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2021-03-31-accounts

Charity numbers: 244067 & SCO40324

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

TRUSTEES' REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

CONTENTS

Page
Reference and administrative details of the charity, its Trustees and advisers 1 - 2
Trustees' report 3 - 21
Independent auditors' report on the financial statements 22 - 25
Consolidated statement of financial activities 26
Consolidated balance sheet 27 - 28
Charity balance sheet 29 - 30
Consolidated statement of cash flows 31
Notes to the financial statements 32 - 60

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS FOR THE YEAR ENDED 31 MARCH 2021

Trustees

Aileen Evans, Current CIH president

Anne Chapman, Assistant Director - Governance and Compliance, Golding Homes, Vice Chair Chan Kataria, Chief Executive, EMH Group

Geraldine Howley, Chief Executive, Incommunities, Chair of the Board Gordon Perry, Former Chief Executive, Accent Group (now a retired consultant) John Hannigan, Chief Executive, Circle Voluntary Group Julie Faddon, Chief Executive, SLH Group, Vice-Chair Robert Grundy, Head of Housing, Savills (Housing Division)

Co-opted members

Jo Richardson, Current CIH Vice-president until June 2021 Paul Diggory, Chair of the Wales Board - co-opted until November 2021 James Strang, Former CEO, Parkhead Housing Association (retired) - co-opted until November 2021

Executive Team

Gavin Smart, Chief Executive Josie Twimming-Stroud, Director, Member Services and Communications Sarah Dunkerely, Director, Knowledge and Learning Andy Orrey, Interim Director, Finance James Prestwich, Director, Policy and External Affairs

Charity registered numbers

244067 and SCO40324

Principal office

Chartered Institute of Housing Suites 5-6 Rowan House Westwood Way Coventry CV4 8HS

Independent auditors

Crowe U.K. LLP Black Country House Rounds Green Road Oldbury West Midlands B69 2DG

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Bankers

Barclays Bank plc 5 Colmore Row Birmingham B3 2WN

Solicitors

Trowers and Hamlins LLP 3 Bunhill Row London EC1Y 8YZ

Investment Managers

Charles Stanley and Company Limited 25 Luke Street London EC2R 4AR

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

TRUSTEES' REPORT FOR THE YEAR ENDED 31 MARCH 2021

The Trustees of Chartered Institute of Housing (CIH, also referred to as the Institute) submit their annual report and the audited financial statements for the year ended 31 March 2021.

The Trustees have adopted the provisions of the “Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015)” in preparing the annual report and financial statements of the charity.

Structure, governance and management

a. Structure

CIH is incorporated under a Royal Charter which was granted on 25 June 1984. The objects of CIH are to promote the science and art of housing, its standards and ideals and the training and education of those engaged in the profession of housing practice. CIH is registered as a charity with the Charity Commission (registered no. 244067) and the Office of the Scottish Charity Regulator (registered no. SCO40324).

The international subsidiaries of CIH are CIH Asia International (Hong Kong, Taiwan, Macau) and CIH China WOFE Xianyu Shenzhen (wholly owned foreign entity)/Xuan Yu (mainland China). CIH Canada and CIH Asia International are both wholly owned subsidiaries of CIH UK. CIH China is a subsidiary of CIH Asia International.

Each subsidiary has the following structure:

Over the past year, CIH has worked closely with all subsidiaries to establish robust governance structures and effective operational and financial reporting. CIH Canada has recruited a new management agent to reinvigorate activity and membership engagement in the country. CIH Asia International has worked to establish an office and presence in China to ensure legal and regulatory compliance with local requirements and this can now start to operate as a subsidiary in its own right.

HouseMark Limited is an associate company (51% owned) offering benchmarking and sector improvement services and business intelligence. This company is registered at Companies House under company number 03822761.

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

b. Governance

The appointed CIH Governing Board comprises twelve (12) Trustees. The Board is responsible for the management of the business of the Institute. This includes setting the strategic direction of the Institute as a whole, determining priorities, ensuring performance and managing risk and accountability, viability and sustainability. The Governing Board exercises all the powers of the Institute which are not otherwise required by the Charter and Byelaws to be exercised by the membership in general meeting.

The Governing Board oversees the business of the national boards in Scotland, Wales and Northern Ireland, the nine regional groups in England, CIH International Subsidiaries and branches and the delegated boards and committees:

The Trustees are required to meet a minimum of six times per year and in 2020/2021 they held six meetings from April 2020 to March 2021. Governance costs include expenditure relating to advice on and compliance with all regulatory and legal obligations, audit costs, costs of meeting constitutional and statutory requirements, Trustee and board committee meetings, costs of all strategic planning processes and the executive staff costs incurred in supporting the governance activities, company secretariat and support staff.

CIH have noted an error in the Charity commission breakdown of the published accounts for 2019/2020. The charity commission require the declaration of specific income and expenditure lines and for the year in question CIH reported Governance costs at £19k. The actual governance costs were £335,558, which was included in note 9 of the financial statements.

A schedule of current Trustees and those who have served terms of office during 2020/2021 is included on page 1.

Audit and Risk Board (ARB)

The scope of the Audit and Risk Board is authorised by the Governing Board, and includes the following activities:

Currently, the membership of the Audit and Risk Board comprises three Trustees and one independent member. The Chair of the Board is a Trustee.

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

GERN Committee

The membership of the GERN committee comprises of four (4) Trustees and one (1) independent member. The GERN Committee chair is a trustee. The company secretary attends all GERN’s meetings. The GERN Committee is authorised by the Governing Board to perform;

Remuneration and nomination of the Governing Board and Executive Team

The Charter and Bye laws require Governing Board members to be recruited by means of a selection panel. Members are appointed on the basis of their skills and experience and those required by the Board and shall become Trustees after they have been approved by the Trustee Recruitment Panel and subsequently approved by the Members in General Meeting.

At each Annual General Meeting, one third of the Trustees retire (in addition to any otherwise required to retire) and where possible, the Trustees to retire are those who have been appointed Members of Governing Board for the longest period since their appointment.

If a person has served on the Governing Board as a Trustee for a continuous period of six years, he or she shall be ineligible for re appointment as a Trustee at the Annual General Meeting at which he or she ceases to hold office.

The President and Vice President are elected through a nomination and voting process. Calls for nomination for the position of Vice President are made at the beginning of the financial year before the Annual General Meeting (AGM). At each AGM, the Vice President becomes President and a Trustee ex officio for so long as he or she is President. The retiring President ceases to hold office and retires as a Trustee.

Each member of the board undertakes induction training, consisting of a comprehensive briefing by the Chair of the board, the Chief Executive and Company Secretary and Head of Governance with emphasis placed on the legal status and the responsibility of a Trustee.

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

In addition, all new Trustees have a thorough introduction with directors and key staff. An induction pack is provided to each Trustee including CIH’s Charter and Bye Laws, Governance Framework and reference documents relating to the role of Trustee from the Charity Commission. This is updated as required throughout the year and updates are provided to the Trustees.

Professional Standards Committee (PSC)

The PSC examines cases where a member of CIH or other person or body has laid a complaint against a member or has alleged that such member has acted in contravention of the Bylaws. The PSC will oversee the code of conduct for CIH including:

The function of the PSC is being extended and it is hoped they can become more engaged in work connected to the professional standards framework.

Policy Advisory Committee (PAC)

The PAC acts as a sounding board for CIH’s responses to emerging housing issues and policy development. Providing insight, advice and expertise on housing and related policy areas, PAC helps CIH to:

In 2019/20 PAC provided advice on our work on building safety, professionalism, the way in which social housing is allocated and CIH’s policy priorities as well as shaping our submissions to the Treasury ahead of the Budget and Comprehensive Spending Review. We have continued to work on these priorities during 2020/21 and a recruitment campaign in the autumn of 2020 attracted applicants of a very high calibre and enabled us to bring a broader range of skills, knowledge and expertise to the group.

Futures Board

The CIH Futures board seeks to increase membership among housing professionals under the age of 30 and promote housing as a career and the role of professional bodies.

Evie Copeland and James Ballantyne continued in their roles as chair and vice-chair respectively and a recruitment drive took place in December 2020 with two new board members joining from the Midlands and London. The next round of recruitment will seek to increase their geographical representation across the UK as well as individuals from under-represented groups in our communities.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

c. The Charity Governance Code and the CIH Governance Framework

Good governance is essential for the success of any organisation and is now more important than ever. Trustees and board members play a vital role in serving their chosen causes and their wider communities. They bring passion and commitment as well as skills and experience to the organisations they lead. Boards set the long-term vision and protect the reputation and values of their organisations.

To make a difference, a board must have proper procedures and policies in place, but it should also work well as a team, have regard to its own purpose and development and foster good relationships within the organisation and across the wider community that it serves. CIH seeks to ensure that its governance arrangements are of the highest order and inspire confidence and trust in the organisation.

In 2020, CIH updated its code of governance and Governance Framework to align with the updates made to the Charity Governance Code and the changes experienced in the last year to the governance structure in CIH. The CIH Code of Governance has been updated to reflect these changes to the Charity Code particularly with reference to EDI. The rationale behind the update is, addressing equality, diversity and inclusion helps a board to make better decisions. Recognising and countering any imbalances in power, perspectives and opportunities in the charity, and in the attitudes and behaviour of trustees, staff and volunteers, helps to make sure that a charity achieves its aims.

The updated code is shorter and streamlined with more reference to other parts of the Framework and other policies and guidelines outside of the actual Code.

The CIH Governance Framework aligns with the Charity Governance Code and adopts the “apply or explain” approach that is the trademark of the Charity Governance Code. It is the foundation of the CIH Governance Framework’s flexibility.

The Framework is not a rigid set of rules, although of necessity, some structure is applied so that the affairs of the Institute are regulated in such manner as the Governing Board sees fit. Rather, the Framework consists of seven key principles which are to be applied across the wider governance of the organisation and provisions.

It is recognised that, from time to time, an alternative to following a provision may be justified in particular circumstances if good governance can be achieved by other means. A condition of doing so, however, is that the reasons for it should be explained clearly and carefully to members and other stakeholders as appropriate.

CIH has a strong reputation throughout the housing sector and it plays a vital role, through its members and its influence, in shaping the lives of millions of people through its work to improve the homes and communities in which they reside.

CIH Trustees and Board members therefore carry an important responsibility to manage the organisation and deliver on its objectives in a way that enhances trust and support among its stakeholders.

The Governance Framework sets out clearly the principles that Trustees and other decision makers follow. It also provides clear information about what those principles mean in practice.

Good governance in charities is fundamental to their success. It enables and supports a charity’s compliance with the law and relevant regulations. It also promotes a culture where everything works towards fulfilling the charity’s vision.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

d. Leadership

Geraldine Howley has completed her second year as chair of the Governing Board. The chair is supported by Julie Fadden and Anne Chapman both confirmed as vice chairs.

Aileen Evans took over as president in November 2019 at the AGM. The current vice president is Jo Richardson who takes up office as president at the AGM in June 2021.

Robert Grundy was due to come to the end of his six-year term in November 2020, but due to the pandemic, members passed a resolution to extend his term for a period of one year ending November 2021 and for the recruitment of a replacement also delayed.

The Board also agreed to co-opt three members onto the Governing Board in 2020.

Jo Richardson Current CIH vice-president until June 2021 Paul Diggory Chair of the Wales Board – co-opted until November 2021 James Strang Former CEO, Parkhead Housing Association (retired) – co-opted until November 2021

e. Management

The day to day management of CIH is delegated by the Governing Board to the Chief Executive and the Executive Team. The Finance and Corporate Services functions were managed on an interim basis by Executive Directors pending permanent recruitment.

The Executive Team for 2020/2021 comprises:

Chief Executive Gavin Smart Interim Director of Finance Andy Orrey Membership and Partnerships Josie Twinning-Stroud Director, Knowledge and Learning Sarah Dunkerley Director of Policy and External Affairs James Prestwich

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

f. Trustees' responsibilities statement

The Trustees of CIH are responsible for preparing the Trustees’ Annual Report and the financial statements in accordance with applicable law and United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards).

The law applicable to charities in England, Wales, Scotland and Northern Ireland 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 charity and the group and of the incoming resources and application of resources of the group for that period.

In preparing these financial statements, the charity Trustees are required to:

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charity’s transactions, disclose with reasonable accuracy at any time the financial position of the charity and enable them to ensure that the financial statements comply with the Charities Act 2011, the Charities (Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, the Charities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the charity’s constitution.

They are also responsible for safeguarding the assets of the charity and the group and for taking reasonable steps to prevent and detect fraud and other irregularities.

The Trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable Group's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Trustees also determine the strategic course of the Institute and monitor progress against corporate plans and review its constitutional, statutory and financial responsibilities.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

g. Risk management

Policies and procedures are designed to identify, assess and mitigate risk. The Audit and Risk Board examines and actively reviews the major strategic, business and operational risks that CIH faces and reports back to the Governing Board Trustees, via the Chair of the Audit and Risk Board who is a member of the Governing Board and a Trustee.

The Executive Team carries out regular reviews of the strategic risk register, and twice a year conducts a directorate review of operational risks.

The results of these reviews are reported to the Chief Executive in a directorate declaration statement, enabling assurance to be given by the Chief Executive to the Audit and Risk Board on the key risks and controls in place and their operation.

The key strategic risks which have been identified are:

These key strategic risks are recorded in the strategic risk register, which records the mitigation that is in place, together with further action. The Executive Team and Audit and Risk Board keep the risks under review and consider appropriate mitigating actions which are detailed in the risk register.

The mitigating actions are ranked in order of priority and have a contingency plans built in. The Governing Board receives regular reports from the Audit and Risk Board.

The Trustees, as a body, are together responsible for establishing, implementing and monitoring the internal financial controls. The detailed oversight of the internal financial controls is delegated to the Audit and Risk Board.

The Audit and Risk Board have taken note of the guidance from the Charities Commission on Internal Financial Controls and have completed the check list provided by the Charity Commission as guidance to evaluate the CIH’s performance against the legal requirements and good practice recommendations set out in this guidance.

The Audit and Risk Board is satisfied with the level of compliance and any actions identified to improve the controls.

The Audit and Risk Board met four times between April 2020 and March 2021. An assurance framework was developed in conjunction with the appointed Internal Auditors, RSM. The framework includes a three-year audit strategy and annual internal audit plan.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Structure, governance and management (continued)

In 2020/2021, the following internal audits were undertaken and planned:

The annual opinion from the internal auditors is, based upon and limited to the work performed, on the overall adequacy and effectiveness of the organisation’s risk management, control and governance processes.

Objectives and Activities

In setting the objectives, planning the activities, and reporting on the performance of CIH the Trustees have given careful consideration to the Charity Commission guidance on public benefit. Our charitable objectives and public interest requirement guide our business and corporate planning.

CIH is the independent voice for housing and the home of professional standards. We exist to promote the science and art of housing, its standards and ideals and the training and education of people who work in housing.

We maintain our public benefit by providing education and training programmes and using evidence, both research and practice based, to influence and shape housing policy and implementation. We disseminate information and knowledge to and for the industry through our membership and communication networks.

Our objectives and activities in 2020-21 were driven by our corporate plan for 2018-21, which sets out our vision for CIH and the profession.

The plan’s mission is “to support housing professionals to create a future in which everyone has a place to call home.” It sets out how we will:

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance

a. Main achievements of the charity

Education and learning

A total of 1,459 CIH qualifications were awarded in 2020-2021 compared with 1,750 in 2019-2020. The impact of the lockdown, pandemic and national restrictions have had a significant impact on education during the year, with changes to regulations, delivery and assessment practices having a significant effect on our centres and qualifications registrations, including the ability to print certificates, with the focus being on results and achievement not new starts. Despite this we maintained a consistent level of registrations over the year, although at lower levels than expected, due to the operational models of centres being face -to -face and them having to implement change during this period. The CIH Housing Academy was able to adapt to change quickly as most of its offer was already on-line and this provided us with an advantage and a platform to work with the sector to continue to meet educational demands in a more flexible manner. New offers were developed to replaces existing face to face delivery and blended delivery models, that are fully online including the new online plus, which offers a mixture of online learning and virtual tutorials and bitesize learning, giving individuals the opportunity to learn in small steps.

We have continued to embed a UK-wide approach to the delivery of qualifications and training, while continuing to deliver nation-specific content where appropriate or needed. We have continued to build relationships and bespoke programmes with employers across the UK and internationally, with partners such as Homeless link and ICSH (Irish Council for Social Housing), Landlords Authority Scotland, and with an increasing number of new customers in the public sector and local authorities.

Apprenticeships

We have continued to develop and build on our delivery of apprenticeship programmes in 2020-2021; with 292 registered with CIH at the end of the year. Apprenticeship delivery was impacted during the period and experienced a high level of ‘interruptions’ to programme more than expected. Interruptions result in a hold being placed on their account and a freeze on any funding for that apprentice for the period of the hold, (these are at the request of the apprentice and employer and indications are that these are a result of employment issues during the lockdown). We have put in place a programme of contact with the aim of working with the apprentices and employers to get them back on programme in the shortest possible time. Delivery was also moved to online contact and assessment from face to face which is a longer-term benefit.

Our end point assessment (apprenticeship) function was able to quickly move to online/virtual panels, reducing several costs such as assessor expenses and this has seen an increase in activity over the period. We have seen an increase in new registrations in this area and achievements, with 799 apprentices registered with CIH in the year. Since when our first apprentices completed in 2019, a total of 642 have now successfully completed. We have continued to work with the devolved nations on their review of the apprenticeship’s framework.

Training and continuing professional development

Our face-to-face training offer was immediately impacted by the national lockdown and restrictions on face-toface contact and delivery, resulting in a change to all training programmes made. Initially we launched new online training programmes in late May using webinar technology. We continued to revise and refine the programmes and moved the delivery to Microsoft team’s functionality, focusing on both our open access programmes and offers and adapting programmes that were bespoke for individual employer’s needs. Both options have had varying degrees of success and have allowed greater flexibility in delivery style, time, and costs.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Professionalism

In March 2021 we introduced CIH professional standards. The standards build on?seven characteristics that have been developed, tested and refined with the sector over the last 18 months. They are designed to support people to?reflect on and think about their professional development needs. They are relevant for everyone who works in housing, across all tenures, whatever the role or specialism. They have been very positively achieved and there is a significant cohort of organisations now working to embed our standards across their organisations.

Membership performance

Our membership numbers increased by three per cent to 18,875 at 31 March 2021 compared to 18,393 at 31 March 2020. This is a positive development against the backdrop of the pandemic and demonstrates the continued focus across the sector on professionalism.

A total of 1511 new members joined us in 2020-21 including 209 new chartered or fellow members (our highest grades of membership).

We now offer a rolling year membership allowing members to sign up at any point in the year for a period of 12 months.

CIH Futures continue to support our work particularly this year during National Careers Week and the promotion of our young professionals’ event The Big Conversation, held virtually for the first time and attracting over 100 delegates. However, the pandemic proved challenging in growing our under 30s membership and numbers fell to 318 at the end of March 2021.

In 2020 we launched our Building Better Boards membership offer for board members and governance professionals, to acknowledge the critical role they play in the sector, ensure they are recognised as housing professionals and supported and equipped through CIH membership. To date we have 16 organisations sign up to our Building Better Boards membership offer resulting in 189 new members.

We entered into a new partnership with The Institute of Leadership and Management (TILM) offering discount membership of TILM to current CIH members in order for our members to benefit from additional resources to support their careers.

We introduced new ways for members to get involved including our Equality, Diversity and Inclusion (EDI) steering group who are working with us to support our commitments to EDI. Our regional group structure in England is now more flexible with members encouraged to join who share our goal of delivering member value across the regions. During the pandemic this included contributing content to our virtual events programme and creating virtual networking opportunities for members.

Conference and events activity

This has been a very turbulent year for our events business. The COVID-19 pandemic all but ended our live events business overnight. The team have focused on rebuilding our offer, pivoting quickly from a face to face to virtual events model. This has ensured that we remained relevant in the market and were able to continue using our events as a vehicle to deliver knowledge to the sector and a sense of community for our members and customers. Over the past year the team delivered 28 events which has seen hundreds of speakers and around 5,500 attendees.

As we move into the next year, we are embarking on a strategy which will see all CIH delivered conferences and seminars be exclusive to CIH members.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Corporate Partnerships

Our corporate partnership products performed well this year, generated £1.264m of revenue. Our partnerships focus on delivering key account management to our high spend clients, providing revenue for each of our commercial business areas.

Influencing and providing evidence

Our 2018 Rethinking Social Housing research and report identified that social housing and the people who live in it are increasingly subject to unfair stigma based on their tenure. The causes are many and varied but we recognise that housing providers, their employees and contractors all play a part in creating and perpetuating stigma in the way that services are designed and delivered and through their language, attitudes and behaviour. We worked with the See the Person campaign to capture tenants’ and residents’ experiences of stigma and jointly produced a guide titled It’s not okay. The guide, launched in September 2020, encourages landlords and professionals to critically reflect on the impact of what they do while also sharing learning and positive practice in challenging negative stereotyping.

For many households, part or total loss of income as a result of the COVID-19 pandemic means that they face an increased risk of homelessness due to not being able to meet their housing costs. We welcomed the initial steps taken by government to protect tenants and help them meet their housing costs during the crisis. By sustaining many peoples’ incomes through the furlough scheme and other measures, and by calling a halt to evictions, it created a temporary respite for tenants. However, concerned that the end of these measures could result in a sudden increase in homelessness, in June 2020 we published a set of evidence-based proposals for government which included a range of welfare policy measures. We have continued to campaign for these measures in our Spending Review and Budget representations to HM Treasury.

CIH has led and/or contributed to a number of important campaigns during the year.

Since the tragic fire at Grenfell Tower almost four years ago, we have been actively engaged with both the sector and government to influence current and future practice on building safety in high-rise buildings. Activities so far have included:

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

CIH Scotland

Over the last year we have worked closely with housing professionals across all tenures to amplify the power of their experience and expertise. This has included publishing research on Scotland’s affordable housing need between 2021-26 with partners at Shelter Scotland and SFHA calling for 53,000 affordable homes over the next five years; chairing a Scottish Government Working Group on improving housing outcomes for victims of domestic abuse and publishing a report; co-chairing a new National Dementia Forum to improve links between housing, health and social care services and ensure people with dementia are supported to live well in their homes; publishing a manifesto for the 2021 Scottish Parliamentary elections and reporting on the future of housing education in Scotland setting out how colleges, universities and learning centres can work more collaboratively to improve learner access to education.

We have made the case to elected members and decision makers about the case for investing in housing by giving oral evidence to two parliamentary committees on both the Scottish Budget and Domestic Abuse (Protection) Act; Convening Scottish Housing Day on behalf of the sector, including a keynote event and a report on the case for more social housing; submitting 14 consultation responses to the Scottish Government and Scottish Parliament and sitting as a member of the COVID-19 local authority resilience group and social housing resilience group.

Finally, across 2020/21 we delivered a series of conferences and exhibitions, policy symposiums and member including the annual CIH Scotland Housing Festival - it remains firmly established as Scotland’s premier housing event and took place as a virtual event for the first time in March 2021. Our set piece young professionals’ event, The Big Conversation, brought together new and emerging figures from Scotland and beyond seeking the big answers to the major issues on career progression in the sector. We shared best practice and knowledge through our series of member webinars and briefings and our 2021 good practice compendium featuring all shortlisted entries from the 2021 Scotland Housing Awards. And we launched our Housing Leader Exchange- bring together expertise from inside and outside the sector on the challenges of being a leader in Scotland.

CIH Northern Ireland

We published ‘Rethinking social housing Northern Ireland – the next steps’ setting out our key asks for policy change moving beyond covid. The report was launched on social media achieving more than 20,000 views / impressions and almost 1,000 engagements. We discussed the report with five MLAs, the communities minister, finance minister, infrastructure minister and the Committee for Communities.

We ran a joint campaign with three local organisations calling for a specific housing outcome in the draft programme for government, to prioritise housing policy development and funding. The campaign received public support from ministers and four political parties, and it was discussed in the NI Assembly. The campaign is ongoing.

We published results of CIH public opinion polling in Northern Ireland, which highlighted stigma as a barrier to delivery of future homes. This is a key issue for which members have sought our influencing.

We ensured integration of NI in the Homes at the Heart campaign with four NI organisations submitting content. A key local ask was funding prioritisation in light of increasing covid costs; the grant budget was subsequently reviewed and increased.

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CHARTERED INSTITUTE OF HOUSING

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TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

We achieved 21 mentions in the regional press and national trade press, including BBC Newsline, BBC, Belfast Telegraph, Irish News and Inside Housing. This included coverage of NI aspects of the UK Housing Review. We published 13 blogs/media releases.

We submitted two consultation responses. The Department for Communities proceeded with two of our recommendations from previous work, to explore a new intermediate housing tenure for Northern Ireland, and to change the proposed definition of affordable housing for planning purposes, ensuring social housing continues to be afforded appropriate weight.

We ran nine policy webinars – 407 bookings were received with a median of 30 per webinar, while delegate fees and sponsorship resulted in a surplus of £1,860. Much of the content was repurposed from the Northern Ireland regional conference that was cancelled due to covid, ensuring members could still avail of the programme.

We secured funding from the Department for Communities for development costs to make our online Level 2 landlord qualification suitable for the Northern Ireland market. We worked with the Housing Academy to develop and submit the proposal.

The Department for the Economy approved the development of a new apprenticeship framework for level 3 housing practice. This is the result of our work establishing a sector task and finish group to review existing qualifications and demonstrate demand for a new framework, following the closure of the Ulster University housing management degree. The group has 11 employers.

CIH Cymru

Back Housing /Cefnogi Tai 2021

As political parties campaigned ahead of the Senedd election on 6 May 2021, we worked with members to help inform and amplify the voices of housing professionals by:

Back the Bill campaign

To elevate the impact of our call around a right to adequate housing in Wales, we have worked to co-produce a campaign alongside Tai Pawb and Shelter Cymru aimed at realising the right in practice – ‘Back the Bill’. The campaign is centred around draft legislation that would pave the way for a right to adequate housing to be enshrined in Welsh law. Three political parties included incorporation of the Right as their number one commitment in the housing sections of their manifestos ahead of the Senedd elections.

Capturing public feeling

To aid our influencing work we commissioned public opinion polling which found that 77 per cent of people in Wales would support in principle, a right to adequate housing. The survey also revealed housing was seen as a prominent issue by the Welsh public, with a majority (83 per cent) believing the Government should provide housing at a decent standard for everyone.

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

Shaping the Welsh housing policy landscape

Alongside our work linked to the election and the pandemic we’ve been busy contributing the views of housing professionals to help shape the housing policy landscape by:

Tyfu Tai Cymru Project

Through our Tyfu Tai Cymru research project (supported by grant-funding form the Oak Foundation) we have refocussed our resources to focus more on the issues facing our members in Wales This has included undertaking work surveying local authority housing professionals, unearthing the views on how the pandemic has impacted working conditions and housing delivery. And commissioning our largest piece of research to date looking at the role of housing advice during the hospital discharge process with a view to improving the consistency and awareness of the role housing does and can play in keeping people well at home and protecting vital capacity in the NHS.

We were also in the middle of producing research focussing on social housing allocations when the pandemic hit. This piece of work was paused and re-focussed to ensure its recommendations reflected on the COVID-19 context. We’re continuing to work closely with Welsh Government over the findings of this report to shape how access to social housing can be made as fair and transparent as possible for anyone wishing to access it in Wales.

Media coverage

We continued to identify and exploit high profile broadcast, online and print media opportunities for CIH messages, including our research, policy positions and campaigns, learning role and the benefits of membership.

We were featured in a range of media and channels, maximising our use of social media to share news and key messages to our members and the wider housing community. In comparison to financial year 19/20, in 20/21 we had a very successful year on Twitter especially. Our followers grew +1,633 to 35, 982; we saw an increase in interactions which jumped +4,173 to 10,641 and we had more traffic coming to us for news and content, increasing to 15,741 from 3,693 the previous year. This shows that we’re having a positive effect on social media, driving traffic to our website for our events, briefings, blogs and training. Throughout the year, we wrote a number of comment pieces for Inside Housing, sharing our policy views and organisational opinion on a range of key housing announcements, such as: the Prime Minister’s ‘build back better’ speech in June 2020; the release of the Social Housing White Paper in November 2020; and the changes to rough sleeping legislation in December 2020. In addition, we also provided statements on government announcements, changes in housing policy and breaking news.

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

Achievements and performance (continued)

In September 2020 at the Virtual Housing Festival, we released our collaboration with ITN Productions focusing on the future of housing. The series featured the work of around 10 housing associations and local authorities. Alongside this, ITN put together a news item on our presidential campaign, Shine a Light which feature our president, Aileen Evans, plus some heartfelt case studies. We have decided to take a break from our partnership with ITN for 2021 due to the effects of the pandemic. We will resume in 2022 with a new film.

b. Investment strategy and performance

The Trustees’ investment powers are set out within CIH’s charter and byelaws. Accordingly, Trustees engage and instruct Charles Stanley & Company Limited (“Charles Stanley”) and Barclays Bank to manage the investment portfolio. Both managers act within CIH’s investment policy and, in addition, use an independent screening and monitoring agency which ensures that the requirements of the CIH Socially and Environmentally Responsible Investment Policy are upheld. Charles Stanley is instructed to follow an approach that is consistent with sustainable investment.

Not only must our investments offer sound potential return, but the companies should conduct themselves in a way that is both socially and environmentally responsible. We favour selection of those companies with ethical business practices that promote desirable goals such as sustainable development and mitigating climate change. Our investment objective is to maintain the real value of assets and protect the capital base whilst providing a rising level of investment income.

The portfolio made a total gain of £379k in the year, reversing the prior losses of £208k and, in addition, produced investment income of £64k, which was slightly down on the prior year of £73k. Our portfolio spans a wider range of asset classes than Equity and Bonds and seeks to generate return from a variety of sources. Our portfolio is reviewed continuously to ensure it remains within market indicators.

Financial Review

In addition to CIH’s own activities these accounts include the licence fee received from HouseMark Limited, an associate company offering benchmarking and sector improvement services and business intelligence.

a. Financial position

The trading environment for the Charity during the pandemic was very difficult for events, conferences and Learning, although membership subscriptions and fees increased by 5.4% from the prior year with strong retention rates of existing members. We continued to build on our business to business relationships with corporate partnerships entering their fourth year. The overall consolidated Net Income surplus before revaluations of £215k is testament to prudent financial management, and this is the second successive year such a surplus has been achieved. The main one-off impacts on our financial position at 31 March 2021 were a revaluation loss in the pension liability arising from the defined benefit pension scheme of £265k and a revaluation loss on the former offices in Coventry ( Octavia House) of £25k.

The net expenditure on charitable activities was £6,661k for the year, which represents a reduction of £1,663k compared to the prior year.

As a result of the above, the balance sheet shows a net liability position of £403k which is an improvement on the prior year of £305k.

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

By the year end, incoming resources were £6,876k with investment in charitable activities at £6,275k, directly supporting delivery of our services to members and the housing sector.

Our associate company HouseMark Limited, a joint venture with the National Housing Federation, accounted for a return in respect of it’s licence fee of £240k for the year.

b. Reserves and designated funds

CIH holds financial reserves to be applied to future activities in a number of categories:

CIH’s assets are predominantly unrestricted and Trustees actively manage the proportion that is freely available as reserves. It is the intention of the Trustees to hold sufficient reserves to enable expenditure to be reduced in a managed fashion, should the need arise, avoiding the need to halt work abruptly. The Trustees have agreed that free reserves should normally be nine months of such essential expenditure. At 31 March 2021 this is estimated to be £5.0m

At 31 March 2021 the level of net assets is £3,949k, excluding the long-term pension liability, of which 5.2% (£200k) is cash and 53.8% is freely available being investment funds. In addition, the level of free reserves as at 31 March 2021 is £2,871k, which includes investment property of £1,925k. The Trustees have approved a new 3-year financial plan, in which the Institute returns to positive annual cashflow and therefore consider the reserve position above to be adequate in this period of transition.

This is, however, subject to the level of pension contributions remaining at levels that enable the Charity to fund the deficit over the longer-term, and the Trustees have concluded negotiations with the LPFA pension fund to this effect. Details of the pension scheme can be found in the notes to the financial statements. The next pension triennial review is underway and we expect the outcome in March 2022.The movements on these funds are detailed in the notes to the accounts.

The trustees have also agreed the following principles for the prioritisation of annual surpluses as they are accrued in future years:

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

c. Going concern

Chartered Institute of Housing has net assets excluding pension scheme liabilities of £3,949k (2020: £3,762k) at the balance sheet date. We have re-budgeted taking into account the impacts of the COVID 19 pandemic and have reduced expenditure to broadly match the expected reduced income. We expect income streams to recover in following years and we are looking at ways to supplement this with new products and more general cost savings. The currently approved three-year business plan included a return to positive cash-flows, and the implementation and outcomes of the plan will be vigorously monitored. The board have reviewed future cash projections, and have been assured that the impacts of Covid 19 can be contained with minimal net impact. Thereafter, the cash position reverts to a more favourable picture, and the board take comfort that further savings opportunities are available should the need arise.

CIH’s negotiations with LPFA about future contribution rates for its final salary pension scheme members and the level of contributions towards the past pensions deficit were successfully concluded in the previous financial year, which mitigated a significant historic risk. As part of these discussions CIH closed the scheme to new and existing members and agreed in principle to the deficit management agreement proposed by the LPFA which will see CIH pay increased contributions in future years and grant a level of security on certain assets held by the charity.

The Directors consider the following to be the key risks to be considered in assessing going concern:

Having reviewed stress testing on the ability to mitigate income reduction, the favourable liquidity position, the management reporting framework including the identification of opportunities not included in forecasts, the opportunity to secure additional funding should the need arise, the initial improved performance against the approved budget, the more general risk management framework and the process of regularly reviewing financial performance, the Directors believe that material uncertainties can be mitigated and/or managed appropriately and on this basis CIH’s Governing Board confirms the CIH’s going concern status.

d. Future plans

A new three-year corporate plan was approved by the trustees on 31 March 2021, with the following four key aims:

This plan includes actions necessary to bring the Institute back into positive net worth.

CIH has managed to reduce the negative impact of the pandemic through provision of effective IT systems and hardware to enable working from home and through quickly responding to moving our education and training products online. The biggest area negatively impacted has been our events and we are constantly reviewing how we can continue to provide value to our members in this area.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

TRUSTEES' REPORT (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2021

We therefore remain ambitious in our plans as we move into the new financial year. Our priorities for 2021/22 are:

Disclosure of information to auditors

Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:

Auditors

The auditors, Crowe U.K. LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.

Approved by order of the members of the board of Trustees and signed on their behalf by:

Geraldine Howley

(Chair of Trustees) Date: 27 October 2021

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(Incorporated under Royal Charter)

CHARTERED INSTITUTE OF HOUSING

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARTERED INSTITUTE OF HOUSING

Opinion

We have audited the financial statements of Chartered Institute of Housing (the 'parent charity') and its subsidiaries (the 'group') for the year ended 31 March 2021 which comprise the Consolidated statement of financial activities, the Consolidated balance sheet, the Charity balance sheet, the Consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

The financial statements have been prepared in accordance with Accounting and Reporting by Charities preparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republic of Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of Recommended Practice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.

This has been done in order for the accounts to provide a true and fair view in accordance with the Generally Accepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARTERED INSTITUTE OF HOUSING (CONTINUED)

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent charity's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Charities (Accounts and Reports) Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report to you if, in our opinion:

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARTERED INSTITUTE OF HOUSING (CONTINUED)

Responsibilities of trustees

As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for the preparation of the financial statements which give a true and fair view, and for such internal control as the Trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group's and the parent charity's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Trustees either intend to liquidate the Group or the parent charity or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

We have been appointed as auditor under section 151 of the Charities Act 2011 and section 44(1)(c) of the Charities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and Taxation legislation.

We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, designing audit procedures over income and reviewing accounting estimates for biases.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARTERED INSTITUTE OF HOUSING (CONTINUED)

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.

Use of our report

This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's trustees those matters we are required to state to them in an Auditors' 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 charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.

Crowe U.K. LLP Statutory Auditor Black Country House Rounds Green Road Oldbury West Midlands B69 2DG

Date: 25 January 2022

Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.

Page 25

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES FOR THE YEAR ENDED 31 MARCH 2021

Note
Income from:
Donations and legacies
4
Charitable activities
5
Investments
6
Other income
7
Total income
Expenditure on:
Charitable activities
8
Total expenditure
Net income/(expenditure) before net
gains/(losses) on investments
Net gains/(losses) on investments
Net movement in funds before other
recognised gains/(losses)
Other recognised gains/(losses):
(Losses)/gains on revaluation of fixed
assets
Actuarial (losses)/gains on defined
benefit pension schemes
29
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Net movement in funds
Total funds carried forward		 Unrestricted
funds
2021
£000
222
6,234
195
42
6,693
6,386
6,386
307
379
686
(25)
(265)
396
(855)
396
(459)		 Restricted
funds
2021
£000
142
41
-
-
183
274
274
(91)
-
(91)
-
-
(91)
147
(91)
56		 Total
funds
2021
£000
364
6,275
195
42
6,876
6,660
6,660
216
379
595
(25)
(265)
305
(708)
305
(403)		 Total
funds
2020
£000
196
8,064
73
232
8,565
8,324
8,324
241
(208)
33
300
1,006
1,339
(2,047)
1,339
(708)

The Consolidated statement of financial activities includes all gains and losses recognised in the year.

The notes on pages 32 to 60 form part of these financial statements.

Page 26

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
17
Investment property
16
Current assets
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one
year
19
Net current liabilities
Total assets less current liabilities
Provisions for liabilities
Net assets excluding pension liability
Defined benefit pension scheme liability
29
Total net assets
Charity funds
Restricted funds
22
Unrestricted funds:
Unrestricted funds excluding pension asset
22
Pension reserve
22
Total unrestricted funds
22
Total funds		 1,467
280
1,747
(2,836)
3,893
(4,352)		 2021
£000
360
662
2,103
1,925
5,050
(1,089)
3,961
(12)
3,949
(4,352)
(403)
56
(459)
(403)		 1,541
324
1,865
(3,091)
3,615
(4,470)		 2020
£000
209
755
2,082
1,950
4,996
(1,226)
3,770
(8)
3,762
(4,470)
(708)
147
(855)
(708)

Page 27

CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

CONSOLIDATED BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Geraldine Howley (Chair of Trustees) Date: 27 October 2021

The notes on pages 32 to 60 form part of these financial statements.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

CHARITY BALANCE SHEET AS AT 31 MARCH 2021

Note
Fixed assets
Intangible assets
14
Tangible assets
15
Investments
17
Investment property
16
Current assets
Debtors
18
Cash at bank and in hand
Creditors: amounts falling due within one
year
19
Net current liabilities
Total assets less current liabilities
Provisions for liabilities
Net assets excluding pension liability
Defined benefit pension scheme liability
29
Total net assets
Charity funds
Restricted funds
22
Unrestricted funds
Unrestricted funds excluding pension
liability
22
Pension reserve
22
Total unrestricted funds
22
Total funds		 1,493
207
1,700
(2,831)
4,030
(4,352)		 2021
£000
360
662
2,103
1,925
5,050
(1,131)
3,919
(12)
3,907
(4,352)
(445)
56
(501)
(445)		 1,541
324
1,865
(3,091)
3,615
(4,470)		 2020
£000
209
755
2,082
1,950
4,996
(1,226)
3,770
(8)
3,762
(4,470)
(708)
147
(855)
(708)

The charity's net movement in funds for the year was £ 263 (2020 - £1,339) .

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

CHARITY BALANCE SHEET (CONTINUED) AS AT 31 MARCH 2021

The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:

Geraldine Howley (Chair of Trustees) Date: 27 October 2021

The notes on pages 32 to 60 form part of these financial statements.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2021

Cash flows from operating activities
Net cash used in operating activities
Cash flows from investing activities
Dividends, interests and rents from investments
Proceeds from the sale of tangible fixed assets
Purchase of intangible assets
Purchase of tangible fixed assets
Proceeds from sale of investments
Purchase of investments
Movement on cash held for reinvestment
Net cash provided by/(used in) investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year		 2021
£000
(402)
195
-
(175)
(5)
230
(36)
149
358
(44)
324
280		 2020
£000
(453)
73
123
-
(431)
1,239
(1,410)
-
(406)
(859)
1,183
324

The notes on pages 32 to 60 form part of these financial statements

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

1. General information

Chartered Institute of Housing (CIH) was incorporated in the United Kingdom under Royal Charter on 25 June 1984 and has no share capital. CIH is registered as a charity with the Charity Commission England and Wales (registered no. 244067) and the Office of the Scottish Charity Regulator (registered no. SCO40324).

The registered and principal office is Chartered Institute of Housing, Octavia House, Westwood Way, Coventry, CV4 8JP.

2. Accounting policies

2.1 Basis of preparation of financial statements

The financial statements have been prepared in accordance with the Charities SORP (FRS 102) - Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102), the Charities Act 2011, the Charities and Trustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (as amended).

Chartered Institute of Housing meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy.

The Consolidated statement of financial activities (SOFA) and Consolidated balance sheet consolidate the financial statements of the Group and its subsidiary undertaking. The results of the subsidiary are consolidated on a line by line basis.

The Group has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own statement of financial activities in these financial statements.

2.2 Going concern

The Trustees consider they have sufficient reserves and cash to continue operating on a going concern basis for the foreseeable future.

As stated in the Trustee’s Report, Trustees believe there are no material uncertainties that call into doubt the charity's ability to continue as a going concern and the accounts have therefore been prepared on the basis that the charity is a going concern. In light of the current climate in relation to the COVID-19 pandemic the Trustees have reviewed the charity's finances. In the short term cash holdings are sufficient to ensure adequate cashflow for the foreseeable future. In the medium to long term plans for, and the structure of, Chartered Institute of Housing remain extant and will continue to be reviewed regularly.

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.3 Income

All income is recognised once the charity has entitlement to the income, it is probable that the income will be received and the amount of income receivable can be measured reliably.

Income is represented by subscriptions, training/education courses, conferences, rental income, investment income, grants and amounts receivable for services provided excluding VAT.

For subscriptions, entitlement is taken at the date on which the subscription starts and the income is recognised over the life of the subscription.

For training/education courses and conferences, entitlement is taken on the date on which the service is provided, being the date the conference/course takes place.

The grants received during the year are performance related grants in nature. They have therefore been recognised in the Statement of financial activities in line with entitlement triggered by achievement of the performance conditions over the grant period.

2.4 Expenditure

Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefit to a third party, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably.

Expenditure is classified by activity. The costs of each activity are made up of the total of direct costs and shared costs, including support costs involved in undertaking each activity. Direct costs attributable to a single activity are allocated directly to that activity. Shared costs which contribute to more than one activity and support costs which are not attributable to a single activity are apportioned between those activities on a basis consistent with the use of resources. Central staff costs are allocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’s use.

Support costs are those costs incurred directly in support of expenditure on the objects of the charity and include project management carried out at Headquarters.

Charitable activities and governance costs are costs incurred on the charity's educational operations, including support costs and costs relating to the governance of the charity apportioned to charitable activities.

2.5 Government grants

Government grants relating to tangible fixed assets are treated as deferred income and released to the Consolidated statement of financial activities over the expected useful lives of the assets concerned. Other grants are credited to the Consolidated statement of financial activities as the related expenditure is incurred.

2.6 Intangible assets and amortisation

Intangible assets are stated at cost, less amortisation. Development costs were included within the initial cost capitalised based on the considerations made by Trustees of the future economic benefit and enhancement of services received from the asset.

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.6 Intangible assets and amortisation (continued)

Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset on a straight-line basis over its expected useful life.

The estimated useful lives are as follows:

Amortisation is provided on the following basis:

CRM and website - over the useful economic life of the asset (6 years) Other projects/software - 20% - 33.3% straight line

Assets in the course of development are not amortised until the project has completed and the asset is in use.

2.7 Tangible fixed assets and depreciation

A review for impairment of a fixed asset is carried out if events or changes in circumstances indicate that the carrying value of any fixed asset may not be recoverable. Shortfalls between the carrying value of fixed assets and their recoverable amounts are recognised as impairments. Impairment losses are recognised in the Statement of financial activities

Tangible fixed assets are carried at cost or valuation net of depreciation and any provision for impairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Leasehold land - over the period of the lease - Long leasehold buildings over the period of the lease up to maximum of 50 years - Short leasehold improvements over the period of the lease Equipment, fixtures and - 20% of cost vehicles

The Institute's long leasehold property is valued on the basis of open market value for existing use by an external valuer at least once every five years and in the interim by the Trustees on the same basis.

Page 34

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.8 Investments

Quoted investments are stated at market value in the Balance sheet.

Total unrealised and realised gains and losses arising on investment assets are disclosed within the Statement of Financial Activities. The gain or loss is calculated with regard to the market value at the beginning of the year, or its cost if purchased during the year.

Investments in subsidiaries are stated at cost less impairment.

The joint ventures are stated at cost within the charity accounts less any accumulated impairment losses where necessary.

All other unlisted investments are measured initially at a cost and subsequently measured at fair value unless the fair value cannot be measured reliably in which case they are measured at cost less impairment.

Investment properties for which a fair value can be measured reliably, are revewied annually, with any changes recognised in the Statement of Financial Activities.

2.9 Debtors

Trade and other debtors are recognised at the settlement amount after any trade discount offered. Prepayments are valued at the amount prepaid.

2.10 Creditors

Creditors and provisions are recognised when there is an obligation at the Balance sheet date as a result of a past event that will probably result in a transfer of funds to a third party, and the amount of the settlement can be estimated reliably.

The dilapdations provision relates to the London office which is held under an operating lease and is an area of significant estimation/judgement. For more details see Note 1.16.

Provisions are made where an event has taken place that gives the Charity a legal and constructive obligation that probably requires settlement by transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the Statement of Financial Activities in the year that the Charity becomes aware of the obligation, and are measured at the best estimate at the Balance Sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Balance Sheet.

2.11 Financial instruments

The Group only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value.

Page 35

CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

2. Accounting policies (continued)

2.12 Pensions

Retirement benefits to employees are funded by contributions from both the charity and employees, administered through two schemes, one a stakeholder scheme and the other a defined benefit scheme.

The defined benefit scheme is a multi-employer scheme held with the London Pensions Fund Authority (LPFA). The charity's share of the underlying assets and liabilities in the LPFA scheme have been identified and the requirements of S.28, Employee Benefits, within FRS 102, have been followed.

The charity also operates a defined contribution pension scheme. Contributions are charged to the Statement of Financial Activities as they become payable in accordance with the rules of the scheme.

2.13 Operating leases

Rentals paid under operating leases are charged to the Consolidated statement of financial activities on a straight line basis over the lease term.

2.14 Fund accounting

General funds are unrestricted funds which are available for use at the discretion of the Trustees in furtherance of the general objectives of the Group and which have not been designated for other purposes.

Designated funds comprise unrestricted funds that have been set aside by the Trustees for particular purposes. The aim and use of each designated fund is set out in the notes to the financial statements.

Restricted funds are funds which are to be used in accordance with specific restrictions imposed by donors or which have been raised by the Group for particular purposes. The costs of raising and administering such funds are charged against the specific fund. The aim and use of each restricted fund is set out in the notes to the financial statements.

Investment income, gains and losses are allocated to the appropriate fund.

Page 36

CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

3. Critical accounting estimates and areas of judgement

Preparation of the financial statements requires management to make significant judgements and estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions:

Useful economic lives of intangible and tangible assets

The annual amortisation and depreciation charges for the intangible and tangible assets are sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See Notes 13 and 14 for the carrying amount of the intangible and tangible assets and Notes 2.6 and 2.7 for the useful lives for each class of asset.

Dilapidation provision

As part of the Charity's property leasing arrangements there is an obligation to maintain the state of the properties as generally set in the dilapidations provision of a lease. As a result of alterations taking place at the properties, a dilapidation provision had been recognised over the period of the lease with the costs being charged to the Statement of Financial Activities.

Defined benefit pension scheme

The present value of the defined benefit liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. The assumptions used in determining the net cost or income for pensions include the discount rate, life expectancy, salary increases and asset valuation. Any changes in these assumptions, which are disclosed in note 29, will impact the carrying amount of the pension liability.

4. Income from donations and legacies

Unrestricted
funds
2021
£000
Donations
-
Grants
-
Government grants - Coronavirus Job Retention Scheme
222
222		 Restricted
funds
2021
£000
-
142
-
142		 Total
funds
2021
£000
-
142
222
364

Page 37

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

4. Income from donations and legacies (continued)

Donations
Grants		 Unrestricted
funds
2020
£000
25
-
25		 Restricted
funds
2020
£000
-
171
171		 Total
funds
2020
£000
25
171
196

5. Income from charitable activities

Unrestricted
funds
2021
£000
Subscription and fees
2,271
Publications
11
Education
599
Corporate partnership
525
Professional practice
240
Training and conferences
2,588
Total 2021
6,234
Unrestricted
funds
2020
£000
Subscription and fees
2,045
Publications
3
Education
3,066
Corporate partnership
330
Professional practice
231
Training and conferences
2,389
Total 2020
8,064		 Restricted
funds
2021
£000
-
41
-
-
-
-
41
Restricted
funds
2020
£000
-
-
-
-
-
-
-		 Total
funds
2021
£000
2,271
52
599
525
240
2,588
6,275
Total
funds
2020
£000
2,045
3
3,066
330
231
2,389
8,064

Page 38

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

6. Investment income

Unrestricted
funds
2021
£000
Rental income
131
Investment income
64
195
Unrestricted
funds
2020
£000
Investment income
73		 Total
funds
2021
£000
131
64
195
Total
funds
2020
£000
73

7. Other incoming resources

Unrestricted
funds
2021
£000
Other income
42
Unrestricted
funds
2020
£000
Property income
58
Other income
174
232		 Total
funds
2021
£000
42
Total
funds
2020
£000
58
174
232

Page 39

(Incorporated under Royal Charter)

CHARTERED INSTITUTE OF HOUSING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

8. Analysis of expenditure on charitable activities

Summary by fund type

Unrestricted
funds
2021
£000
Subscription and fees
810
Publications and guides
-
Education
404
Training and conferences
1,675
Regional costs
1,007
Support salaries and staff costs
918
Legal and audit fees
198
Past service pension costs
499
Other
875
6,386
Unrestricted
funds
2020
£000
Subscription and fees
42
Publications and guides
35
Education
2,881
Professional practice
557
Training and conferences
2,881
Regional costs
449
Support salaries and staff costs
703
Legal and audit fees
162
Past service pension costs
385
Other
145
8,240		 Restricted
funds
2021
£000
-
77
-
-
-
81
-
-
116
274
Restricted
funds
2020
£000
-
-
-
-
84
-
-
-
-
-
84		 Total
funds
2021
£000
810
77
404
1,675
1,007
999
198
499
991
6,660
Total
funds
2020
£000
42
35
2,881
557
2,965
449
703
162
385
145
8,324

Page 40

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

9. Analysis of expenditure by activities

Subscription and fees
Publications and guides
Education
Training and conferences
Regional costs
Support salaries & staff costs
Legal and audit fees
Past service pension costs
Other
Subscription and fees
Publications and guides
Education
Professional practice
Training and conferences
Regional costs
Support salaries & staff costs
Legal and audit fees
Past service pension costs
Other		 Activities
undertaken
directly
2021
£000
810
77
404
1,675
1,007
-
-
-
-
3,973
Activities
undertaken
directly
2020
£000
42
35
2,881
557
2,965
449
-
-
-
-
6,929		 Support
costs
2021
£000
-
-
-
-
-
999
198
499
991
2,687
Support
costs
2020
£000
-
-
-
-
-
-
703
162
385
145
1,395		 Total
funds
2021
£000
810
77
404
1,675
1,007
999
198
499
991
6,660
Total
funds
2020
£000
42
35
2,881
557
2,965
449
703
162
385
145
8,324

Page 41

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

10. Auditors' remuneration

2021 2020
£000 £000
Fees payable to the charity's auditor for the audit of the charity's annual
accounts 19 19
Fees payable to the charity's auditor in respect of:
All non-audit services not included above 3 3

11. Net income/(expenditure)

Depreciation of tangible fixed assets
Amortisation of web, CRM and other projects
Foreign exchange loss
Operating lease rentals - land and building		 2021
£000
98
24
-
180
302		 2020
£000
49
-
1
180
230

12. Staff costs

Wages and salaries
Social security costs
Other pension costs		 Group
2021
£000
3,230
300
159
3,689		 Group
2020
£000
3,204
295
294
3,793		 Charity
2021
£000
3,230
300
159
3,689		 Charity
2020
£000
3,204
295
294
3,793

Page 42

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

12. Staff costs (continued)

The average number of persons employed by the charity during the year was as follows:

Direct charitable services and support
Management and administration of the charity		 Group
2021
No.
89
5
94		 Group
2020
No.
83
5
88

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

Group Group
2021 2020
No. No.
In the band £60,001 - £70,000 2 1
In the band £70,001 - £80,000 1 1
In the band £80,001 - £90,000 - 1
In the band £110,001 - £120,000 - 1
In the band £120,001 - £130,000 1 -

The remuneration (including employers national insurance contributions) of the senior management team for the charity totalled £395k (2020: £406k) .

During the period there were redundancy or termination payments made which amounted to £30k (2020: £19k) .

13. Trustees' remuneration and expenses

During the year, no Trustees received any remuneration or other benefits (2020 - £NIL) .

During the year ended 31 March 2021, expenses totalling £ 38 were reimbursed or paid directly to 1 Trustee (2020 - £6,016 to 5 Trustees) . They were incurred for travel and subsistence costs for trustees involved in business meetings and working groups.

Page 43

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

14. Intangible assets

Group and Charity

Cost
At 1 April 2020
Additions
Disposals
At 31 March 2021
Amortisation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Website,
CRM and
other
projects
£000
1,985
350
(1,985)
350
1,985
24
24
326
-		 Assets in the
course of
development
£000
209
175
(350)
34
-
-
-
34
209		 Total
£000
2,194
525
(2,335)
384
1,985
24
24
360
209

Page 44

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

15. Tangible fixed assets

Group and Charity

Cost or valuation
At 1 April 2020
Additions
At 31 March 2021
Depreciation
At 1 April 2020
Charge for the year
At 31 March 2021
Net book value
At 31 March 2021
At 31 March 2020		 Long
Leasehold
Land &
Buildings
£000
425
-
425
20
12
32
393
405		 Short
leasehold
improvements
£000
218
-
218
29
45
74
144
189		 Equipment,
Fixtures and
Vehicles
£000
373
5
378
212
41
253
125
161		 Total
£000
1,016
5
1,021
261
98
359
662
755

Page 45

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

16. Investment property

Group and Charity

Valuation
At 1 April 2020
Surplus on revaluation
At 31 March 2021		 Freehold
investment
property
£000
1,950
(25)
1,925

Properties held at year end were valued by a RICS registered valuer in 2021.

Page 46

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Fixed asset investments

Subsidiaries
Group and charity
£000
Cost or valuation
At 1 April 2020
56
Additions
-
Disposals
-
Revaluations
-
At 31 March 2021
56
Impairment
At 1 April 2020
11
Charge for the year
16
At 31 March 2021
27
Net book value
At 31 March 2021
29
At 31 March 2020
45		 Quoted
investments
£000
1,718
36
(230)
379
1,903
-
-
-
1,903
1,718		 Loan
investment
to
HouseMark
£000
126
-
(1)
-
125
-
-
-
125
126		 Cash on
deposit
£000
193
(149)
-
-
44
-
-
-
44
193		 Total
£000
2,093
(113)
(231)
379
2,128
11
14
25
2,103
2,082

Page 47

CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

17. Fixed asset investments (continued)

Subsidiaries

CIH Asia International Limited

The institute owns 100% of the issued share capital of CIH Asia International Limited. CIH Asia International Limited was incorporated on 9 November 2017 and has been dormant throughout the period.

CIH China

CIH Asia International Limited owns 100% of CIH China (Shenzhen Xuan Yu Information Consulting Co. Ltd) by virtue of the dormant's exercised control of entity. The institute therefore wholly owns this subsidiary. This has been included in the consolidation on the grounds of size of the entity.

CIH Canada

The institute owns 100% of the issued share capital of CIH Canada. This has been excluded from consolidation on the grounds of materiality.

Joint Ventures

HouseMark

The Institute holds all of the issued A share capital of HouseMark Limited, which provides a knowledge management and benchmarking service. The National Housing Federation holds all of the issued B share capital of the company. The company is treated as a joint venture.

The joint ventures are stated at cost less any accumulated impairment losses where necessary.

18. Debtors

Trade debtors
Amounts owed by group undertakings
Amounts owed by participating interests
Other debtors
Prepayments and accrued income		 Group
2021
£000
902
-
62
42
461
1,467		 Group
2020
£000
989
39
58
66
389
1,541		 Charity
2021
£000
902
26
62
42
461
1,493		 Charity
2020
£000
989
39
58
66
389
1,541

Trade debtors are stated after provision for bad debts of £127k (2020: £124k ).

Page 48

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

19. Creditors: Amounts falling due within one year

Payments received on account
Trade creditors
Other taxation and social security
Other creditors
Accruals and deferred income
Deferred income at 1 April 2020
Resources deferred during the year
Amounts released from previous periods		 Group
2021
£000
-
452
156
94
2,134
2,836
Group
2021
£000
1,488
1,819
(1,488)
1,819		 Group
2020
£000
474
394
204
91
1,928
3,091
Group
2020
£000
1,430
1,488
(1,430)
1,488		 Charity
2021
£000
-
450
156
91
2,134
2,831
Charity
2021
£000
1,488
1,819
(1,488)
1,819		 Charity
2020
£000
474
394
204
91
1,928
3,091
Charity
2020
£000
1,430
1,488
(1,430
1,488

The value of deferred income included above relates to income for future periods beginning on or after 1 April 2021. The deferred income relates to membership fees and income from corporate partnerships for the year 1 April 2021 to 31 March 2022.

20. Financial instruments

Group Group Charity Charity
2021 2020 2021 2020
£000 £000 £000 £000
Financial assets
Financial assets measured at fair value
through income and expenditure 1,903 1,718 1,903 1,718

Financial assets measured at fair value through income and expenditure comprise listed investments.

Page 49

CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

21. Provisions

Group and charity

At 1 April 2020
Additions		 Dilapidation
provision
£000
8
4
12

As part of the charity’s property leasing arrangements there is an obligation to repair damages which incur during the life of the lease, such as wear and tear. The cost is charged to Statement of financial activities as the obligation arises. The provision is expected to be utilised by 2023 as the leases terminate.

Due to the difficulties in predicting expenditure that will be required on return of a property to the landlord many years into the future, the dilapidations provision is considered a source of significant estimation uncertainty. The provision has been calculated using historical experience of actual expenditure incurred on dilapidations and estimated lease termination dates.

Page 50

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. Statement of funds

Statement of funds - current year

Unrestricted funds
General Fund
Designated research and
development fund
Revaluation reserve
Pension reserve
Restricted funds
Regional fund
David Butler bursary
Learning to Let
Tri country bursary fund
Oak Foundation grant
Wales Govt. (Innov.
Housing Programme)
UK Housing Review
Wales Govt. (Welsh
Housing Quarterly)
Housing Rights Website
Wales Govt. (Housing
Review)
Total of funds		 Balance at 1
April 2020
£000
1,522
152
1,941
(4,470)
(855)
1
50
23
5
54
14
-
-
-
-
147
(708)		 Income
£000
6,693
-
-
-
6,693
-
-
-
-
2
110
41
12
5
13
183
6,876		 Expenditure
£000
(6,769)
-
-
383
(6,386)
-
-
(23)
-
(56)
(124)
(41)
(12)
(5)
(13)
(274)
(6,660)		 Transfers
in/out
£000

152
(152)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Gains/
(Losses)
£000
379
-
(25)
(265)
89
-
-
-
-
-
-
-
-
-
-
-
89		 Balance
at 31
March
2021
£000
1,977
-
1,916
(4,352)
(459)
1
50
-
5
-
-
-
-
-
-
56
(403)

Page 51

CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

22. Statement of funds (continued)

The Designated research and development fund is being held for future expenditure on implementation of the new IT strategy.

The David Butler Bursary fund is CIH's educational grant scheme to provide financial support for people wishing to pursue a career in housing.

The incoming resources of CIH also include grants made by government departments for specific purposes.

Statement of funds - prior year

Unrestricted funds
General Fund
Designated research and
development fund
Revaluation reserve
Pension reserve
Restricted funds
Regional fund
Learning to Let
Tri country bursary fund
David Butler bursary
Oak Foundation grant
Wales Govt. (Innov. Housing
Programme)
Total of funds		 Balance at
1 April 2019
£000
1,810
152
1,641
(5,710)
(2,107)
1
-
5
52
2
-
60
(2,047)		 Income
£000
8,394
-
-
-
8,394
-
23
-
-
104
44
171
8,565		 Expenditure
£000
(8,474)
-
-
234
(8,240)
-
-
-
(2)
(52)
(30)
(84)
(8,324)		 Gains/
(Losses)
£000
(208)
-
300
1,006
1,098
-
-
-
-
-
-
-
1,098		 Balance at
31 March
2020
£000
1,522
152
1,941
(4,470)
(855)
1
23
5
50
54
14
147
(708)

Page 52

(Incorporated under Royal Charter)

CHARTERED INSTITUTE OF HOUSING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

23. Analysis of net assets between funds

Analysis of net assets between funds - current year

Unrestricted
funds
2021
£000
Tangible fixed assets
662
Intangible fixed assets
360
Fixed asset investments
2,103
Investment property
1,925
Current assets
1,691
Creditors due within one year
(2,836)
Provisions for liabilities and charges
(4,364)
Total
(459)
Analysis of net assets between funds - prior year
Unrestricted
funds
2020
£000
Tangible fixed assets
755
Intangible fixed assets
209
Fixed asset investments
2,082
Investment property
1,950
Current assets
1,718
Creditors due within one year
(3,091)
Provisions for liabilities and charges
(4,478)
Total
(855)		 Restricted
funds
2021
£000
-
-
-
-
56
-
-
56
Restricted
funds
2020
£000
-
-
-
-
147
-
-
147		 Total
funds
2021
£000
662
360
2,103
1,925
1,747
(2,836)
(4,364)
(403)
Total
funds
2020
£000
755
209
2,082
1,950
1,865
(3,091)
(4,478)
(708)

Page 53

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

24. Reconciliation of net movement in funds to net cash flow from operating activities

Net income for the year (as per Statement of Financial Activities)
Adjustments for:
Depreciation charges
Amortisation charges
Gains/(losses) on investments
Dividends, interests and rents from investments
Loss/(profit) on the sale of fixed assets
Decrease/(increase) in debtors
Increase/(decrease) in creditors
Net pension scheme costs
Increase/(decrease) in provisions
Impairment of investments
Net cash used in operating activities
25.
Analysis of cash and cash equivalents
Cash in hand
Total cash and cash equivalents
26.
Analysis of changes in net debt
At 1 April
2020
£000
Cash at bank and in hand
324
324		 Group
2021
£000
595
98
24
(379)
(195)
-
72
(254)
(383)
4
16
(402)
Group
2021
£000
280
280
Cash flows
£000
(44)
(44)		 Group
2020
£000
33
49
-
143
(73)
(1)
(429)
42
(234)
4
12
(454)
Group
2020
£000
324
324
At 31 March
2021
£000
280
280

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

27. Related party transactions

Other transactions

The following transactions took place with another business in which one of the Trustees are a member of the board, CEO or similar.

Joint Venture - HouseMark Limited

The Institute owns all of the £1 A shares in HouseMark Limited, a company which helps housing organisations to achieve continuous improvement in service delivery and to achieve value for money.

The transactions with this joint venture are listed below:

2021 2020
£000 £000
License fees and other institute service sales 240 237
Balance due from the company at 31 March - 277

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

Joint arrangement - Ocean Media Group

The Institute has an arrangement with Ocean Media Group to collaborate a new vision for closer working on media initiatives and other activities that will better deliver and develop products and services for the housing sector.

The transactions with the joint arrangement are listed below:

2021 2020
£000 £000
Sales 158 363
Purchases - (1)
Balance due from the company at 31 March 240 230
There are no other related party transactions.

28. Capital commitments

Group Group
2021 2020
£000 £000
Contracted for but not provided in these financial statements
Acquisition of intangible assets - 39

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CHARTERED INSTITUTE OF HOUSING (Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

29. Pension commitments

The Group operates a defined benefit pension scheme.

CIH is an admitted body to the London Pensions Fund Authority. The LPFA Board oversees the management of the Fund whilst the day to day fund administration is undertaken by the Local Pensions Partnership. Where appropriate some functions are delegated to the Fund's professional advisers.

Contributions are set every three years as a result of the actuarial valuation of the Fund required by the Regulations. The next actuarial valuation of the Fund will be carried out as at 31 March 2022 and will set contributions for the period from 1 April 2023 to 31 March 2026. There are no minimum funding requirements in the LGPS but the contributions are generally set to target a funding level of 100% using the actuarial valuation assumptions.

CIH’s negotiations with LPFA about future contribution rates for its final salary pension scheme members and the level of contributions towards the past pensions deficit continued during the financial year.

As part of these discussions CIH closed the scheme to new and existing members and agreed in principle to the deficit management agreement proposed by the LPFA which will see CIH pay increased contributions in future years and grant a level of security on certain assets held by the charity. The details behind the negotiations over this arrangement are still on-going.

The cost of employee and employer contributions into this fund was £499,000 (2020: £382,000).

Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):

At 31 March At 31 March
2021 2020
% %
Discount rate 2.10 2.35
Future salary increases n/a 1.90
Future pension increases 2.40 1.90

The current mortality assumptions include sufficient allowance for future improvements in morality rates.

The assumed life expectations on retirement age 65 are:

At 31 March At 31 March
2021 2020
Years Years
Mortality rates (in years)
- for a male aged 65 now 23.0 22.1
- at 65 for a male aged 45 now 23.4 23.5
- for a female aged 65 now 24.5 24.4
- at 65 for a female aged 45 now 26.0 25.8

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(Incorporated under Royal Charter)

CHARTERED INSTITUTE OF HOUSING

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

29. Pension commitments (continued)

Sensitivity analysis

At 31 March At 31 March
2021 2020
£000 £000
Discount rate +0.1% 17,960 16,074
Discount rate -0.1% 18,316 16,714
Mortality assumption - 1 year increase 19,075 16,939
Mortality assumption - 1 year decrease 18,316 15,860
Long term salary increase +0.1% - 16,391
Long term salary increase -0.1% - 16,391
Pension increases and deferred revaluation +0.1% 18,677 16,715
Pension increases and deferred revaluation -0.1% 18,316 16,072

The Group's share of the assets in the scheme was:

Equities
Target return porfolio
Infrastructure
Property
Cash and other liquid assets
Total fair value of assets		 At 31 March
2021
£000
7,753
3,204
1,193
1,231
583
13,964		 At 31 March
2020
£000
6,434
3,071
869
1,183
364
11,921

The actual return on scheme assets was £1,962,000 (2020 - £45,000) .

The amounts recognised in the Consolidated statement of financial activities are as follows:

Interest income
Administrative expenses
Total amount recognised in the Consolidated statement of financial
activities		 2021
£000
91
18
109		 2020
£000
132
16
148

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CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

29. Pension commitments (continued)

Movements in the present value of the defined benefit obligation were as follows:

Opening defined benefit obligation
Actuarial losses/(gains)
Benefits paid
Interest cost
Unfunded pension payments
Experience gain on defined benefit obligation
Closing defined benefit obligation		 2021
£000
16,391
1,948
(401)
380
(2)
-
18,316		 2020
£000
17,927
(1,344)
(394)
425
(2)
(221)
16,391

Movements in the fair value of the Group's share of scheme assets were as follows:

Opening fair value of scheme assets
Interest income
Actuarial gains/(losses)
Other actuarial losses
Contributions by employer
Administration expenses
Benefits paid
Closing fair value of scheme assets		 2021
£000
11,921
279
1,683
-
499
(15)
(403)
13,964		 2020
£000
12,217
293
(338)
(221)
382
(16)
(396)
11,921

30. Operating lease commitments

At 31 March 2021 the Group and the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:

Not later than 1 year
Later than 1 year and not later than 5 years
Later than 5 years		 Charity
2021
£000
268
768
700
1,736		 Charity
2020
£000
180
1,031
875
2,086

Page 59

CHARTERED INSTITUTE OF HOUSING

(Incorporated under Royal Charter)

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2021

31. Principal subsidiaries and associates

The following were subsidiary undertakings of the charity:

Names Company Registered office or principal Principal activity Class of Holding Included in
number place of business shares consolidation
CIH Asia International Limited 2605335 16 Wang Hoi Road, Kowloon Dormant Ordinary 100% No
Bay, Kowloon, Hong Kong
CIH Canada 1891387 30 Duncan Street, Suite 500, Housing services & Common 100% No
Toronto, ON M5V 2C3 advice

The financial results of these subsidiaries for the year were not material to the group and have not been disclosed.

Page 60