ransform housing & support Financial siaiemenis 31 March 2022 1972
Company Secreiary Ratna Sukumaran (to 24 February 20221 Mandy Arnold Ifrom 25 February 20221 Regisiered office Transform Housing & Supp(Yt Bradmere House Brook Way Lgathgrhead Surrey. KT22 7NA 01372 387100 www.transformhousing.org.uk inlo@transformhousing.org.uk Reglsiraiions Registered charity- 264133 Company Ilmited by guarantee regSstered Sn England and Wales.. 01057984 Registered provider of Sla1 housing: H2452 CQC registered.. 1-2756361790 Ida-registered May 20211 Audiior CLA Evelyn Partners Limited Iformerly Nexia Smith & Williamson) Onslow House Onslow Street Guildford Surrey GU1 4TZ Prlnclpal solicltors Devonshires Solicitors LLP 30 Finsbury Circu5 London EC2M 7DT Banker Barclays Bank PLC 1 Churchill Place Canary Wharf London E14 5HP
Contents AboLrt Transfomi Housing & Supp1 Highlights, lads and figures 2021122 What clignts say Transform's Chair reflects on 2021122 Strategic report Key strategic a¢hievements- 2021122 Client engagement and feedback 13 Transforming a life- Hilary's story Financial performance Asset management, maintenance and Tepal 18 Sustsinabillty Health and safoty 20 Colleague wellbeing 21 Equality, diversity and inclusion 22 Future plans- strategic objectives 2021-24 Value for money 24 Our approach Rlsk management 30 Principal risks and uncertainties Governance, regulation and compliance 36 Governance 40 Regulation and cofflpliance 66 Auditor's report and financial ststements 15e ke9wDt£ 44 Auditor's report ett. I've hA4 AD£hiNfj kelv AN4 Financia statements and notes to the accounts 99 Traislorni cliem
AbouiTransform Housing & Suppori Our purpose As a social housing provider, Transform supports more than 1,8LKI pwjple each year to grow their skills, gain indepgnden¢e and achigvg their goals. Establishgd in 1972. we cover Surrey. parts of south-west London, Bethshire and West Sussex. During the past 50 years we have supported more than 30.000 clients. Ourvision and values Transfom) has ambitious plans and we intend to continue to strengthen wr activty and grow to support more clients in the future. Our seNices are needed now mre than ever as Covid has exacert)ated the adversities already laced by many people. These include insecure housing, poverty. diriMination, stigma. exclusion and inequality. As w811 as providing homes for individuals. we aim to gmpower thèm to live happier. hèalthièr and more fulfilling lives. Our ultimate vision is to work with partners towards eradicating homelessness. ./•4 JY
Tre Boaril ol Trusiees Patrons Mark Austen FCMA Royal Patron HRH The Counte55 of Wessex GCVO DStJ CD Oliver Smedley FCMA Jane Bolton 8A (Honsl FCIH Julia Bradley Chris Deacon Bsc lHl Msc Natalia Kolotneva Msc MAICS laprxjinted July 20211 Paul Re@S MA FCA The Rt Hon Baroness Bottomley ol Netllestone pc DL Michael MoTe-Motyn8ux, HM Lord-eutenant of Surrey Professor Patrick J tlowling C8E DL FREng FRS Dame Penelope Keith DL David Hypher OBE DL Elizabeth Kennedy FCIPD Prol G. Q. Max Lu AO. DL FAEng, FAA. FTSE, FIChemE, FASC. FCAS. FNAI. President and Vi¢g-Chancellor, Univetsity ol SuTr8y Gavin Stephens OPM, Chief Conslable, Surrey Polic Sir Richard Stilgoe 08E DL Sally Varah MBE OL The Rt Revd Andrew Watson, Bishop of Gulldlord Michael Ryan Katie Wad9y Executive ieam Lawr&n¢e Sanlcross Chief Ex•cutiv• Simone Bartley Oirgctor of Poo• Iredesignaled as Director of Corporate Services from March 20221 Ambassadors Adele Duncan Director of Cllent Sor¥15 Dame Elizabeth Anson DBE JP DL His Hon Christopher Critchlow OL DesmorKI Mccann &4 FCA Michael O'Brien Dlrector ol Ass•t Manag•m•nt & Capltsl Developm•nl David McNulty FP Greg Melfy Lesley Myles MBE Jp rx MA Kim Rippett The Hon Mrs Lavinia Seaty DL Bgrnard Stèvens FCA FCMA Ralna Sukumaran Director of Financ• & Rosourc¥s Ito April 20221 Edith Paer Interim Director of Finance (from Apnl 20221 Anita Gupla Head ol Ext¢rnal Affalrs & CommunIOn$ Lady Elizabeth Toulson CBE DL Paul Wates FRICS Cllr Fiona White Mandy Arnold Hèad of Govarnan¢o & Assuran¢e IFrom Febnjary 20221 Mdcolm Young FRICS Caroline Felton Executive Assistant IFrom May 20221
Highlighls, facis and figures 2021122 Previous year's figures in bra¢kets Cllent outcomes umloroi ciiems 1,817 ol Iho 440 who movad M dld so a posi, phnned wayl86%1 11,8 Cliem satisfaciion A new client satisfaction suNey methodology was introduced this year. See page 10 for further details. Hauslry and ¥uppryl 810( Floiltinfj oilPPDrt' 66513911 Houslng manwwl onty 258 (JJ51 83.70/0 •voragb ov•rnI aii&lxiion ¢• Shett8r•J hou8lTrJ Cabins Hwe¢are Isdoj 28 FotKuary 20211 011801 8.8110 av•rag• &cor• for •as• ol d•allng wfjth Tr8n•fomi Extra Iwkj 26 F•bnJory 20211 0 (351 8.7110 averay ore om cllents. $t Unlts ol accommoilatloi Translorni people 935 19651 A¥wa9B numbw ol colleagubs 137 Tr•a(ICou{I9S- r•Jucllon dueto sile gt cire seryice51 Flnanclal Derforniance Underlying operating margin. Colloagu8 satlslaciion (1r colleague wdlbeing survey found.. 2.40/0 17.2% olThnsfovm cOlgueS w tholr h•$ Lvoughllhemloy 74% stythey inllLwnGe deGisiohsthai are iOrtant in theirwork eel erKouraged to t&kto their line 1. FIDat Sp( 2. Fest8ted for 2fr21 frrth 8.6% 1s99 page 72 ftydstailsl meTrtal hea
Whai clients say 66 66 66 Thty henevei l £yeik D £OMeD A I feel pYwi4e4 beert nee4£ AN4 Arfe vei 99 99 99 Transl•rni ¢llDiil 66 66 66 I hive <oMewhere kly kwyker AA4 gwle- I helrg me y £ober. 14 A lonf bme. o*fi4e•éiAliéy. 99 99 99 nthnn rl•nl 66 66 66 ND Dne£ rerfec TrAbi<fD 114thiYe how hA4 TYAi4FDrM i •0• ome< pyelèy weAihrte4 the Cwi4 £lwM IIEe. 99 99 99 TrMsl•n clleiit Transl•rni ¢llbM 66 66 66 41w&y£ tkere lor Ive h44 4 tkty k4ve life. l 1( be 4obffl. 99 99 99 nsl•nn clenl TrnIs1ff clieil
Transform's Chair reflects on 2021122 Summlry Covid has taught us valuable lessons about the importan¢e of having plans in place to identify and effectively handle any risks. It has underfined the importancè of emr>owering stsff to be inventive in changing their resFMJnse to any potential crisis. involved in compliance with the rent standard particularly on proportios that became part of our portfolio through merger or acquisrtion. We are taking an in-depth look at our whole property portfolio and will need to reshape it to meet the need5 of a more sustwnable ftjture. This year has seen Transfomi sail out of the choppy Covid waters of the past two years and. as we are about to enter our sixth decade of transforming lives- steer purposefully towards the future. The pandemic has certainly changed how we use technology, our working At the same time as Covid restrictions patterns and health and safety were loosened, the cost ol living, procedures. What it has not affgcted including fuel and energy, Wan however, is Transfomi's fundamental to rise dramatically. We ar6 acutely purpos&. First established in 1972, we aware of the impacl this has had on provide exemplary support lor clients th8 financial and mentsl wellboing of enabling them to turn their lives teams, as well as clients. around and achieve thair ambitions. This y9ar, w9 SUPPOrt9d 1,817 people lo do just that. C•lloague wellboi 8uiiMord Increasod On 1 April 2021, Transform merged with Guildlord-based W&y vleY Housing Association (WVHAI. The merger involved the transfer ol two propgrtlgs and two members of staff to Transfomi. WVHA had been supporting 11 residents who As Trustees we have been ImpsSed had. or were wovering from. by the dedication and loyalty shown long-temi mental health issues. Wo by all our colleagues. even when were pleased to b& able to provide While navigating the 'new normal,. coping with their own setbacks. The security for these clients as well as Transfomi made several stops on the Board has a strong commitment to to slightly extend our mental health way towards our 50th anniversary do everything we can lo support supFy)rt provision in Guildlord. We destination. We started the year them and wg recgiV8d a boost for continuo to look lor furthor suitable by merging with a small housing this activity when the Community opportunities lor expansion. assoclallon in Guildford. Later, we Foundation for Suffey awarded vs saw development ol our Housing First grant to appoint a W8llbeing Lead to services, won new service contracts build on and expand our colleagu8 and were successful in renewing wellbeing programme. A wellbeing existing contracts. review was carried out and a plan 1$ bng developed. Thanks in larg8 part to support trom local boroughs, districts and Homes England, we have been able to delOp and grow our Housing First setvices. These are critical in addressing the complex reasons for homelessness. Homes England also provided funding lor us to acquire an additional move-on property in Elmbridgg. Transform successfully re-tendered and expanded the Surrey County Council Young People's Accommodation and Support conlract and Crawley Borough Council's Temporary Housing Support contract. I would like to warmly thank Surrey County Council. our local authority partners and Homes England lor their backing, wrthout which we could not have enablèd so many poople to gain thgir independence. Other highlights during the year include being shortlisted lor a 2021 UK Housing Award in the 'Besl Supported Housing Landlord. category, creating our new Clienl engagement strategy and weiving funding to help provide additional wellbeing supw)rt lor colleagues. In the autumn, we held a ConfenCe bringing colleagues together lor the first time since Covid and hosted a visit from our royal patron, HRH The Countess ol Wessex. The New Year 2022 saw us reflecting on the impact Transfom) has had sinc8 It launched as we began a year of celebrating 50 years of Transform. leadeh1 developme To help strengthen levels ol colleagu8 engagement and development. we rolled out a well-received, nin&month bespokglgadwship developmgnt programme for all managers and senior leaders. Keeilnu curre We have been reminded several times rntlY of Ihe importance of keeping up to date with. or even ahead of, the regulatory requirements for our sector. For example, we have monitored Vgry ¢arèfulty thè new réquirements pn)mpled by the Grenfell To disaster to ensure we rnt the more stringent standards which has required significanl investment. In We were aso delighted that our bids wtth other5, we have had to the Government's Rough Sleeper some ChlengeS wilh interptIng and Accommodation Programme were apptying the complex calculations successfvl this year. Over a period, wlth Covl As the UK came out ol lockdown, Transform continued lo keep a tight locus on the heatth. safety and wellbeing of clients and colleagues.
these will enable us to acquire nine new, one-bedTLK)m flats including support for thoso clients (we hav8 purchased the first of th$so this y8ar). In addition, we secured contracts for the provision of support services to 10 r>eopla living in Runnymede and Surrèy Heath and havè also negotiated for a continuation of a contract with the Office of the Police & Crime Commissioner in Surrey for the continued provision of support lor clients with a history of offending. In¥eMmeni During the year, Transform invested t2.8m12021.. £2.6ml in existing and new homes in lintr with our strat8gi¢ plans and continueAI lo focus on developing more homgs lor clignts. A royal There was much excitement on 18 November when Her Royal Highness The Counl8ss of Wessex paid a visit to our Elmbridge team. The Countess. who has been Transform's Royal Patron lor more than 16 years, talked to clients and collèagues while making pizza and playing games. She pr&s8d Transfomi colleagues lor their tremendous eff$ supF4)rting clients. ospecially during the Covid pandemic. 66 Ag TThdeeg we hve eeth i*yYt¥<e4 by the 4e4icAéiDI An4 Translornilng Ilvesf•r 50 years £Dllethgve4, eveh wilk Iheiy January saw the beginning ol Transfom's Solh anniversary celebrations. In 1972, Surrey Community Development Tnjst ITranslomi's original narnel was founded to provide accommodation for people with a history of offending, helping them build a life away from cnme. energetic probation officer, Bruce Pearce, became the charity's first director and hi$ team sel up hostels in Farnham, Reigate, Epsorn, Milford, Guildford and Woking. Five decades on after he founde(I the organisation. Transfomi has supported more than 30,OCiO people acioss Surrey and sutTounding areas. Since January, we have been Iwking back at individual success stories but also reflecting that sadly, our services a needed as much today as in the earfy days of the 1970s. We will continue to foNJe ahead wotl(ing wrfih our partners in a bid to reduce homelessne55 and give individuals the support thgy nged. 99 Mark Austen And lin8.- In this, my 5th year as Transform Chair, I have been once again filled with pride at what we have accomplished. l and our Trustees would like to extend a massive 'thank you, trKJth to our colleagues as well as every individual and organisation who has funded and supported us this year- we could not have achieved what we have witholrt you. l am looking forward to being involved in the 50th anniversary celebrations and l am certain that the future will be positive for clients, our great colleagues and Transfom). É. KkoF. Mark Austen Chair 27 July 2022
J, transform & supp1 transform housing & siraiegic repori
Key siraiegic achievements- 2021122 Prèvious yéar's figurés in brackets Cllents People Provided support for 1,817 pgople11,8061. 89% of clients who moved on from our seNices did so in a planned way186%1. Developed and launched a new, co-produced cliwt engagement strategy. Created a new opportunity for people wrth lived experience lo participate in our Client Experience & Impact Committee. Receivèd £42,500 from Surr8y County Council from the Household Support Fund for clients experiencing Ilnancial hardship- 200 applications were approved, and funds distributed. Rolled out a nine-month Transfomi-wide leadership development programme for line managers, alongside a senior leadership programme. Reviewed activity and broadened membership of the staff forum to give colleagues a stronger voice. Secured a Community Foundation for Surrey grant for a Wellbeing Lead, Carried out a wellbeing review and created an ambitious action plan. Ran a well-received staff conference bringing all staff together for the first time since befor8 Covid. Continued to deliver staff recruitment in a very challenging labour rnaet. Growlh and lundlng Translorni wlde Mergèd with WVHA acquiring two new propertlgs and welcoming two colleagues who will continue lo support 11 elients with long-lem mental health issues. Shortlisted lor a 2021 UK Housing Award in the '8est Supported Housing Landlord. category. Enhanced hearth and safety procedures and ¢omplian¢e. Complete(J a comprehensive Stock condition surv&y and incorporated resulting actions into our lon9-term business plan. Continu&Y to enhance the IT facilities al Transfom including migration to Offi'¢e 365. Crgatgd ngw risk managemgnt processes and safe systems ol work. Deliv9r9d'. move-on accommodation wf(h support in two. one-bedroom flats next Steps Programme- lour, on&bedroom flats Rough Sleepers Accommodation Programme- purchasgd one, on8-blrOoM flat recycled grant from London Borough of Sutton to purchase a one, one-bedroom flal. Retained and expanded Surrey County Council Young Peoplo's Accommodatson and Support contract. Successfulty retendered the Crawley Borough Council Temporary Housing Support contract. Moved to a new office in Reigate. Fundraised £142.388 in a challenging post-covid environment Ithis includes £42,500 as mentioned earlier from Surrey County Council frown the Household Support Fund). 66 I hive b7een vety In4 Ikey kave l i* Ihe begl YIAte I've twi bee. 99 Traislorni cli8M
Clieni engagemeni and feedback Cllent engagemem fAiategy The main focus of client engagement activity this year has been to research, create and begin to roll out our new Client engagement strategy- which has been ctrcreatl with Transfomi clients. PurD•Se oitho S1¥ The overarching purpose of our new 2022124 Client engagemerrt strategy is to.. positively and effectively engage with clients so their voices inlluence our decision-making enable us to enhance and continually improve our swices to make us better and MO effectlvo In what we deliver to meet client needs and aspirations to satisfy our regulators and commissioners to ansure we deliver bast practice in client engagam8nt. There were three key areas identified in consultation with clients. these fit under Transfomi's corporate strategic prlority relating to client experience. It states that we will 'improve. innovate. and develop housing and support seNices, Increase the volume and diversity of client engagement, use technology wherever it can add value and consistently maintain property assets to a high standard., In thé strategy wè dètail best practice and OUT regulatory requirements in relation to cli8nt engag8mènt. We have addéd the new tenant satisfaction measures being introduced by the Regulator of Social Housing IRSHI in April 2023. These arg a rango ol kgy pgrfomian¢g indi¢ators IKPls} which will fomi part ol our own two-yew action plan. CIlDM•ngageMe strath•y Enthng Yolces (we of ¢lhDnl• dkng wort VDl• In ¥ kfjy and k•ywtrk,. h(x m••ting4 M C¢wnthni Comitt•ti and d•nt Transfom Client Forum
TLF are leading UK SP8cialists in customer 8xperience measurement and research, with a prov8n track record of irnproving organi5ations' custOTn8r satisfaction and loyalty. Ilveil experlence engagement We recognise that people with lived experience can Provide invaluable insight into how our activity impacts them and also how new swices cwld affect future clients. To this and. w8 devèloped a way for current andlor fomer cliènts to involved in Transform's strategic planning which would enable Cunt or fomier Transform clients to participate in our Client Experience a Impact Committeè. In April 2022 two people lone current and one lOmr client) took up this opportunity. We will review how this works so we can ensure it is beneficial both lor clients and Translomi. Feedback- cliem saiislaction As part of our commitment to continuJly improv8 the swwice wg provide to clients, we reviewed how Transform has been obtaining client satisfaction feedback. This exercise was carried out to provide greater insight into the things that mattgr most to clients and enable us to b&st meet their needs and aspirations. We took the decision lo Irid a more comprehensive suryey and partnered with The Leadership Factor Research ffLF). TLF carried out in-depth interyiews with a selection of clients lo ascertain what they felt was impy)rtant to clients. TLF then dgsign9d and dglivergd a new satisfaction sutvey in ling Wlth this feedback. Research meihods The research was conducted between January and March 2¢Y22 using Iwo-phased approach: 1. QualSL7tlvo to 'explorn and understand. Overall objective- to understand what was important to clients and to use this information to develop the main survey design. In-dgpth telephong intwviews with a selection ol clients. 2. Qu8ntit•tive 'me88ure and tr8¢k': A web-based sutvey delivered by ernwl and text message. 134 suNeys were completed. The survey was designed to reveal what is fflost important to clients. It also pinpointed what clients are mosvleast satisfied wrth in terms of meeting théir n88ds. The findings helped identtfy Tran$form's priorities for ifflprovernent.
Key s•wn7 Cllent $8tlsfactlon Index The survey identified an 83.7% average overall satisfaction score. Nearfy two thirds of respondents scored Transform trither 9 or 10 out of 10 lor overall satisfaction- this PLrts us in the top quartile when benchmarked against other housing associations surveyed by TLF. Ease of deallng wlth Transfomi Transform achieved an average score of 8.8 OLrt of 10 for how &asy we arè to deal with- placing us in the top qLJartile Sre when benchmarked against other or9anisations surveyed by TLF. Trn In terms of client5, tru51 in Transform, an 8.7 out of 10 average score was identilied with 71.4% of the responders scoring either 9 or 10 out 0110 when asked if they trusted Transfom totally (this measure is not benchmarf(èJ by TLF). Cll•nt nwds [Inw•rtanc•) The most important asFrtl of Transfom)S services to clients that the sutvey Klentified wgr8'. safety security hdpfulness Client need$1$8tisfa¢tionl Clients are most satisfied with the helpfulness of Transform staff. Clients are least satisfied with the speed of completing repairs. Priorilies for further impmvement safety and security effective handling of repairs and issues sp1 of re501ution of repairs and issues Please note that due to the use of a new methodology to compile this year's client salisfaction survey. it is not possible to compare the results from this survey wrth those from previous years. 66 MAking Me frel £0 <Afe in4 welcDMe IN My home An4 8IVifvfj Me th 4e£oN4 hAnce At life. 99 Islorm c
Feeilliack- complalnts Two years ago, the Housing OmbLKJsrTWI Service published a Complaint Handling Code which sel out good practice in how landlords responded to compl&nts effectively and Iwdy. The Board approved Transfom)'s updated complaints policy, which is in line with the new requirements. We cary out an annud sell-assessment and lor 2021122 we are fully compliant. As part of our commitment to continual improvement. we value the opportunity to learn from complaints lo help us get things right next time. In addition to sOlvIng the individual complaints. we k88P thorough rgcords and take action across our setvicgs. where necessary. This year, we expanded the data we collected to give us a more COmprehS1ve picture and assist us with preventing future complaints. Information compiled now includes.. the source of the complaint the demographics linked to the complainant the nature of the complaint the support negds ol the complainant thè stage the complaint wached whelher Ihe complaint was dealt with on lime the satisfaction ol the complwnanl the housing type learning points. In 2021122, Transform handled a total of 23 for complaints12021'.181. No complaints were releThed to the Housing Ombudsman during the year. This number of reported complaints 1$ approximately in line with the past two years. Of the 23 complaints recorded, more than haM1141 were made by clients, 21 were dealt with al stage one ol the complaints process and two were raised to stage two. Among the 23 complainants. 19 wer8 satisfied with the outcome of th8ir Complaint and we are liaising wf(h th8 remaining four. Similarly, to 2020121, more than ham the complaints rglated to noise andlor anti-social behaviour. We bolievg this is due to several reasons including a rise in issues stemming frn post-parKlemic chdlenges. the increasing cost ol living and other social and economic factors. Transfomi is considering all learning points arising Irom complainls arKI is working closely with colleagues. clients and community partners lo carry out actions to reduce and mitigate future complaints.
Transforming a life: Hilarys siory Before my accident I lived up north. I had a tutoring Job. good-ish income, and a couple of horses. I dlde£l lo move down to this neck of the Wds, sold my housè and got this tiny lrttle pentage of an ISA. which was going to be my down payment lor a place here. That was until I had a crashing fall off my horse and smashed my lag. There are times when you think, -1 havenm got th& energy to do this anymore" and with Addison's, if you haven't got the energy, you just go to sleèp and you don't wak8 up and everybody thinks, 'Oh. she died of an Addison's crash." You can manipulate it if you want to and there were times when I honestly got that close, but my keyworker was always popping up and sorting me out. The medical staff fixed the leg fine but didn't accept that I had a complicated autoimmuno condition. I've got Addison's Disease, so I need medication to survive genwal anaesthesia. The staff said they had arranged it, but just as I went under. I heard them say a type of steroid which I know isn't right for Addison's. I went down thinking, 'This is how rt ends." He helped me apply for housing benefits and I was able lo move into a static caravan. which l absolutely lova. It's got a little bathroom which is easy to clean, hot water, and a bedroom with a king-sizg bed. I'vg even got a washing machine in my shed- I think l actually cried whèn got It. After the surgery. I couldn't come to Transfom al80 put me in touch with and was despgratgty tng to claw a Charity called Th9 Cowshed, who myself out of unc0nsciousrss. Thè bought me a second-hand wood long and short is that I got really111. I burning stove and pald lor11 to be I1 12 kilos in a waak. was &vict8d litted. With tha extra monay coming from my hospital bed, and told lo in from the benefits, I'm able lo pay for my own accommodation. ke8P the gas on and go onllng, so I can teach virtually. Efl Nobody discussed money with me or anything and I had no idea how much I needed to have in the bank to sustain these living arrangements. I moved from hotel to hotel and ended up in a touring caravan, which cost me £20 a night. By that tim8. my mongy had run out. I'd gone from having around E18k in the bank to living out of my overdraft, so I was stuck there. 11 was a nighlmare. Now I leel positive about Ilfe,. Ilttle things come along, and they don't floor me anymore. Recently my car needed to go in lor servi¢ing, which cost a fortune. Then the leccy went out, and that with the bill for the car would have absolutaly unglued me before. But I was able lo lake stock and remember that you can't expect Ihings to be perfect- you've got to let Ihem be good enough. I was confused and living in chaos. Transfom has never made me not because I'm a chaotic person feel like I was a customer. I'm not but bècausè my back was against Ireatèd likè a cold thing, an it8m the wall. The onty income I could gel or a statistic. I'm treated like a wa5 from tutoring. so I was driving real human being and given the around the place while still being ill ¢onliden¢e to go on. to survive. and every olher day. Eventually someone to achieve. put me in touch wrth Transfom) and l accessed their dropin seryice. where I met my keyworker. 66 I'M IreAted like A reAI huMA einfj AM4 give DgDc> 99
Hllarfs keyworker My initial contact wtth Hilary was a bit bizarre bause we met in the middle of the Coronavirus pandemic, so il wasn't lace-to-facg. She was very down beaten and had spent four or five years living in a touring caravan in ill-health. People who live in touring caravans are not allowed lo stay in one park for more than 28 day5. She was forced to move out and live in a field lor a few days fOre goiThJ back to the park so that she wasn't breaking any laws. It was tough and she just didn't know where to turn. She had previously been misadvised by drfferent services, which meant she never got th8 SUPPOrt she needed. How sha could have been living in that tiny little touring caravan through winters is beyond me- it makes me sad. Hilary can find it challenging to do things when She's ill or tired. so there was a lot of me ringing her up going, 'Come on Hilary, we've got to do thisl" We got the housing benefits done in the end and she was able to move into her new place. Seelng her move in was a stand-out moment lor me because I don't think she realised that she was homeless before. She was getting older. and she was homeless, and I don't think she lully took that on board. Now she's gol her allotment. a garden. and a little dcg- sounds idyllic to be honest. She's doing a lol of pro bono leaching online in subjects like maths and English. and sh8's said she'd be happy to do that for some of our clients too. I might just lake her up on that ofierl a4
Financial performance Summary Rent anil penslon aillusthients Desprte a number of national and ILKal challenges this year, we have continued to focus on ensuring our financial performance supports the delivery of excellent seNices to Glienls. Transform is grateful for the Incre(lible teamwork and commitmant ol eollèagues across thè organisation which has led lo 83.7% of Transfomi clients being satisfied with our services. Following a review ol Transform's rent setting approach, err$ were identified in the calculation of fomiula rgnts, between 2016 and 2022. This affected the rents set for some tenancies during that period. In addition, while carrying out a compliancè revièw ol Transform's pension arrangements, we became aware of an error in the way employee pension contribLrtions had been processed resurting in tcxj much tax relief being applied. In common with other UK organisations. Transform financial performance has been affected during this year by the challenging operating environment and uncertain economy. This impact has been exacerbated by a number of factors. These include increased fire and safety regulatory costs. Continued planned Investment in asset management and IT infrastructurè, along with higher operational staff costs ggneratgd by essential Covid-managernent activities. These factors have increased our overall management and planned maintenance costs lor this year. As soon as these errors were identified, Transfom corrected them and Ljndertook full investigations into how they occurred. We have been working closely with our Board to ensure that the system of management control Is appropriate lor the needs of the onJanisation. Investmom In proDOrtles During the year, Transfomi invested £2.8m12021.. £2.6ml in existing and new homes in line with the organisalion's strategic plans and continued focus on developing more homes for clients. Howevèr, drawing on our Strong track word and financial stability, we have succgssfully navigated th ¢hallgnges lo achieve a turnover of t10.6m12021= £12.2m4 and operating costs of £10.3m12021.. £11.3ml. This gives us an underlying operating surplus of E255.000 12021.. £880,0004. Ilablllll8S balance she81 The balance sheet summary broadly shows fixed assets of £52.8m, wrth eight units of accommodation being added during 2021122 through acquisition and a further 11 through the merger with VVVHA. The lolal number of units owned by Translomi increased from 900 to 905 during 2021122. However, the overall total ol managed units went down. This was because the number ol properties We manage but do not own, dgcrgased from 65 to 30 when we handed back the management of an extra care Scheme (following the sale of the care services). We also disposed ol som8 properties and ¢onvèrtad othgrs into Iwo-bedroom flats. SurDllls Transform generated an overall yurplus of £662,000 for the year ending 31 March 202212021.. £4.1 ml. The operating surplus to 31 March 2022 was £1.2m12021.' £4.6mfj. These figures included the £684,OCKI gift Irom the meTger with WVHA and £211,000 from the sale of Transfomi¥ Chaldon Road properties. Last y8ar's overall surplus was £3.4m high8r than this year's, mainly due lo the merger with Reigate Quaker Housing Association IRQHAI which account1 for £3.6m of tha E4.1 m overall surplus. In addftion. the total assets- less current liabilities- was t53.7m.12021: £52.Oml. This comprised of.. Social Housing Pension Scheme Defined Benefi't ISHPS DBI liabiliv of £0.2m ovisions of nil12021'. £0.2ml £13.3m12021: £13.1 ml loans £13.Om12021- £12.Oml unarnortised grants £27.2m12021.' £26.5ml of reserves. The balance sh1 reflects satisfactory performance which meets our loan Covenant quirements. The cash balance stands at £2.7m12021.' £2.6ml which provides a substantial buffer to manage short-term cash flow pressurgs. We also generated an addttional E98,0(X) of surplus last year following the strategic decision to sell the care services, which completed on 28 February 2021 Uhe financial pèrformanc8 ol thè carè services up to thè date of sale was shown in last year's accounts as 'discontinued operations'l. 2.Al Iule$ rt8tated. see Ntste31 on page72. 3. SHPS DB1&4bility iStheshCKrf1 ollhe vakof t#$?$ tys(Jiw*r the¢osts¢faminiStwng It have been taken irfo a¢Crt
CaDiial Slruciure and treasury As at March 2022, Transform had a secured l(ian faciltty of £20.3m of which £13.8m has been drawn. Based on the current devolopment programme. the remaining loan facility is sufficient to ftjnd future investments for the ngxt couple of years. 01 the outstanding loan balance. approximately 83% is now on a fixed-rate basis protecting Transform against Increases and fluctuations in Interest rates. Our weighted average cost of capital 15 2.7%12021'. 2.4%). Accouniing Dollcles Th&s& financial slalements have been pret)ared in accordance with all applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic ol Ireland. (United Kingdom Generally Accepted Accounting Practice). Reserve Dollcy The Board regularfy rèviews and updates our reserve policy and the reserve balance. Al year end this was £27.2m 12021: £26.5ml. The merger gift from WVHA increased the reserves. Transfom) hold8 reserves for the following purposes.. Working capital. To mitigate operational risks such as pandemics., staffing shortages,. rerned1 asset management work,. property flr8 damage or contract lerminalion. To protect against any income fluctu*ions which may arise. To smooth the financial impact of property transacti. We hold three types of reserves: Restricted reserves- funds received Irorn donors for restricted purposes. General reserves- invested in property. generated through normal operations used lor asset investment purposes. Free reserves- generated trom normal opeiations arKI invested in future activities benefitling clients. As ol March 2022, our free reseNes amounted lo circa t984,000, this exceeded our target of £500,000. providing an operational buffer in rnanaging any unexpected operational risks Golng concorn The Board has reviewed our latest financial forecasts in(x)rporating the necessary Investment in existing and new stock to meet all our commitments. Trtjstees are. to the best of their knowledge, satisfied that tha covenant complianca will ba maintained throughout the period of the plan and have adequately stress-tested this. After making enquiries, the Board has a reasonable expectation that Transfom) has adequale resources to continue to operate lor at least 12 months from the dale of approval ol the financial slalernents. Therefore, the Board believes that Transfom) is well-pla¢ed to manage its risks successfully. For this reason. we continue to adopt the going concern basis in preparing the f1nancial statements. Funilraising Through our fundraising we aim to FM)Sitivety change the lives of homeless and vulnerable people. Last year, we generated £142,38812021.. £110,000) income through fundraising from a range of trusts, foundations, ¢orporates, commLJnity organisations and individuas. We have also recaved many donations in kind dLJring the year including food and clothing. Transform would like to thank dl of our donors and volurrteers for their continued support.
Assei managemeni, maintenance and repairs Previous yearfs figures in brackets Horne imurovements In 2021122 we spent £2.Om1£2.Oml on maintaining our properties Irevenue and Capital maintenance) including.. refurbishing 107 flats prior to occupation by new clients refurbishing 109 rooms in shared accommodation prior to occupation by new clients replacing and updating 1 S bathrooms placing and updating 16 kitchens placing and upd*ing boilers lor 36 homes replacing gntrancg d¢)ors on 100 flats with new firg doors taking over responsibility lor delivering grounds maintenance seryices Iweviousty outsourced to a Prlvate contractor). ResD alrs During thg year we Completed 5.150 rgsponsive rgpairs14,0301 of which 72% (74%) were delivered by our in-house maintenance tèam. D8SPit8 the challenges pr8sant8d by Covid lockdown pariods and shortage5 of some materials, more than 95%194%1 of responsive repairs were completed within target. R•Dalrtypo Targei Compleied wllhln tariot Emergency- within 24 hours Urgent- within five working days Essential- within 20 working days Routing- within 30 working days 100% 96%194%1 96%196Yol 98%198%1 95%197%1 95% 97% 97% 01 our 935 homes.17 did not compty with the Decent Homes Standard. Al 17 are unoccupie(l and are waiting Teclevelopment or disposal.
Susiainabiliiy Transform is committed to reducing carLK)n emissions in our offices and Clients, homos. We have achieved an average energy effICnCY rating at Energy Performance Certificate IEPGI Band C. To achieve the Government's sustainability targèts Sla1 housing. we aim to have all our properties at EPC Band C by 2030 and at net zero carbon by 2050. As w811 as helping to address climate change and prOtt the planet, the are significant benefits to ¢lients from living in energy-efficient homes. Thes8 targats require a significant capital commitment trx)th for retrofitting existing properties and for ensuring new developments rneel these standards. These commitmtrnts are laclored into our asset management strategy and long-temi businoss plan. Durlng Ihg stock condition survey carried out last year. tt was noted that: 97% 01 Transform shettered housing flats are achieving EPC Band C or above 32% 01 prortIeS with multiple ¢upanCY are achigving EPC Band C or above 78% of independent living Imovtronl properties are achieving EPC Band C or above. Work has begun to scope out and design our sustainability strategy so it is aligned with the Suslainabilily Reporting Standard for Social Housing. •ur hoadllno Sustslnablllty •bl•ciive$ Reduclng the carbon footprint ol housing stock to achleve net zero. Redu¢ing our oporation$' Car output. Prioritising improvements for properties with pc4)r energy gffi¢*r ratings. Designing measures and finding the best solutions to improve the themal performance and enèrgy efficiency of our buildings for the benefit of clients. Promoting smart metering and energy saving to reduce consumption. Assessing environmental impacts. Supporting suslainabilily awareness and training.
Heallh and safety Approach During the year 2(Y21122, Transform has been diligent in ensuring that clients havg been living in safe homes and that Colleagues have been safe at their places of work. We have aligned our health and salety policy. our statement of intent and our overall approach to safety management to the Health and Safety Executive Guidance HSG65 'Managing lor Health and Safety,. Our aim is to continue to deliver effective health and safety leadership- with Trustees, the Senior Leadership Team and managers- and to then ensure this is being diwminated as a golden thread running through the organisation. Transfomi established a dedited Head of Heahh & Safety role in support of cmjr Commitment lo providing hèalthy living and Working environments for clients and colleagues. Key health and saloty aciions and achlovemonis Iluring 2021122 DeliveTed improvements and actions recommended in the independ8nt review ol Landlord and O¢¢upational H8alth & Safgty commissioned last year by the Executive Team and carried out by Housing Heatth and Safety Compliance UK. Ensured actions arising trom fire risk assgssm8nls were completed. Further strengthwwd data quality and record keeping. Commissioned Rand Associates to undertake a full stock condition survey. Delivered and Maintair excellent result5 against key pertormance indicators on Tran$fom)'s Health and safety compliance scorecard Members of the Executive. Senior Leadership Team and several Twstees attended an Institution ol Occupation Safely and Health IIOSHI training course- Leading Safely and IOSH Managing Safely training is being rolled out to other managers across thg organisation during 2022. During 2021122, there were no breaches of any of our statutory obligations, no fire incidents and no disrepair claims presented or settled. In addition, no enfor¢ernent a¢tion or notices were served on Transforrn by thg Heatth & Safety Executive. any environmental health department or fire authority. 66 £bMYleéely Training TransforTn ha5 a comprehensive plan for all colleagues which, in addition to role-specific traning. dso includes mandatory online heatth and safety training by leading UK experts Workrite. 4b ékeg <A9 Ihty will. 99 Islor
Colleague wellbeing This year, Transform received a grant from the Community Rllllls Foundation for Surrgy to appoint a Wellbging Lead to build on and expand our colleague wellbeing progiamme. Our Health & Wellbeing Group has overseen a staff wellbw.ng survey. The findings and resuhs from the survey have shaped our Wellbeing action plan. pvIde a Weth of high-quality wollbeing resourc8s. Collgagugs appreciated a w8llbeing day. % ol Translomi colleagues say their WO has brought them joy. 74% say they can influence decisions that are important in their work. 80% feel their line managers put them first and care about their health and wellbeing. 81 % feel encouraged to talk to line managers about thèir ¢)wn personal mental hedth. Resourc8s and Iralnlng During the past year, we have continued to develop high-quality wellbèing materials on our staff intranet. Milo, providing more content on physical. mental and financial wellbeing. Financial wellbeing support is especially important in light ol the cost-of-living challenges cvrrentty being laced by all UK employees. As part ol our commitment PJ••sl•rliiIw•¥M. lo supporting colleagues with managing their person finances. Transform has developed additional resources Expand the financial w8llb8ing rgsourc8s provided and run information sèssions. for colleagues- especially during a time when economic factors such as higher inflation and fuel 1¢¢$ are in¢roasing the Cost of living lor staff. Provide addition support lor mental health and stress. Coll8ague wellbelng survey Purp•s8 Further improve engagement through strengthened staff communications and informing colleagugs about the resources available. The purpose of the survey was to review wellbeing at Transform, to understand argas ol improvemgnt and. ultimately, to shape our luture approach and action plan. Our ongoing goal is lor Transform to be recognised as a great place to work with colleague wellbeing at the heart of this. Intrc<luce a one-day pro rala wellbeing day per year as a pemianent b8nefil to all colleagues. Review and raise the profile and activity of the Health & Wellbeing group with memb&rs receiving training to becomg wèllbeing champions and1gad/ support wellbeing activity. Engage line managers in actively encouraging good wellbeing practices. Create and roll out a wgllbeing ¢al&ndar highlighting topicsldiscussions and activities to be covered throvghout the year. Create and implement a comprehensive wellbeing communications plan. Methods The survey was carried out using th8 following methods: Virtual roundtable, open discussions wrth colleagues from all departments ol Transforni. sessing th& cunt policies, programmes, banafits. Employee Assistance Programme and wellbeing initiatives. In-person workshops al the colleague conference in October 2021. Individual evaluati by every Transfomi colleague through a bespoke and inclusive suNey. 20
Key EDI aciions during 2021122 Equality, diversity and inclusion A new EDI strategy, policy statement and action plan have been developed. Equality, diversity and inclusion IEDII are integral lo our social values as supported housing provider. a dtrvtrloper of homes, an 8mploy&r and a partn. EDI is also central to delivering our purpose of supporting clients to live independently. More comprehensive diversity data has been requested from all colleagues providing insights on all aspects relating to colleagues and Truste88. We are fimily and genuinely commrtted to promoting equality and we vue the divetsity of all individuals and organisations we work with including Clients, ¢olleagues and partners. We also know that inclusion is fundamental to the positive delivery of our seNices to clients both currently and in the future. Transform joined thg Housing Diversity Network and colleagues have been making good use of the netwo for trainin9, information and awareness. We are Working determinedly to embed EOI across Transform by focusing on understanding and addressing tha needs ol all our stakeholdors- in particular ¢IntS and colleagues- see EDI strategy summary below. The Boanl holds overall accountabilrty for EOI at Transfom. This includes reviewing our performance against legal and regulatory reqU1MentS and enstjring serwices are accessible and meet individual needs. The Executsve Team provides leadership and drives activity forward. All Translom colleagues are sponsible for understanding our EDI policy and applying commitments and behaviours durlng thelr working hour& EDI is being systgmatically Integrated within the leadership developrnent programme delivered during 2021122 and training has been strengthened and expanded. EDI prfnciples were integral to the design of the new client engagement strategy. Translorm's EDI Slrai8gy summary grrWeequ*liy.vplv? ¢lygrsitypndewJwe
Fuiure plans - siraiegic obieciives 2021-24 Furthér build colleague engagement, embed inspiring leadership approaches that align with outstanding ¢lignt outcomés and focus on colleague wellbeing and inclLJSiVity. Usè our résourcés Improve, innovate Continuè to focus Invèst in nèw housing and partrwships to and develop housing on quality and supply and ensure create posttive social and support compliance and all existing assets and environmental seNhces. increase be proactive in are fit for purpose, impact, including the volume and communicating financially viable and implementing dIVerty of client positIv8 OLrtcom8s. relevant. Extend our measures to lulty engagement and Incrèase our opèrating footprint, understand this use technology reputation by monitor opportunities impact. wherever rt can add building on for asset investment value. Consistently relationships wtth and possible mergèrs maintain propety commissioners. while ensuring financial ats to a high trusted partn8rs and sustainability of all standard. other stakeholders. seNices. Client exyefience CLIENT 22
Ji Value for money 23
Our approach Our value for money (VFMI approach aims to optimise the benefits we dorive from our r¢sour¢g$ in an e¢¢nomi¢, ¢ost-eff¢etive and effi¢i¢nt manner. We aim to achieve 'best value, in all that we do. Providing value for money 13 integral to delivering on ow values and long-terni stratèglc obl•ctlv8s. The key principle underpinning our VFM approach is to rnaintain long-tem financial viability so we Can Continue to offer quajity seNices and support clients. The Board reviews our compliance with the Regulator of Social Housing's VFM standar(l and code ol practice. Best value principles Underpinning our VFM approach are the four core principles outlined below.. 1. Chall•nuo Wg aim to improve across all areas of work. Our policigs. Strategies and setViC8s are reviewed and closely monf(ored by our Trustees. auditors. clients and other key stakeholders. I Comparn We compare our p8rfomance, statistical data and client satisfaction with other housing associations by carying out benchmath'ng activity and learning from our peers in the wider housing network. a. Cmsull We seek the views of the Board, Client forum arKI colleagues in developing our servicès and polici8S to en$ur¥ they 1fIl th needs aThJ aspirations of all Transform stakeholders. compe We aim to be comparable or better than leading organisations wognised lor providing excellent value lor money lor their clients. Our key objective is lo ensure that our organisation achieves best value In)m the full range ol the services we deliver. 66 ThAnk ¥DU rea119 99 24 Islorni cl"
Value lor money objeciives meaMR hemlle Establishing an action plan to achieve value for money. Regularly reFxJrting against the action plan to measure how our commitment to best value has been achieved. We make strategic decisions that rit with the aims and objectives as outlined in Transform's business plan. Our VFM objectives focus on the following.. Implementing financial plans to demonstrate our short, medium and lon9-temi viability. Adhering to our procurement policy to ensure best vJue when t8ndering andlor purchasing services or contracts. Working wtth contractors to streamline processès, while maintaining quality and wst-gffi¢ign¢ies to achieve best valug. prn¥lllw wknn•nc• ani co Establishing performance systems aligned lo the business plan that help us set challenging targets. monitoring scrthiny al all18vels and reporting to stakeholders. Setting VFM targets in our financial projection plans. Énsuring there is analysis and scrutiny of costs across the organisation Benchmarking performance in comparison to our peers. Irdesiiig IA Ensuring our leadership approach enabl8s coll8agu8S to bo as 8ff8Ctiv8 as possible within their roles. Linking performance objectives to Transform's strategic aims. Providing training and developrnent opportunities. le¥ln• •urw•rt aciivlll Ddivering safe and secure homes lor clienls. Helping them to access training, education and volunteering opportunities to gain life skills and improve their wellbeing. Providing support ar advice to enhance their independence and qualty of life. Publishing our VFM achievements Publishing our VFM achievements on our website, in client commvnications, in the Financial Statements and Annual Review to dwnonstratè our commtlmènt to providing vu for monèy sèrvieès. achiov•M•its Publishing our VFM achievements on our website. in client communications. in the Financial Statements and Annual Review to demonstrate our commitment to providing vdue for money services. 25
Performance Our performance is measured against OUT Strategic objectives as slvjwn on page 22. Our performance indicators shown below are based on tho VFM metrics set out by the RSH. Transfomi has benchmarked its VFM perfomance against Acuity Peer Group Benchmart( Targets. Thè national Smallèr Housing Providws. B6n¢hmarf(ing ISPBMI nètwork. facilitatèd by Acuity in partnèrship with Housemark. Aimed at housing providers with up to 1.CN)) homes. the networf( has 148 members together owning/managing more than 75,000 hornes across England. It provides performance and cost bènchmarking data lor members. enabling them to compare against a peer group of similar organisations. Transform's perfomance against these benchmarking medians show that our services 8re cosl-effective and provide good valLJe for money. T•ry•Iwrf•rnC1 2121r11 Operating rnargin loverdll 10.9% 38.1% 6.4% 8.4% 7.90% Operating margin (social housirrfJl Interest Cover Ratio IE81TDA MRI) | H9adline social housing cost P81 unit Gearing 4.6% 14.0% 11.0% 10.1% 18.0% 154% 258% 913% 294% 180.0% t11.033 £12.584 £14.416 £10.712 £10.183 18.1% 18.8% 3.9% 21.8% 26.0% Ngw sUpY % Isocial housing units) R&inveslment % 0.7% 8.9% 0.0% 1.9% 1.9% 4.6% 4.5% 3.3% 4.5% s.o% R6tum on Capital Employed IROCE) 2.1% 9.0% 2.9% 1.6% 1.4% Other metrics Occupancy rate 94.00% 93.1% 93.4% 93.5% 94.0% Atsnt collected 99.54% 98.9% 97.1% 99.0% 98.5% Operating margln An organlsation's operating margin demStrate$ how profftable rt Is before exceptional expenses are deducted. In assessing this, Transform's perfomiance should be viewed in the context ol the activities we deliver as they provide high swial and environmental impact, despite pr(xlucing low financial margins. This year's overall operating margin was 10.90/0 compared to 38.1 % in 2020121. primarily dug to thè RQHA mergér grft which Contribut1 to last year's higher operating margin. This margin has decreased significantly due to several factors including Ihe higher operational staff costs generated by essential Covid-managernent activities, increased fire and safety regulalory costs and continued planned investment in asset rnanagement and IT infrastructure.
Inierest cover raiio (EBITDA MRIJ The interest cover ratio IEBITDA MRI - Earnings Before Interest, Tax, Depwiation. Amortisation, Major Repairs In¢ludedl is a key indicator lor liquidity and investment capacrty. It seeks to measure the level of surplus that a regi5tere(I provider generates compared to interest payable,. the avoids any distortions slemmin9 from the depreciation charge. OUT operating margin and interest cover ratio EBttDA MRI have fallen when compared to our 2020121 results. D8SPrt8 declinè. it satisfies our loan ovenant lequ1Ments. Heailllne soclal Iiouslng cost per unlt This assesses the total housing cost per unit as defined by the RSH. Headlin8 social housing cost per unit varies du& to fluctuations in costs incurred in thè delivery of social housing sèNices, the size of tho organisalion and the number and location of units. The cost per unil de¢ased by 12% from 2021 to 2022 due to the Cost savings from the sale ol the care setvice. At £11.033, the headline social housing cost per unit is 23% lower when compared to our Acuity peer group average lor this year. Gearlng raiio This Measu how fflh of the organisation's assets are made up of debt and the degree ol dependence on debt finance. This shows the proportion ol l)orrowings in relation to the size of the asset base. During the year, our asset base increased slightly through the WVHA merger and a number of propety acquisitions wrthout a significant increase in loans. We are pleased to report that OUT gearing al 18% is significantly below our specified loan covenant ratios. Addlllonal houslng unlts During this year the were eigm new units of accommodation add8d through acquisition and a lurther 11 transferred through the WVHA merger. We disposed of two units In line with our strategic goa15 and in addition, a propety wtth a short lease was returned to the levant lo¢al aLJthority. Invesmient During 2021122. we invested £2.8m in capital-funded improvements to new and existing homeg. 66 whenevei I have rrDWeM or i Feel In£eLyfe I kiow Rethrn on CaDiial Employed IROCE] This metric compares the operating surplus to total assets less current liabilities and is a common measure to assess the efficiency of investment in caprtal resour¢es. At 2.1 % the ROCE figure for 2021122 1$ slightly lower when compared to our peer group this year. This is largely attributable to the decline in surplus in 2021122 compared to the previous year (see details on page 151. <¢4yp4fl 1£ olly A 99 Traislorm clie 21
Occupancy rate The occupancy rates at 94% have improved slightty compared to last year 193.1 %). This is very positive bearing in mind the challenges ol the last two years due to Covid and the negative impact this has had on TefeThds and support from other agencies. Rent colledion raie At 99.5% this is higher than last year198.9%1 and is comparable to the median within the sector. The rent collection rate for this year has been influenced by the effects of tha pandemic and the linancial challenges laced by clients. Wè recognisg that it will be difficutt to maintain or increase this level moving forward given th8 CUent operating environment. Cllom satlslactlon As part of our commitment to continually improvo tho swice wg provido to clients, we use a range of measures to seek feedback from clients including exil interviews, long-lerm outcome monitoring and client satisfaction surveys. See more infom)alion on our new client satisfaction survey this year in the Client Engagement and Feedback section on page 10. Fumre Improvement Dlans Transfomi is operating in a challenging environmfjnt which is b8ing negatively impacted by the wider economic climate and increasing regulatory requirements. To address these challenges, the organisation has set VFM targets which are being regulatly monitored. Our strategic plan locuses on continuing lo offer exceptional services which respond to the needs of the Clients. This includes pursuing an active asset management strategy based on a strategic asset viability assessment and options review. We aim to develop, implement and closely monitor our VFM perfcmiance through.. improved budgeting and budgetary control improved business planning improved asset managemerrt improved procurement and contract management pesSeS benchmarking and adopting best practice infomiation via Hous$mark and Acuity benchmark clubs and connecting with other registered social housing providers. 66 very efficieNIIy 99 28 Islorni cl"
Risk managemeni
Principal risks and unceriainiies Rlsk management Risk management is lundamental to Transform's operat. We continue to measure risks scrupulously to assess if they will signili¢antly impact on the delivery ol our business plan. The Board holds overall accountability for risk managgment with Trustees regularly reviewing Transform's risk register. The more detailed scrutiny is delegated to the Finance & Audit Committee. The Senior Leadership Team- which includes the ExecLrtive Team- has day-to-day oversight for reviewing risk. This a¢tivrty supports stratggic dgcision-maknng and gnsures that Transfom) Can adapt to changing circumstan¢gS. This year, we have refreshed our risk rnanagement framework- which seeks lo Involve colleagues at dl18vels in the or9anisation. Within the framework, risks and opportunities are continuously monitored and evaluated. From this work, policies and procedures are adapted and controls PLrt in place to ensure appropriate action is taken to safeguard clients, colleagutss and Transform as a whole. We also ensure that risk inlom)s the business planning procoss with proactive risk management being used to prepare lor the uncertainty in our operating environment. Transform's key rfsks Details ol thg most signili¢ant. highest scoring. risks listed as follows: Regulatory Intervention A regulatory notice from the RSH loialls and spoclll¢ rfsk mlUgaii•As In January 2022 an error in rent CCUlatiOnS was identified which we felt did not comply with the RSH Rent Standard. We made a voluntary disclosu of potential rn-COmpliance to both the RSH and the Charity Commission. There is a comprehensive action plan in place to wtify this and suitable Controls in place to avoid lulure errors. The Board are also reviewing a 'lessons learned. report. The matter has been reviewed by external consultants Altair and the Board has agreed appropriate nt fundS and compensation for clients and housing benefit offices. This matter is now being reviewed by the RSH and we are awaiting a response. GonoialGolltr* and miligaliqlls Delivery of a governance continuous improvement plan. Action plan for compliance with the regulatory standards. Adequate resourcing of governance activity at Translorni. Intarnal audit ol regulatory ¢omplian¢8 in Oclob8r 2021. 30
Ellectiveness ol linancial controls Financial policies and procedures that require updating to strengthen controls le11$ inll mMgall• Following the errors discovered in our rent and pension calculations. we are reviewing all key fi'nancial procedures to ensure they are robust and effective. The review will be18d by the Director ol Finance, appointed recently following an Executiv8 Tèam restructurè in March 2022. Generalcontrots andmlugaiions A governance framework with clear internal controls and financi regulations. A revised budget-setting process and increased scrutiny of management accounts. Our housing managemenVlinan¢g system wovides automated reporting to ensure accurate aOunting. Daia protection and IT socuriiy risks Ilsk Threats to our IT and data $e¢urlty san We are keeping pace with developments in cyber-securty and data protection. Continued investment in staff resources. monitoring and testing, security syslems, training and awareness will continue to ensure we are doing our utmost to safeguard business continuity as well as protecting client, colleague and bu51ness data. Our partnership with LIMA means we havg an immediate rgsponse in placg in tho event of any network lailuros. Gonoral ¢oMrols and wAUgaiio A vulnerability assessment service and patch compliance reporting. A programme of Data Protection Officer audils. Regular data protection and cyber-security training awareness rasing. Robust busintrss ¢ontinuity planning. We achieved Cyber Essentials accreditation from the National Cyber-secur(ty Centre during the year and application is underway for Cyber Essentials Plus. Reasonable assurance of our cyber-securrty was received from our intemal audtt in March 2022.
Underlunding ol SUDPOrt contracts Low-margin supported housing contracts le11$ inll mMgall• Supported housing is reliant on local authority contract funding which is often low-margin- i.e. income only marginally covers the cost of providing the support. This means that the financial viability ol those ¢ontracts is sensitive to fluctuations in income and costs as w811 as changes in Government policy. Generaiconvots andmllwauons Al new contracts are being tendered on a full-COSt recovery basis. Financial performance-monitoring ol contracts. Executive Team approval ol the financial viability of new support ¢traCt$ and renegotiation of existing onos. Economic risk oMposur8s such as inffation. Inieresi Nos and oconomic domurn Ilsk Macroeconoml¢ actlvlty neg8ti¥ely imp8¢tlng on Clients and ¢olleagu¢s san There is much uncertainty in the UK and global economies as they emerge from the pandemic. Increases in inflation and interest rates are causing operalional pressures. The position is further exacerbated by the war in Ukraine and rising energy costs. Ceiieraiconirois anrfmlllgaiions Business plan stress testing with appropriale mitigations identified. Executive Team approval ol the financial viability of new support Contracts and renegotiation of existing ones. Contingency budgeting for building contracts to provide for cost in¢aSe$. 52
Inability10 recrnii and relain high-quality siall Challenges recruiting staff who meet our role requirements and retention issues post- appointment le11$ inll mMgall• The after-effects of the pandemic have resulted in a severe shortage ol labour and skills for employers across the UK. Transform has seen 36.5% staff turnover, substantially exceeding our target ol under 20%. This presents a challenge for recruitment, sdection and rètention wtthin a strongly competitive markèt. Generalconvots andmlugallons Increased agility in our recruitment. with a process review in 2022. Regular salary and benefit benchmarking lo ensure our offer to employe8s remains competitive and provides flexibility. Enhanced marketing through social media, a refreshed website arKI. improved connectivity between the website and candidate tracking system. Over-roliance on a sing18 local amhorny lor housinu support incomo Surrey County Councll ¢ontr8¢ts represent a $lgnlfl¢8nt per¢wtsge of Transfomib Income Iothiis ind spKM¢ rfsk gI• We recognise the importance of not placing over-reliance on a single local authority as a source of income. We have diversified and secured existing contracts for t57,CQO with Crawley Borough Council and t49,000 per annurn with the Office of the Police & Crime Commissioner. We have also seen $le$s in se¢uring the relendered Surrey CoLJnty Council Contract with incr8as9d provision lor young people. GonoNIMMrols and wiiqaiw Maintain relationships with local authortties wtthin w area of operation. Identify additional sources of support income. Executive Team approval ol the financial viability of new support contracts and renegotiation of existing ones. 33
Heallh and saleiy Non-compliance with statutory health and safety obligations as an employer and as a landlord le11$ inll spKM¢ mMgall• We continually review and update pdicies and procedures to ensu that we meet our obligations regarding landlord and employer health and safety. We carry out health and safety check5 of properties and occupational health & safety risk assessments on an ongoing basis. including. gas safety. fire risk. water quality. electrical safety, lift saf8ty and asbestos. Gonerai conthiis and mMgauoAS High-quality recognis9d training. robust rgcruitment and contractor v9tting procgssgs. spgcialist roles. effective supervision/oversight and appropriate clienvcolleague ratios. H•alth and saf8ty scorecard to r8gularty monf(or and actively managa p8rfomian¢o. We hold Insurance at an appropriate level lor our business activities. The Board closely monitors the environment to idenlty changes in key risks as well as new or emerging ones. This is a key locus of the Finance & Audit Committee which, together with the Board, has overseen the development of the risk register lor Transform and will continue to review and scrutinise this during the coming yw. 66 I kave treert & £lieN ftsr A lo9 lime have Alw49< en IreAte4 wiék 99 34 Traislorni cli8M
Goiiernance, regulation and compliance 35
Governance Boaril ol Trusiees During 2021122, the Board comprised nine members and was responsible for Transform's strategy, policy framework and managing thg affairs of the organisation. The Board members were drawn from a wide background bringing together professional, commercial and local experience. Trustees are selected by the Nominations Committee following public advertisement lor recruitment. During the year we appointed a new Trustee, Nalalia Kololneva, who has brought addrtional skills in asset management and development, particularly in relation to suskn'nabiltty and the net zero ¢art)on agenda. Those Board members who served during the period to 31 March 2022 and Transform's Executive Team are set out on page 2. Board and eommllloo Strucrnrn During the year the Board was supported by several committees. providing detailed scrutiny on its behalf. Client Forum 808rd ol Tntst•es Cllent Experlonce & Impact Commltte• Ow8lopm*nt & Flnance & Audlt Commlttee Peopl• Commlttee Nomlnation8 Commltt•e Management Commlttee 66 I've beeN given a £afe home. wkal wané? 99 Traislorni cli8M
ioard commee nMber*lD 20 Trustees Board Client Experl8n¢o & Impact Committee Finance & Audlt People Commlttse Development & As$¢t Management Committee Nominations Commltte8 Mark Austen Chair Chair Jane Bolton Membar Member Member Member Julie 8radley Member Member Member Chair Chris Deacon Member Chair Member Natalia Kolotneva (from 14 July 20211 Paul Rees Member Member Member Member Member Chair Member Michael Ryan Ollie Smedley Kali6 Wadey Memb8r | Deputy Chair Member Memb8r Member Memb Member Member Member Chair loard ¢ommmoo tscis The Board is responsible lor the govemance of Transfomi. tts rol8 is to lead, direct, control, scrutinise and evaluate Transfomi's work. During thg year. th& Board considered kgy issugs which includgd: overseoing the completion of the WVHA merger approving safeguarding, t8nancy fraud. ranvseryice chaNJa and infomiation sacurity polici8S considering the pension and rent standard errors and overseeing their resolutson. ensuring improved controls were in place ruiting a new Translorm Iruslee- Natalia Kolotneva 8pproving the new Equlty, Diverstty and Inclusi1 Policy statement appointing a new Company Secretary reviewlng the temis of reference of the Board and committees revigwing, utKlating and oversg9ing the implgmèntation of the governancg framewo overseeing the health and safety actions ari&ng from the extemd lew. The Board delegates specific responsibiltties to five Committ which each report to the Board where their rg¢ommgndations are ¢onsidere<l and approved. 31
Please see b8low key matters discussed and approved at the five Committ during 2021122. Committee Key matters 2021122 Client Experience & Impact Maintained oversight on client seNices perfom)ance. Agreed plans for a new methodology for the client satisfaction suNey, focused on the things that matter rnost lo clients. Approved and recommended lo the Board a process for individuals with lived experience to participate in this committee. Contributed to devdoping. and approved. a nèw cliènt enga9ement strategy. Approved all cliènt-facing policies lollowing prior consideration at th8 Clignt forum. Approved the introduction of a new housing management manual. Maintained oversight on financial and risk management. Oversaw internavexternal audits and a9d review of the internal audit supplier. Agr88d cybar-securty improvèment plan and approvad a GOPR and data Protection awareness campaign. Reviewed thè business continuity plan and contribut8d lo the govèrnanca plan. Approved and provided oversHJht for the new Transfomi Leadership Programm8. Endorsed recommendation to collect diversity information for the Board and more detailed colleague diversity data through annual census. Agreed a wiew of the Transfom pension schemes to maximlse the offer for olleagues and equalisg lifo cover. Approved the colleague wellbeing review and action plan including the introduction of a wellbeing day lor staff. Maintained oversight of asset management compliance and performance. Approved property investment and disposal decisons. ersaw health and safety compliance. Approved a propKJsal for Tran5fomi lo self-dèliver grounds maintenance services. Oversaw the delivery of the stock condition Survey. Reviewed Boardlcommittee composr(ion. Recommended Board appointments. Reviewed succession planning BOardXecutive Directors. Finance & Audit People Development & Asset Managèment Nominations 38
ioard trginknu An interim development plan was agreed for the Board along with a new induction programme for incoming Trustees. In addition, LJP to three Transform Tnjstees participated in each ol the following training and development activities: IOSH Leading Safety course Devonshires. pension seminar National Housing Federation-. New Board Member Induction Board Succession Planning and Recruttment Diversity on Boards Board Excellenco Clvil Socigly- Digital TnIng for Trustees loard offecihonoss The Board recognisgs the importance of monitoring and improving its perfomiance. This is primarily achieved through annual appraisals and self-assessment ol the effectiveness of the Board and its committees. An external assessment is scheduled for 2022123. Trustees are also encourage(I to attend events and networking opportunities held by recognised sgctor bodios such as tho National Housing Foderation. Codo of govornanco Transfomi adopted the National Housing Federation Code ol Governance 2015 lor the reporting period. An annual assessment of compliance against the code has been conducted and confirms that Transform complies with all the requirements Including.. constitutlon and compositlon of the Board essential functions of the Board and Chwr Board skills, rgngwal and revigw condu¢t of Board and committee business audit and risk the Chief Executive conduct of members. The Head ol Governance & Assurance is supporting the Board with a govemance improvement plan to enable the adoption ol the National Housing Federation Code of Governance 2020 in April 2023. Qovernance ano Financial Wiability Sl8nOanl The annual review of compliance against the Regulator ol Social Housing's Govemance and Financial Viability Standard has been carried out and Transform was compliant wtlh the Standard during the reporting period. A dets111 and evidence-based assessment was completed against each requirement and the Boanl approved this at rts meeting on 27 July 2022. In preparing this strategic rewrt the Board has followed the principles set OLrt in the Statement ol Recommended Practice ISOFIPI for Registered Social Housing Providers 2018.
Regulation and compliance Publlc benellt reportlng Transforrn's aims, objectives and activtbes deorrate public befit as defined by the Charity Commission. The Board ensures that planned activities meet the organisation's objectives. Transform's wort( supports those on the margins ol society lo overcome the challenges they face in thgir Iivgs. Trustees follow the Charity Commission's public berhefrt guidance when carying out their dLJties. Awareness ol the guidance fomis part of each Trustee's induction and the Board take this into account when making relevant decisions. There have been no d8CiSiLMS to depart from this guidance during 2021122. Fiindralslng code compllanto To provide reassuranc8 to donors and supporta- and to d8monstrat8 high standard5 for our fundraising activities- we are registered with the Fundraising Regulator and have adopted the Regulator's Code of Fundraising Practice. This code sets out the responsibilities that apply to fundraising carried out by charitable institutions and third-party fundraisers In the UK. It ensurgs that our fundraising megls the four standards- Iw3al. open, honest and respectful. We are committed to protecting our donors and the public fM any unreasonably intrusive or pwsistent fundraising approaches and will not apply any undue pressure on them lo donate. Colleagues deal with exisllng and potential donors g9ntly and with extiemg care, protecting our charity's repLrtation and values. We do not usè any èxternal profèssional lundmsing services to lundraise lor us. We use the Fundraising Regulator's logo on all fundraising communications. Transfom) has not yet rec8ived any requests to remove or suppress donor data from the regulator's Fundraising Preference Servrm. The Fundraislng Team continually monitors guidance and regul*ions from the Charity Commission and the Fundraising Regulator. aThJ colleagues are kept abreast of changing regulations through training, one-to-one and team meetings. We received no complaints relating to lundraising in the year to 31 March 2022. Regulator of Social Housing As a small provider, Transfomi is not subject to regulatory iudgemenl fn)m the Regulator of Socid and was not issued with any regulatory notices during this pariod of accounts. 66 My kegworke babl¥ £ave4 My life! Thank 99 40 Islorni cl"
siaiemeni of Board responsibilities The Board is responsible lor preparing the Strategic Report (Including the Board Report) and financial statements in accordance with appli¢ablg law and rggulations. Company law rUlT$S the Board to prapare financial statgments for each financial year. Under that law the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Unrted Kingdom Accounting Standards as reflected in FRS102 and applicable laws). Under company law, the Board must not approve the financial staterllents unlwss they are satished that they give a true and lair view of the situation and surplus or deficit of the company lor that period. In preparing these financial statements. the Boar(l is required to.. select suitable accounting policies and then apply them consistontty make judgments and accounting estimates that are reasonable and pnjdent state whether applicable UK Accountin9 Standards and the Statement of Rgcommgnded Practico ISORPI Accounting by Registered Socid Housing Providers update 2018. have been followed. subject to any material departures disclosed and explained in the financi slalements prepare the financial stataments on the going concem basis unless it is inappropriate to presume that the company will continug in busin. The Board 18 responsible lor keeping proper acccKJnting words. Trustees must be able to disclose, with reasonable accuracy, at any time the financial position ol th8 organisation. The Board ansures that tha financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction lor Private Registered Providers of Social Housing 2019. It is also responsible lor safeguarding the assets ol the organisallon and lor taking reasonable steps lor to prevent and detect fraud and other irregularities. In so lar as each member ol the Board is aware.. there is no relevant audit information ol which Transforn's auditors are unaware rt has taken all the steps required to be aware of any relevant audit inlomiation and that the auditors have all the information thty requirè. The Board is responsible lor the maintenance and integrity of Transform's corporate and financial information, including on the organisation's webstte. Internal comrol framework The Board acknowledges its overall responsibilty for establishing and maintaining the systern of internal controls and lor annually reviewing its effectiveness. The system ol internal controls is designed to managè, rather than to èliminate, the risk of failure lo achieve the business objectives and to Provide reasonable assurance against material misslalement or loss. The process of identifying. evaluating, and managing signtfjcant risks facing the OTganisation is ongoing. It ha5 been in placg from 1 April 2021 to the date ol Board appThal127 Juty 20221. During the 2021122 year, we pinpoirrted some internal corrtrol weaknesse5 after identifying errors in our rent calculations and in the way employee pension contributions had been processed. In both instances. fr)Ilowing thorough investigations, comprehensive action plans- approved by the Transform Board- were implemented to rectify the errors and suitable controls were put in place to avoid any such futu incidts from occurring.
Tre key elements hmewort Ilcli Illlernal alldil The Board delegated responsibility lor overseeing the adequacy and effectiveness of the internal control system to the Finance & Audit Committee. The internal auditor reported directly to the committee and a risk-based internal audit plan was prepared and approvad. The committee subsaqutrntly monitorad the programm& of inttrrnal audits and received assurances to confirm that recommendations had been implemented as agreed. Follow-up intem audit reviews were then undertaken to confirm this. EKiomil *lll Through the audtt plan, the work of the externd auditors provided assurance detailing the scop8 of work which is approved by the Finance & Audit Committee, together with the resulting audit and management letter setting out their findings. Regular meetings are held with the external auditors to provide an update on changes in the business and to discuss strategic and technic matters. This includes a confidential meeting with memb8rs of tha Finance & Audit Committee without officers present at least ce a year. Pertormance monltorlnu Iramewor Key p8rfomancè indicators ware producgd rggulw1y and rgported through tho Exgcutive Team. committegs and tho Board. These reports include pertormance-monitoring of client services, client satisfaction and feedback, colleagues, compliance, asset management, development and financial results. Anii-lraud We malntaln a fraud reglster whlch Is Inspected by the intemal audito, together wlth wular updates reportlng any such occurrences to the Finance & Audit Committee. During the year 2021r22 there were no such incidents ol fraud reF)Orted. legulaiory reporlinu Transfom Submitted a range of regulatory retums to the RSH and the Charity Commission. The Executive Team gnsurgs that regulatory matters are dealt with promptly and efficigntly. It also co- ordinates the self-monitoring system operated by the Board and monitors compliance with the requir&J standards. Eernal Aulliiors External auditors CLA Evelyn Partners ts'mited Ilornierly Nexia Smith & Williamson) were re-appointed as external auditor at our Annual General Meeting on 24 September 2021. A resolution for the appointment of external auditors will be proposed at the AGM on 29 September 2022. By order of The Board. /tts 4k. Mark Austen Chair 27 July 2022 66 I wou14 J14<é like éb fAthhAM team leAvihfj Me to 99 42 Traislorni cli8M
J,1 Auditof$report and financial siatemenis 43
Audiior's report CIA Evelyn Pariners Ilmlteil Repori of Ihe independem auditor10 the members of Transform Housing & Support ODlnlon We have audited the financial statements of Transfonn Housing & Suppcxt Ithe 'Company'l for thè year ended 31 March 2022 which comprise the Statement of Comprehensive Income. the Statement ol Financial Position. the Statement ol Changes in Reserves, the Statement of Cash Ilows and the notes to the financial statements. including a summary ol significant accounting policies. The financial reporting framewort( that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic ol Ireland" (United Kingdom GenlY Accepted Accounting Pra¢licel. In our opinion, the financial statements: give a true and lair view ol the state of the Cornpany's affairs as at 31 March 2022 and of its surplus for the year then ended have beèn proparty prepared in accoT(Jance with UnTted Kingdom Generally Acceptèd Accounting Practlce have been prepared in accordance with the requirements of Ihe Companies Act 2006., and have bèèn propgrly prepar8d in accordancè with thg Housing and Rggengration Act 2008 and the AontIng Direction for Private Registered Providers of Social Housing 2019. BISIS iof•pinion We conductgd our audit in aordanC0 with Intomationd Standards on Auditing IUIQ IISAS (UK)) and applicabl8 law. Our responsibilities under those standards are further described in the Audrtor's responsibilities lor the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant lo our audit ol the financial statements in the UK, including the FRC'S Ethical Standard, and we have fullill8d our other ethical responsibilities in accordance wrth these requirernents. We believe ihat the audit evidence we have obtaingd is sufficignt and appropriate to provide a basis for our opinion. CollGlvslons rol¥llllu io volng concern In auditing the financial statements, we have concluded that the Board Members. use of the going concern basis ol accounting in the preparation of the financial statements is appToFMate. Based on thè work we have performed, we have not identified any matèrial ururtainties relating lo events or conditions that, indlvidually or collectively, may cast signili¢anl doubt on the Company's ability to continue as a golng concern for a period ol at least twelve months from when the financial statements are authorised lor issue. Our responsibilities and the reswnsibiltties of th8 Board Memb8rs %Mth rospect to going concem aro doscribed in the relevant sections of this report. Olhei Inforniaii•n The other information comprises the information included in the Financial Statements, other than the financial statements and our auditor's report thereon. The Board Memb8rs are responsiblè for th8 Othar infomiation. Our opinion on the financial staternents does nol cover the olher inlomiation and. except to the extent otherwise explicitly stated in our report, we do not express any foryn of assurance conclusion thewn. In connection with our audit ol the financial slalements, 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 othenlSe appears to be malerially misslated. 11 we identify such material inconsistencies or apparent material misstatements, we are required lo determine whether there is a material misstatement in the financial statèménts or a material misstatemènt of the other infomiation. If, based on the work we havè pèrfomied, we ¢on¢lude that there is a material misstatement of this other infomiation.. we are required to report that fact. We have nothing to report in this regard. 44
Opinion on Oiher mallers orescribed by Ihe Companies Acl 2006 In our opinion, based on the work undertaken during the audit- the information given in the strategic report (incorporating the Board Members. reportl for the financial year for which the financial statements are prepared is consistent with the financiJ statements., and thè strategic report lincorwrating the Board MembeFs' reKYJrtI has been prepared in a¢cordan¢e with applicable 1ggJ requirements. Mailers on which we ire requlred ID report by exce0 In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit. we have not identified material misstatements in the strategic report (Incorporating the Board Members, report). We have nothing to report in respect ol the following matters where the Companies Act 2006 requires us to report to you If, in our opinion.. adequate accounting records have not been kept. or returns adequate for OUT audit have not been recelved from branches not visited by us- or the financial slalements are not in agreement with the accounting records and fyturns- or certain disclosures of Board Members. Ternuneration specified by law are not made; or Wg have not received all thg infomiation and explanations we rgquire lor our audit. ReSIIOIISlbiiiiies oi Board Membors As explained more fully in the Statement ol Board's Responsibilities on page 41, the Board Members who are the directors of the Company lor the purposes ol company law. are sponsIble for the preparation ol the financial statements and lor being satisfied that they give a true and lair view. and lor such internal controls as the Board Members determine is necessary lo enable the prewation ol financial statements that are free from material misslalement, whether due to fraud or error. In preparing the financial statements, the B¢)ard Memt*rs are responsible for assessing the Company's ability lo continue as a going concern, disclosing, as applicable. matters lated to going concgrn and using the going concern basis of accounting unless the Board Members either intend to liquidate the Company or lo cease oparations, or have no realistic alternative but to do so. Audiior's resp•nslbllllles l•r th• iidll ol tho Ilwalclalsiaioiioits Our objectives are to obtain reasonable assurance atrx)ut whether the tinancial stalements as a whole are free from material rnisstatement. whether due to fraud or error. and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but Is not a guarantee that an audit conducted in accordance wlth ISAS IUKI will always detect a material misstatement when rt exists. Misstatements can arise from fraud or emr and are considered material il, individually or in the aggregate. they could Teasonabty 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 law5 and regulations. We design procedures in line with our responsibilitigs, outlingd above. to dgtect material misststemgnts in respect of irregularities, including fraud. The eXtt to which our prcLedures are capable of detecting irregularrties. irlUding fraLKI. is detailed on page 46. 45
We obtained a general understanding of the company's legal and regulatory framework through enquiry of managernent in respect ol their understanding of thè rdevant laws and regulations. We obtained an understanding ol the company's policies and procedures in relation to compliance wrth relevant laws and regulations. We also drew on our existing understanding of the company's industy and regulation. We understand that the company complies with the framework through.. updating operating procedures, manuals and intemal controls as legal and regulatory requirements change. a programme of intem& audit pgrformed by an independtrnt fim of internJ auditors. independent heatth and safety reviews across identified compliance areas. a risk assessment framework and register that inclLKles regular review and scrutiny by the Finance & Audit Committee. an annual assessment of compliance with hc*Jsing association regulations. the Board's close oversight through regular board m88tings compliance reporting. In the context of the audlt, we consldered those laws and regulations which detemine the lomi and content of the financial statements. those which are central to the company's ability to conduct operations and those where failure to comply could result in material penaltie& We have identifsed Ihe following laws and regulations as b8ing of significance In the context of the company: The requirements ol the Companies Act 2006 and the Housing and Regeneration Act 2008 in respect of the preparation and psentatIon ol the financial slalemonls. the Accounting Diraction for Private Registered Providers ol Social Housing 2019 and FRS 102. Safeguarding and heahh and safety regulations. including building and fire safety. Housing association law anij regulation. Charity law and regulation. We performed the following specrfic procgdures to gain evidgnco about compliancg with the $ignrficant laws and regulations above.. Making enquiries with management and the Finance & Audit Committee as to the risks of non-compliance and any instances thereof Reading minutes of meetings of those charged with govemance. reviewing intemal audit reports and reviewing eorrespondence between regulatOTS and the company. The senior statutory auditor led a discussion with senior members of the engagement team regarding the susceptibility of the company's financid statements to material misstatement, including how fraud might occur. The key areas Identified as part of the discussKJn wgrg.. management override of control revenue recognition, slI1CallY the manipulation of revenue through fraLKlulenl journal entries. These areas were communicated to the other membws of the engagement team not present at the discussion. The procedu$ carried out to gain evidence in the above areas included: testing ol a sample of manual journal entries, selectwj Ihrough apptying specific risk a5sessrnenls applied based on the company's preSSeS and controls surrounding manual joumal entries reviewing and challenging estimates made by managernent substantive work on revenue transactions. The senior statutory auditor was satisfied that the engagement team collectivety had the appn)priate competence and capabilities to identify or recognise irregularities. In particular, both the senior statutory auditor and the audit manager have a number of years, experience in dealing with organisations with similar risk profiles.
CLA Evelyn Partners Limited CLA Evelyn Partners Limited (Sep 12, 2022 17:19 GMT+1)
Financial siaiemenis and notes10 the accounis Statement of comprehensive income for year ending 31 March 2022 2021 Continuing operations As restated 2021 total Note Discontinued operations lrnstat8dJ 10.403 19.4601 943 100 3.577 Turnover 10.570 110,3151 1.803 11.8661 1631 12,206 111,3261 880 Operating expenditure Underlying operating surplus Gain on disposal ol housing properties Donation of RaHvHA net assets operan9 surpluslldeflcit) Surplus from sale of care services Interest receivable Interest and other financing costs Surplus lor the year 211 100 3,577 | 4,557 98 30 1.150 98 14121 743 13951 13951 Other ComprehS1¥e Inc¢)me Actuarial Oossl in respect ol pension schem8 Total ¢omprnhon$lve In¢omo for the year 11311 4,097 11311 4,132 662 35 /L* 4J.- Mark Austen Paul R¢e¥ Mandy Amold Company Secretary Chairman Chairnian of the Finance & Audit Committee 48
ststement of financial position as at 31 March 2022 2022 Reststed 2021 Note £OOOs Fixed assets Tangible lixed assets- housng properties and other fixed assets 52,817 50,846 Currant assets Trade and other debtor5 Cash and cash equivalents 12 818 1,459 2,556 4,015 12,8451 13 2,667 3,485 12,5831 Creditors: amounts falling due wlthin one or 14 Net current assets Total as$¢ts l•ss ¢urr¢nt liabilitios Less: cr¢dStors- amounts lalllng due after mor¢ than one year 902 1,170 53.719 52.016 126.2881 125.1091 15 Pension defined benefit liabilty Other provisions lor liabilities and charges Totsl not 88sets 24 19 12031 11591 11821 26.566 27,228 Capitsl and roswvos Restricted reseN8 294 237 Gtsneral reserv8 - invested in property . free reserve 25,950 984 25,260 1,069 26,566 27,228 The accompanying note5 form part of these financial stateMt$. The financial slalements were issued and approved by the Board on 27 July 2022. Company number. 01057984 Mark Au$tsn Paul Rw$ Mandy Amold Company Secretary Chaiman Chwmian of the Finance & AJIt Committee
ststement of changes in reserves for year ending 31 March 2022 General reseThes R¢stiieled Invested in property Free reseNes Totsl £OOOs £OOOs Balancè at 1 April 2020 as originally stated prior year adjustment as per note 31 as restated 176 21,664 22,626 11921 22.434 11921 594 176 21.664 4.263 11311 4.132 15361 Surplus for thg year as restatgd Other comprehensive income for the year Total comprehensivg income lor thg year Transfer between reserves 4,263 11311 4,132 61 475 At 31 Mah 2021 237 26,566 Balance at 1 Aprll 2021 as originally stated prior year adluslment as per note 31 as restated 237 25.260 1,447 13781 1.069 26,944 13781 26,$66 743 1811 662 237 25,260 743 [811 662 28 25,950 Surplus lor the year Other comprehensive income for the year |Tolal comprehensive income lor the year Transfer between reserves 57 1851 Balance at 31 March 2022 27,228 The accompanying notes form part of these financial statements.
ststement of cash flows for the year ending 31 March 2022 2022 2021 Note Net cash generatsd from 0rating activrties 22 1,598 1,984 Cash flow from investing activities Purchasè and furb1ShmènI of housing propèrties Proceeds from sale of tangible fixed assets Ngt proceeds from diswsal ol care services Cash received on merger Merger gxponses Grants received Grants repaid Interest received 12.8201 298 12,6041 144 154 806 30 176 30 1341 1.112 345 Net Cash usod in inv•sting a¢tivitio5 11.2631 11.2811 Ca8h flow Irom flnanclng actfvlllos Intèrest paid Further borrowing Repayment of bomwings Net cash used In flnanclng acfjvlllos 1409 455 12701 12241 14281 944 12701 246 Nèt change In ¢a¥h and Cash equfvalents 111 949 Cash and caBh equlvalents at Beglnnlng ot the year End of the year 2,556 2.667 1,607 2.556
Notes to the financial statements 1. Legal status Transform Housing & Support is Registered under the Companies Act 2C(J6, and is a company limtted by guarantee Iregistered in England and Walès with number 010579841. Registgrgd with the Regulator of Social Housing (H2452}. A wistered charity with the Charity Commission12641331. Regulated by the Fundraising Regulator- mainly our fundraising activities. Registered with the CQC 1-2756361790 Ide-registered May 20211. Principal activity- the provision ol housing and support to clients. 2. Accounting policies The principal accounting policies are summarised below. Except as explained below. thèy have all boen applied consistently throughout the year and the rxeceding year. 8asls ol a¢countlng The financial statements have been prepared in accordance with the UK Generally Accepted Accounting Practice (UK GAAPI including the Financial Reporting Standard 102 IFRS 1021 and the Housing SORP 2018.. Statement ol Recommended Practice for Registered Social Housing Providws. They compty with the Accounting Dlrection for Private Rogistergd Providors of Social Housing 2019. Transfom's objectives are to provide housing and support services and to improve the wellbeing for vulnerablo and socially excluded clients. 11 is therefore considered as a Public Benelit Entity IPBEI, in accordance with FRS 102. Golng ¢on¢em In preparing the financial statements, management has assessed Transform's ability to continue as a going concern. This assessment has involved considering all available infomalion about the future, which is al least, but is not limited lo, 12 months from the dalg when the financial slalemenls a authorised. Transfom has considered the business aclivtties and current financial position. The factors that are Ilkely to impact our future development arg set out in the strategic report. In assessing its future viability, the Board has carried a thorough review of the cash-flow forecast, treasury management policy. compliance with the debt facilities as well as covenants, compliance, liquidity levels and financial plan outputs. In addrtion, the 8oaril stress lesled the operating and financial pressur9s on the business activiti8s and implèmented mitigating factors to protect the financial viability of the organisation. Having evaluated the impact on each bjsiness activity, the Board 15 confident that seryices are well-managed and continue to make positive contributions lo thtr organisation. Furthermore, the organisation has adequate long-term debt facilities in place lo fund the commitments on strategic investments and developmgnt programmes, along wtth the organisation's day-to-day operations. The organisation's long-term business plan reflects a viable financial position capable of setvicing these debt facilities while continuing to comply with lenders, covenants. A wide range of mullivariant stress tests have been run and are regularly monrftored through the risk register, these include economic risk exposure from inflation, interest Tates and economic downturn. We have also considered the post-8rgxit environm9nt including the impact on raising capital. rgcnjitmgnt. staffing costs and stretched supply chains. Transfom has adopled various approaches to mitigat6 against risks. These include delaying uncommitted non- essential expenditure, implementing efficiencies in our prOCuent proSeS and closely Tnonitoring increased regulatory costs le.g. lire salety costs). The appropriate govemance support has been fa¢tored in for all scenarios. This stress testing found that the business plan is robust and does not affect Ihe organisation's ability to meet its obligations. On this basis, the Board has a reasonable expectation that Transfomi has adequate resources lo continue in operational existence for the foreseeable future, being a pellod of at least 12 morrths atter the date on which the report and the linan¢ial statements signed. For this reason. il continues to adopt the going concern basis in the financial statements. 52
Signiflcant managèment ludg8m8nts The following are management judgements in applying the accounting policies for the organisation that have the most significant effed on the amounts wognised in the financial ststements. WVHA merger During the year we completed the merger with a small Guildford-based provider. WVHA. Both Boards approved the merger in February 2021 and the formal approval Irom the Financial Conduct Authority IFCA) was obtained in 2020121. The merger was completed on 1 April 2021. through a Transfer of Engagement, and all assets and liabilrties have bgen transl8rr8d to Transform. Managemènt judged merger date as thè date of the transfér and hav8 recognised the value of the donation in the 2021122 financial statements. Other kay sources of estimation uncertainty Information about estimates and assumptions that have the most significant effect on recognition and the measurement of assets, liabilitios, incom8 and exptrnses, is providod btrlow. Actual rosuhs may bo Substantially different. Impaim)ent rewevr. we have carried out a review of the triggers for impaimient. No areas of impaimient werg identified. Detlned benellt obllgatlon: management's estimate of the defir*d benefft obligation is based on a number of critical undwlying assumptions such as standard rate ol inflation. mortality. discount rate and anticipation of future salary increases. We are conscious that there were no active members within the organisation's defined benefit plan and the assumptions were in line with acluaTial recommended rates. Variations in these assumptions may significantly impact the liability and the annual defined benefit expenses (see note 241. The nel defined benefrt pension liability at 31 March 2022 was £203k. U8eful Ilve8 01 depreclable assets: if there are any changes in circumstanc85 le.g. impairment) management reviews Its estimate of the useful lives ol depreciable assets including any comwnents. Uncerta5ntles In the estimates relate to technological obsolescence. These include the lifespan ol certain software and IT equipment and changes to the Decent Homes Standard which may require more frequent replacement of key components. The useful lives of the propety assets transferre(I through the WVHA merger We eslimatod by the independent valuers Isavills (UK) Limited) and found to be in line wrth the useful lives of our existing property components. As at 31 March 2022, the canying amount of the housing properties was £60.4m and accumulated depreciation was £8.5m. Turnover and revenuo rocognition Turnover r8presÈnts the income re¢8ivgd recwvablg from the following sourcgs: Rental and service charge in¢ome- this income is in respect of the year, net of any voids. The rental and service charge income from properties developed during the year is recognised Irom the point at which these propèrties reach practical completion or are otherwise available for letting. The enhanced housing management fees receivable that is funded by housing benefit is also included here. Housing related support income- income is recognised as when we become entitled lo il under the contractual agreements. The 'block subsidy, housing-relate(I support income is classed as social housing in¢om& and 'block gross, income as other social housing income in the Stalement of CoMpenSive Income Charltable donatlons- grants and donations from charrtable trusts and voluntary sources for the development of property or for the acquisition of othef tangible fixed assets are treated as income. Income is recognised on any significant pledges only after the grant conditions are fulfill1. Donation of net assets- In a merger or otherwise. when an entity donates its assets and liabilitie5 to Transform. the donated assets and liabilities are recognised at their fair value. Any excess of the net fair value of assets and liabilities donated over costs incurred is then recorded as an exceptional income within the Statement of Comprehensive Income. This income is recognised on legal completion of the agreement lor the transfer of engagement. 53
Flnancial Snstrum8nts Financial instruments which meet the criteria of a basic financial instrumerrt as defined in Section 11 of FRS 102 are awounled lor under an amortisation Cost model. Non-basic financial instruments are recognised at fair value using a valuation technique with any gains or losses being reported in surplus or delicrt. At the year end, the instruments revalued to lair value with the movements posted to the income and expendrture account. Transfom's signili¢ant financial liability is the bank loan and this is classed as a b•'c financial instrument. measured at amortised cost. The values are similar to those prevsty shown with no signrficant adjustments. Any payment arrangements entered into with tenants a aso classed as basic instruments and need to be measured at their present value. Our assessment shows that Transfo has a limited number of such agreements at the ytrar end, and these are not considered to be material. Transfom) do&s not have any other linan¢ial instruments falling into the category ol financing transactions. Houslng propertlos and d•pr¢¢latlon These are properties held for the provision of srKial housing or otheiSe to pn)vide social benefit. They aro principally properties available lor rent and stated at cost, less accumulated depreciation and impairTnent losses. Cost includ8s acquiring th8 land and buildings. development, and the interest Cost capitalised during the development period. Works to existing properties which replace components that have been treated separately lor depwiation purposes, along with thos& works that result in increase in net Tenlal income over the livas ol the properties, Ihgrgby enhancing the economic benefits of the assets. are capitalised as improvements. Housing properties under Construction are slated at cost and are not d8pwiated. Donated land and other assets aro includgd within costs at lair valw at the timg of tho transfgr. The property disposals are recognised in the financiaj stalaments only when the legal completion lor the transaction is concludèd, reaising any suiplus or deli¢rt on the disposal. DepCiall0n is charged over the estimated vselul lives ol the slruclure and major components of the housing properties, so as to write down the cost of each component to its estimated residual value. on a straight-line basis. over ils eslimaled economic life. No depreciation is charged on freehold land. Leasehold properties are amortised over the life of the lease or their estimated uselul economic lives in the business, il shortei. Depreciation is charged on qualifying fixed assets on tha following 8Stimat8d useful lives: Components identified within housing properties Structure 1CQ yews 70 yews 15ye5 30 years 15-20 yeas Other fixed assets Fumtture and fittings Office equipment Office fittings Specialist software Computer equipment 7 years Roots Flat roofs 10 years 7 years Windows Kitchens Bathrooms Boilers 15 years ao yews 10yws Fire doors Other building facilities 54
Impairmant of housing propartias Housing properties are assessed annually for impaimient indicators. Where indicators are identified. an assessment lor impairment is undertaken ¢omparing the schemes ¢arrying amount to tts re¢overable amount. For the purposes ol impairment assessments. housing Properties are grouped together into schemes. Each scheme typiclY comprises of one or more buildings in the immediate I(lty, and each building consists of one or more accommodation units. Schemes are typically developed or acquired as a single block of units. Whgn comparing a scheme's carrying amount with frts recoverabl8 amount. any excess carrying amount on the scheme is written down to its recoverable amount. The resutting impamient loss is recognised as an operating expenditure. With regard to supported housing schemes, management deems the properties are held not just to generate future cash, but to provide an additiond Soci vJu8 i.e. thestr properties are held for their $8rvi¢o potential. Therefore, thtr recoverable amount lor these properties should be higher than la) fair mat1(et vue less cost of sale, and Ibl its Value In Use Service Potential (VIU-SP). VIU-SP can be used when the schemes can be let in the current condition and that lulfils a social purpose in addition to generating nel rental cash flow. The'depreciated replacement Cost, IDRCI methodology can be used lo measure thls. The DRC basis considers (al cost of purchasing an equivalent property on the open market, and Ibl the r8building cost of the propety lol a similar condition. age, location and type) less depreciation, considering the age and condition of the property. However. when establishing no active market lor these properties, then Ibl above li.e. rebuilding costs less depreciation) can considered as value in usa for tho properties undor DRC basis. Other fixed assets These are measured at cost less accumulated depreciation. Depreciation is provided evenly throughout the a8sels' gstimat8d uselul lives. Government grants These include grants receivable from Homes England. local authoiities and other government organisations. Government grants received lor hOUng properties are treated as deferred income and recognised in turnover ovèr the estimated useful life of the housing property stwcture. under the accrual model. Revenue grants are recognised in the Statement of Comprehensivè Incomè over thè same period as the expenditure lo which they relat8, once reasonable assurance has bew gain•Y that tho entity will comply with the conditions and that the funds will be rerrived. Grants due Irorn government onjanisations or received in advance are included as current liabilities. Government grants released on the sale of a propety may be repayable. These are normalty available to be recycled and are ¢lted to a Recycled Capital Grant Fund. They are included in the balance sheet in creditors. If there is no requirement to recycle or repay the grant on disposal of the a&%et, any unamortised grant remaining within creditors is released and recognised as income in the Siatement ol Comprehensive Income. Other grants Grants received from non-govemment sources are recognised using the performance model. A grant which does not Impose specih'c future performance condrtions is recognised as revenue when the grant proceeds are ¢1ved. A grant that imposes specific future perfomiance related conditions on the organisation is only recognised when these conditions are met. A grant received before the revenue recognition criteria are satisfied is shown as a liability in the Statement of Financi Position. Lease Laasès ara classified as financ818ases where thè t8mis of th8 transfar substantially all thè risks and tha rèwards of ownership of the leased asset to the company. AJI other leases are classified as operating leases. Rental payable under operating leases is charged to income and expenditure on a straight-line basis over the lease term. With regard to lease incentives, the aggwate beneffts of the lease incentive are recognised as a reduction in expenses recognised over the temi of the lease. 55
Cash and cash equivalents This includes all forms of cash and deposits repayable on demand, overdraft repayable on demand and short-tem dépostts held with various banks. These cash balances are used in our ¢ash flow statements and future cash projections. Interost Payob Interest costs are capitalised on borrowing to finance the development ol qualifying assets to the extent that it accrues in respect of the periLwJ of the development. Other Intsresl payable Is charged to the Statement ol Compréhensivè Income. Ponsion Transfom participates in two defined contribution pension schemes- the group personal pension scheme operated by Aviva Group (Friends Lifel and the Social Housing Pension Scheme ISHPSI defined contributions scheme- as well as the SHPS multi-employer define<l btrneffts scheme. Defined contribution pension schemes For the SHPS. the association has been able to identify its share of the scheme assets and schem8 IlabS1itles from 1 April 2018 and has applied defined bengfft a0tIng trom this date onwards. The scheme assets are measured at lair value. Scheme liabilities measured on an actuarial basis using the projected unit credit method and are discounted at appropriate high-quality corporate bond rates. The net surplus or dtsficil is presented separately from other net assets on thè statement ol financial position. This has bean recognisèd within the defined benefit pension liability cm the face ol the Statement of Financial Position. The current servic8 cost and costs from settlements and cvrtailmenls aro charged against operating surplus. Interest is calculatgd on the net dglined liability. RmeasureMentS rgkyjrted in thg Statgmgnt of Comprehensive Incomg. Provl¥lon for Ilabilltl¢$ Provisions are recognis8d when the organisation has a present obligation as a result of a past 8v8nt. It is probablg that it is required lo settle the obligation and a reliable estimate can be made of the amount ol the obligation. The amount rgcognised as a provision is the best estimate of the consideration required to settle the present obligation, at the end of the reporting pèriod taking into account the risks and uncertainties surrounding th obligation. Value Added Tax Transfom is not registered for Value Added Tax IVAT) and VAT is accounted for as a cost to the organisation within the respective expenditure heading. R¢$¢rv•8 The reseNes comprise the general reserves and restricted reserves. The restricted resetves are provided by donors to be spent on Specific cliènt activities and general reserves have no restrictions on their use. Transform's reserve policy is shown in the strategic report on page 16. Frne re8erve8 Free reseNes are unrestricted reseNes Ihal are Currently not invested in the propety assets and are freely available to fund charitable activities. ReseNes that are invested in property are calculated as being the net book value of the properties, less the grants and loans that part fvnd these assets. The Iree reserves are the balance of the unrestricted reserves. 56
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Particulars of turnover, operating expenditure and operating surplus Operating surplus Tumover Operating expenditure Note £(K)Os £OOOs Continuing operations Soclal hou$lng lettlngs 7.462 17.1211 341 | Other social housing activitses Housing related support income Charitable donations Oth8r incoma 13,0841 (781 1321 110.3151 11981 142 10.570 255 211 Gain on dispos81 of proty, plant and equipment Donation of WVHA nel assets 30 1,150 Qpèfating surplus Id•ficitl Turnovor Opgrating 8xp?ndituro 2021 Ir•stst•d) Nol• £OOOs £OOOs Continuing operations Social housing lettings 7,287 16,2691 1,018 Other 80clal hou81ng advrtl•8 Housing related support incomg Charltable donations Other income 2,910 110 13,1)981 17n 1161 19,4601 11881 33 80 10.403 943 Dlscontinu Other Social housing activitie8 Home-based care services 1,803 12.206 11,8661 111,3261 1631 880 Gain on disposal of property, plarrt and wuipment Donation of RQHA net assets 100 3,577 4,557
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Particulars of turnover and operaling expenditure from social housing lettings 2022 Rastated 2021 Note £OOOs RtS receivable net of identifiable setvice chanJes Charges for housing related supwt service5 SeNice charges income Amortised governmant grants 4.443 1,027 1.779 213 4,396 980 1,707 204 16 Tumover from social housing lettings 7.462 7,287 Opèratlng èxpèndlture: Service charge costs Management Routine maintenance 1,690 2,099 1,301 558 1,620 1,684 1,219 140 Planned maintenance Bad debts 63 118 Property charges- leaselmanagement agreement Depreciation ol housing properties Other Gosts 431 560 916 63 7,121 865 63 6,269 opern9 expendlturo on soclal houslng lettlngs Owatlng surplus on so¢lal houslng lettlngs 341 1,018 Void losses 1269 12861 58
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Directors and key management personnel salary cost Executive team covers thosg shown in page 2. None of the Board m8mb8rs receiv1 any salary. 2021 £OOOs Aggregate emolumonts in¢luding pension scheme contribulions. payable to.. ExecLJtive Team12022.' 6.0 Es. 2021-. 6.3 Es) 502 492 The highest paid Executive Team member. Emoluments 113 113 Pension contributions 10 The Executive team represents the key management persc*Thl under FRS 102 aThJ their aggregate emoluments including employer's national insurance contributions were t545k12021.. t542kl. There were no compensation payments for loss of offico to any previous members of the Executiv8 team12021- nil). The Chief Executive was the highest paid Executive member during the year. His pension arrangement5 are similar to those ol other colleagues- a money-purchase wision scheme with no ad¢Jttional benefits.
- Employee information 2022 2021 The average numbor of omployoes employod (headcount) Number Number Housing, care and support staff Adminlstratlon staff Malnlenance staff 89 149 40 39 137 195 2022 2021 The average numb¢r of ¢mploye¢s empl1d IFTES) Number Number Housing, care and supwrt staff Administration staff 78 127 33 33 Maintenance staff 118 167 Thg numbgr ol full-timg gmployegs is calculat1 based on a 39-hour wort(ing wegk. Following thg salg of the care $8Nices to Ap8x Prim8 Carè on 28 Fèbiuary 2021, 65 staff w8r8 TUPE-tiansf8rred. 2022 2021 Stsff ¢08ts for the above peT8ons: Wages and salarigs Social security costs Other pension costs 3,792 327 4,805 393 162 176 4.281 5,374
The number of ftjll-time equivalent employees who received remunerntion (Including pension contributionsl above £60k (including the Executive team) is shown in the following bands= The average number of employees employed Iheadcountl Morè than £60,000 but not moré than £70.000 More than E70.000 but not more than £80,000 More than £100.000 but not more than £110,OC(J More than £120,000 but not more than £130,OLNJ 2022 2021 7. Interest receivable 2022 2021 £OOOs Interest from bank deposits 8. Interest and financlng costs 2022 2021 £OOOs Interest payable on bank loans Nel interest expense on SHPS pensi¢)n schemè 409 394 412 395 9. Surplus on property disposal 2022 2021 £OOOs Disposal proceeds Carying cost of thè prop8ty 298 144 187 211 1441 100 There was no eapital grant all¢Xation that requires recycling. 10. Surplus for the year 2022 2021 £OOOs £OOOs The operating surplus is arrived at after charging: Depreciation ol housing properties Depraciation of othèr tangible fix8d assgls Surplus on disposal of property. plant and equipment Oper*lng lease rentsls: Land and buildings Othèr laa 916 865 206 150 211 100 458 471 46 40 AUdit0S remuneration (excluding VAT): Audit fees 25 27 Other services
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Tangible fixed assets- housing properties and other fixed assets Housing properties Properties under construction Total housing properties Furniture and equipment Total Cost At 1 April 2021 Additions 57.231 1.893 547 482 150 57.713 1.467 239 59,180 2,282 547 Transfer ol engagement Works to existin9 propertS. Disposals 547 350 350 1244 12441 11541 1,552 13981 61,961 At 31 March 2022 Oepreciation At 1 April 2021 Charges for the p9ri0d Disposals 7.785 916 11581 7,785 916 11581 543 549 8,334 1,122 13121 9,144 206 11541 At 31 March 2022 Net book value Al 31 March 222 51.234 51.866 951 52,817 At 31 March 2021 49.928 918 Works to 8XlSting proportigs £350k12021'. £798kl indudas. fire safety improvgmgnt woths costs of £28k12021.' £550kl and component replacement costs 01 £322k12021'. 248kl. The additions during the year include.. Property assets of £1.9m P021: £1.3ml is the cost of acquisition ol eight pioperties12021: four properties for £1.3ml. Other f1xed assets of t239k12021.. t590W includes {al rr cost addition ol t102k12020.. t376kl relating to ongoing IT capital project5 Ibl office refurbishment costs £nil (2021.. £146kl. Housing propertie$ book value. net of depre¢iation. ¢omprises: 2022 2021 £OOOs Freehold land and buildings Long leasehold land and buiklings Short leasehold land and bLJildings 44,508 5,649 1,709 51,866 43,393 4,778 1,757 49,928
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Debtors Restated 2021 £OOOs Due within one year Rent and service charges receivable Less.. provision for bad and doubtful debts 506 14091 97 443 13551 88 Trade debtors 173 832 Othar debtors Pr6payments and accrued income 163 108 385 431 818 1.459
- Cash and cash equivalents 2022 2021 Cash in bank and in hand 2,667 2,556 The cash bdances Include deposits to meet Transfomi's future working capital requirements.
- Creditors: amounts falling due within one year Restated 2021 Noto Housing loans Dèferred grant income Trade credrtors 360 270 16 221 439 207 Loan interest due 107 107 Rent and seNice ¢harges reived in advance Recycled capital grant fund Capital accruals and retentions Other creditors 555 so 344 18 13 507 581 Other taxation and social rity Other accruals and deferred income 85 251 139 162 2,$83 2,845
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Creditors: amounts falling due after more than one year 2022 2021 Note Housing loans Deferred grant income Recycled capital grant fund 13,248 13.040 13,121 11,988 16 18 26,288 25,109
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Deferred grant income 2022 2021 £OOOs Balance at 1 Apnl Grant received in the yea Grant transferred from Recycled Capital Grant Fund Rèl&ad to Statèmént ol CprehenSIve Income Balance at 31 March 12,195 1.175 103 11,996 403 12131 13.260 12041 12,195 Deferred income to be released to the SL7tsment of Comwehensive Income Amount to be reloased in 1¢$$ than on• y¢ar Amount to be released in more than on• 221 207 11,988 12,195 13,039 13,260 The above summary ex¢ludes grants transferred through the merger and grants which have been written off to income., tha total grants receiv8d to date in r8SP8Ct of properties owned are detailed in not& 28.
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Housing loan debt analysls 2022 2021 Due within one year 360 270 Due after more than one year Loan 13.440 11921 13.248 13,608 13.300 11791 13,121 13,391 Less.. issue costs We have the following loan facilities in place.. Barclays Bank (Facillty Al £6.3m- fully drawn12021- fulfy ¢Jrawnl lexpires July 20291. Barclays Bank (Facility Bl £6.5m- fully drawn P021- £6m drawnl lexpiros August 20251. Unity Trust 8ank £7.5m- £1 m drawn12021- £1m drawnl16xpir8s January 20311. R8paym@nt profil8'. Wrthin on8 year= £360k12021 - £270k}. One year or more but less than two years= t460k. Two years or more but less than live years.. by instalments of £1.7m12021- £1.7ml and bullet payment of Barclays Bank IFacility Bl £6.5m12021- £6.5rn1. More than five years.. £4.8m.12021- £4.7ml. Of the drawn loan facility £11.3m is on fixed interest rates and divided into several fixed-rate loan tranches with Barclays. These tranches have different interest rates TangiThJ trom 2.7% to 5.5% and varying maturity dates. Once they rnature all tranches revert to variable rates. The remainder is comprised of floating rate loans. with interest that is based on SONIA (Barclays) rate or the bank's base rate (Unity). The loan faciltties are secured by fixed Charges on a selected property portfolio. However. there a several other properties that are free from this chaJe and can be chaNJed in the futu to cover further borrowings, if required.
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Recycled capital grant fund - Homes England 2022 2021 £OOOs Balance at 1 April Re¢y¢ling of grants- new build Grant repaid Interest on grant fund Balance at 31 March 153 11031 167 1141 50 153 2022 2021 Due within one year Due after more than one year 50 153
- Provlslons for Ilabllltles and Charges 2022 2021 £OOOs Balancg at 1 April Spend in the year Releas8 ol provision Increase in provision Balance at 31 March 182 11641 1181 60 152 182 Durlng the year dllapidation work al the Mill Street office and entrance doors al several schemes as recommendod by the scheme Fire Risk Assessments were completed and the balar of the provision released.
- Financial and other commitments Capital expenditure commitments at the year-ends were as follows: 2022 2021 £OOOs Expenditure contracted for but not provided in the accounts Expenditure authorised by the Board but nol yet conlracted 420 33 3.085 2,735 The above commtiments will be linancad primarily through borrowings. which ar8 available lor drawdown under existing loan arrangements with the balance through SOCI housing grant.
Leasing Commitments The future minimum lease payments are set (Krt below. 2021 2021 2021 2021 Property Property Others Within onè yèar B8tw8an one and five years Over five years At 31 March 460 987 26 454 1.194 952 35 873 61 23 21. Social housing units The number ol housing units under management at the end of the pen"od.. 2022 2021 Supported housing units Housing lor older people unrts 869 864 36 36 905 30 900 65 Not owned but managed 935 965 22. Notes to the statement of cash flow Reststed 2021 Surplus for the year 743 4,263 Adjustments for non-cash items Surplus on disposal of propety, plant and equipment Depreciation ol tangible fixed assets Surplus on sale ol care services Donation on merger Arnortisation ol loan arrangement fee 12111 1.122 11001 1,015 1981 13,5771 30 16841 33 1.003 1,533 Movements in working ¢apital Decreasellincreasel in debtors IDecreaseyincrease in creditors 712 13311 634 12701 1,445 1,836 Adjustments for investing or financing activities Government grants awortised in the year Pension costs less contributions 12131 1411 412 151 1.598 12041 1401 395 131 1,984 Interest payable Interest received Net ¢8sh generntsd from oporating a¢tivibes
- Analysis of changes in net debt At l April 2021 Cash flow Non-cash changes Total 2022 Housing loans Due In I than one year Due after more than one year 270 13,121 13.391 12701 455 360 13281 32 13,248 13,608 185 Cash at bank and in hand 12,5561 10,835 12,6671 10,941 At 31 March 74 32
- Social Housing Pension Scheme (SHPS) Transform participates in SHPS. a multi-employer pension scheme which provides benefits to non-assoclated participating employers. The scheme is classed as a defined benefits scheme in the UK and as a 'last man standing. arrangement. Therefore, Transform is potentially liable for other participating employers, obligation Il those 8mployer8 are unable to m9et their share of the herne deficit following withdrawal from the scheme. Participating gmployers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. The most rocgnt fomial actuarial valuation was ¢omploted as at 30 Sgptambgr 2021 and rollod foard. allowing lor thg different financial assumptions required under FRS 102, to 31 March 2022 by a qUlfied independent actuary. The net defined benefit liabilrty at the year ended 31 March 2022 is £203k12021.' £159kl. We have been notifi'ed by the Trustee of the scheme that il has performed a review of the change5 to the scheme's benefits over the year5 and the result is that there is uncertainty surrounding some ol these changes. The Trustee has been advised to seek clarification from the court on these items. This process is ongoing and the matter is unlikely to be resolved before the end 012024 al the earti&st. It is recognised that this could potentially impact the value of herne liabilities, bul until court directions a received. rt is not possible to calculate the impact ol this issue, particulady on an individual employer basis. with any accuracy at this time. No adjustment has been made in these financial statements in respect of this potential issue. Present value of deflned beneflt obllgatlon 31 March 2022 31 March 2021 EOOOS Fair value ol plan assets Pr8sènt value of the schemg liabilrti8s Deficit in plan Deflned beneflt 1Sabllltles to be rocognlsod 1,096 1.299 P031 12031 1,236 1,395 11591 11591 Reconciliation of th6 opening and closing present valuo of schome liabilities 2022 2021 Opgnlng S¢hom¢ Ilabillty Expenses Interest expense Actuarial110&8esygans Net benefits paid Closing scheme liability 1,395 1,187 28 28 (75 152 1,299 229 1521 1,395
Re¢on¢iliation of the opening and Closing balan¢es of the fair value of the plan assets 2022 2021 Opening fair value of the plan assets Interest income 1,236 25 1,120 27 Return on plan assets ContribLJtions by the employer Benefits paid Fair value of assets 1156 43 98 43 152 1,096 1521 1,236 The actual return on plan assets Ilncludlng any changes in share assets) over the period from 3 March 202110 31 March 2022 was £131 k. Amounts recognised in the surplus 2022 2021 Arnounts charged to operating costs Amounts charged to interest costs Totsl ¢h8rgo lor the year Defined benefits Costs re¢ognised In the ¢)ther comprehensive Income 2022 2021 Experience to plan assets (excluding amounts included in net intere51 costl- gain Ilossl 11561 98 Experience gains and Ioss8s arising on an liabilrties- gan Oossl 1181 Effects of changes in Ihe demographlc assumptions underIn9 the present value of the defined belit obligation- gain Ilossl 24 161 Effects of changes in the ff nancial assumptions undedwng th8 present value of the defined benefit obligation- gain Ilossl Total actuarial gains or losses Ibefore restriction due to some of the surplus rt beir¥J recognisablel - gain Ilossl Total amount recognised in other comprehensive income- gain Oossl 69 12251 1811 11311 1811 11311 Principal actuarial assumptions: Financial assumptions 31 March 2022 31 March 2021 °/u per Annwn 2.78 °/0 per Annum 2.04 Discount rate Future salary increase Inflation IRPII Inflation ICPII Allowance lor commLrtation of pensh)n for cash at retirement 3.77 3.82 3.28 3.35 4.28 2.82 75% of max. allowance 75% of max. allowance
Mortality assumptions 31 March 2022 31 March 2021 Lile expectancy at age 0165 years 21.1 21.6 23.5 Male retiring in 2022 Female retiring in 2022 Male retiring in 2042 Female rgtiring in 2042 23.7 22.4 22.9 25.2 25.1 Analysis of ponsion schomo assols 31 March 2022 31 March 2021 EOOOS Global equity Absolute return Distressed opportuniti8S Credit relaliva values Alternative risk premia Fund of hedge funds Emerging markets debts Risk sharing Insurance linked securitlgs Property Inlrastru¢turg Private debt Opportunistic illiquid credrf( High yield Opportunistic credit Corporate bond fund Liquid credit Long lease property Cash CuThency hedging Secured income Liability driven investments Net cuThent assets 210 197 44 68 36 39 36 36 39 47 32 36 26 30 78 50 45 30 26 82 28 29 37 31 37 34 73 73 15 24 28 141 41 51 314 306 1236 None of the fair value of the assets shown above include any direct investments in the empbyer's own financial instruments or any propety occupied by. or other as8ets used by. the employer. b8
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Fundraising aclivities We receive fundraising income from individuals, companies and trusts and rgport perforrnance on a cash basis. Based on the accounting policy. fundraising income is recognised in the financial statements only after the grant conditions are 2022 2021 £OOOs £OOOs Fundraising cash generated Fundraising cash 142 110 Fundraising costs Salary costs Other costs 57 21 78 55 22 77 Net fundraising contributions 33 R•tum on Snv¢stm•nt IROII Fundraising cost ratio 1.82 55tl/• 70Q/o Allocatlon ol funds Capitsl proj¢¢ts Move on Grants Revenue prolacts For specific client groupslprojects 142 102 Totsl lundrolslng ¢osh o110¢otlon 142 110
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Share capitsl Transform is limtted by guarantee and therelore has no share caly. Each rn9mber Isee numbers bdowl agre8s to contribute £5 in the event of the organisation winding up. 2022 2021 Number of members No No At 1 Aprll Joining during the year Leaving during the year At 31 March 23 24 121 23 23
- Related party transactions The members of the Board and Executive Team are considered related parties as defined by FRS 102. Translomi retw'ns a register ol members, interests. We can confirm that we do not have any transactions that require disclosure.
- Government grants Government grants are Social Housing Grants and other grants received to enable us lo acquire properties for social housing usè. Should the properties lo which the grants rete cease lo be used for social housing, the grants may be rgpayable in full. 2022 2021 Total grants r•c•l¥•d: £OOOs Grants credited to the income statement or arising on mergerlacquisition Deferred grants Inole 161 9,738 13,260 22,998 9,525 12,195 21,720
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Taxation status Transfomi is a registered charity and as such is exempt from taxation on its charitable activities. io
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Donation of WVHA and RQHA net assets WVHA translerred all its assets and Iiabiltbgs as at 1 April 2021 to Transform, through a transfer of engagement. The fair values of the housing profvies were based on the existing use value lor SOCI housing. The vduations were undertaken by Savills. Book valu? Rèstated to fair valu? Falr valuè to Transfomi Housing property Debtors 462 85 547 Short term liabilities Cash 1121 176 176 718 1341 Less.. merger costs RQHA transferred all ils assets and liabilities as at 15 May 2020 to Transfom. through a transfer of engag8m8nt. The table below sets out the ngt book value of the identifiable assets and their value to Translom. The lair valu88 ol the housing Properties were assessed as follow& properties which are to be sold OT redeveloped. based on the open market fair value assuming vacant possession other social housing properties. based on the existing use vJue lor social housing The valuations were undertaken by sa118. The only social housing grant on the properties Irartsftrred relates to the propertias which are to be retained and which will be used for social housing purposes lor the Iseeable luture. As such it is not expected that the grant will become repayable in tha foreseeable future and tha grant is not r8cognised in the linanC statements Isae also note 281. Book value Re$tstod to fair value Falr value to Tr8n8fomi Housing property Other fixed assets Debtors 2.205 21 668 2,873 21 22 1291 806 22 1291 806 Short term liabilities Cash 4025 3,693 Less.. merger costs 3,S77
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Prior year adjustments During the year, tt was discovered that= Certain rent increases had been incorrectty applied with the result that for certain properties. excess rents were charged from 1 April 2018. Incorrect returns were made in respect of certain employees. pension contributions wtth the resutt that income tax was ¢laimgd twi¢8 on the pension contributions. Transfomi has agreed to cover the ¢ost ol the excess tax claims. The88 item8 have been treated as prior year adjustments, the impact on the financial statements is shown in the table bèlow.. As previously reported 2021 Prior year adjustments 2021 restated Impact on the ststement ol comprehensive income urnover Irenl receivable) Operating expenditure (management costs) Other operating income Operating surplus Surplus on sale ol caro services Intèrest raceivablo Intèrest payable 12.364 111,2981 3.677 4,743 11581 1281 12,206 111,3261 3,677 4.557 98 11861 13951 4,449 13951 11861 Import on the stst•ment finan¢lal pofAlion | Tangible fixed assets Trade and other debtors Cash and cash equivalents Creditors.. amounts falling due within year Creditors.. amounts falling due after more than one year Provisions and pension scherne liability 50,846 1.551 2,556 P.5591 P5,1091 13411 50,846 1,459 2,556 12,8451 125,1091 13411 1921 12861 13781 Reserves Opening ServeS Not comprehensive income for the year 22,626 4,318 11921 11861 13781 22,434 4,132 12
If you would Ilke thls do¢ument In another fomiat please contact us Transfomi Housing & Support Bradmere House Brook Way Leatherhea¢J Surrey KT22 7NA 01372 387100 www.transforrnhousing.org.uk info@transfomihousing.org.uk Registered with FR FUNE)RAISING REGULATOR