Ih8r8 3r8 no detailed recurds of the expectallons of tre donors in relation to BVT'S uso ol much of these holding8, we tsel￿Ve that wè understttnd through our continued ￿latIOnshiP with members of th8 C8dbury Family that the purp058 b8hSnd the donation was that 8VT would hold and use Ihe land not for sIrn￿8 commerclal galn. bul to prevent the Inappropriate use of the land and the unsympathelic d8veloprnent ol gr8en belt. As simple commercial gain is noi our primAry purpose for holdinq this land, we do nol treat this land 83 Investrnent Holdinos. Bvf algo owns property we lease to Tenant8 who usa th888 siles to provlde 'commercial" service5. such as shop¥. health care centres, offices. The reason BVT owns th888 properti85 18 tD eng￿￿ our COMn￿nItieS have 8CC888 lo lrnport8nt 8rnenities in their neighbourtK)od. This means BVT do not slmply seek the maximurn incorne frorn these holdings, bul Instead prioritises the benefit any prospathvo Tenants, business can bring to our communibe5. A5 Ihis is e85e, we do not treat thèse properti85 as Inve5trnent Prupertles in these accounts. Following a review of all cornmercial. assot5 In 2022, it was deryded that 4 shops owned by BVT were no longer held for direct social ben8fit r88sons. as we no longer owned homes in the community which lomis the shops loc81 catchment area We have. Iherelore. rèvalued this shops end rnoved thern lo InvBStmant Propertles in these accounts. 8VT also own5 a small number1581 Markel Rented hom8s, which it operates directly arsd not through BVE. These hornes are let to Tenants al a weekly rent that is gbrjve our standard SocAal Rent. bul well below Ihe twe Ma￿et rent for tha area. As we are not operating thes8 hom8s on a fully commercial basis, but instead to give people ac¢95S to affordable hKJh quality homes and to increase the tenure types in our communities, and given that tre nurnber is not mat8rial in relation to our overall rented hom85 nurnb8r5, we do not treat these as Investment Properties in our accounts. It relation to those homes BVT (k)es let at a full market rent, these are leased to BVE and acc￿ntsd lor as Investment Propertth in these accounts. Page 49 Bournville Village Trust Group ACCOUNTING POLICIES Icontlnu•dl In 2022 8VT continued to leas6 somè vthYJ propertles that were formally sodBlly rentèd to BVE. these properties were Ihen rented al market r8t89 to people seeking to1Sva in thè ￿mmunitieS SUPPOrted by Bvf, who dld not W8h io buy a home and d6d not qualfy lor one of B￿S 80cialty rented homes. Whilst this wa5 done ￿ part lo ensure all 5ectSons of 50clety hav8 access lo Bws vibrant communitie5. 8150 done to increase income Its Bvf and allow incr88sed investment Sn our socially rented horn￿. A8 Ihls Is the case. wa h8vg revalued thls woperti8s and recorded Ihgrn 8¥ Inve8trnent Properts'es in these accounls. Page 50 Bournville Willage Trust Group NOTES TOTHE FINANCIAL STATEMENTS forth• yoar ondod 31 Docernber 2022 TURNOVER, COST OF SALES, OPERATING COSTS AND OPERATING SURPLUS Continuing •ctfvMes. Group 2022 2021 Oper8tiw Op9rating Cost6 Surplu81 (Deficbtl Opernbng Op8r8tlng Costs Surplusl Ioefidtl Tumover Turnover £'ooo £'ooo rcoo £'ooo rooo S￿111 Housing Acti¥itl•8 Incom8 8nd 8xpenditur Irom Sodal hou8ing18tbngs 21,592 115.7121 5,880 22.963 117,3601 5,603 Oth•r So¢l•l Houllng Actlvltlol First tranche shared ownership 9ale6 Seryices lo thlrd partie5 Profit share arrangemgnt C¢)mmunity ocbvilie8 612 486 160 18921 1251 19601 12801 487 244 16901 1251 17271 12031 219 16291 18001 N<>n Sodal Hou•lng A¢UvSt Marf(81 rentiThg Agdcullural lelllng8 E51ate management Commerclsl lettlng9 Bu81ne58 Oevelopment S8lly MAnnr miiAiiim Land tr8ns8clion3 Pension fund costs st￿7C0s to third part'•8 13151 15081 12,7901 16101 12811 12021 283 98 493 545 1,461 958 11831 14591 12,3311 310 86 18S01 447 12431 1931 103 1331 1,62D 1,408 798 12811 1851 1Q3 1331 12431 11971 104 103 103 1331 1771 85 143 11431 TOTAL 27,367 122.4051 4,962 27,819 122.9021 4,717 P8ge 51 Boumvllle Village Trust Group NOTES TO THE FINANCIAL STATEMENTS forth• ygar•ndgd 31 D•c•mber 2022 TURNOVER, COST OF SALES. OPERATING COSTS AND OPERATING SURPLUS Contlnulng actlvlti•8-Trust 2022 2021 Oparatin9 Operaling Surplu¥l ID8liatl Operaung Operating Costs Surplugj IDefkiti Turnov8r Tumover Erwjo rooo e'l￿0 £'ooo e'ooo ro 8orl•l Hou￿n9 AcUvltl•• Inwme and expenditure from soo81 housing letty'ngs 20,070 115,2681 4.802 21,525 116,768 4,757 Other So¢l•l Hou•lnq ActlvltSe* Flrst tranch8 shar8d ownership 8&les Sefylc¢s to Ihird parties Proflt 5har8 arr8ngement Comrnunlty acti￿106 1,210 488 162 18921 1251 19801 318 461 17981 1,002 244 16901 1251 17271 312 219 18291 Non4oclal Hou•lr*q ABtlvlt Maikel renting Agricullur41 lellln96 Estate manag8ment Comrn8rclal leibnos 8u8in8ss éèvolopment Selly man￿ rnuseum Larsd tran8aclion6 Pension fund ¢0818 Se￿ce8 to thlrd partlO8 591 13081 15081 12,7901 16101 12811 12D21 283 98 11.1391 798 12811 1851 IQ3 1331 493 545 11831 14591 12,3311 310 86 16201 447 12431 1931 103 1331 1,651 1,408 958 12431 11971 117 103 103 133 1771 1331 11431 65 143 TOTAL 26,469 121,9S41 4,515 26,726 122.3101 4,418 P8ge 52 Bourn¥lll• Vlllage Trust Group I•OTE8 TO THE FP4*I4CTrAL STATEP*NTS larth•y••rend•d 31 D•￿￿￿1022 TUIINOVER, COST OF SALES. OPERATINQ COSTS AND CPERATING SURPLUS lcrffjbnu￿j Pa￿¢￿14￿0t1rKoffiE •xpOnd￿refwM*p￿￿I Grnup 2022 Genw* n8ed• SuppLthd Shai&J Houskng for 0￿rpE￿￿E ￿(Dmmoda￿oTr £￿00 £￿00 ￿￿MM¢￿141￿ Toiol rwo TVRNOVEft FROM SOC1￿HOUs1NGLEr[iNGS RonlrwV￿￿b￿ nal ofV0￿ 1.207 407 20.120 1,084 2A0 NET AENT•L INCOME 10.746 91 2.Q47 21.295 Sth*ihou•ing ordni amorn••lo 1J3 2B7 IURM)VEfi FR¢X4 SOCIAL HOUSINGLBrriNQS 1B,929 2.1S7 415 21,592 ExPEN￿TURE SOCIAL HOU51NaLETnNGS 3.442 C•ro llupprNICO• 159 3,47# 2,073 47D 18 4,096 3,270 103 Flunn￿ MalniriboDC• 47D 14 Od d•b ofNopor¥ Dowocloi￿￿ of fiKwrvv •hé ffttln9• rco¥lB 397 8S JJ J3 OPEPATING COBT8 ON S(KIAL ￿lOu&￿ts LErriNQ8 2eo 1,977 75$ 1S.71? (IPERATING SUFIPLUSI IDEFICITION SOCIAL HOiJSINQ LEThINGS 5,717 180 180 fq•nlthi du•to vold• 236 Page 59 Bournvill• Vlllagè Trust Group IIOTES TOTHEFINPWCWL8TATEMENT8 farlh¢y•¥r•nd•d 31 D•e4mb•r2021 TUANOVER. COST OF SALES, OPERATING C05T5 •ADOPERATING SURPLUS IL¥)nlhJadl P4rthcular• 011ncurn• ind•Apndll￿r•tr0Tr wcl•l ho￿51n1 IvttlhVH-Group 2U21 Ganeral ne•d* pported h￿U￿ Shared ohyerpooplg 4¢e4)mmodal To t'o rooo £'ouo TURNOVER FROM SOCIAL HOUSNGLETtINGS Ront r8Eaweblon•i ofvudi 17.827 263 19,3e7 1.095 2,19 20 CAf• Hnd &upport 2,106 NET RENTAL INCOME 1B,OW) 2,198 1.*9 403 22.850 104 TURNOVER FROM SOCWL HOUSIN13 LETTIN&£ 18.274 2,108 2,078 22,863 EXPENDITURE ON Soc￿ HOUSING LETnNG9 MAll•9ttmant 8ryrvy coi Cjre and •upw&)I Rouiin• m&lnT¥n8nG ann•d rnRID1ana￿ Mttloi I*￿Ir1￿Xpe￿dl1Urn Bad debts Dep14c￿￿On olprop•lkn8 OBpY•C￿I1On ond rrtun 2,921 3,855 2.085 3,780 3,485 45 683 45 J,51 10 38 402 91 4.065 QPERATINQ COST5 ON SOCIAL HOUSING LETTINQS 12.733 257 17,3UQ OPERATING SLIRPLUS I(DEF￿1￿ ON 8WI•L HOUSINO LerriNGS 227 J.OQ3 189 66 256 PDge S4 Boumville Village Trust Group NOTE$ToTMEFIN￿c￿L$TATEuENT8 fvrth•yHr¢nth4 31 Dw•rnb•r2ts22 TURNOVEA. COST OF SALES, OPERATINGCOSTS AND OPERATINQ 8UFIPLUS IGwtinuwJI PartIC￿￿￿OI Incom• and •Xp&Dd￿V¢frOrn io¢lil l•thnq•-Thryl 2022 GonBr needs ausing houslng for 0￿￿1 PgOF4o £wo erthlp occornmodgbo £wo TDthI £'wo rooD £Tho TURNOVER FROM SOCVL HCYJSINQ LErriNOS 16.992 240 1207 18,8Q6 NETRENTAL INCOME 17,232 2.047 19.7al SDoi•lhDu8ry TURNOVER FROM SOCI￿ HOUSING LETTING3 17,407 91 1,1L57 415 20,070 EYPENDITURE C)N 8OaALHOU8WGIETINGS 3.332 446 4,009 BepMA chqrye cos15 CHr• Bnd wpport co• Rouvrbo P￿nned m•kni•Tran¢• MolorrnpoiT• •xpendlWrn B•d debti 159 26 3.3B2 1,969 430 3.$91 2.031 430 20 3,730 82 3,227 J07 D•prn¢N￿oTr offjx*JM• CthrCg¥l¥ OPEftATINts COSTS ON SOCIAL HOVSING LEThINGS 12.70LI Z68 255 15.268 I>ERATNG suf4PLU5 IIOEFICITI ON HOUSING LEThING8 4.63 4.wz R•nlknl•du• w ¥¢441 15 229 Page $5 Boumville Vlllag• TnJ•t Group NOTE8TOTHEFW•lC￿l 8TATEMENT8 fttth•y••r•nd•d 31 Doe•mb•f 2121 TURNOVER, COST(￿ SALES, OPERATING COSTSUD OPERATING SURPLUS Irontnu•dl GèMMI nBqd• hou￿￿￿ acctJmm¢a•ti tooo HrdJ¥iry for o*ei p•oK4e ￿?)mModI￿ £wo TUFINOVER FROII SOCI￿ HOVSING LErnP4GS Rènirn¢el¥Bfie nvt4lvohJ S•r￿￿ chary06 Careand JuFwrtGh&rq 16,397 3Y9 17.937 1,09 2.198 2,198 NETRENTAL INCOklE 16.aeo 4Q3 21.230 8oa* 178 2BS TURNQVEfl FROM SOCL4L HOUSINGLETTINGS 16, 2,195 2,079 412 EXPENDITURE ON HOU8INGLETThWGS 2,70) 110 3,727 Cwèlnd 2.085 3,W7 1.776 J.481 p￿nn0￿ malnt•nanc• Mplor rwalrn •Xpend￿J1• 628 43 3,14B ID 402 9T dflk1uf•A •nd Olher CPERATINQ COST8 ON SOCIAL HOUSINQ LerriNtsS 2,518 1.86? 2S7 18,7 OPERAllNG SURPLU8 I IDEFICITI 8OCiAL HOU31NG LErnNGS 4.615 227 4,767 176 68 245 PJp58 Bournville Village Trust Group NOTES TO THE FINANCIAL STATEMEPUS for the year ended 31 D•cèmbor 2022 ACCOMMODATION IN MANAGEMENT AND DEVELOPMENT Group 2022 Number Tru$t 2022 Nufflber 2021 Number 2021 Number UNITS OWNED AT YEAR END.. General needs housing Shared ownershlp Supported Hou￿ng Housing for old8r people Market rented 3.310 139 3.327 142 20 262 58 2,997 139 3.014 142 20 262 262 58 262 58 UNITS IN MANAGEMENT AT YEAR ENO.. General needs housing Shared own8rship Supported Hou51ng Houslnp for older peo￿0 Klarket rented 3.456 139 3.478 142 20 262 3,456 139 3,478 142 20 262 58 262 58 262 58 92 The abov8 numt•rs Induda 4412021..441 unhs ownèd ty BW man&Jed by other 8880¢18Uon8. INTEREST RECEIVABLE AND SIMILAR INCOME GrNp 2022 £'ooo TniAI 2022 £'ooo 2021 £'ooo 2021 £'ooo Interest ￿ bank deposi15 Intere31 ￿ Intercompany10gns Other inl8re51 recelvable 47 19 47 171 19 184 1121 47 218 171 INTEREST PAYABLE ANO SIMILAR CHARGES Group 2022 £'ooo Trust 2022 £'ooo 2021 £'ooo 2021 £'ooo Intèr881 Arlslng on.. 8ank loans and overdt8ft8 Inlorest & Flnandng Costs . Pension$ 3,913 14 3.943 17 3.946 17 14 3,927 3,960 3.978 3,963 Page 57 Bournville Village Trust Group NOTES TO THE FINANCIAL STATEMENTS for the year end•d 31 December 2022 5 OPERATING SURPLUS Gioup 2022 £'ooo Trust 2022 £'(K)O 2021 E'ooo 2021 £'ooo Operating surplus is stated Bfter chargitvj llcradl￿ngl Depreciation of other tangible fixed assets owned Depreciation of housing properties Net book value of component disp058ls ol housing properties DapreThalion of non-housing proFertle8 Operating lease r8ntals Amortisatron of capital grant 129 4,004 92 459 198 12991 148 4,020 35 400 156 13061 129 3,64S 85 459 198 12911 148 3,656 29 400 156 12981 Fees payable to RSM UK Audit LLP and rts as50Ciates in reBpect ol both audit arKJ n￿-audIt servlcas ar8 as follows.. Audlt servlc88- stAtulory audit of the company 57 43 Other setViCO8'. All othèr non-8vdil 5eiMC88 5a SURPLUS ON SALE OF FIXED ASSETS Group & Trust 2022 Sale of So18 01 Sale of So18 of Houslng Land Other Flxed Hou8lng Propertie5 A55ets Properfes £'ooo £'ooo £'ooo 2021 Sale ol Sale of Land Other Flxed Assets £'ooo £'ooo £'o DIspo881 proceeds CJtyng v01ue of flx¢d 8880ts Cogt of 8a1• 488 11271 398 1,908 11,0341 537 7SO 1381 132) 141 Surpluslldeficil} 360 398 141 537 680 Page 58 Bournville Village Trust Group NOTES TO THE FINANCIAL STATEMENTS for th• y•ar ended 31 D￿eMber 21122 EMPLOYEES The average rnonthly nurnber of persons linduding dir8Ctorsl 8mployed by the Trusl 8ThJ GTOUP expressed in full tim6 equivalents during the y88r was.. Group 2022 No. 137 Trusl 2022 2021 2021 No. 124 52 65 o. 137 OfficA and managerngnt Hou&ng 5UPPOrt and care Mainiallance 124 52 65 73 73 212 241 212 241 The above ￿QuIe$ ere calrAJlat8d on Ihe number of staff ernploypd In th& Group and Tru51. working a 8t8nd8rfJ 37 hour workSng week for Ihe majority of staff and 8 Standard 39 hour week for maint8n8nce staff . The calcula￿.0￿ has been donè on a month by rnonth basig and then averaged out over the course of the ye81. Staff costu for the above per8on8'. Grcojp 2022 L'UUU Trust 2022 £'uuu 2021 L'ULKJ 2021 E'OOO Wages and salaries Redundancy Paymenls Social security costs D￿ned benefit pen51on cost Deflned contributlon pension e08t Other penslon costs 8,287 158 783 604 382 33 7,984 230 81S 314 489 33 8,287 156 783 604 382 230 815 314 489 33 9,865 10,245 9,865 10.245 The lull Ilme equivalenl number of 61aff who reCt￿d mmun&ratSon over £60,000 lindudina dire¢tor81'. Gmup 2022 No. Trust 2022 No. 2021 No. 2021 No. £60,000- E70,000 £70,OQ1- £80,000 £80,001- £90,000 £90,Q01- £100,000 £100,001 £110,000 £110,001 £120,000 £120,(X)1- £130,000 £140,001 £150,00 £150,001- £160,00 12 12 The bandlngs above includé r8dundancy payTnents as detailed in slaff costs above. Page 59 Bournville Village Trust Group NOTES TO THE FINANCIAL STATEMENTS for the ￿ar ended 31 Decemb•r 2022 Ex¢cutive Team Members In respaet ofthe directors {B￿ executwe leaml who are considered to b8 th8 key Managem8nt P8rsonnel of Bournwlle Village Trust.. Executive Team Membérs Group 2022 eooo Tru51 2022 £'ooo 2021 £'ooo 2021 £'ooo Remun8ration and faes Company ec41lributK)ns to penslon schames Compens8lion for loss of office Money valu* ol benefits in kind 676 62 676 62 38 55 648 52 52 55 831 754 831 754 Grovp 2022 No. Tnjsl 2022 No, 2021 No. 2021 No. The numbgr of Ex8cullv6 Team Mernber8 to whom retlrement benefitB are accrulng under. Del+ned conthbuilon gchomee Hlghesl pald employee 2022 2021 £'ooo rooo Remuneratlon Comp8ny ccffllribution$ to pension 8chemeg 138 12 134 10 150 144 Tho hvJheBt pald Execullve Team Member In 2022 was the Chief Executive. Thè Chief Execullve Is 8 member of the Bvt Pènslonsaver schemè arKI made pen¥ion conlribulions of £12.367 in 202212021. £10,083). No other paymenb are mgde to Trustees other th8n exrense61(ravel and $ubsistencel 89 d8tall8d below: 2022 2021 Trustee payments comprS8e of.. Trustee exp8nses 6,146 4.322 Page 60 Bournville Vlllage Trust Group NOTE5 TO THE FINANCIAL STATEMENTS lorth• y•ar gnd•d JI D•¢•mber 2022 7A TANGIBLE FIXED ASSETS- HOUSING PROPERTIES IPredorninanWy freghddl- GROUP Housing properUe5 held for l•lting E'oco Shared OWnBTship wopertl88 £'ooo prepe￿89 in the course of nsiru¢bon £'ooo 2022 Total £'ooo C08t At 1 January Ad¢Jltlgns Component r*xem8ntB and Imyovemenis Propertles acqulr8d CompKJnenl disposals Property disposals Transfer to other fixed 8ssets Tran8f8r to IllV88iment prop8rb88 180,744 7,971 744 21 189,4S9 21 4,028 374 4,028 374 12,7001 13251 18591 13,3591 13251 Al 31 Oecember 181.IXO 7.828 106 188,932 OeprecJ8Uon And ImpBlrmont Al 1 JanuBry Ch8rgB for year Component di8PO8al8 Property dl8posals Tron$f0r to other fixed asutb Tron818r to turr•nt 48&0ts 136,6031 I3,￿9) 907 19381 1951 137,5411 14,0041 1¥ 578 75 578 75 Al 31 Oocambor 138,9S21 139,9e71 NET BOOK VALUE At 31 Decarnbor 2022 142,048 6,811 106 148,965 At 31 Decembèr 2021 144.141 7,033 744 151,918 P8ge 61 Bournvllle Village Trust Group NOTES TO THE FINANCIAL STATEMENTS lorthe y8ar•ndgd 310oc•mbor ZD22 TA TANGIBLE FIXED ASSETS- HOUSING PROPERTIES IPredominaTrtly freeholdl- TRUST Housing properues h81d for letbn Shared ownarshlp prcyrti88 Propertl88 In the course of conslNdon 2022 Total E'ooo £'ooo £'ooo £￿00 Cost Al 1 J8nU8ry Addib'ons Componènt replacements and Improv8ment8 Pfopertw acqu1￿￿ C(#nw)n*nt dlsposals Property dispos815 Tran51er lo other fixed a88818 Tr8nsf8r lo inveulmenl properties 169,275 7.971 744 21 177.990 21 3.717 374 11,0271 3,717 374 11.0271 11451 12,7001 13251 16591 13.3591 13251 At 31 December 169,314 7,826 1a6 177,246 Depred8tloD End Imp8irment At 1 J8nu8ry Charge lor yesr Compon8nl disposals Property dl$p05818 Transfer to Qlher flx8d a&set5 Tran8ler lo Inveslmont properte8 132.9831 13.5501 819 19381 1951 133,9011 13,6451 819 18 578 75 18 578 75 At 31 De¢embor 135,0411 11.Q1 $1 136,Q561 NET 8OOKVALUE At 31 Oecernber 2022 134,273 6,811 106 141.190 Al 3108camber 2021 136,312 7,033 744 144.089 Page 62 Boumvllle Willagg Trust Group NOTESTO TrIE FINAJ4CIAL STATEIAENTS for th• ytsr•nd•d 31 December 2022 7A EXPENDITURE ON WORKS TO EXISTING PROPERTIES Group 2022 £'O(M) Trust 2022 rooo 2021 £'o 2021 £'(w)O Impro¥8mont work Gapilali8ad Cory)onents ¢8pit81i8ed Amount5 charged lo Incorno ar￿ 8xp8ndilura 65 3,963 6.281 135 1.878 6,489 48 3,889 6.052 123 1,T77 0,211 10,30 8.502 9.769 8,111 TOTAL GFIANTS REGEIVED Group 2022 È'txjo Tw8t 2022 £'ooo 2021 efyjo 2021 rooo Total curnulalivo smounls recthed or rec&Val￿e 8t 31 December. Cwtsl grant 35,964 30,002 35,010 35,048 FINANCE COSTS Group 2022 £'oDo Tr￿t 2022 ro 2021 t'ooo 2021 £'ooo Aggreg8te amount of fin8n¢g co8IB included in Ihe c051 of hcu8ing PfOPOrti•8 and cornrnunal area¥ In note 7b 2,800 2,800 2,800 2,800 2.800 2,800 2,800 2,800 P8ge 63 0000 Ila ocoe 00000 Bournvillo Village Trust Group NOTES TO THE FINANCIAL STATEMENT8 for th• y•ar•ndod 31 Decembor 2022 INVESTMENT PRI>ERTIES GrtyJp & Trust Market Rented Prop8rtie5 Commarc481 Properties Tth61 000 £￿00 £'ooo At l January 2022 Transfer from commerclal W0p8￿8$ Transfer from htxjsing properues RevslUa￿onB 1c6 106 250 3,8QB 250 3.474 334 At 31 Dec8mber 2022 440 3,724 4,184 The Group's cornmeroal inve$lmBnt proportie& ar8 valued aThnually on 31 December at fair value by S8vi118, an independant, prof8s51onally qu4llfi8d vB1uw. The v4luatlDn$ und8rt8ken In 0ccordBnee ￿th the oJrr8nl RICS Valuation -Global St8nd8rds, Incorporatsng the IVS, 8nd Ihe RICS Valuotion G1eb81 Sl&nd&rds UK Nation81 Suppl8m8nt publl$hed by Ihe Roy81 In&lilubon of ChBrt8r8d Sur¥8yor8 IrA)mmonly known as the 'Red 8ook"l. In v8luing Investment propertvas, a discounted ca$h flow methodology W88 adopted with the fell￿￿n9 key a8gumpiion8'. DIAcaunt r919 xrt weld 8.5% Tho Group'& markel rented in¥e8lment p¥opartl85 ar• valued annualty on 31 Docomber 8t f81r vAlu8 by Savllls, an Independent. professionalty qu81ffied v81uer. Th8 VBluBtlons %4tra undertaken In Bccord8nce wlh the current RICS V8luatlon -Global Standards, incorp)raling tho IVS, 8nd the RIC5 V8luatK Glob81 Standards - UK Nation81 Supploment publlshed by tha Royal In$lilulion of Chartgred Sur¥8yOf8 (commonly known a$ tho "Red Book l. In valuing inv8slmenl properti•$, A di8¢(xJnled co$h llow melhodology adgpted %4ilh the felb*ing key siumpllgn•.' 018counl rat E￿t ￿eld Level ol loThJ tqrm annual rent IncreaBei 7% 4.5% yeern 1 & 2 3.5% In 8ubwu8ni If Investm¢nl property hwd ba•n accounted for und•r tha h5$tNic cog1 accounting rul0$, the propgrtleB ￿Uld havo been mè08UML1 ag Ic41ow4'. Group & TruBt. 2D22 Commerclal PfOP8rt188 £'QOD Renlod Proper￿08 t￿00 TDtsI £'ooo Historic co81 Accurnulaled deprB¢ialion 160 1571 325 1831 485 11401 103 242 345 Page 65 Bournvllle Village Trust Group NOTE5 TO THE FINANCIAL STATEMENT5 forth2 year 31 Docernbor 2022 INVESTMENT PROPERTIES Cont. Grrjjp & Trust- 2021 Mark8t Rented PropertieB Gomm8rdal Priyerties TotBI £'OLX) £'ooo £'OOD Histaric rxjsl Acojmulaigd d8Lnd8llon FIXED ASSET INVESTMENTS 2022 rooo 2021 £'ooo Group Investment in 8ub8hllary Trust Inve8tment in hubsidiary 8,400 8.400 10 RESTRICTED CAS Group & Truol 2022 rcoo 2021 £'ooo At 1 January Intere81 credited 1,041 1.053 12 At 31 Der*mber 2022 1,040 1.041 11 STOCK 2022 £'wo 2021 Group Malerials and con8um8bles Wolk in progress 21 858 24 807 879 831 Trust M8lerials 8nd e¢n5umat4e$ Work In prc#3r888 21 43 24 Materla15 anLI con5umabl8s 24 Page 66 Bournvllle Vlllage Trugt Group NOTES TO THE FINANCIAL 5TATÈMENT3 forth• yw•nd•d 31 D•Gember 202Z Group Tru8t 12 DE8TORS 2022 2021 £'ooo 2022 00 2021 £'ooo talllng duo within on• yo•r'. Gros5 R￿ts1 A￿¢￿$ Housing Non-hou5ing Market rented Supported hou51ng Shared ovm8rship 1,036 383 14 967 394 12 913 394 12 3B3 14 38 16 16 10 Los5'. Provlglon for bod doul)tTul debts 15881 16301 15841 18301 791 743 SHG receiw8ble B848nc8 ¢Ju8 from m8naoed 888ttIatbns Balance due frorn oroup undert8king$ Prepayments and xcrued *r￿mE other debtors 2,143 f83 1,957 145 632 183 1,042 145 632 2,125 1,568 4,21 S 3.477 13 CREOITORS.. AMOUNTS FALLING OLIE WITHIN ONE YEAR Group Tru8t 2022 £￿0 2021 E'OOO 2022 £YJoo 2021 £'ooo Housing Icans Inole 181 Ranl 8nd $8rvice charges recei￿￿ in advanc• Recycled o8pilal grBnl lundB Ino(8 151 Deferred capthl grants Inote 181 Tr8dB GTedhor8 fi18nce8 diip In m4n8op.d AAAnrJ*NnnA 8818nc8 due to group unéertakinas CXh8r 18xalion End 80cl81 securlty cm VAT other ¢redltors AccruBIs ond dBfvrrèd Income 3,800 860 41 305 170 3.595 855 3,600 735 41 297 170 476 3,884 210 144 266 3.600 3.595 830 59 298 159 704 3,150 172 133 354 2.694 182 704 210 146 208 4.367 172 136 354 3,255 10,440 9,598 13,422 12,148 P8ge fj7 Bournvllle Vlllage Trust Group NOTES TO THE FINW4CIAL STATEMENTS forth• year •nd•d 31 ￿4￿mber 2022 14 CREOITORS AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Grujp Trust 2022 £'wo 2021 2022 £'OOD 2021 É'ooo Oebl (note 181 Loan arr8ng8menl f8eS DeferTed Income Recycled Caplt81 Gr8nl Funt1 (not8 151 Defe￿ad capltsl uranl IrTOte 161 79.264 15921 205 63 29,768 81.864 16461 79,264 15921 205 83 29.004 81,804 16461 308 36 29,332 30,104 108.708 111.666 107,944 110,894 Included in craditor8 are thq folknwng dobt relBled items.. Group Trust 2022 t'ooo 2021 £'ooo 2022 £'ooo 2021 £'ooo Amounts repuyable by In81alm8nts falllng due In 58 than fi've y88r8 17,976 17,943 17,976 17.943 Amoun18 rep8yabl• by In8talment8 f8lllng dua after more th8n fve ￿￿r$ 44.888 47.516 44,888 47.518 Amounts rapayuble other than by Instalm8nts falllno due after more than live years 20,000 20.000 20,000 20.000 L•08 arnounts rep8y8bl• In le8& than one year 13.6001 13,5951 13,6001 13,S951 79,264 81,884 79.284 81,864 15 RECYCLED CAPITAL GRANT FUND Funds pert81ning lo ts uctivlbus bTrilhin are85 coverad by,. Group Trust HCA 2022 £'oco HCA 2021 £'ooo HCA 2022 £'ooo HCA 2021 £'ooo Op•nlnq bal4nc• Input• to RCGF.. A5 al 1 January Grsnt8 recyded Interes18ccrued Grants repoid g5 38 172 25 95 189 25 1301 11021 1301 1991 Closlng b•l•n 103 103 95 Amounts 3 ye8rs old or thder r8P8yment may b8 requlred.. 28 15 28 15 Page 68 Bournvllle Vlllage Trust Group NOTES TO THE FINANCIAL STATEMENTS lorth• y••r •nd•d 31 D*eembor 2022 18 DEFFRRED CAPITAL GRANTS G￿P 2022 £'ooo rnJ&t 2022 2021 £'ooo 2021 £￿00 As at 1 January Grant Iransfetted on Sala of yop8rty Arnortis8lion In year Tran$l8r lo recycled capltsl grant fund 30,411 30,919 29,630 30.130 11771 12981 1251 12991 I3￿) 1251 12911 As at 31 Oecamber 30.074 30,411 29,301 29,630 17 FINANCIAL INSTRUMENTS Group and Tru81 2022 £'ooo 2021 £'ooo FlnanGl•l114bllltl•#'. MeaSu￿d ai fBlr vfjlue through profft or loss At 1 J8nuary Mov8m6nt during hYBr 21,7e6 117,8951 29,436 17.6701 At 31 Dacembar 4,071 21,788 Int•rn•t rat• •wap• The Group has taken out B nurnber gf inte￿$1 r8ie hadging 8rrangemenl8 a8 P8rt of the Treasury Management Strategy which seek$ 10 8chi8ve a rnix of fixed 8nd v8ri8blv rale108ng vAlhln ¢he ovarall portlolio. Al ol th8 hedglng InBtrumenls are 5t8nd alone Intsr881 ral8 vlhich have been tBken out over Iho188t 15 ￿8rfj and vthich hove fixed rates of interest varying between 4.14% ond 5.81%. At 31 December 2022, th? tot81 [￿MInal value 01 inièfe81 r&t• hed9lng Snstfum8nts was £51.5m12021 £51.5rn1. The f8Sr value d the9e hedglng inBlrurn8nt8 haB boln calculaied by Bvfs Twsury Manaqamanl Bdvlsors, Chalharn Flnsnclal. 170 Flnanci81 asg813 Grotsp Tru81 2022 £'ooo 2021 £￿￿0 2022 £'ooo 2021 £'ooo D8bl InslrumenlB m858ur•d at amortlled ￿￿1.. Rent debtor8 Olh8r debtors Cash 1,489 1,071 3,320 1,432 1,428 1,074 2.955 1,374 e11 5.331 5,582 5.880 7,622 5.458 7,316 meaSu￿d at amortlS8d colt.. Houslnp h)ons Trade Credilors Balances Due to Managgd A$50¢1atlons Balanc88 Due to Group Cornpani85 Other Credilors 82,864 170 475 85.459 162 704 82,864 170 475 3,884 2,887 85,459 159 704 3,150 2.048 3,616 2.808 87,125 88,933 .280 91.$20 Page 69 Bournville Village Trust Group NOTES TO THE Flllh14CIAL STATEMENTS for th• yoor •ndod 31 December 2022 18 BORROWINGS Gr￿JP Trust 2022 £'ooo 2021 £'ooo 2022 2021 £'ooo Credltor8'. amounts lalllrwj du8 *ilhln on8 y88r. Rel8ts"ng to housing loan$ 3,800 3,595 3.600 3.595 3,600 3,595 3.eoo 3.595 Credltor5'. amounts f8111ng after mom Ihan one yaar.. Rel8tlng to hwslng IoEn$ 79,264 81,864 79.284 81.864 79,264 81.864 79,264 61.864 Totsl 82,864 85.459 82,864 85.459 HQ￿S[ng 108n8 are 8ecur8d by 8pecthc ch8rge$ on the Group's hou8lng propertles 8nd 8r8 repayabla at r8tes of inter8St beM*on 0.383% and 12.86%. The n•1 book value ofa8S8Is 88curad lo lender81$ £83,048,000. Of Iha 8mount8 du8 In mor8 than flve years or more, £20,000,00012021.. £20,0￿.000) is wholly r•p8yablo by lump 8urn in rTh)r8 Ihan flve yaars. Th8 remginder 15 repayable by instalrnenis. 19 PROVISIONS FOR LIABILITIES Group and Tw8t 2022 Pen4lon £'ODD 2021 Penslon roDO A8 al 1 JBnUSry Ullli8ed in ya8r Unwnding of dlscounl Incre88e in payment 0U1q4￿¢jn 638 13301 14 742 17 A8 at 31 O•c•rnber 322 638 In 2019 agreed with the Tru¥loes of th& eedbury M¢Jndo18z P8nJion Fund to m8kg payment8, 09lnsl 8 schedule enéing In 2023, to asslBI In dtrrisklrrfJ th8 hislorl¢ pgnBiw 6cheme . We h￿8 retained a provlslon ol $uffjdvnt arnount lo cover th888 agreed payments. P8ge 70 Ig i Èa 1111 Bournvllle Vlllago Trust Group NOTES TO THE FINANCIAL STATEMENTS forthq yqar2nd•d 31 D•c0mber2022 21 INCOME AND EXPENDITURE RESERVE Group Tnjst 2022 r(M)O 2021 rTrJo 2022 £￿00 2021 £'ooo At 1 J8nuwy SU￿pus for the ye* Transf8r lo ie5triclgd rgBerv•B 18,C68 10.517 13831 27.848 23.012 16071 17,882 10,367 13831 23,339 16071 Al 3108cornb8r 50,934 28,202 50,251 27,846 RECONCILLATION OF SURPLUS I IDEFICITI TO NET GENERATEO FROM OPERATIONS Grtyjp 2022 £'(KJo Trust 2022 £'OfpJ 2021 rooo 2021 rooo &Jrplu& f¢x the yair 23,339 10,517 23,012 10,367 Doprociation of langlL40 fixed •ssots Am¢)rtth8lk)n of c8pitBI grarn SuipluB on of tangible flxid ajaots Inl8rtrit rK•v8bl• Inlere&t and fln8n¢lng Mtsv8menl In value of financi81 Instruments vemenl In f#lr v81ue ol invO$lmonl proportles 4,807 12991 17541 4.728 13CfjI 12,0831 4.442 4,358 12881 12.0731 17S41 3.827 117.8951 13,8081 3.960 (7,6701 3.978 117,6951 13,8081 3,963 17,e701 Oper8llng c8$h flow$ befor0 mmrn•rts in wcrtlng capllgl 9,470 9.139 8,666 .476 Movement In 8*ock• Movement In detslo Movamenl In creditors 1481 15561 759 607 356 213 1401 17381 378 855 185 C*h g•ner8lod frem eperatio g,B25 10,315 8,287 9,298 CASH AND CASH EQUIVALENTS Group Trult 2022 2021 £￿04) 2022 £'CpJO 2021 C88h And cash •quivaleDIB r8pres8nl.' C85h al bank Dtrnand IJfjp05i1s indudod ¥￿thin creditors f8lllrrfJ du¢ in le•• than on8 y8Br InolE 131 3,320 5,582 2,955 5.331 14751 17041 14.3591 13,8541 2,845 4.878 11.4041 1,477 DemaThY d8rKJ6its rowesenl amwnlB Owed lo man898d 8880clat￿nI (Group Jnd Trust) and grwp compBni83 ITru3ti. P8oe 72 Bournville Vlllage Trust Group NOTES TO THE FINANCIAL STATEMENTS forth• hw•nded 31 ￿¢embar 2022 ANALYSIS OF CHhNGE5 IN NET DEBT G￿P At1 Jan 2022 £'ooo Cash fl Othor non cash ch8n988 At 31 Dec 2022 rooo £wo C85h and caBh 8quNqlqnts' C?5h 8t bgTrk Dernand deposNs Included withn creditors falling due h le¥8 than on8 year Inol8 1Jl S,S82 12.2621 3,320 17041 14751 4,878 12,0331 2,845 80rnty*ingB'. Debl dv8 vAlhln ye D8bl due 8ft8ron8 yeBr 13.5951 181.8641 3,595 I1,0￿) 13,6th)1 3,600 13,6001 179,2641 185,4591 2,595 182.8641 Totsl 180,5811 562 180,0191 TNII Atl Jen 2Q22 t'o Cuh flow8 0th8r non Gosh chang £￿00 At 31 Dec 2022 Cajh and chffh H4iilvAIAnt%' C8•h at bAn Demand depoails included wilhin Brgdilor• falllry due ￿ KT than one yeqr Ino¢e 131 5,331 12,3761 2,955 13.8541 15051 14.3591 1,477 12,8811 11,4041 Boirowlngs. Debt du• wthln ono year Oebt duB aftor Dne yo¥r 13,59S1 181.8841 3,585 11.OOQI 13,8(N)I 3,600 13.8001 179.2641 185.4591 2.595 182,8841 183,9821 12861 184,2881 24 CAPITAL COIMIITMENTS Group TWBI 2022 t￿0 2021 £'ooo 2022 £Doo 2021 to(K) C8pil81 expendllure Cr￿tr￿Cted bui not provKled In the flna￿￿919laternen15 ExpBndltur8 authorf88d byTru8te88 bul not conlracled Th8 above comrnilTnBn15 V4111 b• funded thrtyjgh reveNe surpluseg and c8Pit81 receipt5. Page 73 Bournville Village Trust Group NOTES TO THE FINANCIAL STATEMENTS forthe year •Trdgd 31 D•¢•mb•r 2022 25 OTHER FINANCIAL COMMITMENTS. ORDUP AND TRUST The lotd future rnknimum lease pawntnts uThler w-¢ancell4bb cperatiro leas88 for fixad assets aro as folkjws." Grwp and Trust Other 2022 £Y) other 2￿21 Amwnl8 due.. Wilhin one ye8r 8giw88n one and fv6 year8 More Ihqn five yeors 256 355 1e7 RÉTIREMENT BENEFITS HlslorftAlly slall wer8 8t48 lo loln the C8dbury Mond£leL pe￿0￿ Scheme, a mulli employar deflnad benefii sthÈmÈ. Th18 oftar Df marnberjhip anded on Wil 2010, new 8t8ff arn •llglble to the Pen¥bnsov•r acheme. a d8fjn&Y con1rfbu￿0n schemo sal up IhrauBh Legal & Gonoral In July 2021 all vers#)￿ of th• Cadbury pIn•￿n fund c*Js8d. BVT allowed curronl 8tatf m￿ba￿ 10 twil•r to tho dènned conidbtstson stheme wllh L8g81 8nd General. Th1$ meynj BVT no lonqer pay any conlrlbjiions to th8 Cad￿ry Mond8lez P8nsion Scheme on b￿h0￿ ol stefl. A trhrynnlal valu8liDn ol tha w8B conduGled 88 815th 2022 and the home wa5 found lo ba In surplu•1£143ml In 2019 all stherne rnernbors egreed lo follow ihe Prlncip81 Emplwr in rnaking addl￿onal pa￿￿8￿18 Inlo the 8cham6 ￿ albw Ihe fru818e8 Iri furthèr de-rlBk IhB 5ch•m• for wot•cllM of all Employe￿ ond Members. mado addlllcffjal conlrlbullon8 of £IZI,QOQ In 2021. £330,000 In 2022 •nd will rn8ko a final conthbuliN of E330.DOO In 2023. Bvf h¥8 not boen aikod to make ¥nyfiJrth•r contribJlKn&. For the P8n8lonsaver ¥chem8. tho Group pdd conlrlbutlon8 81 the raM 0110% ef penslonable pay for the yaor. wth member8 coniNbutlng 88 ol thoy Ilke¢ ryublecl Io 8 rnlnirnum c(￿1￿buttOTh 014% of p2nsir￿3b18 pay. ThB b•41 e•llmal• of conIrlbu￿onS to bo p8ld to thtt 4them•J for 2023 IB £878,OtsJ F4u8 lh• È330,CIJO d•fi(Ji eontrfbuiionB dèlalled abov•. 1118 not po•&ibl8 le Identify the Bhor• of ur￿•￿Y1ng a68èt8 and ￿EbilIti￿ of the c￿j￿ry Mcndoloz Pen￿¢￿ Fund b8lrryiry io Indlvldual participating BmplDyws. th• nBlure el the schemes, ¢h8 Expfjndttu￿ B¢r￿Unt charge for lh8 y88r under FRS102 reprFi￿lI lh• nF4wr c0ntrfb￿0n piyublo. Page 74 Bournville Village Trust Group NOTESTO THE FINANCIAL STATEMENTS lorth• year•nd•d 31 D•¢￿b•r2o22 27 CONTINGENT LIABILIT1ES Thore aro no Mntyng8nt liabilitla& kn(m￿ atthe b81*￿ sheet d818. RELATED PARTYTRANSACTIONS 2e own5 11Y)% of *$uad 8h8r• c8pthI a￿Kunting te £tOD, of ￿r￿vIlle v111￿￿ De¥oK)kxnents Limrt8d 18VOI, a I￿0￿rat&d m England and W818s. BVD is engaged In the c(Hwdination Bnd conslrucuon c4 an uib8n villoge 81 Lighlmoor TeKord. Bvf helps lo fund Bome of the woFking ca￿1 raqulr8meni8 of BVD ha8 8gra8d q loan fadlily fiK this purws8. A8 at 31112122. the outJthndn9 b8lan¢e M the loan 8iooJ 81 £2.14m12021 £1.96ml. Each Tru&leè awn& 1 share out of the total 324 shares in issue cf Bournvlle Wryks HouJlng Soci&ty Lid IBWHSI. ¢hgrtsble Rg9I3lered Pro¥id8r of 6ccial heuiing. r8giBtWod undfr thB Cwperativa #nd CommunSty Sen8fi1 Societies AEI 2014. 8WHS b8c&me a subsidiary of in 2011 and in 2016 wl in pl8¢e a ¢oleimlnw$ bo8rd arrnnoemenl vthereby the TN8tqes ol Bvr look over frorn Ihe BWHS bAanagemenl CommlttBe. BVT own8 1(Kl% of Is$ued $h8re Gapltsl amounlSng lo £100, of Boumvllle Wllage Enlerpri¥e8 Linhed ievEI. o company IncL¥porthd n England And Wal88. 8VE 18 engaged In tho mwket renliThJ of properbe5 IÉA8ed from BVT. E￿￿p￿On hu b••n ¢•ken undBr FRS102 from tho reoulromenl io disclose trensqcliw• %*ith subJid18rbofj. 8vr gi¥e8 regular anrbUO1 gr3nts to AvLMcruft K•Jseum, 8 Regl&tored Charity. frem BurpluwB on rental Incom? frcm commerciol propBrtiets granted 10 BVT by th# Croft Trust, which pr8vH>usly owned AvonGroft Museum. Thig >uppcrft hB onllnuod In 2022 and16 £15,000 per 8nnum. ￿B0 lfj 2020 fdl¢)wing a roqUgSt for urgeni fin8ncl81 BUPPJrt and 5UPPOrt qt th• eoard level m8de by Avoncroft Museum lo 8￿, P&te RIchmo￿l Ichlef Execullyel and 08vld Robinson IFln8n¢o Dlre¢torl loinad the I ruslee tS08rd ol Avoncroft In unpaid posit￿nI. P8p 75