2022-03-31-accounts

BHT Sussex Report and Financial Statements For the Year ended 3111t March 2022 Companies House Number 01618610 Charity Commission Number 284839 Regulator of S¢xial Housing Number H1696

Contents Pages Referen￿ and Administrative Details Chair's Report Strategic Report from the Board of Trustees 4-15 Independent Auditorfs Report 16-18 Statement of Comprehensive Income 19 Statement of Financial Position 20 statement of Changes in Reserves 21 statement of Cash Flows 22 Notes Forming Part of the Financial Statements 23-44

Reference and Admlnistrative Detalls Board of Trustees Executive Managemont Joan Mortimer- Chair, Resigned 1311212021 Sarah Buuer Leona Daniel - Resigned 1311212021 Melanie Davis Peter Freeman - Resigned 2310912022 Roger Hinton- Resigned 1910612022 Kelvin MacDonald, Chair from 1311212021 Gerald Main lan Millar Mary Tawiah Paul Williams- Resigned 0610912021 Paul Featherstone Nicholas Willmore - Resigned 2310912022 Lawrence Santcross- Appointed 1311212021 Angeline Walker- Appointed 1311212021 Andrew Rose- Appointed 1311212021 Andy Wnter Chief Execulive David Chaffey Director of Housing & Property Sunil Desai Director of Finance & Resources Nikki Homewood Director of Advice & Support Setvices Rachael Kenny 01￿ctor of Mental Health & Support Services Govemanee Committe• Company Secretary & Registered Office Sunil Desai 144 Lon¢Jon Road Br￿hton BN14PH Joan Mortimer Peter Freeman Melanie Davis Kelvin MacDonald, Chair Finance, Audlt and Risk Committee Princlpal Sollcltors Peter Freeman. Chair Leona Daniel Roger Hinton Mary Tawiah Paul Wllkams Sarah Butler Lawrence Sanlcrosg Angeline Walker Andrew Rose DMH Slallard LLP 1 Jubilee Sire81 Brighton East Sussex BNI 1GE Operations & Personnel Cornmltteo Bankars Melanie Davis. Chir Sarah Butler Gerald Main lan Millar Joan Mortimer Kelvin MacDonald Nicholas Imllmore Paul Featherstone Royal Bank of Scouand PO Box 300 Brighton East Sussex Auditors BDO LLP 2 City Place Beehive Ring Road Gahvick Wesl Sussex RH6 OPA Rgmuneratlon Commlttee Melanie Davis. Chair Sarah Butler Kelvin MacDonald Gerald Main lan Millar Joan Mortimer Paul Featherslone Nicholas Willmore

Chair's RepoTt for the ear ended 31st March 2022 ChaiVs Report I have had the honour of'being the Chair of BHT Susoex from December 2021. having been on the Board for four an.d a half years. I realisÈ"d.when l joined the Board that l.had 8t8rted on a joumey of legming day by day aboLrt the extraordinary iyork that BHT Sussex does and the many ways in which it Gha.ng88 Indpiidual lives. This Annual Report Sets out ih sfgti8tl¢8 and in cllenl 8tories how we have aided, guided, advised and housgd. I find thè pure breadth of thls work hardto take in- ranging as it does from specialist housir beneffts and Immlgration advice Services to supportlng those in their journey out of addiGliori: from asslsling paopl8 into decent housina and Into employment to helping paople deal Ihe consequences of sleeping rough,. from mèrtal health and wellbein9 seNl¢e8 to bekng g housln association with 766 Properties. In doin9 all this. BHT Sussex is driven by a vrdy of Working that puts our dlents and tenants first and ljstens to their needs and aspirations before accompanying them on their journey'of thange.".Our exp8ri6nce shows that those with whom we work may well have a variety of challenges that they face- 2.788 of our Clients identified as dlsabled. for example - and the range of servicès that v offer arKllhe pure professlonalisnv of the staff Ihat deliver them rneans that we can addre58 complex challenges In a holistic way. notably ibrough taking a psythologicaTry infomed appmach- a fact Bb)ul which l am tremendOu*Jy pioud. It'would_ be Invidious tor'me totocus on ony one moasure of.the work we do as all are equally im"portanL However., when i.see from this report that, for example, We have provided for 9.7CI2 unique clienCs- 2 50% increase from two years ag.o. that we have.pr8venled homelessness in 1.177 cases Qr that our welfaFe ben8fit adviser5 have ralsed £4.7 million for 581 clients. I thlnk of the lfves that we have tr￿Ched- not only of our clients and tenants, bLrt of their colloagu¢s. friends gnd fathllle& These figures are Impressive enough In themselv¢s. but it has also been yel another year of overall change for BHT Sussex. Having merged with Sussex Oakleaf In 2020, in 20218HT Sussex SeCu￿d fts larg'e8t"ever cootr.a¢t, valued at £3.8 Millic￿ per annurn, to delivèr the East Sussex Floating Support seTvice. supporling 6,000 people in their oym horDe&. Wrth this contract. 93 new merribef8 of staff joined BHT Sussex. All this work ha8 Garried on ivhilst dealing with the global pandemic and I want to partiGularfy mark the dedicati.on aDd profesSitJialisM of all the $taff and volunteers-who have worked tsnspartngly to minimise the" eff8cls that this has'had on our slaff and.on thè.delNery of our. s"orvices, Thank you to yiiu ati. Thank you also to Joan Mortimer. my predecessor: and my fellow Board members who have willinyiy given Iheir time and théir wisdom to guide BHT Sussex in all Ihat it dtJes. The figures set out in this Annual Report clgarty demDn8trate the vital work that BHT Sussex fo. lhose most in need. I ￿lle this Chair's report as the teal impacts of risirvJ prices end costs, notably In"energy prices,.are becoming daar. The c05t oyliving crisTS- and it is a crisis - 15 already hitting the poorest and most vulnerabjè in society the hardesL BHT Sussex'3 serv1￿9 will be needed nore than 8ver but our abi1Sly to provide them faced as we.arè too with rising costs will be severely challenged. Finally, this is the final Annual Report to be produted under the direGtion of our Chief Executive. Andy nter, who Is to retire In January 2023 after 37 years, 20 os its ChEf ExeGutive. BFrr Sussex's debt to Andy is imfftea8urabte 4nd, more importantty. so is.the debt owed by many thouBand8 of our clients and our tenants. This report is not the place to set out in full our thanki to Andy and Ibese will be recorded elgewhère. Kelvin MacDonaSd Chair of the Board Datè- 2310912022

Strategic Report from the Board of Trustees for the year ended 31$1 March 2022 Report of the Board of Trustees The Trustees are pleased to present their Annual Report and the FinanGial Staternents of BHT Jt Sussex for the year ended 31 March 2022. AIMS AND OBJECTIVES Our overall Mission is to combat homelessness, create opportunities for our clients and tenants, and to promote change. In order lo do this, we have established six Strategic Objecttves. These Objectives are: • Em werin Clients and Tenants.. Clients and tenants are supported to take greater control over their own lives. This includes helping people come to ternis with mental health problems, thereby reducing hospital admissions and allowing people to live more independently. People with addictions are supported into abstinence and recovery, thereby increasing life choices around 8duGation. training and employment, as well as sustainable housing. Prevention of Homelessness." Those facing homelessness were supported by the Advice Cèntres where we prevented 688 (2021.. 453) households from becoming homeless. with all the negative consequences to their lives and those of their children. Those with a limited or no history of employment are supported to gain work experience, undertake education and training, and secure employment. The reduction in the number of prevention cases was due to the govemmenl's moratorium on evidions. • Im rovin Our ServiGeK. All services are reviewed on an annual basis and teams prepare improvement plans to ensure that their services remain relevant to client needs and meet local strategic priorities. We relained our Investors in People Silver rating. We review and act on feedback re￿iVed from tenants and clients to improve s8rvices. This indudes reviewing learning from complaints received. Increasin Our Influence". By promoting the experience of our clients and tenants, we attract attention from policymakers, commissioners and other opinion makers. We remain a 'Go To. organisation for the media and have had inpul into various policy reviews at a local and national level. Through our leadership of the Fulfilling Lives Partnership in the south-east, the https.'Ilwww.bht.org.uklri le-effect-overview-systems-principles-and-melhods.pdf sets out a number of measures to improve and strengthen services offered to those who have multiple and complex needs. • Im rovin Our Financial Stren th.. By retaining a dear focus on the financial perfomian¢e of the organisation and seeking opportunities to grow as well as spreading Costs more Y￿delY. we improve our financial strength. The merger with Sussex Oakleaf saw us extend our services into Mid Sussex and Crawley, and the successful tender for the East Sussex Floating Support Service consolidated our position as a major service provider throughout East Sussèx. Seekin ualit Growlh: No￿lthStanding the Covid-19 pandemi¢, we have achieved significant growth during the period Sin￿ March 2020 with the merger and new contracts. Our staff numbers have increased from 250 to over 350 and our tumover has increased from £14m to £15m and is expected to be £17m by March 2023. This has already led to new opportunities in both Mid Sussex and Crawley. A review of existing assets has presented opportunities for the redevelopment of sites to increase the number of homes that we provide.

Strategic Report from the Board of Trustees (continued) for tha ear ended 315t March 2022 OUR BUSINESS MODEL Our business model is based on five core prtnciples: Recruitin and Retainin Staff. We have continued to have a workforce equipped to deliver services of excellence. Our salaries and ernployment temis remain competitive locally so thal we can attract quality applicants and we do not lose key staff to partners and competitors. More difficulties have been experienced in recruitment although there is a recognition that salary levels for staff who transferred from the former Sussex Oakleaf has posed a few recruitment Challenges. l*Vhile staff tumover has been higher than anticipated. no underiying negative causes have been identified. We are aiming to increase our Investors in People accreditation to Gold, evidence that we are an organisation that seeks continuous improvement in our employment practices. Maximisin Income Streams.. Income from rents and service charges continued to make up over 50% of our income. Void rent loss increased to 80h compared to a target of 5Yo. This adverse trend was due to higher voids in Supported Housing as a resu￿ of the restrictions due to the continuation of the pandemic. This is not an ongoing issue as restrictions are lifted, nor d￿S it reflect an undertying problem. Increased loss of income through void properties was offset, in part, by better rent collection. Arrears were 4.90A (£389k) on 31° March 2022 compared to a forecast of 5.80/0 (£458k). This reflects strong performan￿ in both Housing Services and Supported Housing. While high levels of bad debt write offs can disguise poor perfomiance in rent collection, bad debts lo 31. March 2022 were higher for Supported Housing £31 k (2021: £15k) and lower for Housing Services £12k (2021: £12k). Other inwme streams were on or near target, although Legal servi￿ income was £664k against a target of £729k due to restrictions during the Covid pandemic as there were fewer clients and referrals from the courts. Deliverin Value for Mone . BHT Sussex continues to have a focus on Social Value (SV) and Value for Money (Vfm) as part of its continuous improvement process and has developed its ¢)wn SV and Vfm Staternent. We regularly monitor these by reviewing se￿1￿ usage, a focus on our income and expenditure. ffleasuring both strategic and operational key perfom)anGe indicators and we use our SV and Vfm Statement to focus on outcomes for our clients and tenants. Maintainin Li Our cash balance as at 31$1 March 2022 remained healthy, at £3.6m, {2021.' £2.7m). Our minimum cash balance target of £1.7m continues to be eX￿eded. A continued challenge over the next five years to ensure that SLrfficient funds are generated to allow US to meet the investment ne8ds set out in our Asset Management Strategy, which averages £550k per annum. Securin Profitablfj Gn?￿h.. As mentioned above. the merger with Sussex Oakleaf has already led to new opportunities in both Mid Sussex and Crawley. A review of existing assets has presented opportunities for the redevelopment of two sites owned by BHT Sussex to increase the number of homes that we provide. FINANCIAL RESULTS A net operating surplus of £348k (2021: £379k) was generated during the year. A prioTity moving forward is to increase surplus levels, to strengthen our financial viability, invest in current and new services, and allow us to invest in our major works programme. Income: Total income of £15.Om {2021.' £13.7m) was re￿iVed during the year. The increase from the previous year was due to new contracts and additional income for our Legal Advice Services.

Strategic Report from the Board of Trustees (continued) for the ear ended 31$t March 2022 enditure: Total expenditure of £14.6m (2021.. £13.3m) was made during the year. Overall, expenditure was £786k less than expected. Lower staffing and related cosls accounted for most of this underspend. There were also lower costs for Repairs and Maintenan￿. lower overhead costs. and there were some overspends and underspend compensating for each other. While others in our peer group have reported significant increases in arrears as a result of Covid-19 and the roll-out of Universal Credit, we have been able to maintain arrears levels notwithstanding a modest increase in arrears of those tenants who have migrated to th8 new benefrt. A refocusing of staff resources has resulted in thi5 risk being SU￿ssfullY mitigated. Our Financial Position also conlinues to be healthy with Total Net Assets of £11.4m (2021: £11.Om). supported by Income and Expenditure Reserves of £10.8m12021:10.1 m) and Restricted Rgserves of £0.6m {2021.' £0.9m) DEVELOPMENT AND PERFORMANCE IN THE FINANCIAL YEAR The Board of Trustees re￿iVed quarterly reports to monitor perforniance within the organisation. The performan￿ measures included financial and operational perfornian￿ indicators, induding: Cash management- cash flows and average cash balances inc￿88ed during the year with cash at bank and in hand as at 31st March 2022- £3.6m (2021.. £2.7m). Void loss in Supported Housing- voids as a % of gross rents of 10.6% (2021: 8.70A), target.. 3.9%. Void loss in Housing Services- voids as a % of gross rents of 2.50A (2021: 2.OOA), target: 3.9%. Bad debts in Supported Housing - bad debts as a % of rents re¢eivable of 0.6% {2021.' 0.30h), target". 1.50A. Bad debts in Housing Services - bad debts as a % of rents receivable of 0.4% (2021.. 0.40A), target.. 1.5%. Gas safety ￿rtIfiCateS - units with a valid safety certificate 100.OOA (2021.. 1000/0), target: 100%. Staff sickness - working days lost per FTE employee 10.8 days (2021- 6.2 days). target= 7.0 days. FUTURE PROSPECTS Notwithstanding the concem of funding our Asset Management Plans going forward, the challenges successfully faced to date as a resu￿ of the Covid-19 pandemic demonstrates an organisation that is W811-governed and well-managed, able to flex its operations according to circumstances, not least ones that could not be foreseen. Covid-19 itself will result in new opportunities as our communities and economy recovers from the financial and psychological injuries caused by the pandemic. Our staff are our biggest asset, they support the delivery of our charitable and strategic objectives. We continue to invest in the recruitment and retention of quality staff at all levels. Like many organisations, we have had difficutties over the past year, but staff continue to work with dedicalion and ￿S111enCe. Governance arrangements have b88n reviewed and strengthened in re￿nt years. All governing documenls have also been reviewed and updated. The appointment of three new members has further strengthen the range and expertise of Board of Trustees. HEALTH AND SAFETY Health and Saf8ty continues to be one of our key priorities and we have a Working Group set up that looks al stratègic health and safety issues, including the Fire Safety Act 2021 and the 2022 Regulations.

Strategic Report from the Board of Trustses {continued) for the ear ended 31$t March 2022 Health and Safety (contlnued) Health and Safety is also monitored quarterly via our Strategic Risk Register. During the year we continued the Health and Safety l Fire risk assessments of all properties. carrying out additional remedial tasks to improve fire safety at a cost of £204k (£197k). Gas Safety Inspections: our performance for the final quarter of 2021122 was 100% (100%), where gas safely inspedions were completed in time and the relevant certificate was on file. There were some issues during the year due to access to properties and the continuation of the Covid-19 pandemic, SAFEGUARDING Following failings in some international aid agencies, along with safeguaiding failures in domestic charities, BHT Sussex has considered the robustness of its own policies and procedures in this and other areas. The Board acknowledges the general alert issued in June 2021 by the Charity Commission regarding this, particularly at a time where governance and management arrangements might be compromised by the Covid-19 pandemic. BHT Sussex has robust processes and reportirkg arrangements in place, including our Whistleblowing procedure, that are widely publicised including on our website. Clients and tenanls are asked specific questions in surveys regarding their confidence in the organisation's policies and procedures. Training on safeguarding is part of the mandatory training for staff. STAFFING Our staff are our most valuable resource. Through th8m we deliver our strat8gic objectives, not least excellent services. We have strengthened capacity al a senior level through Ihe creation of a Director of Mental Health and Support SeNices and designated another senior employee as Head of Btjsiness Development. These additions will help to provide strategic management capacty within the enlarged organisation going forward. Staff sickness management continues to be an area we are Y￿rking on. There was an average of 10.8 days absen￿ per employee during the year (6.0 days excluding long term sickness cases). which is above the target of an average of 7 days. BOARD MEMBERSHIP BHT Sussex seeks to appoint and retain Board members who have the skills, know18dge, business acumen, integrity. values and commitment to lead the organisation with drive, ambition and enthusiasm. We recruit new board members through open advertisement and the effective use of our wide sector ne￿OrkS. Three new board members were appointed during the year and three members resigned. All new members receive a full induction programme. W8 have two tenants as independent members of the Board, correcting an area of deficit that had previously been identified. Board members are appointed on a voluntary basis and receive out-of-pocket expenses. No other payments are made to the chair or individual board members. The Board and 118 Commitlees undertake annual reviews and appraisals of their activities helping ensure that we comply with the National Housing Federation's Code of Govemance 2020. The policy for delegated levels of decision-making between the Board and Executive Management Team is clearly defined wtthin Standing Orders and a separate Schedule of Delegation. which is reviewed and approved by the Board on a regular basis. The Chair of the Board undertakes individual reviews with all Board members.

Strategic Report from the Board of Trustees (continued) for the ear ended 31st March 2022 COVID-19 Despite the continuation of the Covid-19 pandemic and its restrictions, BHT Sussex has Succeeded in carrying on its much needed work over the last year. Notwithstanding the national easing of restrictions, the approach we will be taking wilhin BHT Sussex will be characterised by a 'slow and steady, approach. We wish to be prudent in the way we plan our work and. as always, our wiority is to try to keep all members of staff, Clients and tenants as saf8 as possible. Our Covid Task Team continued to meet twice a week during last year and the team ¢onsidered social distancing, the numbers who can retum to the office, the ongoing ne￿sSity to wear face masks. etc. The majority of our staff have continued to work face-to-face wilh their clients. We recognise the increased risk that this has had, without this dedication we would not have been able to ensure that all our services continued to be delivered throughout the pandemic. The measures that BHT Sussex had in pla￿ throughout the pandemic are not being lifted for th8 time being. Basic hygiene, physical distancing, and good ventilation requirements will continue in place. Trustees recognise that all members of staff have successfully kept infedions within the organisation to very low levels. RISKS UNCERTAINTIES AND OPPORTUNITIES The Covid-19 pandemic is providing both opportunities and challenges moving fornvard. There is uncertainty regarding the public finances due to the impact of inflation and rising energy costs. Both of these will reduce our ability to significantly increase our surplus, al least in the short temi. The financial and psychological injury caused by Covid-19 may result in new demands for services, not least in areas such as Crawley and Mid Sussex which will be particularly impaded by the effect the pandemic is having on the aviation industry. The organisation has a well-developed and mature approach to strategic risk management. Our Strategic Risk Register provides the Board with clear information on three key areas, which are improving our financial strength, our operating environment and increasing our influence I reputation. Undemeath these three areas, there are ten specific risks identifi￿. These risks are reviewed on a quarterfy basis by the Executive Management Team and reported on a regular basis to both the Finance, Audit and Risk Comrnittee and the full Board. Detailed information provided includes the quantification of individual risks, the management strategy for mitigaling their likelihood and impact, and a recovery strategy should one or more risks impact at the same time. GOING CONCERN Following an assessment of our financial position and ￿sourceS available, induding the cashflow position for the next eighteen months, the Board believes that the BHT Sussex can manage its busirEss risks, financial forecast (including monthly ¢ashflow forecasts with sen51tivity analysis). We have a reasonable expectation that BHT Sussex has adequate resources to continue operating for the foreseeable future. For this reason, we continue to adopt the going cOn￿M basis of accounting in preparing the annual financial statements. Notwithstanding the risks and uncertainties that we face. we are confident that BHT Sussex has a positive future. We hav6 reached this condusion by reference to.. Over 50% of our incom8 comes from rental and service charge income, a relatively secure income stream and one which is well managed within the organisalion. 87.8QA of this income is paid directly to BHT Sussex from Housing Benefits, Universal Credit and Adult Social Care, which provides confidence in future paym8nts of this stream of income.

Strategic Report from the Board of Trustees (continued) for the ear ended 315t March 2022 Going Concern (contlnued) For 2022123, over 800A for our contracied income is secure, most other income is secure during the lifetime of contracts. and should these contracts be temiinated, and we can flex costs accordingly. Nolwithstanding current challenges relating to charitable fundraising, any shortfall is likely to be temporary and is not expected to have a material impact on our assessrnent of going con￿rn. Controls we have on inflationary aspects of our salary and r8ward structures. although we recognise that this will be a challenge going forward. Our cash balances. at the point of signing these accounts. is almost 100% greater than the £1.7 million head room agreed as policy. We have also undertaken a cashflow forecast for the next three years (April 2022 to March 2025) and this shows we will be able to maintain a healthy £2.5m cash balance. Sensitivity analysis for higher levels of inflation and loss of a contract on this forecast shows that we would continue to maintain ¢ashflows aljove our £1.7 million target. Our very limited exposure to fluctuations in the money markets. our limited borrowing is at a fixed rate and our non-involvement in developing properties for sale. Our ability to withdraw from activities wth reasonable notice, should they become an unacceptable drain on the cash resources of the organisation. Based on this assessment. the Board has concluded that a material uncertainty does not exisl, and the organisation is expected to continue to operate for the foreseeable future. PENSIONS BHT Sussex participates in the Scottish Widows Pension Scheme, the NHS Pension Scheme, Local Government Pension Scheme. and a Social Housing Pension Scheme, Growth Plan Scheme with TPT Retirement Solutions, please see note 22 to the Financial Slatements for more details. The TPT scheme is a mulÉi-employer scheme which provides benefrts to some 638 non-associated partiapating employers (see note 22) and applies to 32 fomier employee5 of Sussex Oakleaf. This scheme is ¢lassifi8d as a 'last-man standing arrangement,; therefore, because of the merger, BHT Sussex has inherited the potential liabilities of Sussex Oakleaf for other participating employers, obligations, if those employers are unable to maet their share of the scheme deficit following withdrawal from the scheme. Participaling employers of the TPT scheme are legally reqUI￿d to meel their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. During 2021122 BHT Sussex contributed £9,904 towards the pension deficit. The Board considers that the contribution rate demarKled of the scheme is affordable. All members contributing to Series 3 were switched to Growth Plan Series 4 in 2013, and any new employee contributions were made into Series 4 from the closure date onwards. Growth Plan Series 4 is a defined contribution scheme in which the assets are held separately from thos8 of the entity in independently administered funds. Further Details are in Note 22. COMPLIANCE WITH GOVERNANCE AND FINANCIAL VIABILITY STANDARD The Board has reviewed our compliance with the Regulator of Social Housing's G0Veman￿ and Financial Wiability Standard and has concluded that BHT Sussex complies with the Standard. BHT Sussex has r8viewed its Assets and Liabilities Register to ensure that it meets the requirements. There is ongoing work on this Register to ensure that it remains accurate and complete, and that timely adjustments ar8 made as circumstan￿8 require.

Strategic Report from the Board of Trustees (continued) for the ear ended 31st March 2022 INTERNAL CONTROLS In accordance with the regulatory expectations of the Regulator of Social Housing, the Board is required to conduct an annual review of the effediveness of the systems of internal control, and to issue a formal statement within the annual report and accounts on the outcome of this review. The Board acknowledges its ultimate responsibility for the syst8m of intemal controls, for reviewing the effectiveness of those controls and for managing the risk of fraud within BHT Sussex. The Board also acknowledges that risk management and control prO￿SSeS should operate continuously and should be embedded within and across all activities. It should be recognised that no system of inlemal control can provide absolute assurance or eliminate all risk. The system of internal Control is designed to managè risk and provide reasonable assuran￿ that key business objectives will be achieved, and to give reasonable assuran￿ about the preparation and reliability of financial infomialion and the safeguarding of the assets of BHT Sussex. BHT Sussex has adopted the Nats'onal Housing Federation Code of Governano 2020. A review of the Code has been undertaken. The Board is confident it complies wth the Code bul conlinues to set a maximum period of nine years for non-exe¢utive directors. The pro￿Se$ for identifying, evaluating. and managing the significant risks faced by BHT Sussex are ongoing and are regularly reviewed by the Board. They have been in place during 2021122 and up to the date of the approval of the annual report and accounts. The elements of the control framework, incorporating the key sources of evidence utilised by the Board in reviewing the effectiveness of the system of internal control, include.. rf a comprehensive risk management framework which identifies key risks to the business on a regular basis and Seeks to mitigate and monitor the risks and the associated mitigalion. rf An organisational structure with dearly defined lines of responsibility and delegation of authorbty sel out in the BHT Sussex standing orders and financial regulations. a Code of Ethics supported by a framework of policies and procedures. wtth which employees must comply. rf a three year risk-based strategic intemal audit plan and the consideration by the Finance. Audit and Risk Committee of all intemal audit reports produced during the year. O the monitoring of action plans arising from audits to ensure that recommendations have been irnplemented. rf the review of audit reports undertaken by regulators, funders, and commissioning bodies. O approval of the annual budgets and Ihe Strategic Business Plan by the Board. rf comprehensive budgetary Control arrangements which identify vatiances and their underlying causes. 4 a perfornian￿ reporting framework which involves the setting of a surte of Strategic and Operational Key Performance Indicator {SPl$ and KPIS) targets and the measurement of achievement against theses KPIS. 0 a new developments and opportunities policy which requires Board approval of proposals meeting certain finanaal and non-financial criteria combined with quarterly reporting to th& Board. 10

Strategic Report frorn the Board of Trustees (continued) for the ear ended 315t March 2022 Internal Controls (continued) a whistleblowing policy providing staff and third parties with confidential channels of communication to report unlawful, improper, or suspicious activity. rf maintenance of a fraud register, with reporting to the Board if fraud occurs. The Board's review of the effectiveness of the BHT Sussex system of intemal controls has identified no signtficant failings, weaknesse5 or instances of fraudulent activity which has resulted in material misstatement or loss that require disclosure. This applies to the financial statements for the year ended 3181 March 2022. and up to the date of signing these financial statements. VALUE FOR MONEY BHT Sussex continues to have a focus on Social Value {SV) and Value for Money Ivfm) as part of its continuous improvement prO￿sS and has developed its own SV and Vfm Statement. What SV and Vfm means at BHT Sussex We exist for a social purpose and our efforts are focused on changing lives acros5 Sussex. Our Mission and Values drive us forward, seeking to continuously leam and improve how we engage with our local communities and deliver our setvi¢es. Our Mission is to combat homelessness. create opportunities for our Glients and tenants to improve their wellbeing and to promote positive change. We are conscious that a robust approach to Vfm is a regulatory requirement. bul we would want to do it anyway. We aim to make a difference by the outcomes we achieve for our clients, tenants. and the ¢ommunities in which we work. and by being mindful of staff wellbeing. The outcomes we achieve represent both the SV and VIM services that ￿ provide as a viable and sustainable organisation. SV and Vfm. therefore, aims to maximise our outcomes and make a bigger difference than if we had nol tak8n a focused approach to it. Achiewng Vfm is at the heart of being a successful and effective social organisation. hat are the Outcomes we want to achieve? Over the past 50 years BHT Sussex has developed a divers8 menu of services to support people who are homeless. or al risk of homelessness, and people who have complex needs. Prevention is the cornerstone of what we do..

Preventing homelessness Preventing escalation of mental health issues across a broad spectrum - from admissions to psychiatric hospitals to the need to access secondary mental health services Preventing negative consequences of addictions Providing specialist housing, benefit and immigration advi￿ to prevent homelessness Providing work, learning and employment opportunities to prevent unemployment and povarty Where prevention has not been achieved, we look to mitigale the impact on individuals by providing effeclive, Vfm services aimed at changing lives BHT Sussex Housing Services provides homes for over 450 residents in Brighton and Hove, Eastbourne and Hastings. We provide good quality, safe and secure general needs housing at sutpmarket rents for those who cannot afford to rent or buy their own hom8. 11

Strateglc Report from the Board of Trustees (continued) for the ear ended 315t March 2022 Value for Money (continued) We are very conscious of our role in our local commLtnities. In addition. many of our tenants represent positive move-ons from our support and addi¢tion work, sustaining tenancies is key to securing long-tenn positive change. rovid8 our services and who benefrts from our outcomes? Our clients and tenants are amongst the m¢)st marginalised and vulnerable in our society and therefore we provide..

good quality short and long-temi accornm¢)dation for a range of needs to provide a stable base on which to build a future a range of support to improve wellbeing, independence and secure lasting change specialist legal advice spanning housing and homelessnes8, immigration and welfare benefits to ensure that individuals. rights are fairfy represented Family and friends of clients benefit from knowing that their loved one is getting the largeted support they need to make positive changes, Gontribub'ng in tum, to their wellbeing and peace of mind. der ¢ommunity- our services are sensitive to the wider community in which our clients and tenants live. We invest in those communilies and collaborate with others to help make places work socially, economically and environmentally. Local authorities, other l¢)cal $8rvice providers and govemment- through growth and service provision, we contribute to local and national housing strategies whilst also addressing important agendas such as supporting the mosl vulnerable. homelessness, poverty, inequality and the environment. Our support services take pressure off health, social servI￿s, police and other local services. Increasingly, our work falls under the remit of Integrated Care Partnerships (ICPS).. local joint commissioning bodies comprising local authorities, health and the wider Voluntary. Community and Social Enterprise (VCSE) se¢tor- effectively a stakeholder in its own Tight. )then setting our strategic and enabling objectives, the BHT Sussex Board seeks to balance the legilimate, and sometimes competing. expectations of our stakeholders with the finite resources at our disposal. Total rent received in Supported Housing - rent re￿iVed as a % of amounts due 97.70A, (2021". 100.2%) (target. 98.5%). Total rent re￿iVed In Housing Services- rent re￿iVed as a % of amounts due 98.8%, {2021'. 100.60h) (target.. 98.5%). Arrears managemenl Supported Housing- gross arrears as a OA of annual rent roll of 2.00 {2021'. 1.60h) (target.- 2.5%). Arrears management Housing Services- gross arrears as a % of annual rent roll of 3.4% (2021- 3.5%) (target.. 5.8QA). 12

Strategic Report from the Board of Trustees (continued) for the ear ended 31st March 2022 The Regulator for Social Housing has issued value for money metrics and BHT Sussex figures are shown below.. Acuity Median 2021122 2.300 BHT Sussex 2021122 6.77% BHT Sussex 2020121 Value for Money Metrlcs Reinvestment New Su l Delivered units Gearin EBITDA Ma orRe airs Included Interest Cover Headline Social Housin Cost er Unit eratin in Return on Ca ital Em lo 37.43% 182% £4,880 16.68% 1.87% 1.7f/. 4.4711/. 2.130 5.66% £4.366 2.600/0 1.78% These types of metrics are generally used by larger housing associations with development portfolios and all of these metrics are not applicable to BHT Sussex as its primary focus is on Combating Homelessness, Creating Opportunities and Promoting Change. We have compared our Performan￿ against these metrics by using the Acuity benchmarking group data for Small housing providers in the South Easl and London, as shown above. This table above shows that BHT Sussex compares favourably on Reinvestment, Gearing and Social Housing Cost per Unit and there is improvement needed on our Operating Margin and rate of Retum on Capital Employed. In the future, alongside the metrics above, BHT Sussex will define and show value, by drawing on our strategic objectives, our impact on clients and tenants, and from the other Acuity benchmarkin9 information available. USE OF RESERVES Accumulated reserves are deployed to achieve our principal objective of supporting homeless and vulnerable people. After setting aside an amount to cover day to day financial commitments, resetves are mainly invested in properties that provide accommodation and servI￿s. At the end of 2021122 we had total reserves of £11.4m (2020: (£11.1 m) of which under £600k were restricted reserves. The prrmary purpose of the BHT Sussex Reserves Policy is to ensure that adequate funds exist to ènsure its long-lerm viability. The policy is designed to ensur8 that BHT Sussex can: Continue to meet its financial commitments. Deploy funds promptly, in a planned way, and ￿act to new opportunities. Avoid erosion of its asset base, maintain and upgrade the homes of our tenants. Balance sound investment with good liquidity management., and Is not fored into short term decisions to the detrtment of its long-term vision. To achieve this. BHT Sussex has adopted target measures for key reserves indicators. The BHT Sussex policy aims to= Hold a minimum of £500k in free reserves, to wotect its charitable work from the risk of disruption. Hold a minimum of 1.5 months of operating cash oufflow requirements in cash, or short-tem investments, to manage short term volatility in income or liquidity. This equates to £1.7m for the current BHT Sussex cash oufflows. On 31st March 2022 BHT Sussex held £3.6m as cash or short-term investments. 13

Strategic Report from the Board of Trustees (continued) for the ear ended 31$t March 2022 Use of Reserves (conttnued) As at 31st March 2022. BHT Sussex had cash cover of 2.11 months (2021.. 1.59) Compared to a target of 1.7. The Board of Trustees has identified the main financial risks lo the organisation to be.. Failure to maet income targets in Supported Housing and Housing Services Failure to meet income targets for Advice Services Impact on income from Universal Credit The impact of increasing inflation Furlher ¢uts to the value of advi￿ and support contracts Failure to achieve profitable growth. In the light of these risks, and to meet future investment opportunities, the Board has identified the need to strengthen the reserves of the organisation. Free Reserves as at 31¥t March 2022 were £1.3m (2021.. £1.1m). POST BALANCE SHEET EVENTS Since the year end there have been significant pri￿ increases in the cost of labour, raw materials, fuel and energy bills. The Government has announced temporary relief measures for tharities, details of which are not yet known. BHT Sussex has been and will be affected particularly when our existing fixed-term energy contracts end. It should also be noted that our current Chief Executive Andy Wnter will retiring in January 2023 after thirty seven years of dedicated service. BOARD MEMBERS, RESPONSIBILITIES The Board is responsible for preparing the strategic report, annual report and the financial statements in accordance with applicable law and regulations. Company law and social housing legislation requires the Board to prepare financial statements for each financial year in accordan with United Kingdom Generally Accepted Accounting Practice (United Kingdom A￿OUntIng Standards and applicable law). Under company law, the Board must not approve the financial statements unless it IS satisfied that they give a true and fair view of the state of affairs of Ihe asso¢iation arKI of thè surplus or deficit of the association for that period. In preparing these financial statements, the Board is required to= Select suiiable accounting policies and apply them consistently Make judgements and accounting estimates that are reasonable and prudent State Ex applicable UK AcGounting Standards and the Statement of Recommended Praclice Accounting by registered social housing providers 2018 have been followed, subject to any material departures disclosed and explained in the financial statements Prepare the financial statements on the going concem basis. unless it is inappropriate to presume that the charitable company will continue in business. The Board is responsible for keeping adequate accounting records that are sufficient to show and explain the BHT Sussex transactions and disclose, with reasonable accuracy at any time. the financial position of the association. and enable them to ensure that the financial statements comply with the Companies Ad 2006, the Housing and Regeneration Act 2008 and the Accounling Direction for Private Registered Providers of Social Housing 2019. It is also responsible for safeguarding the assets of the association and therefore taking reasonable steps for the prevention and detection of fraud and other irregularities. 14

Strategic Rèport from the Board of Trustees (eontinued) for thp ear ended 31st March 2022 Board membels are responslble lor ensuritKd that the Report ofthe Board is prepared in a￿Ordance with the Statement ol Recommended Practice: AttountiTrJ by r8gistered soclal housing providers 2018. Financial stalerEnts are published oh the BHT Sussex w8b31t8 in accordance with18gislation in Ihe Llnited Kingdom g."oveming the preparation and dissemination offinan.cial statemenl$..which may vary from leg"islatioh in other jurisdictlons. Th8 maintenance and integrity. of the oryanisalion's vkebsite 15 the respohsibility of the Board. The Board's responsibjljly aJs0 extends to the ongong integrity of tr￿ financial stalements contained therein. Audltors Current Board membet5 have taken all th&5tsps that they Ought to have taken to make thentselves aware of any informallon needed by our auditors for the purpose5 oftheir audil and to estabf15h that the auditors are aw8re of that information. Th8 Executive Management.Team are not aware of any relevant audit inlorrnation of which the auditors 8re vn8ware.. aDO LLP have expra88ed Its willingness to contlnue and 8 recommendation for thè r*appointment of BDO LLP.as aucrrtors of BHT Suss8x is to be presented at.a forthcomlng Board Meeling. On behalf of the Board K MaeDonald Chair of the Board Date- 23109122

Inde endent Auditorfs Re ort to the Members of BHT Sussex Oplnion on the flnancial 8tatemonts In our opinion. the financial statement$'. give a true and fair view of the state of the BHT Sussex affairs as at 31st March 2021 and of the BHT Sussex incoming resources and appllcation of resources, including its income and expenditure, for the year then ended., have been properly prepared In accordance with United Kingdom Generally Accepted Accounting Practice., and have been propedy prepared in accordan￿ with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2019. We have audited the financial statements of BHT Sussex {'Ihe Association'} for the year ended 31* March 2021 which comprise the Association statement of comprehensive income, the Association statement of financial position, the Associalron slatement of changes in equity. the statement of cash flows and notes to Ihe financial statements, including a summary of significant accounb.ng policies. The financial reporting framework that has been applied in their p￿paratIOn is applicable law and United Kingdom Accounting Standards. including Financial Reporting Standard 102 The Finanu8lReporting Standardapplicable in the UKandRepublic of Ire18nd (United Kingdom Generally Accepted Accounting Practi￿). Ba$15 for oplnlon We conducted our audit in aC￿rdance with International Standards on Auditing (UK) {"ISAs (UK)-l and applicable law. Our ￿sponSibl1111eS under those standards are further desuibed in the Auditorfs responsibilities for the audit of the financial stslements section of our report. We believe that the audit evidence we have obiained rs suffjcient and appropriate to provide a basis for our opinion. Independence We remain independent of the Association in accordance with the ethul requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Concluslons relatlng to going concern In auditing the financial statements, we have con¢luded that the Board MeM￿rS. use of the going eoncem basis of accounb'ng in the preparation of the financial statements is appropriale. Based on the wor1( we have performed, we have not identified any material uncertainties relating to events or condilions that, individually or collectively, may cast significant doubt on the Association's ability to continue as a going concern for a period of al feast tsvelve months from when the financial statements are aulhorised for issue. Our respjnsibililies arKI the responsibilities of the Board with respect to 90ing concem are described in the relevant sections of this report. Othor Inforniation The Board are responsible for the other information. The other information comprises the information induded in the Chairfs Report and the Strategic Report from the Board of Trustees, other than the financial statements and our audilorfs report Ihereon. Our opinion on the financial statements does not cover the other inf0rn7ation we do not express any form of assurance conclusion Ihereon. Our responsibility is lo read the other infomiation including the Chairfs Report and the Strategic Report from the 8oard of Trustees and. in doing so. constder whether the other information is materially inconsistent with the financial statements. or our knowledge obtained in the audit or otherwise appears to be malerialty misstated. If we identify such material inconsistencies or apparent material misslaternents, we a￿ required to determine whether the￿ is a material misstalemenl in the financial slalements or a material misstatemenl of the other informatK)n. If, based on the work we have performed, we conclude that there is a material misstatement of this other information we are required to report that fact We have nothing to in this regard. 16

Inde endent Auditor's Re ort to the Members of BHT Sussex continued other Companle8 A¢t 2006 reporting In our opinion, based on the work undertaken in the course of the audil". the infomiation gwen in the Strategi¢ report from the Board of Trustees for the financial year for whi¢h the financial statements are prepared is consistent with the financial statements., and the Strategic report from the Board of Trustees has been prepared in accordan￿ with applicable legal requirements. In the light of the knowledge and understanding of the Association and rts environment obtained in the course of the audit. we have not identified material misstatements in the Strategic report from the Board of Trustees. We have nothing tr) report in respect of the followng matters in relation to which the Companies Act 2CQ6 requlre5 US to report lo you if, in our opinion: adequate accounting records have not been kept by the Association, or returns adequate for our audit have not been received from branches not visited by us-. or the AssO￿ation financial statements are not in agreement with the accounting records and retums,. or certain disclosures of Board Trustees, remuneration specified by law are not made.- or we have not received all the inf0m1at￿n and explanations we require for our audit. Responslblllties of the Board As explained rn0￿ fvlly in the Board members. responsibilities statement set out on page 16, the Board is responsible for the preparation of the financial statements and for being satisfied thal they gwe a true and fair view, and for sueh Inlemal control as the Board members determine is necessary lo enable the preparation of financial statements that are tre from material misstatement. whether due to fraud or error. In preparing the financial statements, the Board are responsible for assessing the Association's ability lo continue as a going con￿rn. disclosing, as applicable. matters related lo going concem and using the going concern basis ol accounb.ng unless the Board either in18nd to liquidate the Asgxiation or to cease opgrations. or have no ￿aliStiC alternative bul to do so. Audltovs responsibilities for the audlt of thg flnanclal statsments Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whelhei due lo fraud (￿ error. and to issue an audiloff s ￿pOrt that in¢ludes our opinion. Reasonable assurance is a high level of assuiance but is not a guarantee that an audit conducted in accordan¢e with ISAS (UK) will always delect a material misstatement when it exists. Misslalements can arise from fraud or error and are considered material if. individually or in the aggregate. they could reasonably be expected to inffuence the economi¢ decisions of users taken on the basis of these financial statement5. Extent to whlch the audlt was capable of detectlng Irwularltles, Including fraud Irregularit￿. including fraud, are instances of non-complian￿ with laws and regulations. We design pr(￿edureS in line with our responsibilities, outlined above. lo delect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are Capable of detecting irregularities, including fraud 15 detailed below.. Based on our understanding of the Association and the industy in which il operates, we identified that thg principal laws and regulations that direclty affect the financial statements to be the Companies Act 2006, the Charities Act 2011. the Housing and Regeneration Act 2008 and the Accounting Direction for Ptivate Registered Providers of Social Housing 2019. We assessed the extent of compliance with these laws and ￿gUlationS as part of our procedures on the related financial stalemenl items. In addition, the Association is subject to many other laws and regulations where the consequences of non- compliance could have a material effect on amounts or disclosures in the financial statements, for instance through the imposition of fines or liligalion. f7

Inde endent Auditor's Re ort to the Members of BHT Sussex continued We identified the folknving areas as those most likely lo have such an effect. employment law, data proleclion and health and safety legislalton. Auditing standards limit the required audit pro￿dureS to identify non- compliance with these laws and ￿gUlationS to enquiry of the Diiectors and other management and inspection of regulatory and legal correspondence rf any. Audit procedu￿$ Ferfomied by the engagement team included.. Discussions with management, including consideration of known or suspected instances of non- compliance with laws and regulations and fraud Reading minutes of meeting of those charged with governan￿, and reviewing correspollden￿ wlh HMRC Challenging assumptions made by management in their significant accounling estimates in particular in relation lo the impairment of housing properties, depreciation on tangible fixed assets linduding component accounling)- dilapidations and bad debt provisions In addressing the risk of fraud, including the management override of controls and improper income recognition on grants and contracts. we tested the appropriateness ofcertain manualjournals, reviewed the application of judgements associated with accounting estimates for the indication of potential bias and tested the application of CUt￿ff and revenue recognttion. Our audit procedures were designed to resp)nd to risks of material misstslement in the financial Slatements recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-complian￿ with laws and regulations is from the events and transactions rellected in the financial statements. the less likely we are to become aware of it. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's webslte at. www.froor .ukJauditorsres auditor's report. nsibililies. Thi5 description forms part of our Use of our report This report is vrrade solely to the members of the Association, as a body, in accordance with the Housing and Regeneration Act 2008 and Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we mwJht stale to the Association's Trustees those matters we are required to state lo them in an auditorfs report and for no other purpose. To the fvllest extent permitted by law. we do not accept or assume iesp)nsibility to anyone other than the Association and the members as a body. for our audit work, for this report. or for the opinions we have formed. S*n•dby.' C9A7C73a&135456 Laurence Elliott Isenlor Statutory Auditor) For and on behalf of BDO LLP. statutory auditor London, United Kingdom Date.. 29 September 2022 BDO LLP is a limited Ikability partnership registered in England and Wales (wilh registered number OC3051271 18

Statement of Comprehensive Income for the year ended 31*1 March 2022 2022 2021 Tumover 14975.090 13.748.861 Operating costs 114,586.2291 (13,322.S52) 0￿ratIng surplus 388.861 426.309 Gift ofAssets Suss8x 08klealTransfer Interest receivablè and simiLar income Interest and finanartg cnsts 31 12 13 665.735 5,209 52,1991 1.317 (41.871) Surplus befor8 t8xalion Taxation on surplus Surplus before and aft•r taxation 348.307 1.045.054 348.307 1.045,054 Surplus bdore and aft•rtaxation and total comprphenBlve Income for thè financlal y￿r 348.307 1.045,054 An acbwties relate to ￿ntinUIng cyernlw)ns. The notes on pages 24 10 44 form p8rt of these finanfial statements. 19

atement of Financial Pogltion at 315t"March 2022. 2012 2021 F.ixed I"￿ets T8nwt4"e fixed a8sats- hwsFng properttes Tangibla fixed as8et- olher 20.317.044 l.B4434S 19,688,804 1,755,321 15 .Cun8ntass•ts Debltys- re￿I¥301e vrilhlft on8.year c8sh.and cash equfvajenis 22.161389 21.424,125 .16 628,1Y7 584692 2.116,704 2.696.691 ,212.869 4,B1&395 Cr8dltors'. amounls falljm due wlthln onE ear 17 {5.977￿3} .012,5 N8teuTrent assèt5 2.235J46 2,800￿19 "Total o¥sets1•8s currontllabllltlas 24.400.735 24,224.944. Creditors: amounts falling due 8ftermor& than on8'y¢o¢ Protrlslori or Ilabllltles - other rovlslgns 18 21 111631.683} 1384.5901 (12,888.8¥2) (3Z2.098 Tolal N•tas58ts' ¢IAB4,282 1"1,03&954 Capltal and resefVeS Reslricted RèsèNes In¢(Yae and Expendllurè Reserves 28 556,876 f Q,827,286 8g2.8&3 10.143,121 Tolal Rgserv 11.384862 1.1,035,954 Th8 nots5 on p9$ 24 lo I$4 f(Mrn part rftkes&finAn¢¥al 6tm"nY8. .Company Nuinter No.018Ja610 'Regi51ered Cha￿ty No2848 The firiairial statèmonts wère appr￿rf a￿ansed ty the Board on the 2V. Sep(eThe"r 20& and wor•.$1gne￿ on Ihg 8oard¥tJ8balf ty. K MACDONALD Chair of the Board P F.REEMAN Chalr of Finance, Audit and Risk Comrnitteo

Statemont of Changes In Re$orves for the yoar ended 318t March 2022 R•stri¢ted Nots Res•rve8 Income and Expenditurg Ro¥erves Total Balance at 14tApril 2021 892,833 10,143.122 11.03S.9S5 Surplus for the ygar 128.583 219,724 348.307 1,021A18 10,362,846 11,384.262 R•serves Transfers.. Transfer from Restrfcted Rèserves 28 464.540 Balan¢¢ at 31st March 2022 556.876 10.827,386 It.384.262 ststement of Changes In Reserves for the year endad 311 March 2021 R•8tricted Roswes Incomo and Expenditur• Resgrves Total Balanc at 11t Awil 2020 Suryjlus for thg year 808,954 488.234 9,181.948 9,990,900 556.821 1.045.055 f,297,188 9,738.767 11.035.955 Reserves T18nsfers'. Transfer from reserves 404.355 404.355 Balance al 31d March 2021 892.833 10.143.122 11.035,955 The note$ on pages 24 10 44 fomi part ofthesÈ financial stslements. 21

Statement of Cash Flov￿ for the yfrar endod 31AI March 2022 Nots 2022 2021 Cash flows from oporating aetivities Su lus for tho flnanclal ear Adjustment$ for.. DeprecialK)n offfixed 8&sets- housing propertres Depreciation of ffixed assets- oth$r Amortised grant Gift ofA$sets Interest psyabfe and finance costs Interest ieceived Acceleialed depraciation (Sodal Housing and Non-s¢￿￿81 housing) Sale of18nd Ex Sussex Oakjeaf reC￿ded to revenue Increase in trade 8nd other debtors Increaselldecrease) in trade ￿ditOrS and othercreditors Gain on Tevaluatlon of Pension Increase in rovisions N•te4sh orated fmm o 348 307 8.14 8.15 423.519 145.103 1172,354) 388.823 103,261 1161,2881 {665.735) 52.199 15,2091 4.761 31 13 12 5.14.15 41.871 11,317) 7.878 4.178 12.855 (479.559) (115.788) 16.29 17,29 f8 21 12,51 IA731 3,927.288 {22,529) ratln activttles 49.3CfJ 232.881 2 248 785 Cash Ilowa froml(usedl In Investlng a¢tivities Interest received Purchases of fixed assets- h￿SIng prop￿￿￿$ Purchase ofnew housing prO￿￿- Rapley Court Purchases of fixed assèts- other Cash received relating lo gift Recei of Tant Net cash usedin Investin 12 14 1.317 169S,483) 1383.658) 1238,6221 5.209 (508.6231 14 15 (128,2901 272,396 71,359 87.949 19 67.500 1.248.946 actlvlties Cash flows used In flnanclng acllvltles Interest pakl Rgpayment of loans- other 14et cash US￿1n flnoncl 13 20 141,8711 169.9671 111.838 (52,199) 168,352) 120.551 acdviUe5 Net Incrna8el(Decrea8e) in cash and cash •qutval•nts Cash and cash equivalonts al beginnirvJ of y8ar 888.001 1175.819) 2.696.691 2.872,310 Cash and cash uivalents at gnd of ear 3.584 692 2.696,691 The notes on page 24 to 44 form part of these finaJK4al 8tatemenls. 22

Notes Fomiln Part of the Financlal Statements for the oar ended 31•t March 2022 INDEX OF NOTES General nots8 Legal Sta￿s Accounting Poliaè8 Judgements in 8prAying accounting poliaos and key sources of estlmalion Lmcertainty Statoment of Compr•hen8lve Income relat￿ notes Partrculars ofTurnover, Cost of Sales, OperntirKJ Costs and Operating Surpjus Income and Expenditure from Soaal Housing Lettlngs Particulars of Turnoverfrom Non-soaal Housing Adivltse8 Units of Housing Stock Operating Surplus E￿￿OyeeS Diiectors and Senior ExeculNe Remunération Board Membets Int8ces1 Receivablè and Income from Investments Interest Payable and Sunilar ChacgOS 10 12 13 ststement of Financlal Po¥lllon rolated notes 14 15 16 17 18 19 20 21 22 23 24 25 Tangible Fixed Assets- Hwsing Properties Tangible Frxed Assets- Other Debtors Credilots.. Amounts Falling Due- Wthin One Year Creditors: Amounts Falling Dve- More Than One Year Dèferred Capitsl Grant Loans and Borri)wngs Provisions for Liabililte3 Pensions Contingent U8bi1￿eS Operating Leases Capit81 Commitments Related Paty Disdosures Members. Li8bility Caimlal and Resèrves Financial Instruments Net Fund Reconctlialion Grft of Assets & Li8bilities frcffl the transfer in ofsussax 0a￿eaf 27 28 29 31 23

Notes Fonnlng Part of the Flnan¢ial Statements for th6 year ended 31¥t March 2022 (contlnu Legal Status BHT Sussex is registered vrilh the Finandal Ctxpauct Authority and is reglslered wth thè Regulator lor Social Housing as a ￿￿al housing provider. 8HT Sussex is a charitable housing assoaa￿n, a company limited by guaranleg under th6 Companiès Act 20CE and is yovemed by its Articles of Association. BHT Sussex is also registered with the Charity CommKssion an(6 as such is governed by applicable Chaiiltes Aci legislation. BHT Sussex is a publc bÈnefft enlity registered in England with Charity number 284839. Regulatorof Social Housing number H1696 and Cownpany number 01618610. Th8 Registered Office is 144 Lon¢Jon Road. Bri9hton. East Su3sex BN14PH. Accounting Pollcles The finandal statements have been prepared in accordance with applicable law and UK accounung Standards (United Kingdom Generally Accepied Accounting Practice) which for BHT Sussex includes FRS 102 Ihe Financial Resx>tbng Standard applicable in Ihè United Kingdorn, the Republffic of Ireland" thè stat￿nent of RecommendÈd Practicè ISORPI for R8gi5t¢red SocAal Housing Providers. 'Accounling by iegislered sooial housing PToviders" 2018. the Accounting Direction lor Private Register•d Prowders of Social Housing 2019, and the Companies Act 2006. The preparation of ffin8ncial stalemenls in ￿MplIance with FRS l(r2 requires thè use of certain ciitical a￿ountr￿g eslimales. It also requires management lo exercise judgement in appIying the 8co)unting poli¢ie5. Thes& estimates and IL￿ements are OU￿ned in Note 3. The following priThip31 aC￿Unting poli¢ies have béen applied: Golng Concern FdlLW4ing assessment of th& BHT Sussex fin8nrial ￿tKIn and resources 8vaiPable going forward, induding Ihe cashflow FY)sition for the next eighteert months, the Board believes that BHT Sussex can manage its business risks, finanu81 forecast {induding monthly (35hllow forecasts with sensibvity analysis), 8nd has a reasonable expectation that BHT Sussex has adequate resoureès lo continue IVera￿n9 for the f￿eSeeabIÈ future. For this reason. BHT Sussex continues lo adopt the going cor￿eM basis of ￿sU￿b￿g. in the preparation of thè annual finanGial stalemenls. Based on thi assessment the Board has conduded that a mateiial uncertainty does not exist, and BHT Susstrx 1$ expected lo conlinue lo operate foi the foreseeable future. Nohvithst8nding the risks 8nd uncertaintitrs that we fac6, we are conffidtrnl that BHT Su&8ex has a po8the future. We have reached this o)ndusion by reFeran¢e lo= Ov8r SLVh of our income comes from ￿nI81 and Servi￿ tharges, a relatively se¢ure income strÈarn and one whi¢h is well managed wilhin the organisalron. 83.4Vo of this income is pald directly to BHT Sussex fcom Housing bEneffit8, UnNarsal Credit and Adult Sccial Care, which provides confidence in future paytTnts of this stream of incorfte. For 2021r22, 62% ofoui contracted in(xxne is seojre, most other Inc￿Me is sècure during the lrfelime of contracts. and shO￿d these contr8Cts be teminated, we can flex costs ac£ordingly. NolwithslandirvJ currènt challenges ielaling to ch81itabJe fiJndiaisirwJ. any ShrX￿)l is like￿ to be temporary and would not have a material impaci on our assessment of going concem. Controls we have on infiationary aspects of our sajary and 18waFd slrudures. Our rash balances. al Ihe point of signing Ihesè accounts. is almost 100°% grèater Ihan tha £1.5 million head room aor8ed as policy. We have also undertaken a cashllow lore￿$1 for the next 18 months {Aprfl 21T22 to Septèrnber 20231 and Ihis shows we will be able lo maintain 8 healthy £3m cash balanc8. Sensitivity analysiq for highèr levds of infla￿.0n on Ihis forecast show that we would ¢onlinue to maintain cashfiows above our £1.5 million targèl. Ouc very limited 8xposure to flu¢tuations in Ihe money rnar*•ts. Where we have borrowing, this is at a fixed rate. We havè no involvement in developin9 properties for sale. Our ability lo withdraw from actwitiès with reasonable notic8 should they b￿Ome an Una￿pt$b1e drain on Ihe cash resources of the organisation. In¢om• Incomt is measuc•d at the fair valug of the consideration re￿1Ve￿ or receivable. BHT Sussèx generates the folowng material irKome streams.. rental income recerv8bl8 (after deducting lost rent from void prcyerties availablg for letting).. service djarges receivable. revenue grÈnts from statutory and Oth81 aulhoriiies.. aN1 lègal Asstscialion income. R•ntal Incom• Rental income from residenlral prop&￿68 is recognlsed in the Staternenl of ComFxd)ensive Income when h falls due. 24

Notes Formlng Part of the Flnancial Statements for the year onded 3151 March 2022 (contlnuedl l Accwnting polleies Icontin4wI} Supportèd HousSng Schemes BHT Sussex receives Supporting People grants from 8 number of Boroughs and County Counals. The grants re￿iVed in the period, as well 8S Costs inojrned by BHT Sussex in Ihe provision of support seNic8s. have been indudèd in the Statement ofcomprehen￿ve In¢orne. Any èxcess of cost over the granl received is ￿[ne by BHT Sussex. %there it is not recoverable from tenants. Servlcè Charges BHT Svssex adopts the fixed r￿thOd for calculating and charging servic¢ tharges to its tenants and leasehclders. Expenditure is recorded Wh￿ a Se￿1￿ Is provided artd cknarged lo the relÈv8nl seNice charge aco)unl. Ino)me is rec4Jrd&d based on the estimated amounts chargeable. Lggal Aid Asso¢lation Ine¢)me Legal ATd Ir￿M￿ 18 accounted for when eamed. Income is recognised at agreed r31es forall work carrled o(rt up to the balaFtce sheet dale. Any incorne eamed. where full sett￿ment Mll not b8 receN8d until the ¢8$e is closed, is accwed, and slatèd at the lower of cos1 and nel 18alisat4e value. ExpendSiurn Al gxpenrfitu￿ is xcounted for on an 8¢x￿￿lS basis and allocated to the appropriate headN)g in the a¢>xJunt Costs ol generating income comprise the costs assodaled wilh generating donations. attracling fundraising. delivering services that are fund¢d by grants. providirwJ advice se￿￿e5 fundèd by the Legal A￿ncY and providin9 housing services fiJ￿Ied by rent and servi¢e charge Incom8. Charitable activities ¢omwis8 411 costs inajrred in the pursuit of thè charitable objectives ol BHT Sussex. These costs where wholly attributable, are apportioned betr￿en the categories of charitable expenditure in 8ddition lo the direct costs. The total costs of each Category of charitable expenditur6 thereforè rn¢Jude supp()rt costs 8nd an apportionment of overhea(ts. as show in note 5. Support W3ts indude those c0515 assodalÉd wlh meeting the ¢onstitution818nd statulory requlrefflents ofthe charity and include the audit feè$ and costs linked to the 8trale9ic management of BHT Sussex. Manag•ment of Units Ownod by Oth• Rent and grant income receivable are induded in Incx)rne. The ¢osl8 of caryng OLrt the managoment of¢ontrads and rechargeabl8 expènses are included Ni operating costs. Schemes Manag•d by Ag8nts Income from these 8thms 15 included wthin ronl recavable. The costs assoaated these properties relato to depwation and loan intere81. No management fees are charged by Ihe agents. Flnan¢e Costs Interèst is incurffjd on loans held by BHT Sussox and is chaiged to the Statement tsf Comprehensive Income. Curr¢nt and D•ferred Taxation 8Frr Sussex is a Charity wlhin the méanÉng of P8ra 1 ScJ)edule 6 Finallce Act 2010. Accordingty, it Is potentialty exempt from tsxation in respect of incK¥ne or capital gains within categories covered by Chapter 3 of Part 1 f of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable G8ins Act 1992, to Iho extenl that such income or gains are applied exclusivety lo charit8ble purposes. No tax carge 8ro8e in the period. Impalrnient of Fixed Ass•ts The housing property portfolto for BFrr Sussex is Assessed for indicators of impalmient at each balar￿ sheel datè. Where indicators are idèntified. a detailed a95e58ment is undertaken lo comparè the carrying amojnl of assets or cash generating units foi which impaimient is indicated to their ￿Verable amounts. An options appraisal is carried out to delemiine the option which produces the highest net realisable value. Valuations on rental retum. or potential sale proceeds. are obtained and used to inlom the oplions. BHT Sussex k*)ks at the net realisable value. from the oplions available. when nsidering th& r8coverablg amount foi the purposos of Impalm￿nt asse55ment. The recoverable amount is taken to be the higher of the tsir value. lèss cosls to sell or vaug. in use of 8n asset or cash genÈr81ing unit. The ass¢ssrnent of value in us9 may invO￿e ￿nSider9110n$ of Ihe service potential ol Ihe assets Or￿Sh generalsng units concemed, or th8 present value of future (xsh flows to be derived Ircrfn them appropriatety adjusted to account for any reslfictions on their use. 25

Notes Formlng Part of the Financial Stat9ments for the year Qnded 31at March 2022 {continued) 2. Accounting pollcl•$- Impalrnient of Fixed As$ets (ContInu￿1 No properties have been valued at Value in Use- Service Potential (vru-SPI. 8HT Sussex defines cash génerating unts as sch8m¢s, except where its schemes are not suffieienlty largè enough in slze or wh&re il 18 geographicalty sensible to group schemès into larger cash generating units. lthere the recoverable amount of an asset. or cash g&noraling unit. 1$ lower than Its Carrying value, an 1mpairn￿n1 is recorded through a thaige lo irtome and expenditure. Valua Added Tax BHT Sussex charges Value Added Tax (VAT) on a small prokK)rtion of its incorne relaliThJ to legal and IT semces and Is able lo reu)ver part of the VAT it on expenditure. The ffinancial statements indude VAT lo the extent Ihal it is suffered by BHT Sussex and is not recoverable from HM Revenue and Customs. Recover8ble VAT arises from partialty exempt actmlies and 15 credited to tho Ststsment of Comprehenslve Income. Ponsion Costs BHT Sussex operatès a defined conlribution pension schemè with ScA)tbsh Imdows and 212021: 21 staff membeis bèlong to the NHS pension schem•. The assets of thé schemes are held separatèly from those of BHT Su$sex. Contslbulions to the schemes are tharged to the profft and loss in the year in which tw b￿rne payable. As part of the Sussex Oakleaf gift, 8HT Sussgx look over Defined Bènefit 8theme hèld wilh TPT- the Grcwth Plan. This stheme is dosed to new mernbers. The scheme is 8 mulli.employer defined bènefit pension scherne. SuFfi¢ienl Information is not availabla to enable BHT Suss8X to identify its share of assets and liabililies an¢J as a resull. and in 8¢cordance I￿1h FRS102. these ffinanaal statements ac¢ounl for the scheme as rf it were a defined ￿ntributIOn $cheme. ere a recovery plan is in p5ace to a(klress the defidl, BHT Sussgx reojgnise. 8$ a liatility. its commilment to make conlribulion$ under the t8mis of thal recovery ￿an wilh changes to the valu8 ofthi$ commitment rec4Jgnised wlhin Ihe Slalement of Compreh6n$we Inc4Jme. As part of our suCCessfi￿ lender ofthe East SUSS￿ Floating SupptKI Seivice. 412021: nil) members ofslaff are in th8 Local Govemment Pensitin Scheme (LGPSI for which BHT Sussex will pay a fLYed contribution rates for Ihe duration of th8 conlracL All other staff that TUPE'd wilh the new service are in oui Scotlish Wdows pension stheme. Tanglblo Flxod AS￿ts- Houslng Properties All housing properties are stated al C￿1 together wlh incidental costs of acquisition Jess depreciation and rmpaimient (where applicable). Expenditure on malor Tefurbishmenl lo properties is capiialised wheTe the works In￿eaSO Iho net rental stream overthè life of the property. An in(xease in the nel rental stream may arise through an In￿e88e in the net rental in(x)me, a redLKtSon in futrjre maintenance c(ists. or a subsequenl extension in the lrfe of the propety. All other ￿pair and replacement experKliture is charged lo the Ststemenl of Comprehensive In￿rne. DePr￿lation of Hou¥lng Property H￿j$1￿9 land and propeity Is split between land, structur& and other maJorcompDnents that are expe(aed to require repl8eemenl over time. Land i$ not depredated on a￿￿Unt of its indefinlle usefijl ecor￿miC life. The t>)81 of dl other housing property (net of8(xumulaled depreciation to date and Imp8irwit. wheffj applrable} and components is depFecialed over the useful ecLxK)mic lives of the assets on the folh)wtrny basis.. Housing properltes are split t4iween Ihe StrU￿Urt and Ihe major componenls which require periodic replacement. The cost5 of le￿a￿ment or restoration of ihese components arg camalised and depreciated over ihe defermined average usa(ul e￿n0￿M¢ life as follows: Dgscrl Structure Kitchen Bathroom Roots Extemal doors Boilers 15 Heating 30 External wJNIows 30 Leasehold properlie$ are depreciated over ihe18llg1h of the lease except whgre the expe¢ted useful ectsnorn￿ lite of properb¢s is shorter than the lease. when the lease and building elements a(9 depreciated separatety over their expethd useful econ¢)mic lives. lon E¢onomlc us•ful Ilfe 1C 20 30

Notes Fornilng Part of the Financial Statements for the 2. Accountlng policlès {¢ontlnuodl Tangible fix•d assets- 0th8r Olhèr tangi￿e rued as$¢ts are Stat￿ al hrstor1¢81 cost less accumulated dep￿(19110n and any accumulated impairment losses. Historfcal cost indudes expenditure Ihal is directly attributable to bringing the assét lo the location and condition ne￿$sary for Ét lo be capable of 0￿￿ting in tho rnanner intended by managemènt. ear ended 31St March 20221continued) BHT Sussex adds to the cairying 8mounl ofan ttem offfixed assets the cost of ieplacAng part of such an item when that rA)St is inujrred if the replacement part is expecled to provide incremental futute beneffts to the organisation. Tho earrying amount ofthe reptaced part is dere(x)gnised. Rep￿rn and maintenance are ch8rged to profil or loss during the peih)d in which they are in￿jrrert. Depreclatlon of Othèr Tang5bl8 Fixed As8Èts Land is not depreriated. Depreci81ion on other assets is charged, 80 as to ¥Mocate tha ￿)st ol assets less their residual value over their eslimaled usefijl INes. using the strai9hl-line method. The gstimaled usefrjl lives range as folbws.- D•scTI tion Leaseh¢Ad properties and improvements Freehotd non-housing properties {exduding land) Fixtures, fillings. tools arKI èquipment Economic uselul life Lease temi 100 •ars The assets, residual values. useful INes and depreci8b.on methods are revlewed. and 8djusted pr03pectNety if appropriate, rflhere Is an indicalion of a significant change since the last reporting date. Gains and losses on disposals are determined by f))mparin9 the prowds svith Ihe txrrying amount ant18re recogrAsed wilhin'olher operating income. in the Slalement of Comprehénsive Income. Gov•mment Grants Grants are carried as d8f8rred income in the balano Sheet an¢J releasÈd lo income and expendituie 8eo)unt on a systematic basis over the usefrjl economic lives of the assel for which it was receivèd. In accordance wlh the Housing SORP 2018. the useful economic life of the housiThJ propatty slructuig has been tsef￿ed {$ee table of usef¢Jl eeonomic lives 8bove). Where a social housing grant {SHG) funded prO￿ty is sold. the grant becomes rgcyclable and is transferred to a reeyded capil81 grant fund until il ts reinvested in a replacernenl property. If there is no requirement to reGycl• or repay thg grant on disposal ofthe assets. any unamortiseil grant remainiry wthin creditors is released and r¢¢ognised as In￿Me within Ihe income and expenditure ttount. Grants relats.ng lo revenue are r(xJgnised in Income and expenditu￿ over tha same Ferf¢xl as the oxpenditur8 lo whKh Ihey relate once perforfflance related conditron$ have bggn mel. GBnts thje from government organis81ions or received in a¢fvance Bie induded as current assets or liabilities. Ouring Ihe year, we tried lo minimlse the nUM￿r of peoplo on the govemmerfs Job Retention Stheme. DebtOTS and Credlto Deblors and txeditors wlh no statal tnlerest rate. that are receivat4è or pay8ble within onè year. arè recorded at transaction Pri￿. Any losses arising from impaimient B ￿ recognised in the S¢atem8nt of ¢))mprehensive income ￿ other operating expenses. Rrfoverabl• Amount of Rental and Other Trade Recohvables BHT Sussex estimates the recoverable value of rental. and other receNa￿e$. and impair8 the deblor by appropriate amounts. When assessing the 8mounl to impair it reviews the ag$ profile of the debt. historical Coll￿10n rates and the elas8 ol debt. Financlal LIa￿litI9$ and Equlty Fln8naal liabilities and equty are dassified acwrding IL) the substan¢% of the finanaal instrumenvs ￿￿traCtUal Obligath￿s. rather than the financial instrumgnfs legal form. Loons All loans held by BHT Sussex are dassified as basicfinanrjal instruments in aceordance with FRS102. These instnJmenl$ are initially recorded at the transaclion price. FRS102 requires that basic ffinawKial ￿StruMentS are Subsequently measuted al ar￿rtISed cost.

Notes Fom)ing Part of the Financial StatemoTrts for the year ended 315¢ March 2022 (continued) 2. Accounting policles {continued> Cash and Ca¥h Equival￿ta Cash and cash equivalents in Ihe Slatemenl ol Financial P08+tion consfists of cash at bank, in hand, deposbts and short- lefrn investsments with an orfginal maturity ofthree months or less. Leased A$8ets- Lesse• All leases arè trealed as operaling leas8s. Their annual wtals are charged to wofil or loss on a straight-11￿ basi5 over the lemi ofthe lease. Reversa ptemiums and gmilar In￿ntiVeS received to gnler inlo operating lease 8greernents a￿ released to profft or loss over Ihè tsrm of the lease. Provl$ion for Llabllitles BHT Su58ex has recognised provisions for liabilitiès of ur￿ertaIrt Ilming or amwn18 induding those for major repairs on sloc* transfers and loaseholders. dilaimdalions. restNduring. Provisions are measured at the b881 e8timate of the expendilu￿ required to seile the obl19al￿n at the b8lance sheet date. ère ihe effect of the lime value of rnoney is material. lh& anount exPe￿¢d lo be required lo settle the obligation is recognised al th8 present value using a discount rate. The unwinding of the di3count is ￿())gniSed as o finance cost In income and expenditure in thè ￿riod it arises. Contingent Llabilities A ¢c￿ti￿gent Ilability is reccgni3ed for a possitrle obligallon, for which il is not yet confimed that a present obligation eyists that could lead to an outllow of resources. or for a present obligation Ih81 does not meet definttions of a provision or a IHknIty as it is not probable that an tyjffiow of resour￿ will be required lo settle U)8 obligalton or when a suffica¢nlly reliable estimats ofthe amount camot be made. A o)ntiTh4gnl fiability exlsts on grant r8p8yment wh￿h Is dependent on the disposal of refaled property. Reser￿$ Income re¢eNed. and expenditure incurred. lor reslri¢tod puiposes is separatety a¢¢x•unted for ￿thIn restrict8d funds. Realised and unrealised 98ins and lo&ses on assets hèkl by thes& fvrxls are also allocated to the fund. Gift of Assets All assets liabli rfres knnsfeTred 8re ￿cogniSed at fair vahje. Judgements In apptylng accounting pollcles and key Sources of frstimatlon uncertainty In preparing these fjnancaal statements keyjudgafflerrts have been made in rospect of the followng: Covid-19 has not triggered any reductions for BHT Sussex piopety values as net r6ntal inllows are broad￿ nol affected. lo boih ongoing high demand for social housing. the limited impact on future cash Ikms due to highly certsin rental slrearn8, and the impala of rising bad debtslarrÈar5 being limitod,. and lthelher there are indiTrlor8 of impaimènl of tangible 3ssels. Factors taken into considerath)n in leaching sud) a decisKJn include the economic viabilty and expected future finanoal perfotman¢e of the asset 8nd. Whe￿ it is a component of a larger (ssh-geneiBtin9 unit, the viatN"fity and expected fijture ￿rfO￿nanc8 ofthal BHT Sussex has cons¢dered the measurement basis to dotè￿ln8 Ihe recoverable amount of assets where theie a indicalors of irnpaimient based on EUV-SH or dewecialed replacement cosl. BHT Sussex has 8180 omsidered impaim)Ènl based on their assumption$ lo define cash or asset generating units. Othèr key sources of e8llmaUon uncertalnty Tgngible fixed8ssets (see nole 14 and 15) Tangible fixed assets. other than invesim•nt properties. arg depreciated over Iheir usefijl lives, taking rnlts account rèsidual values where appropriate. The ￿tUal lives of the assets and residual values are assessed pariodically and may vary depènding on a number of factors. In re-assessing asset lives. factors such as asset and m8rkel condition arg laken into aixount. Residual value asses$rnents consider issues suGh as future m￿ke1 conthiions. the remaining Iff¢ of the assèt and woied8¢J dispxal values. 28

Notgs Fornilng Part of the Flnanclal Statements for the Other kèy Sources of esttmation uncertalnty leontinuedl H¢JJ$lng propety assets a￿ bfoken down inlo Components baséd on managemènt's assessment of the propertles. Individu81 useful economic INes are assigned lo these ojmponènts. RentBlÈnd otherlrade tsceNables (debt0￿) ($88 T￿18 16) The •stimale for receivables relates lo the recovorability of the ba18nces ouistandtn9 al year end. A rèview is perfomied on 8n ind￿0du8l debtor basis to considerwhelher oach debl is recmrable. ear ended 31st March 20221contlnued) Pro￿s1On of potential r•ntal bad debts is basod on 11]IYh orfomiertenant arr8ar8 balan￿$ and for curienl balances, 8 variable percenlage speofiG lo eath service based on past wyile-off levels. Partl¢ulars ot Turnover, C08t of Sales, Operating Costs and Operating Surplus Turnovèr Oparating Costs OperatFng Surplu#l ID•fielt) 2022 2022 2022 So¢ial Houslng Lettings (Not• Sl 7.438,043 16.464&981 973.445 Other Social Housing Acll¥ltlo9 Supporting peopl Residential Care and Other grants 1.165,986 1.235,687 1,134.6021 11.201,7281 31,384 33.959 Total Swial Houslng 9.839,716 18.80D.928) 1.038.78J Aetivitles other than S￿la1 Houslng Activities (Noi• 61 Legal Advisory SeNicgs Day Centre Non-IK)usirNJ rent incomg Other ac*ivrties 1.289,253 412,024 40.012 3 394.085 11.267A451 1444,6841 140,012) 4.033.160 21.808 132.660) 639 075 Total Activities other than Soclal Houslng 5.135.374 15,785,301) 1649.927) Total 14.975,090 {14.586.2291 388.861 Turnover Opeialing Costs Opeialing Surplusl (Deficit) 2021 2021 Social Houslng Lettlngs {Not• 51 7,532,948 16,235.698) 1,297250 Othor So¢lal Houslng A¢tlYiles Supporting people Residential Care and Other grants 1.180.863 1.158,980 11.083,8831 {l.[￿3,977) 96.780 95.003 Total Soelal Housing 9,872.591 18,383,558) 1.489,033 Actlvltl8s other than Soclal Housing Actl¥itiè8 (Note 8) Legal Advisory Servlces Day Centre Non-housing rent Income Olher 8cllvilie8 1,(￿.928 364.473 22,626 2.482,243 (1.261.361) 1510.013) 128,45n 3,139,163} (254.433) (145.540) (5.831) (656.920) Total Activities other than Social Houslng 3.876.270 (4.938.994) 11.062,724) Total 13.748.861 113.322.5521 428,309 29

Notes Fornilng Part of the Flnancial Statements for the yèar ended 319t March 2022 (eontlnueo) 6 Income and Expenditure from Soclal Housing Lettings Gener81 Ne¢d$ Supported Housin9 Temporary Sooal Housing Total 2022 Total 2021 Ineome Rents nel of identifiabl¢ Se￿1￿ tharges Semce charge income Release olgovemmènl capital giants Other income Turnover from soclal housing lettlngs 2.369.098 522.886 110.514 2,171,344 1.703.217 61,840 45,205 3.981.606 322.253 131.684 4.862,695 4,932.376 2,357.789 2,381.867 172.354 161.288 3.002,500 453.937 7.438.043 7.532.948 Exponditure Managemenl Sérvre charge cos15 Routine maintenance Planned mainlenance Major repairs eX￿ndItUre Bad debts Depreaation of hwsing ptopèrtigs.. annual charge accelerated de reaation Operatlng expenditurg on social housln lètbn Oporating surplu¥ldeficit on social housln lettin (42.080) {276,1931 (1.109.602) {3.298,8921 1446,146) {203.0861 (83.141) 136,298) (94.530) 128.302) 127.988) {31,666} (20,660) {338.9331 (325.478) {317.7201 14.726,2141 14,630.836) {27.410) 1676,6421 1505,372> {2,556) 1121.995) {199,6731 103 1122.7291 1152.602) 11,211} 160,8651 (28,153) {187.4741 8,113 (220,778) 1.814 (1,982,848) (4.097.029) (15,267) 1423.519) {388,8231 {384,721} 16.464,5981 18,235.6981 1.019,652 (115,423) 89.216 973.445 1.297,250 Voldlosses memorandum onl 28.320 589.665 477.19 The differenco beknn £2.094.394 and £1.079,141 (both Note 14} is repairs and maintenancg cDsts. The dffiffeier￿ of £1,015.253 Is rÈpaiTS and maintenance exp6ndilure. This amount has been split betsveen Sw81 Housing {£921,3661 as delailed in notè 5 and supporting people1£93,887}. 11 should also be noted Ihat wthin acceleral¢d deprecialion. there is gain of sale of land for the valug of £14.176. 6 Particulars of Turnover from Non4oGlal Houslng Actlvitles 2022 2021 Advlce SeNI¢¢s: Leg￿ [n¢￿dIr0 costs & diSt￿rsementS re(x)vered 728.944 553.089 Grant con￿1 inwnes S15,269 431.410 Don8tion8. fvndraisi other inccne 22.429 Total for Advlce Servl¢•s 1 289 253 1006 928 2022 Day Cgntre Grani cc)tract incomes Lunches Donalhms fundraisin 316,763 253.485 & other incomo 95.261 110.838 Total for Da Contre 412,024 384.473

Notes Fomilng Part of tho Flnanclal Statemenls for the year endod 31st March 20221contlnu4d) 6 Partlcu10rs ol Turnover from Non-So¢ial Houslng Activltles fcondnued) 2022 2021 Non.housing rent Incomo RenaissatKe House Total for Non.housln rant Income 2022 other Actlvlti•s Grant contract incomes 3,117.889 124.998 17,908 2.057,638 124,998 17,8861 107.721 8HT Sussex IT Solution8 Donati￿$ 8 fundraisin9 Furt0￿h tiob retention sc*eme) Other Income Total for other activitl 3 394 085 2.482.243 Turnover from non4ocSal housin actlvltles 5.135 374 3.876 270 Units of Housing Stock 2022 Number 2021 Number Gèneral neojs s￿la1 housing Supwrted housing 305 132 130 Total social housiw unils 437 435 Totsl owned 437 435 Accomm(xlation rnanaged lorothers 323 324 Total markaged accommodation 759 Unlls managed by othar Trusts Total own8d and managed a¢¢ommodation 765 Th• inThse in tha numberof unils (hmed Supported A¢coMmc4jat￿ from 120 to 132 is a t95uII of the purchase oftr 31

Notes Fomilng Part of the Financlal Statements for the yoar ended 31•t March 2022 {eontsnued) Oporatlng Surplus 2022 2021 Th¢ opetaling surplus is 8ffiv&J at 8ftÈr charging.. DepreaatM)n of housing properties- 8nnual charge Depreciatron of olher tangible fixed assets 423.519 145.103 388.823 103,261 OperatirKJ iease charges- laThJ. bullding and vehides 1.605.202 1.638.396 Auditorfs remuneralon Ilnduding VAT)= fae$ payable for the audit of the annual accounts of the Trust 29.280 29.280 9 Employoes 2022 2021 Staff costs linGluding Exeurtwe Management Team) consist of.. Wages 8nd salarie8 SociaT security costs C081 of defined contritKJlion scheme 7,301,355 599,476 334,856 6,434,707 S34,￿1 308,781 8.235,687 7,278.049 The average numbèr of emF4oyees (including Executwe Management Team) eX￿e88ed as ftjll lime equivalents {Ca1￿lated based on a slandard wi)rking week ol 37 hour81 during the year was a$ follows.. 2022 rooo 2021 £'ooo Admi￿￿tration Hou8lng, Support and Carè 75 195 71 163 270 The bjll thme equivalent number of staff recerving remuneration, Induijing company pension o￿tributIon, in excess of £60,O)O was.. 2022 No. No. £60,C￿. £69,999 £70.CQO- £79.999 £80,(IXI- £89,999 £90.(KQ- £99.999

Notes Fonnlng Part of the Flnancial Statements for the year endod 31°, March 2022 (continuedl 10 Dlrectors and Senlor Exocutive Remuneratlon The directors are defined as the members of ihe Board of Trustees {the Board). the Chtef Execulive and Executivo Management Tèam {EMT) disc103ed on pagè 2. Key management personnèl are defined as membeTS ofthe EMT. Their remuneration is disclosÈd bdow.. 2022 2021 Executive diredors. èmoluments CoTrtribulions lo mon ufchase 356,9)7 nsion schem•s 345.217 Total 376.469 363.710 No memb8rs of the Board of Trustees received any emoluments in 2(Y22= nil12021.' nill. The Board of Trustees re￿ed £40 {2021'. £35) for Board expenses during the year. The totsl amount payable to the Chief ExeculNe. who was also the highest paid director in rèspect of emoluments. was £87,67012021- £86,8(Y21. Additionally, pension conlribul*)ns of£4,822 (2021.. £4.7741 were made to a deffined contsibulion pension stheme on his behawas an ordinary member of the schemé. As a membei of the ￿MpanY pension scheme, Ihe pènsion entrf1•￿￿nl of the Chief Execulive is identical lo those of othèr members. Thete ware 5 directors in the defin¢d c4JnlributNJn pension scheme {2021'. 5). 11 Board Mgmbers Member of- F5nanc• Audit & Rlsk Commltt¢• Board Membe Oporatlons & Pèr¥onnel Committee R•muneratlon Cornmlttge Govgrnanc• Commltt•è Board Joan Morttmer Leona Oaniel Petw Freeman Sarah BUt￿r lan Millac Melanie Daws Roger Hrnlon Kelvin MacOon8kF Gerald Main Mary Tawiah Paul Wlliams Paul Fèalherslon8 Nthc4as Wllmorè Lawrence Santeross Angel￿e Walkgr Andrew Rose No remuneralron was pald lo B0￿d mèrnbers. (2021.. nill.

Note8 Fonning Part of the Flnanclal Stat¢mgnts for the year ended 31¥t March 2022 {continuod) 12 Inter•st Rtceivabje al￿ Incryn? frorn Inv061m•nts 2022 2021 Interest rec8wable and similai inccxne 13 Interest Payablo and Slrnilar Charg0¥ 2022 2021 Intgresl on loans and ovèrdrafts 41.871 52.199 14 Tanglblo Flxod A$80ts- Housln9 Pr¢￿rtIeS General N￿18 Supported H¢uslng Total Cost Al 1* Apra 2021 15.378.4C 10.664,314 26.042.720 Addition3'. repla¢ed c(¥nponenis other Purchase ofnew propety- Rapjey Court DisposaL8.' replaced ¢omponents 256.804 ,803 T44.￿8 87.708 383,658 400.972 294.511 383.658 (54,6591 (13.910) (68.569) At 31" March 2022 15787 154 11266 138 27 053.292 Dèpr•eiation: At April 2021 Charge for the year Elimknated on dispos81s.- re￿aCed components 13,561.141) 1187,4751 12.812.775) {236,tM41 (6.373,916) 1423,519) 48, 12,591 61,187 At 31st March 2022 13.700.020) 13,036.228) {8,736.2481 Ngt book valuo #t 31" March 2022 12.087.134 8,229.910 20.317.044 Net book value at 3151 Mar¢h 2021 11.817.265 7.851.539 19.688,804 The net book value of houslng pffjpertks may be further analysed as: 2022 2021 Freehold Long Leaseh)Id Lè88ehold Improvements 17,045,369 2.492.132 779.543 16.373.464 2,5CiI.956 794.384 20 317 044

Notes Forming Part of the Flnan¢ial Statements for the year ended 31¥t Mar¢h 2022 (eontinuedl Note 14 Icontinuedl Tatsl Soclal Housing Grant r¢¢•lvod Is as foFlovr. 2022 2021 C8 it81 Grant- Housin Pro iÈs 15,941.IOB 15,873,608 Total Twsl expenditur8 during the ye3r on works lo existin9 properties was £2,094.394 (2021.. £1.373,5211 of which £1.079,141 12021.. £508.623) has been ￿pitalis￿￿. The drfre￿nCe be￿een £2,094.394 and £1.079.141 is repairs and rna1ntenan￿ costs. This amount has been split belween Scrial Housing £921.36612021'. £857,647) las detailed in note 5) and gjpporting people £93,887 (2021.. £7,251). Of Ihe amoLJnts eapitalised, £4CQ,972 12021.. £329.285) relates lo the replacètnenl of complynents £294,511 (2021.. £179,338) relal¢s to the enhancemenl of properties and t383,65812021.' nil> was lorlhe purchase of Land and Builrfing. 15 Tanglble Flxed Assets- Other Non.Hou¥ing Property Flxtures. Fittings and Equlpm¢nt IT Equlpment and Soffvrnre Totsl CoBt orvaluation At 1S1 Aprl 2021 Additions Dis osals 2,107.767 11.386 147.420 97.977 5.201 207,715 129,259 2.462.SY)2 238.622 At 315t M•reh 2022 2,119.153 240,196 273.528 2.632.877 Dgpreclatlon Al I. April 2021 Charge lor ￿r Di8 osal {512,108) 130,862) 158,7751 144.233) 4.706 (138.698) {70,008) (707.581) (145.103> 88.152 At 31" March 2022 (542,970) 196,3021 1145,2601 IT84.532} Net l>ook valu• at 311¢ Mareh 2022 1,sr6,183 143,894 128,268 1.848.345 Not book valu• at 31st March 2021 1.595.659 90.845 69.017 1.755,321 Total Capltsl Grdnt roeèlved18 as follows: 2022 2021 Ca itsl Grant- Freehold Non.Housin P erties 680.000 Th• net book value of non-houslng propèrty may be further analy*èd as: 2022 2021 FreeFK)fd Long Leasohold 1,443,869 132.314 1,460.949 134.710 At 3111 March 1.576.183 1.595.659 35

Notss Forming Part of the Flnanclal Statements for the year ended 3151 Mar¢h 20221con¢lnuedl 16 Debtoys 2022 2021 Du• within ygar Rent arKI Servi￿ charge airears LÉ$8'. Provision for doubfful debts 469,885 284.764 99,475 185.289 912.532 1,018.883 Othèr debtors Prè ments arKI arxrued Income 339.913 3,168,039 1.120225 4,628 177 2.116.704 17 Creditors: Amounts Falling Due Wlthln On• Yoar 2022 21Y21 Loans and bOrro￿n9$ (Note 20) Trade ¢redilors Taxab"on and social security Other creditors Accruals and deforied incomè Oeferred Ca 't81 Granl note 19 36.390 587.808 200.622 89,596 4.802.942 260 165 69.556 399,WJ9 154.131 162.688 1.036.922 5 977.523 2 012.576 I￿ude￿ vthhin Other (Xeditors is £9,103 relaling to TPT Pension Liability due within one year. Accruals and deferrnd in￿rne incregses in 2￿21r22 are due to new contract with East Sussex County Councfl whith runs from November to October. Mth 8n annual valug of £3.8m. 18 cr￿ltorS.. Amounts Falllng Due After Onè Year 2022 2021 Loans and borrowngs (Note 20) Deferred Capital Grant (Note 19) TPT Pension Liability 312.834 12.312,344 6,705 349.635 12,488,023 29,234 12.631.883 12.868.892 19 Deferred Capital Grnnt 2022 2021 At l￿AprIl 2021 Addition Released to Ir￿Me dwi 12,677,363 67,500 172.354 12,767,272 71,359 Al 315¢ March 12,572.509 12.677.363

Note$ Fornilng Part of the Flnanclal Statements for thg year endgd 31$( Ma￿h 2022 (contlnueo) Note 19 I￿ntinued) 2022 2021 In one year or less. or on derrHnd In more than one year but not rnore than bvo years In more than fv40 years bul not more than fve years In five years 01 rnore 260,165 260.165 568,020 11.484.159 189.340 189.340 568.020 11,730.863 12,572,509 12,677.363 20 Loans and Borrowln98 Maturity of debt.. Bank Loans 2022 Bank Loans 2021 In one year or less, or on demand In more than one year bul nol more Ihan tt¥o year¥ In nv)r6 than years bul not morè than five year8 In five ears or more 36,390 1.959 7,224 303 651 69.556 36.812 6.510 349.224 419.191 Loans are sérJJred by speiific charges on the housing properties of BHT Sussgx. The to8ns bear interesl at fixed ratÈ$ ranging from 9.25% to 13.375% or at variable rates calculated al a maTgin above the London Inler Bank Offer Rate. There were rKJ is$uè costs assod8ted wth Ihe loans. 21 Provl$ions for Liabllltie6 Dilapldatlons 2022 2021 At 1th Aprfl 2021 322,098 206.244 Transferred fiom Sussex Oakleaf Released to income artd ex nse Charged a$ at 31¢t Mard) 384 590 322.098 maintenar￿ eosts of returning properties. under oper8tJnu leases. to thèir landlords in a tetlable stste. These costs are SU￿eCt lo the lease o)nditions; indudes onty dienvtenanl damage and excludes landlord re8ponsibility repairs. 22 Penslons D•fintrd Contrfbutlon Scheme A defined conts6bulH)n pension scheme is operated by BHT Sussex on behajl ofthe employees. The assets of the 8chem& are held sepatalely from thosè of BHT Sussex in an inde￿￿den￿Y administered lund provtded by SryJtti8h WKlows. T pension charge represents S.5%12021.'5.S¢hl of penstonable salary contfjbutions payab￿ by BHT Sussex to the fvnd and amounted [0 £310.26012021.. £281,9611. Contritmjtions totalling £0 (2021: £40,356) were payabl8 to the fund at the year end. 8HT Sussex ako operales o defined contribution penskm scheme for ex-SUS￿ Oak]eaf em￿OyeeS who TUPE'd to BHT Sussex. The assets of thè scheme am held separalety from those of BHT Sussex in an independently administered fund prowded by TPT. The pension charge represents eontiibLrtions P￿able by BHf Sussex to the fi￿d and 8mthJnied to £29.073 (2021." £26.820). 37

Notes Forniing Part of the Flnanclal Statemants for tho year endod 315t March 2022 (continued Pgn¥1o￿ Icontinuedl In Novoffl￿r 2021, BHT Sussex TUPE'd seven staff frcffl South EBst Inde￿nd￿nt LNing Limited (SEILL) and made eontribulions payable io the Local Govemment Pension Fund (LGPS) of£8,990 Two 12021.. 21 slaff belong lo the NHS pension scheme. Membershlp ¢)f this schome is not open lo other BHT Sussex members of staff. BHT Sussex contrrbuies 14.38% (2021: 14.38%} oflheir pènsiorwble 38tsrie8of members tothis sd)eme. Dèfined Benefit Scheme TPT Retirement Solutions- The Growth Plan The cornpany Part￿1pateS in the scheme. a mulu-employor scheme which provides beneffts to some 63812021.. 950) non- a&%)cialed partirypating employers. The scheme is a d8fin&d benefit stheme in the UK {now closed). It is not POS5ibJ8 for the wnpany lo obtain suffiaenl infoThation to enablè it tr) a¢counl for Ihe scheme as a defined benefit scheme. Therefore, it ar£￿Jnts for the scheme as a d8finÈd confribulion scherne. The scheme is subjecl to the thjnding legislat(on outlined in the Pensions Act 2(n4 which came into force on 30 December 2(M)5. This. together with doojmenls i5su¢d by Ihe Pensions Regulator and Technical Actuarial Standards is8ued by the FinancAal Reporbng Counal. set out the fr8mèwork for fiJnding defined benefit occupattonal pension scJ)ème5 in the UIQ The scheme is Classif￿ as a '1881-man Standing avrangemenv. Therefore. the company is potentially liable for other partiapating employers. oL4igalions if Ihose employers are unable to meet their shaFe ol the scheme deficAI followi￿J withdrgwal from the scheme. P8rti(xpating employer8 are legally required to meet 1heir share of thè sehÈme deficit on an annuty purd)asè basis on withdrawal from the 8cheme. A full actuarial valualliy) for the stheme was ¢xrried out on 30 September 2020. This valuation showed assets of £800.3m. Ilabillliss of £831.&n and a deficit of £31.6m. To eliminate Ihis fundiro shortfall, thg Trustee has asked the parlicipating employérs to pay addition￿ contributions to the scheme as follows.. Deflclt tontrlbutions From IAprll 2019 to 31 January 2025: £3312,000 perznnum (payable monthly) Unless a con¢wion has been agreed with the Trustee the tetm to 31 January 2025 applies. Note that the scheme's prevtous valuation was cathed out vhth an effe¢tNe date of September 2017. Thls valu8tion showed assets of£794.9m. liabilrfi&s 01£926.4¥n and a dekit of £131.5m. To diminate this funding shortfall, the Trustee has ask￿ parttcipang employers lo pay additiorAI conbibU￿Ons lo the scheme as folknys: From l Aprll 2016 to30 Stptember2025.. £11,243000 per annurn (payable monthty and Inueosin8 by 3% eath on l Aprlll 31 Marth 2022 l£sl 31 March 2021 (£5) 31 March 2020 l£s) Present value of provislon 10.$48 39,137 46.372 The amount recogni8￿ ts thè nel present value of the deficit reducbon c4)ntributions payable under the agreement Ihat relates lo Ihe deficit. Thè présgnl value is calculated using ihe diso)unl rale delailed in th¢% disdosuies. The unwinding of the discount rate is recognlsed as a finance cthl. 38

Notes Fomiing Part of the Flnancial Statements for the year ended 31•t March 2022 Icontlnuod) Nots 22 Icontlnugd) PRESENT VAULES OF PROVISION Perlod Endln8 31 Maich 2022 PerTod Endlng 31 March 2021 (£51 Provision at startof period 39.137 46.372 Un￿1ndIn6 ofthe dt5count fattor Itnterest e¥pensel 226 1,042 Defidtconvibuuon paid 19.9)41 19.6151 Reme35urements- impartof Jnychange In assumptions 12421 1,338 RemÈasurements- amendmerits tothe contribution Schedule I￿.669) Provwon aterKI of perknd iOy8 39.137 INCOME AND EXPENDITURE IMPACT Perlod Endlng 31 Marih 2022 l£sl Perfod Ending 31 Marth 2021 l£sl Inlere5texpense 226 1,042 Remeasvrpments-lmpactof change In a5sumption5 12421 1,338 Remeasurements-amendments to the cotstribution schedul? 118,6691 ContrIbu¥¢￿5 paid In respett of fijthre ser¥Ke Costsrecoanlsed in ITKorr and expwdltvreaccouni Includes defined contribution schernes and fulure selvice ¢onlribulions li.e. e￿lu(lIng any def￿1 reduction payménts) to defined benefit gtheffle6 which ￿ treated as defined eontiibulion sch8mgs. Assumptions 31 March 2022 %perannum 31 Marth 2021 %p￿ annum 31 March 2020 % per8nnurn R ofdiscount 0.66 2.53 The diso)unt rates shown above a￿ the equivalant $iryle discount rates whth. when used lo diso)unt th8 fulvre rec•)very plan con1r{L￿t1￿s due, would givo the saJne resutts 88 u&ng a full AA corporate bond Y￿]d to discount the same fecovery plan ￿NtributIOns. 39

Notes Fornilng Part of the Financlal Statements lor the year ended 31st March 2022 (¢ontlnued) Note 22 {eontinued) ADDITIONAL INFORMATION FOR THE PERIOD ENDING 31° March 2022 COMPANY.. BHT Sussex SCHEME: TPT Reltrement Solulions-The Growth Plan The fol&)wlng schedule dètsils the dèfi¢it contributlons agreed b8tween Ihe company and thè stheme al each year end perrod.. DEFICIT CONTRIBUTIONS SCHEDULE Year ending 31 March 2022 (£s) 31 March 2021 l£s) 31 March 2020 l£sl 9.615 Year 1 3,843 Year 2 10,201 9,904 10,201 10.507 9.018 Year 3 3.302 10,507 9.018 Yeai 4 Yèar 5 Ye8r6 company musl re￿gnISe 4 liakllity measured as the present value ofthe c(¥rtri￿ti￿s payable that arise from Ihe deficit re¢overyagreemenl and the resulting expense in the incomo and expenditure aco)unt i.e. Ihe unwnding ofthe diswunl rate as a finance cost in the period in which it awises. It is Ihese contributions Ihal havè been used to d8rive the companls balance sheet liability. 23 Contingent Liabilities BHT Sussex received Sociol Housing Granlswhith were used to fund Ihg acquisrfion and (Jevelopmenlofhou￿ny properties aFYl their componènts. A grant of £4,015.378 {2021= £3.857,2661 was received in respect of housing properties held al 31 Marth 2022 in respect of adoption of histortc cost. BHT Sussex has a future obligation to recycle such gi8nts once thè properties are disposed of. Al 311t March 2021. the value of grants re￿iVed in resped of these properties that had not been dispos&l of was £11.799.84512021: £11,957,997). A grant of £67,500 {2021-. niD was received from Homos England Grant recEived Sn rè3pect of housing prop&rties in 2021- 22. Al31￿ Marc 2022. the value ofgtant re￿iVed in rèsped ofthèse properties th had not been disposed of was £e£,825. In &Jdition. non-social hwsing grants of£63920012021.' £639.200) had been iocerved in res￿¢1 ofproperti•s Ihal had not been dispos￿ of. BHT Sussex has no plans to sell p￿p￿te8, so no prtivisw has b8en recognised in these finan￿al statement8. Grant recelved in respect of the Archway proiect for improvements Is nil12021'. £22.4311. Tolal inf￿￿On control grants receNed for housin9 properties is nil Q021: £48.928). 40

Notes Fomiing Part of the Financial Statements for the year ended 314t March 2022 (contlnued) 24 Operatlng Leasos BHT Sus88x had minimum lease payments under non<ancellable operating leases as set out bdtyN'. Amounts Payable as Les9ee 2022 2021 Not latsrthan 1 yeaT Later th8A 1 yègi and not later than 5 years Lr than 5 ars 1,605,202 2,348.425 1.599 725 1.638.396 3.195,291 2.974.345 Total 5.553,352 7.808.032 Amounts R•cèivablg as Lessor 2022 2021 Not later thon 1 year Later Ihan 1 ear and nol later than S 46.591 44.292 113,099 ears Total 157391 Avera e rents recelvable from tenants r week 159.509 149.195 25 Capltal Commitfflents There wete ￿pital cOn￿lIn￿nIS contracted for nine propertles to the values of £324.589 as at 311t MBrth 2022 {2021'. niD. 26 Rolated Party Disclosures Two members of oui Board ale also ten8nts of BHT Sussex. These Boar(1 Mem￿TS pay rent and service charges and these transaclions have taken place al arm'5 length. The average renl charge for the type ol property rented is £110 (2021.. £108} perweek including service charge8. The rent charge paid by boih 8o8rd membws 15 £110 (2021.. £108) pgrweek. One Board memberwhose parlnér 1$ mener ofThe Board ol Sussèx Inleq)reting Services. who are a supplier of Se￿ICe￿ to BHT Sussex Advtce. there was 1 12021.. 1) transaction and the sum paid was £414 P021.' £417). There is also A further Board member who is a Trustee of BFtf c￿￿114b1e Trust. There were transactions (2021.. nil) with BHT Charitabl• Tru3t. There were no other related party IrarKsactsons in tha yéar lo 31° Marth 2022. 27 Membgrs. Llablllty BHT Sussex h8s no share capital. and the liabilty of thÈ member8 is limited by guarant8• as set out in the provisons of the Artdès ol Associalm. Each ofthe 14 (2021.. 151 members has undertakèn to ¢￿trIbUte £1 in the evenl of BHT Su$s¢x beiThJ wound up. 41

Note8 Fomilng Part of the Flnanclal Statements lor the year ended 31st March 2022 (contlnu•o) 28 Capltal and Res•rves Restrlcted R8s•rves Transfor from Sussex Oakleaf Released te Genèral Reserv8s 1 Aprll 2021 31 March 2022 In¢ctho Expènditure Adv￿ PM Th& Academy Reaching Communities Trirsl Imprèssions Fulfilling Lives East Brighton Gateway East Sussex Floating Support Desi9n8led R6seNes Development Property Maintenance Reservo Property Revaluation Reserve Restricted Reserves Revaluation Reserve Total Restrieted ReseNes (7,388) 105.875 13.750) 11,138 95,268 201.143 (7.268) 762.338 (3,116) 7.268 1.040,827 (1.010,918) (487.682) (1,6201 4.736 1.201.147 {1.192.371) 304.565 8,776 2.8 37,CQ) 2.896 37,000 Investment 2,496 892.833 2.337,242 (2,208.6591 (464.540) 556.876 Unrestricted Reserves" 10.143.122 12,637.849 112,418.124) 464,540 10.827,387 Total Reserve$ 11 035.955 14 975.091 14.626 783 11384263 Tran$f•r from Sussex Oaklgaf Rel•a¥ed to General Res¢rves 1 April 2020 3t March 2021 Income Expendliur Advice Plus The Academy Reaching Communtties IFwst Impressions Fulfilling Lives East Brighton Galeway East Sussex Floating Support Designated Reserve$ Devd()pment Propety Maintenance ReseThe Property Revaluat￿ Reservè Restricted Reserves Revaluation Reserve Total Restrictgd ReseNos 13.678) 85,766 13.712) (51.179) {7.388} 105,875 71.288 17,268) 737,248 (3.116) {7,268) 762,338 13.116} 1.2SI,787 (1.209.697) 2.8 37.C(X) 295,524 3,958 2.896 37,000 1295.524) {1,462) Inveslmenl 2.496 107.369 446.747 808.954 1.306,075 11.264.588) (404.355) 9.181.946 218.gao 12.447,995 (12.110.163) 892.833 Unrostricaed Reseryes. 404.355 10.143,122 Total Reserves 9.990 WO 665 737 13,754.070 13.374.751 11035,955 'The (yening bapance for Unrestrici8d Reserves has been rÈststedto the 2021 s19r￿d accounts for Slatementof Changes in eqvity aThJ the Financial Position. 42

Notes Formlng Part of the Flnancial Statements for tho year ended 31•t March 2022 {contlnued) Not• 28 lcontinuedl Re￿1¥0 Purpose and r¢$triction in Aijvice Plus The Academy LO￿ advice servrcès in East Suss8X H8lping homeless peop￿ mov8 into employment and accomfflodalion Helping h¢Nneless people ov91￿rne barriers lo employment Promoting change with p¢oplè wilh multipl& and CoM￿eX n8èds Support for indNiduaLs lo attess privale rented sector in Eastboum8 Support for indivi￿alS lo access private rented sector in Hastings Partnership b¥$ed leaming and èducation activities Transferred from su&￿ Oakleaf8nd is for Millhaven Fund Transfe￿ed from Sussex Oakleafand is for Capitsl Major Vvorks Transfe￿ed from Sussex oak￿af Transferred from Sussex 0a￿eaf and 1$ for Children In Need Transferred from Su55ex 0a￿eal The provision of a Housing refaled Floaling Support Servi¢e8 to support people to IN8 wetl and indepen¢enUy in their own homes in East Sussex RÈ8thing Communib*s IFirsl Impr8s$lons Fulfilling Lives Easlboume Housing Access Hastings Hwsing Access East B￿gh¢on Galeway Designated Reserves- Development Propety Maintenance Resetvo Propety RevalualK)n Reserve Restricted RaSe￿e5 Revalualton Investment Reserve East Sussex Flo8lrny Support Release of Restsided Reserve5 to General Reserves is the offundin9 for Speci￿ proiecls Corning lo an end and the fij[￿erConf1M1tng that no future liability exists. During 2021122, a total SLtm of £487,683 {2021.. £404.3551 was released from Restiicted ReseNes to General Reserves. 29 Financial Instrurngnts The financial instruments may b6 analysed as follows.. 2022 2021 Financlal Assets Finan￿1 assets measured at histori￿1 cost Trade T￿1vableS Other receivables Cash and cash 339,913 4,288,264 692 185.289 1,931.415 uivalents Totsl flnan¢kl assets 8.212.869 4.813.395 2022 2021 Flnttncial Llabllltits Finanaal liabilitiès measured at amortised cost Loans p8yable 349,224 419.191 Flnancial li8kn'1if(e$ measured at histori￿1 cost Trade creditors Other credito¥s 587,808 5.093 160 399,939 1.353 741 Totsl financlal Ilablllties at hlstorlc eost 4680,968 1.753,680 Total financral liabllltles 6,030.192 2.1n.871 43

Notes Formlng Part of the Financlal Statements for the year ended 31•t March 20221continued Net Fund Reconclllatlon 30 1 April 2021 Ca8lfflows 31 March 2022 Cash al Bank 8nd in Hand Bank Loans 2,696.694 (419.191) 887,998 69.967 3.584.692 {349.224) TOTAL 2,277.503 957.￿5 3 235 468 31 Glft of Assets and Liabllltios Gift of As8els and liabillfje8 in 2021122 was rAI. BHT Suss6x ¢omplel8d the transfer in of Sussex Oakleaf on 1¥t April 2020. The t￿SInesS transfer into BHT Sussex has been I￿ated as a gift of assets and liabilili88 for nil (x>nSideralrC￿ as a net laii value of £665.735. On 1￿ Apnl 2020. BHT Sussex transferred in thè assets and liabilities of Sussex Oakleaf 81 nil considèration. The book value of the assèts and liabililies Ir8nsfeired is equal lo the fair value as shown below- Fair value 2021 ed Assa Tangible 8ssets- Housing Properti&s T8ngiNe 88sets- Fixtures. Fitlrng and IT equlpment 347 29 cu￿ant Asse Cash al Bank and In Hand Debtors 272 244 Totsl ass•ts 892 Credito Due within one yÈaT Due after orte year (159) {87) Total Glft of Assets & LiablllU¥ts on trdnsfer Into BHT Sussex- Net As¥ets 666 Cash and ￿$h equiv8lents infiows from tsJsin&ss transfer 272