OpenCharities

This text was generated using OCR and may contain errors. Check the original PDF to see the document submitted to the regulator.

2024-03-31-accounts

Report and Financial Statements

For the Year ended 31[st] March 2024

Companies House Number 01618610

Charity Commission Number 284839 Regulator of Social Housing Number H1696

Contents Pages
Reference and Administrative Details 2
Chair’s Report 3
Strategic Report from the Board of Trustees 4 – 16
Independent Auditor's Report 17 – 19
Statement of Comprehensive Income 20
Statement of Financial Position 21
Statement of Changes in Reserves 22
Statement of Cash Flows 23
Notes Forming Part of the Financial Statements 24 – 42

1

Reference and Administrative Details

Board of Trustees

Executive Management

Sarah Butler Lee Davies - Appointed 18/09/23 Mary Davies - Appointed 18/09/23 Melanie Davis, Chair of OPC Paul Featherstone Kelvin MacDonald, Chair of the Board Gerald Main Ian Millar - Resigned 18/09/2023 Andrew Rose, Chair of FARC Lawrence Santcross Mary Tawiah - Resigned 26/06/2023 Angeline Walker

Governance Committee

David Chaffey Chief Executive

Jo Berry Head of Business Development

Sunil Desai Director of Finance & Resources

Nikki Homewood Director of Advice & Support Services

Rachael Kenny Director of Mental Health & Support Services

Melanie Davis, Chair of OPC Kelvin MacDonald, Chair of the Board Andrew Rose, Chair of FARC

Finance, Audit and Risk Committee

Katherine Masters Director of Housing & Property - Resigned 30/11/2023

Daniel O’Connell Head of People and Learning & Development

Andrew Rose, Chair of FARC Sarah Butler Lee Davies - Appointed 18/09/23 Mary Davies - Appointed 18/09/23 Ian Millar - Resigned 18/09/2023 Lawrence Santcross Mary Tawiah - Resigned 26/06/2023

Company Secretary & Registered Office

Sunil Desai 144 London Road Brighton BN1 4PH

Principal Solicitors

DMH Stallard LLP 1 Jubilee Street Brighton East Sussex BN1 1GE

Operations & Personnel Committee

Sarah Butler Melanie Davis, Chair of OPC BN1 1GE Paul Featherstone Kelvin MacDonald, Chair of the Board Bankers Gerald Main

Royal Bank of Scotland PO Box 300 Brighton East Sussex

Remuneration Committee

Sarah Butler East Sussex Melanie Davis, Chair of OPC Paul Featherstone Auditors Kelvin MacDonald, Chair of the Board Ian Millar - Resigned 18/09/2023 Beever & Struthers Andrew Rose, Chair of FARC 150 Minories London EC3N 1LS

2

Chair’s Report for the year ended 31[st] March 2024

Chair’s Report

Where should I start with such a tumultuous year?

A year in which our clients, tenants, and staff faced the sharp end of the cost of living crisis. A year in which we dealt with the aftermath of a serious fire at one of our properties. A year in which our new Chief Executive, David Chaffey, brought a fresh approach to our work and led the work on our new Strategic Plan and a year in which it became increasingly stretching to deliver our unique range of services – but a year in which we managed to do so to ever higher standards.

I could start with the statistics which are impressive enough, but at the heart of BHT Sussex are people – those we serve and our staff. One of the highlights of the year for me was the staff conference held near Eastbourne in November. Everything that we achieve is down to those gathered in that venue and to those who could not attend that day. One of our defining strengths is that nearly 1 in 5 staff at BHT Sussex have lived experience of the issues our support services address, and I recognise the enormous value they bring to the organisation.

The work of all these wonderful people is brought home to me every time I meet them and visit one of our services. It is also reflected in the statistics that are contained in this report.

All of them are very impressive, but some of them stand out in particular for me - 10,374 clients and tenants were supported, 2,323 cases of homelessness were prevented, 1,751 people were supported by our community Mental Health services in West Sussex, and the BHT Sussex welfare benefit advisers raised £3,140,554 in income for 443 clients. Can you imagine what effect that figure had, not only for the individual, but for their families, their relationships and their wellbeing?

At least one piece of work does not figure in statistics but is starting to have a real national impact. We are campaigning to end an unfairness in the benefits system which results in homeless hostel residents being financially disadvantaged when they start working. This is a national problem affecting both individuals and the economy as a whole.

I could go on – and on – with these impressive statistics but, fundamentally, the attribute that makes BHT Sussex stand out from almost every other provider in the country is that, through our work, people can walk the path from street homelessness and addiction to having a secure and decent home and a job. BHT Sussex employees walk that path alongside them, and it is this dedicated approach to all the work that we do that makes BHT Sussex stand out. Our financial result for the year was a surplus of £221k however this is after allowing for a gain from the disposal of a property which became unviable for our service needs.

Finally, I must not – and cannot – forget our Board of Trustees. They give up their time entirely voluntarily for the myriad activities in which they engage and without the wisdom, knowledge and commitment they bring, BHT Sussex would be the lesser.

Kelvin MacDonald

Chair of the Board

Date – 23/9/24

3

Strategic Report from the Board of Trustees for the year ended 31[st] March 2024

Report of the Board of Trustees

The Board of Trustees (The Board) are pleased to present their Annual Report and the Financial Statements of BHT Sussex for the year ended 31[st] March 2024.

Aims And Objectives

BHT Sussex is a highly valued, progressive and unique charitable organisation made up of interlinked projects and services. We empower people to overcome homelessness, poverty, addiction and mental ill health by working in partnership across Sussex with local councils, the NHS and voluntary organisations. Our Mission is ‘Combatting Homelessness, Creating Opportunities, Promoting Change’. We have updated our Strategic Plan for 2024-2026. Our existing plan, which was applicable during 2023/24, contained six Strategic Objectives. These Objectives were:

4

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Aims and Objectives (continued)

Our Business Model

Our business model is based on five core principles:

5

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Financial Results

A net operating surplus of £221k (2023: £95k) was generated during the year however this is after allowing for a gain from the disposal of a property which became unviable for our service needs. A priority moving forward is to increase our surplus levels, to strengthen our financial viability, invest in current and new services, and to allow us to continue to invest in our major works programme.

Income : Total income of £17.4m (2023: £16.9m) was received during the year. The increase from the previous year was due to sale of a property and some additional contract income. Expenditure : Total expenditure of £17.6m (2023: £16.8m) was made during the year. Overall, expenditure was £210k more than expected, particularly in relation to void rent loss. This was partly offset by lower than expected employee and repairs and maintenance related costs.

While others in our peer group have reported significant increases in rent arrears because of the cost of living crisis and increased uptake of Universal Credit (UC), we have been able to maintain our arrears levels, notwithstanding a modest increase in arrears of those clients / tenants who have migrated to over to UC. A refocusing of employee resources has resulted in this risk being successfully mitigated.

Our Financial Position also continues to be healthy with Total Net Assets of £11.7m (2023: £11.5m), supported by Income and Expenditure Reserves of £11.3m (2023:11.2m) and Restricted Reserves of £0.4m (2023: £0.3m).

Development And Performance

The Board received quarterly reports to monitor performance within the organisation. The performance measures included financial and operational performance indicators, such as:

Future Prospects

Apart from the concern of funding our Asset Management Plans going forward, the challenges successfully faced to date due to the cost of living crisis, demonstrates an organisation that is wellgoverned and well-managed, able to flex its operations according to circumstances, not least ones that could not be foreseen.

We will continue to seek new opportunities as our communities and economy recovers from the financial and psychological injuries caused by the pandemic and the cost of living crisis.

6

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Future Prospects (continued)

Our employees 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 employees at all levels. Like many organisations, we have had difficulties over the past year, but employees continue to work with dedication and resilience.

Governance arrangements have been reviewed and strengthened in recent years. All governing documents have also been reviewed and updated including our Strategic and Business Plans.

Health And Safety

Health and Safety continues to be one of our key priorities and we have a Working Group that looks at strategic health and safety issues, including the Fire Safety Act 2021 and the 2022 Regulations.

Health and Safety is also monitored quarterly via our Strategic Risk Register. During the year we continued the Health and Safety / Fire risk assessments of all properties, carrying out additional remedial tasks to improve fire safety at a cost of £262k (£208k).

Gas Safety Inspections: our performance for the final quarter of 2023/24 was 100% (97.4%), where gas safety inspections 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 outstanding checks were completed soon after the year end.

Safeguarding

Following failings in some international aid agencies, along with safeguarding failures in domestic charities, BHT Sussex has considered the robustness of its own policies and procedures in this and other areas.

BHT Sussex has robust processes and reporting arrangements in place, including our Whistleblowing procedure, which is widely publicised and on our website. Clients and tenants are asked specific questions in surveys regarding their confidence in the organisation’s policies and procedures. Training on safeguarding is part of the training programme for employees.

Employees

Our employees are our most valuable resource. Through them we deliver our strategic objectives, not least our reputable services. We continue to strengthen our capacity at senior level with a new Head of Housing and recruitment for a Head of Health & Safety and a Head of Asset Management. These additions will help to provide strategic management capacity within the organisation going forward. Our continued improvements in employee sickness management has resulted in there being an average of 5.9 days absence per employee during the year (excluding long term sickness cases), which is 16% below the target of an average of 7 days.

Board Membership

BHT Sussex seeks to appoint and retain Board members who have the skills, knowledge, business acumen, integrity, values, and commitment to lead the organisation with drive, ambition and enthusiasm.

7

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Board Membership (continued)

We recruited new board members through open advertisement and the effective use of our wide sector networks. All new members receive a full induction programme. We have one client / tenant with lived experience on the Board.

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 its Committees undertake annual reviews and appraisals of their activities helping ensure that we comply with the National Housing Federation’s Code of Governance 2020. The Chair of the Board undertakes individual reviews with all Board members.

The policy for delegated levels of decision-making between the Board and Executive Management Team is clearly defined within Standing Orders and a separate Financial Levels of Delegated Authority schedule, which is reviewed and approved by the Board on a regular basis.

Cost of Living Crisis and Post Pandemic

We continue to monitor our responses to the financial climate due the impacts from the cost of living crisis and post Covid pandemic. Generally, it has been very good, and we adapted well to the opportunities and challenges faced by our employees and the organisation. BHT Sussex has succeeded in carrying on its much needed work over the last year. The approach we have taken can be characterised as a ‘slow and steady’ approach ensuring we meet the needs as best as we can of key stakeholders and with a continuous improvement culture.

We wish to be prudent in the way we plan our work and, as always, our priority is to try to keep all employees, clients and tenants as safe as possible.

Most of our employees continued to work face-to-face with their clients / tenants. We recognise the increased risk t this had, but without this dedication we would not have been able to ensure that all our services continued to be delivered throughout the pandemic. The Board recognised the extraordinary work employees have undertaken to successfully to keep the organisation going under the considerable external pressures.

Risks, Uncertainties And Opportunities

The post pandemic, war in Ukraine and Cost of Living Crisis world is providing both opportunities and challenges moving forward. There is uncertainty regarding the public finances due to the impact of inflation and continued higher energy costs. Both will reduce our ability to significantly increase our surplus, at least in the short term. The financial and psychological injury caused by the pandemic and Cost of Living Crisis will result in a continuation and mostly likely an increase in the demands for services.

Our 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 / reputation. Underneath these three areas, there are eleven specific risks that have been identified. We have also asked our Internal Auditors (RSM), to review our Strategic Risk Register with an aim of refreshing the strategic risks in light of our new Strategic Plan and seeking guidance on the risk framework aligned to good practice.

8

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Risks, Uncertainties and Opportunities (continued)

Our risks are reviewed on a quarterly basis by the Executive Management Team and are reported on a regular basis to both the Finance, Audit and Risk Committee and the full Board. Detailed information provided includes the quantification of individual risks, the management strategy for mitigating 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 current financial position, forecasts and the resources available to us, including our cashflow position for the next eighteen months, the Board believes that BHT Sussex can manage its business risks (including a forecast with sensitivity 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 concern basis of accounting in preparing these annual financial statements.

Allowing for the risks and uncertainties that we face, we are confident that BHT Sussex has a positive future. We have reached this conclusion by reference to:

9

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Going Concern (continued)

Based on this assessment, the Board has concluded that a material uncertainty does not exist, 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 Statements for more details.

The TPT scheme is a multi-employer scheme which provides benefits to some 638 non-associated participating employers (see note 22) and applies to 30 employees.

This scheme is classified 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 meet their share of the scheme deficit following withdrawal from the scheme.

Participating employers of the TPT scheme are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme. During 2023/24 BHT Sussex contributed £3,843 towards the pension deficit. The Board considers that the contribution rate demanded 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 those 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 Governance and Financial Viability Standard and has concluded that BHT Sussex complies with the Standard. BHT Sussex has reviewed 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 are made as circumstances require.

Internal Controls

In accordance with regulatory expectations of the Regulator of Social Housing, the Board is required to conduct an annual review of the effectiveness 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 system of internal 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 processes should operate continuously and should be embedded within and across all of our activities. It should be recognised that no system of internal control can provide absolute assurance or eliminate all risk. The system of internal controls is designed to manage risk and provide reasonable assurance that key business objectives will be achieved and to give reasonable assurance about the preparation and reliability of financial information and the safeguarding of the assets of BHT Sussex.

10

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Internal Controls (continued)

BHT Sussex has adopted the National Housing Federation Code of Governance 2020. A review of the Code has been undertaken and the Board is confident it complies with the Code.

The processes for identifying, evaluating, and managing the significant risks faced by BHT Sussex are ongoing, have been in place for the year under review and up to the date of approval of the annual report and accounts, and are regularly reviewed by the Board. 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:

The Board’s review of the effectiveness of the BHT Sussex system of internal control has identified no significant failings, weaknesses or instances of fraudulent activity which have resulted in material misstatement or loss that require disclosure within the financial statements for the year ended 31[st] March 2024, and up to the date of signing these financial statements.

11

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Value For Money

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 own SV and VfM Framework.

What SV and VfM means at BHT Sussex

We exist for a social purpose and our efforts are focused on changing lives across Sussex. Our Mission and Values drive us forward, seeking to continuously learn and improve how we engage with our local communities and deliver our services.

Our Mission is to combat homelessness, create opportunities for our clients and tenants to improve their wellbeing and to promote positive change.

We are conscious that a robust approach to VfM is a regulatory requirement, but we would want to do it anyway. We aim to make a difference by the outcomes we achieve for our clients, tenants, and the communities in which we work, and by being mindful of employee wellbeing.

The outcomes we achieve represent both the SV and VfM services that we 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 not taken a focused approach to it. Achieving VfM is at the heart of being a successful and effective social organisation.

What are the Outcomes we want to achieve?

Over the past 50+ years BHT Sussex has developed a diverse menu of services to support people who are homeless, or at risk of homelessness, and people who have complex needs. Prevention is the cornerstone of what we do:

We are very conscious of our role in our local communities. In addition, many of our tenants represent positive move-ons from our support and addiction work, sustaining tenancies is key to securing long-term positive change.

Why do we provide our services and who benefits from our outcomes?

12

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Value for Money (continued)

When setting our strategic and enabling objectives, the BHT Sussex Board seeks to balance the legitimate, and sometimes competing, expectations of our stakeholders with the finite resources at our disposal.

The Regulator for Social Housing has issued value for money metrics and BHT Sussex figures are shown below:

----- Start of picture text -----
Acuity BHT BHT
Value for Money Metrics Median Sussex Sussex
2023/24 2023/24 2022/23
Reinvestment 3.05% 6.12% 7.59%
New Supply Delivered - units N/a 0 2
Gearing 14.63% 1.48% 1.48%
EBITDA Major Repairs Included Interest Cover 209.47 4.17% 5.59%
Headline Social Housing Cost per Unit £6,196 £4,693 £4,759
Operating Margin 16.06% 1.27% 0.56%
Return on Capital Employed 2.57% 0.89% 0.38%
----- End of picture text -----

13

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Value for Money (continued)

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 performance against these metrics by using the Acuity benchmarking group data for small housing providers in the Southeast and London, as shown above. The 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 Return 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 benchmarking 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, reserves are mainly invested in our properties that provide accommodation and services. At the end of 2023/24 we had total reserves of £11.7m (2023: £11.5m) of which £311k were restricted reserves.

The primary purpose of the BHT Sussex Reserves Policy is to ensure that adequate funds exist to ensure its long-term viability. The policy is designed to ensure that BHT Sussex:

To achieve this, BHT Sussex has adopted target measures for key reserves indicators. The BHT Sussex policy aims to:

As at 31[st] March 2024 BHT Sussex held £2.7m as cash or short-term investments. This is cash cover of 1.8 months (2021: 1.77) compared to a target of 1.5 months.

It should be noted the minimum cash balance quoted above £2.2m, should be able to fund the repayment of any restricted reserves, should BHT Sussex be asked to repay these amounts.

14

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Use of Reserves (continued)

The Board has identified the main financial risks to the organisation to be:

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[st] March 2024 were £1.1m (2023: £1.1m).

Post Balance Sheet Events

Since the year end there have been no significant issues to report. However, the cost of living crisis continues, and we experience price increases in the cost of labour, raw materials, fuel and energy bills.

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 accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting 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 the association and of the surplus or deficit of the association for that period.

In preparing these financial statements, the Board is required to:

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 Act 2006, the Housing and Regeneration Act 2008 and the Accounting 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.

15

Strategic Report from the Board of Trustees (continued) for the year ended 31[st] March 2024

Board Members’ Responsibilities (Continued)

Board members are responsible for ensuring that the Report of the Board is prepared in accordance with the Statement of Recommended Practice: Accounting by registered social housing providers 2018.

Financial statements are published on the BHT Sussex website in accordance with legislation in the United Kingdom governing the preparation and dissemination of financial statements, which may vary from legislation in other jurisdictions. The maintenance and integrity of the BHT Sussex website is the responsibility of the Board. The Board’s responsibility also extends to the ongoing integrity of the financial statements contained therein.

Auditors

Current Board members have taken all the steps that they ought to have taken to make themselves aware of any information needed by our auditors for the purposes of their audit and to establish that the auditors are aware of that information. The Executive Management Team are not aware of any relevant audit information of which the auditors are unaware.

Beever & Struthers have expressed its willingness to continue and a recommendation for the reappointment of Beever & Struthers as auditors of BHT Sussex is to be presented at a forthcoming Board Meeting.

On behalf of the Board

K MacDonald Chair of the Board

Date – 23/09/24

16

Independent Auditor’s Report to the Members of BHT Sussex

Independent Auditor’s Report

Opinion on the financial statements

We have audited the financial statements of BHT Sussex for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Reserves, the Statement of Cash Flows and notes to the financial statements, including a summary of significant accounting policies in Note 1. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for Opinion

We conducted our audit in accordance with International Standards on auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the Report of the Board, other than the financial statements and our auditor’s report thereon. The Board is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements, or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Board Report.

17

Independent Auditor’s Report to the Members of BHT Sussex

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of the Board

As explained more fully in the Statement of Responsibilities of the Board set out on page 15 the Board are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

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

Extent to which the audit was considered capable of detecting irregularities, including fraud

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and addressing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our procedures included the following:

Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

18

Independent Auditor’s Report to the Members of BHT Sussex

Due to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non-compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations.

Use of our report

This report is made solely to the company’s members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members for our audit work, for this report, or for the opinions we have formed.

Michael Tourville FCA Date: 30 September 2024 (Senior Statutory Auditor)

For and on behalf of Beever and Struthers Chartered Accountants and Statutory Auditor 150 Minories London EC3N 1LS

19

Statement of Comprehensive Income for the year ended 31[st] March 2024

Turnover
Operating costs
Surplus on disposal of property
Operating Surplus
Interest receivable and similar income
Interest and financing costs
Surplus before taxation
Taxation
Surplus for the year after taxation
Total comprehensive Income for the year		 Note
4
4
7a
12
13		 2024
2023
£
£
17,379,293
16,929,933
(17,586,059)
(16,812,558)
414,675
-
207,909
117,375
47,267
13,291
(33,972)
(35,869)
7a 221,204
94,797
-
-
221,204
94,797
221,204
94,797

All activities relate to continuing operations.

The notes on pages 24 to 42 form part of these financial statements.

20

Statement of Financial Position as at 31[st] March 2024

Fixed assets
Tangible fixed assets - housing properties
Tangible fixed assets – other
Current assets
Trade and other debtors
Cash and cash equivalents
Creditors: amounts falling due within one year
Net Current Assets
Total Assets less current liabilities
Creditors: amounts falling due after more than one year
Other provisions
Total Net Assets
Capital and Reserves
Restricted Reserves
Income and Expenditure Reserves
Total Reserves		 Note 2024
2023
£
£
14
15
16
29
17
18
21
28
28		 21,050,571
21,080,096
1,743,470
1,760,927
22,794,041
22,841,023
2,155,551
5,985,261
2,757,055
2,615,983
4,912,606
8,601,244
(2,849,061)
(6,503,937)
2,063,545
2,097,307
24,857,586
24,938,330
(12,715,662)
(12,889,012)
(441,661)
(570,257)
11,700,263
11,479,061
365,078
310,504
11,335,185
11,168,557
11,700,263
11,479,061

The notes on pages 24 to 42 form part of these financial statements.

Company Number No.01618610 Registered Charity No.284839

The financial statements were approved and authorised by the Board on the 23[rd] September 2024 and were signed on the Board’s behalf by:

K MACDONALD Chair of the Board

A ROSE Chair of Finance, Audit and Risk Committee

21

Statement of Changes in Reserves for the year ended 31[st] March 2024

Restricted
Reserves		 Income and
Expenditure
Reserves		 Total
Note £ £ £
Balance at 1st April 2023 310,503 11,168,556 11,479,060
Surplus for the year 28 54,575 166,629 221,204
365,078 11,335,185 11,700,264
Reserves Transfers:
Transfer from Restricted Reserves 28 - - -
Balance at 31st March 2024 365,078 11,335,185 11,700,264

Statement of Changes in Reserves for the year ended 31[st] March 2023

Restricted
Reserves		 Income and
Expenditure
Reserves		 Total
£ £ £
Balance at 1stApril 2022 556,876 10,827,386 11,384,262
Surplus for the year 28 61,757 33,040 94,797
618,633 10,860,426 11,479,059
Reserves Transfers:
Transfer from reserves 28 (308,130) 308,130 -
Balance at 31stMarch 2023 310,503 11,168,556 11,479,059

The notes on pages 24 to 42 form part of these financial statements.

22

Statement of Cash Flows for the year ended 31[st] March 2024

Statement of Cash Flows
for the year ended 31st March 2024
Note
2024
2023
£
£
Cash flows from operating activities
Surplus for the financial year
221,204
94,797
Adjustments for:
Depreciation of fixed assets - housing properties
14
462,385
444,555
Depreciation of fixed assets - other
15
184,536
146,424
Amortised grant
5
(171,876)
(174,289)
Gift of Assets
-
-
Loss on disposal of fixed assets
14
-
-
Interest payable and finance costs
13
33,972
35,869
Interest received
12
(47,267)
(13,291)
Accelerated depreciation (Social Housing and Non-Social housing)
5,14,15
98,664
29,943
Decrease / (Increase) in trade and other debtors
16,29
3,829,710
(1,357,084)
(Increase) / (Decrease) in trade creditors and other creditors
17,29
(3,651,101)
620,828
(Gain) / Loss on revaluation of Pension Liability
18
(3,302)
(3,403)
(Decrease) / Increase in provisions
21
(128,596)
185,667
Net cash generated from operating activities
828,329
10,016
Cash flows (used) in investing activities
Interest received
12
47,267
13,291
Purchases of fixed assets - housing properties
14
(528,779)
(855,607)
Purchase of new housing property – Rapley Court
14
-
(357,552)
Purchases of fixed assets – other
15
(169,824)
(83,398)
Receipt of grant
21,23
-
376,811
Net cash used in investing activities
(651,336)
(906,455)
Cash flows used in financing activities
Interest paid
13
(33,972)
(35,869)
Repayment of loans – other
20
(1,949)
(36,401)
Net cash used in financing activities
(35,921)
(72,270)
Net Increase / (Decrease) in cash and cash equivalents
141,072
(968,709)
Cash and cash equivalents at beginning of year
2,615,984
3,584,692
Cash and cash equivalents at end ofyear
2,757,056
2,615,983

The notes on page 24 to 42 form part of these financial statements.

23

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024

INDEX OF NOTES

General notes

Statement of Comprehensive Income related notes

Statement of Financial Position related notes

24

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

1. Legal Status

BHT Sussex is registered with the Financial Conduct Authority and is registered with the Regulator for Social Housing as a social housing provider. BHT Sussex is a charitable housing association, a company limited by guarantee under the Companies Act 2006 and is governed by its Articles of Association. BHT Sussex is also registered with the Charity Commission in accordance with the Charities Act 2011. BHT Sussex is a public benefit entity registered in England with Charity number 284839, Regulator of Social Housing number H1696 and Company number 01618610. The Registered Office is 144 London Road, Brighton, East Sussex BN1 4PH.

2. Accounting Policies

The financial statements have been prepared in accordance with applicable law and UK accounting standards (United Kingdom Generally Accepted Accounting Practice) which for BHT Sussex includes FRS 102 “the Financial Reporting Standard applicable in the United Kingdom, the Republic of Ireland” the Statement of Recommended Practice (SORP) for Registered Social Housing Providers, “Accounting by registered social housing providers” 2018, the Accounting Direction for Private Registered Providers of Social Housing 2022, and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the accounting policies. These estimates and judgements are outlined in Note 3.

The currency used in preparing these financial statements is the pound sterling and all figures have been rounded up to the nearest pound.

The following principal accounting policies have been applied:

Going Concern

Following assessment of the BHT Sussex financial position and resources available going forward, including the cashflow position for the next eighteen months, the Board believes that BHT Sussex can manage its business risks, financial forecast (including monthly cashflow forecasts with sensitivity analysis), and has a reasonable expectation that BHT Sussex has adequate resources to continue operating for the foreseeable future. For this reason, BHT Sussex continues to adopt the going concern basis of accounting, in the preparation of the annual financial statements. Based on this assessment the Board has concluded that a material uncertainty does not exist, and BHT Sussex is expected to continue to operate for the foreseeable future.

Notwithstanding the risks and uncertainties that we face, we are confident that BHT Sussex has a positive future. We have reached this conclusion by reference to:

Income

Income is measured at the fair value of the consideration received or receivable. BHT Sussex generates the following material income streams:

Rental Income

Rental income from residential properties is recognised in the Statement of Comprehensive Income when it falls due.

25

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

2. Accounting policies (continued)

Supported Housing Schemes

BHT Sussex receives Supporting People grants from statutory and other authorities. The grants received in the period, as well as costs incurred by BHT Sussex in the provision of support services, have been included in the Statement of Comprehensive Income. Any excess of cost over the grant received is borne by BHT Sussex, where it is not recoverable from tenants.

Service Charges

BHT Sussex adopts the fixed method for calculating and charging service charges to its tenants and leaseholders. Expenditure is recorded when a service is provided and charged to the relevant service charge account. Income is recorded based on the estimated amounts chargeable.

Legal Aid Association Income

Legal Aid income is accounted for when earned. Income is recognised at agreed rates for all work carried out up to the balance sheet date. Any income earned, where full settlement will not be received until the case is closed, is accrued, and stated at the lower of cost and net realisable value.

Expenditure

All expenditure is accounted for on an accruals basis and allocated to the appropriate heading in the accounts.

Costs of generating income comprise the costs associated with generating donations, attracting fundraising, delivering services that are funded by grants, providing advice services funded by the Legal Aid Agency and providing housing services funded by rent and service charge income.

Charitable activities comprise all costs incurred in the pursuit of the charitable objectives of BHT Sussex. These costs, where not wholly attributable, are apportioned between the categories of charitable expenditure in addition to the direct costs. The total costs of each category of charitable expenditure therefore include support costs and an apportionment of overheads, as show in note 5.

Support costs include those costs associated with meeting the constitutional and statutory requirements of the charity and include the audit fees and costs linked to the strategic management of BHT Sussex.

Management of Units Owned by Others

Rent and grant income receivable are included in income. The costs of carrying out the management of contracts and rechargeable expenses are included in operating costs.

Schemes Managed by Agents

Income from these schemes is included within rent receivable. The costs associated with these properties relate to depreciation and loan interest. No management fees are charged by the agents.

Finance Costs

Interest is incurred on loans held by BHT Sussex and is charged to the Statement of Comprehensive Income.

Current and Deferred Taxation

BHT Sussex is a Charity within the meaning of Para 1 Schedule 6 Finance Act 2010. Accordingly, it is potentially exempt from taxation in respect of income or capital gains within categories covered by Chapter 3 of Part 11 of the Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

No tax charge arose in the period.

Impairment of Fixed Assets

The housing property portfolio for BHT Sussex is assessed for indicators of impairment at each balance sheet date. Where indicators are identified, a detailed assessment is undertaken to compare the carrying amount of assets or cash generating units for which impairment is indicated to their recoverable amounts. An options appraisal is carried out to determine the option which produces the highest net realisable value. Valuations on rental return, or potential sale proceeds, are obtained and used to inform the options. BHT Sussex looks at the net realisable value, from the options available, when considering the recoverable amount for the purposes of impairment assessment. The recoverable amount is taken to be the higher of the fair value, less costs to sell or value, in use of an asset or cash generating unit. The assessment of value in use may involve considerations of the service potential of the assets or cash generating units concerned, or the present value of future cash flows to be derived from them appropriately adjusted to account for any restrictions on their use.

No properties have been valued at Value in Use – Service Potential (VIU-SP).

26

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

2. Accounting policies (continued)

BHT Sussex defines cash generating units as schemes, except where its schemes are not sufficiently large enough in size or where it is geographically sensible to group schemes into larger cash generating units. Where the recoverable amount of an asset, or cash generating unit, is lower than its carrying value, an impairment is recorded through a charge to income and expenditure.

Value Added Tax

BHT Sussex charges Value Added Tax (VAT) on a small proportion of its income relating to legal and IT services and is able to recover part of the VAT it incurs on expenditure. The financial statements include VAT to the extent that it is suffered by BHT Sussex and is not recoverable from HM Revenue and Customs. Recoverable VAT arises from partially exempt activities and is credited to the Statement of Comprehensive Income.

Pension Costs

BHT Sussex operates a defined contribution pension scheme with Scottish Widows and 1 (2023: 2) employee belongs to the NHS pension scheme. The assets of the schemes are held separately from those of BHT Sussex. Contributions to the schemes are charged to the profit and loss in the year in which they become payable.

As part of the Sussex Oakleaf gift, BHT Sussex took over its Defined Benefit scheme held with TPT – the Growth Plan. This scheme is closed to new members. The scheme is a multi-employer defined benefit pension scheme. Sufficient information is not available to enable BHT Sussex to identify its share of assets and liabilities and as a result, and in accordance with FRS102, these financial statements account for the scheme as if it were a defined contribution scheme.

Where a recovery plan is in place to address the deficit, BHT Sussex recognise, as a liability, its commitment to make contributions under the terms of that recovery plan with changes to the value of this commitment recognised within the Statement of Comprehensive Income.

It should be noted that 3 (2023: 4) employees are in the Local Government Pension Scheme (LGPS) for which BHT Sussex will pay a fixed contribution rates for the duration of the contract. All other employees that TUPE’d with the new service are in our Scottish Widows pension scheme.

Tangible Fixed Assets - Housing Properties

All housing properties are stated at cost together with incidental costs of acquisition less depreciation and impairment (where applicable).

Expenditure on major refurbishment to properties is capitalised where the works increase the net rental stream over the life of the property. An increase in the net rental stream may arise through an increase in the net rental

income, a reduction in future maintenance costs, or a subsequent extension in the life of the property. All other repair and replacement expenditure is charged to the Statement of Comprehensive Income.

Depreciation of Housing Property

Housing land and property is split between land, structure and other major components that are expected to require replacement over time.

Land is not depreciated on account of its indefinite useful economic life.

The cost of all other housing property (net of accumulated depreciation to date and impairment, where applicable) and components is depreciated over the useful economic lives of the assets on the following basis:

Housing properties are split between the structure and the major components which require periodic replacement. The costs of replacement or restoration of these components are capitalised and depreciated over the determined average useful economic life as follows:

Description Economic useful life (years)
Structure 100
Kitchen 20
Bathroom 30
Roofs 60
External doors 30
Boilers 15
Heating 30
External windows 30

Leasehold properties are depreciated over the length of the lease except where the expected useful economic life of properties is shorter than the lease, when the lease and building elements are depreciated separately over their expected useful economic lives.

Tangible fixed assets – Other

Other tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

27

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

2. Accounting policies (continued)

BHT Sussex adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred if the replacement part is expected to provide incremental future benefits to the organisation. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation of Other Tangible Fixed Assets

Land is not depreciated. Depreciation on other assets is charged, so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. The estimated useful lives range as follows:

Description Economic useful life (years)
Leasehold properties and improvements Lease term
Freehold non-housing properties (excluding land) 100
Fixtures, fittings, tools and equipment 5
Computers 4

The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised within ‘other operating income’ in the Statement of Comprehensive Income.

Government Grants

Grants are carried as deferred income in the balance sheet and released to the income and expenditure account on a systematic basis over the useful economic lives of the asset for which it was received. In accordance with the Housing SORP 2018, the useful economic life of the housing property structure has been selected (see table of useful economic lives above).

Where a social housing grant (SHG) funded property is sold, the grant becomes recyclable and is transferred to a recycled capital grant fund until it is reinvested in a replacement property. If there is no requirement to recycle or repay the grant on disposal of the assets, any unamortised grant remaining within creditors is released and recognised as income within the income and expenditure account.

Grants relating to revenue are recognised in income and expenditure over the same period as the expenditure to which they relate once performance related conditions have been met.

Grants due from government organisations or received in advance are included as current assets or liabilities. During the year, we tried to minimise the number of people on the government’s Job Retention Scheme.

Debtors and Creditors

Debtors and creditors with no stated interest rate, that are receivable or payable within one year, are recorded at transaction price. Any losses arising from impairment are recognised in the Statement of comprehensive income in other operating expenses.

Recoverable Amount of Rental and Other Trade Receivables

BHT Sussex estimates the recoverable value of rental, and other receivables, and impairs the debtor by appropriate amounts. When assessing the amount to impair it reviews the age profile of the debt, historical collection rates and the class of debt.

Financial Liabilities and Equity

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

Loans

All loans held by BHT Sussex are classified as basic financial instruments in accordance with FRS102. These instruments are initially recorded at the transaction price. FRS102 requires that basic financial instruments are subsequently measured at amortised cost.

Cash and Cash Equivalents

Cash and cash equivalents in the Statement of Financial Position consists of cash at bank, in hand, deposits and short-term investments with an original maturity of three months or less.

Leased Assets - Lessee

All leases are treated as operating leases. Their annual rentals are charged to profit or loss on a straight-line basis over the term of the lease.

28

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

2. Accounting policies (continued)

Reverse premiums and similar incentives received to enter into operating lease agreements are released to profit or loss over the term of the lease.

Provision for Liabilities

BHT Sussex has recognised provisions for liabilities of uncertain timing or amounts including those for major repairs on stock transfers and leaseholders, dilapidations, restructuring.

Provisions are measured at the best estimate of the expenditure required to settle the obligation at the balance sheet date.

Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at the present value using a discount rate. The unwinding of the discount is recognised as a finance cost in income and expenditure in the period it arises.

Contingent Liabilities

A contingent liability is recognised for a possible obligation, for which it is not yet confirmed that a present obligation exists that could lead to an outflow of resources, or for a present obligation that does not meet the definitions of a provision or a liability as it is not probable that an outflow of resources will be required to settle the obligation or when a sufficiently reliable estimate of the amount cannot be made.

A contingent liability exists on grant repayment which is dependent on the disposal of related property.

Reserves

Income received, and expenditure incurred, for restricted purposes is separately accounted for within restricted funds. Realised and unrealised gains and losses on assets held by these funds are also allocated to the fund.

Gift of Assets

All assets and liabilities transferred are recognised at fair value.

3. Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements key judgements have been made in respect of the following:

Other key sources of estimation uncertainty

Tangible fixed assets, other than investment properties, are depreciated over their useful lives, taking into account residual values where appropriate. The actual lives of the assets and residual values are assessed periodically and may vary depending on a number of factors. In re-assessing asset lives, factors such as asset and market condition are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Housing property assets are broken down into components based on management’s assessment of the properties. Individual useful economic lives are assigned to these components.

The estimate for receivables relates to the recoverability of the balances outstanding at year end. A review is performed on an individual debtor basis to consider whether each debt is recoverable.

Provision of potential rental bad debts is based on 100% or former tenant arrears balances and for current balances, a variable percentage specific to each service based on past write-off levels.

29

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

4 Particulars of Turnover, Cost of Sales, Operating Costs and Operating Surplus

Turnover
Operating
Costs
Surplus on
Disposal
Operating
Surplus/
(Deficit)
2024
2024
2024
2024
£
£
£
£		 Turnover
Operating
Costs
Surplus on
Disposal
Operating
Surplus/
(Deficit)
2024
2024
2024
2024
£
£
£
£
Social Housing Lettings (Note 5)
7,667,792
(7,041,023)
-
626,769
Other Social Housing Activities
Supporting people
1,214,557
(1,199,966)
-
14,591
Residential Care and Othergrants
1,488,064
(1,467,972)
-
20,092
-
Total Social Housing
10,370,413
(9,708,961)
661,452
Activities other than Social Housing Activities
(Note 6)
Legal Advisory Services
1,293,625
(1,426,325)
-
(132,700)
Day Centre
310,038
(393,905)
-
(83,867)
Non-housing rent income
55,706
(55,706)
-
Other activities
5,349,512
(6,001,164)
-
(651,652)
Surplus ondisposalofproperty (Note7a)
-
-
414,675
414,675
Total Activities other than Social Housing
7,008,881
(7,877,100)
414,675
(453,544)
Total
17,379,294
(17,586,060)
414,675
207,908
Turnover
Operating
Costs
Operating
Surplus/
(Deficit)
2023
2023
2023
£
£
£
Social Housing Lettings (Note 5)
Other Social Housing Activities
Supporting people
Residential Care and Othergrants		 7,743,093
(6,905,261)
837,832
1,184,807
(1,113,947)
70,860
1,328,512
(1,246,775)
81,737
Total Social Housing
Activities other than Social Housing Activities (Note 6)
Legal Advisory Services
Day Centre
Non-housing rent income
Other activities		 10,256,412
(9,265,983)
990,429
1,269,982
(1,368,150)
(98,168)
361,949
(371,720)
(9,771)
46,337
(46,337)
-
4,995,253
(5,760,369)
(765,116)
Total Activities other than Social Housing 6,673,521
(7,546,576)
(873,055)
Total 16,929,933
(16,812,559)
117,374

30

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

5 Income and Expenditure from Social Housing Lettings

General Supported Temporary Total Total
Needs Housing Social 2024 2023
£ £ Housing £ £
£
Income
Rents net of identifiable service charges 2,574,425 2,222,465 263,167 5,060,057 4,909,474
Service charge income 548,415 1,714,868 103,441 2,366,724 2,447,972
Release of government capital grants 110,514 61,362 - 171,876 174,289
Other income 1,578 67,557 - 69,135 211,358
Turnover from social housing lettings 3,234,932 4,066,252 366,607 7,667,792 7,743,093
Expenditure
Management (59,286) (294,316) (35,204) (388,806) (351,167)
Service charge costs (1,108,703) (3,408,759) (537,804) (5,055,266) (4,885,379)
Routine maintenance (663,506) (211,664) (62.304) (937,474) (792,576)
Planned maintenance (66,313) (18,002) (1,122) (85,437) (105,831)
Major repairs expenditure (4,006) (40,956) (384) (45,346) (235,150)
Bad debts (20,170) (43,706) (2,432) (66,308) (83,944)
Depreciation of housing properties:
-
annual charge		 (206,256) (229,809) (26,320) (462,385) (444,555)
-
accelerated depreciation		 - - - - (6,659)
Operating expenditure on
social housing lettings		 (2,128,240) (4,247,212) (665,570) (7,041,022) (6,905,261)
Operating surplus/deficit on
social housing lettings		 1,106,692 (180,960) (298,962) 626,770 837,832
Void losses(memorandum only) (41,604) (554,618) (195,598) (791,820) (746,642)

6 Particulars of Turnover from Non-Social Housing Activities

2024 2023
£ £
Advice Services:
Legal aid including costs & disbursements recovered 842,950 775,998
Grant contract incomes 352,756 457,355
Donations, fundraising and other income 97,919 36,629
Total for Advice Services (Note 4) 1,293,625 1,269,982
2024 2023
£ £
Day Centre
Grant contract incomes 193,274 269,161
Donations, fundraising & other income (Note 4) 116,764 92,788
Total for Day Centre(Note 4) 310,038 361,949

31

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

6
Particulars of Turnover from Non-Social Housing Activities(continued)
2024 2023
£ £
Non-housing rent income
Renaissance House 16,495 15,350
Chatsworth Road 39,211 30,987
Total for Non-housing rent Income (Note 4) 55,706 46,337
Other Activities
Grant contract incomes 5,290,512 4,783,980
BHT Sussex IT Solutions - 97,582
Donations & fundraising 100 4,208
Other Income (Note 4) 58,899 38,977
Total for other activities (Note 4) 5,349,512 4,924,747
Turnover from non-social housing activities (Note 4) 7,008,881 6,603,015

7a Gain/(loss) on disposal of property, plant and equipment (fixed assets)

2024 2023
£ £
Proceeds of sale 521,435 -
Less: Cost of sales (106,760) -
Surplus 414,675 -
7b Units of Housing Stock
2024 2023
Number Number
General needs social housing 305 305
Supported housing 127 133
Total social housing units 432 438
Total owned 432 438
Accommodation managed for others 299 305
Total managed accommodation 731 743
Units managed by other Trusts 6 6
Total owned and managed accommodation 737 749

The decrease in the number of units owned and managed from 749 to 737 is a result of a property sale and the handback of some units managed.

32

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

8 Operating Surplus
2024 2023
£ £
The operating surplus is arrived at after charging:
Depreciation of housing properties - annual charge (Notes 5, 14) 462,358 444,555
Depreciation of other tangible fixed assets (Note 15) 184,504 146,424
Operating lease charges – land, building and vehicles (Notes 8, 24) 1,594,324 1,511,002
Auditor’s remuneration (excluding VAT):
-
fees payable for the audit of the annual accounts of the Trust		 34,875 41,700
9 Employees
2024 2023
£ £
Employee costs (including Executive Management Team) consist of:
Wages and salaries 8,900,515 8,364,532
Social security costs 755,733 736,638
Cost of defined contribution scheme 433,503 404,038
10,089,751 9,505,208

The average number of employees (including Executive Management Team) expressed as full time equivalents (calculated based on a standard working week of 37 hours) during the year was as follows:

2024 2023
Administration 68 71
Housing, Support and Care 233 221
301 292

The full time equivalent number of employees receiving remuneration, including company pension contribution, in excess of £50,000 was:

was:
2024 2023
No. No.
£50,000 - £59,999 1 -
£60,000 - £69,999 - 1
£70,000 - £79,999 2 3
£80,000 - £89,999 1 1
£90,000 - £99,999 1 -

33

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

10 Directors and Senior Executive Remuneration

The directors are defined as the members of the Board of Trustees (the Board), the Chief Executive and the Executive Management Team (EMT) disclosed on page 2.

Key management personnel are defined as members of the EMT. Their remuneration is disclosed below:

2024 2023
£ £
Executive directors’ emoluments 364,407 372,920
Contributions to money purchase pension schemes 19,359 20,372
Total 383,766 393,292

No members of the Board received any emoluments in 2024: nil (2023: nil). The Board received nil (2023: £46) for Board expenses during the year.

The total amount payable to the Chief Executive, who was also the highest paid director in respect of emoluments, was £92,700 (2023 - £74,719 please note he resigned in Jan-23). Additionally, pension contributions of £5,099 (2023: £4,099) were made to a defined contribution pension scheme on his behalf as an ordinary member of the scheme.

As a member of the company pension scheme, the pension entitlement of the Chief Executive is identical to those of other members.

There were 6 directors in the Trust’s defined contribution pension scheme (2023: 6).

11 Board Members

11 Board Members
Member of -
Finance Operations
Board
Members		 Remuneration
Committee		 Audit & Risk
Committee		 & Personnel
Committee		 Governance
Committee		 Board
Kelvin MacDonald √ √ √ √
Sarah Butler √ √ √ √
Ian Millar √ √ √
Melanie Davis √ √ √ √
Gerald Main √ √
Mary Tawiah √ √
Paul Featherstone √ √ √
Lawrence Santcross √ √
Angeline Walker √ √
Andrew Rose √ √ √ √
Mary Davies √
Lee Davies √

No remuneration was paid to Board members. (2023: nil).

12 Interest Receivable and Income from Investments

12
Interest Receivable and Income from Investments
2024 2023
£ £
Interest receivable and similar income 47,267 13,291
13
Interest Payable and Similar Charges
2024 2023
£ £
Interest on loans and overdrafts 33,972 35,869

34

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

14 Tangible Fixed Assets – Housing Properties

14
Tangible Fixed Assets – Housing Properties
General
Needs
Supported
Housing
Total
£
£
£
Cost
At 1stApril 2023
Additions:
-
replaced components
-
other
Disposals:
-
replaced components
-
other		 16,382,233
11,831,432
28,213,665
411,843
116,936
528,779
-
-
-
(15,123)
(126,793)
(141,915)
-
-
-
At 31st March 2024 16,778,953
11,821,576
28,600,529
Depreciation:
At 1stApril 2023
Charge for the year
Eliminated on disposals:
-
replaced components		 (3,858,359)
(3,275,210)
(7,133,569)
(206,256)
(256,129)
(462,385)
9,725
36,272
45,997
At 31st March 2024 (4,054,890) (3,495,067)
(7,549,957)
Net book value at 31st March 2024 12,724,063
8,326,509
21,050,571
Net book value at 31stMarch 2023 12,523,874
8,556,222
21,080,096
The net book value of housing properties may be further analysed as:
2024
2023
£
£
Freehold
17,713,428
17,877,795
Long Leasehold
2,680,738
2,462,742
Leasehold Improvements
656,405
739,559
21,050,571
21,080,096
Total Social Housing Grant received is as follow:
2024
2023
£
£
Capital Grant–Housing Properties
15,628,608
15,628,608

Total Trust expenditure during the year on works to existing properties was £2,403,252 (2023: £2,094,394) of which £528,778 (2023: £1,079,141) has been capitalised. The difference between £2,403,252 and £528,778 is repairs and maintenance costs. This amount has been split between Social Housing £1,133,557 (2023: £921,366) (as detailed in note 5) and supporting people £740,917 (2023: £93,887). Of the amounts capitalised, £231,167 (2023: £400,972) relates to the replacement of components £297,611 (2023: £294,511) relates to the enhancement of properties and £357,552 (2023: 383,658) was for the purchase of Land and Building.

35

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

15 Tangible Fixed Assets – Other

Non-Housing Non-Housing Fixtures, Fittings
IT Equipment
Property and Equipment and Software Total
£ £ £ £
Cost or valuation
At 1stApril 2023 1,959,440 262,495 319,896 2,541,831
Additions 59,954 76,711 33,159 169,824
Disposals - (28,912) - (28,912)
At 31st March 2024 2,019,394 310,294 353,055 2,682,743
Depreciation
At 1stApril 2023 (436,962) (134,074) (209,868) (780,904)
Charge for year (63,901) (55,660) (64,943) (184,504)
Disposal - 26,135 - 26,135
At 31st March 2024 (500,863) (163,599) (274,811) (939,273)
Net book value at 31st March 2024 1,518,531 146,695 78,244 1,743,470
Net book value at 31stMarch 2023 1,522,478 128,421 110,028 1,760,927
Total Capital Grant received is as follows:
2024
 2023
£ £
Capital Grant–Freehold Non-Housing Properties 680,000 680,000
The net book value of non-housing property may be further analysed as:
2024 2023
£ £
Freehold 1,408,641 1,421,955
Long Leasehold 109,890 123,398
- -
**At 31st March ** 1,518,530 1,545,353
16
Debtors
2024 2023
£ £
Due within one year
Rent and service charge arrears 642,683 564,712
Less: Provisions for doubtful debts (193,229) (193,977)
(Note 29) 449,454 370,735
Other debtors (Note 29) 1,349,481 5,004,336
Prepayments and accrued income (Note 29) 356,615 610,190
2,155,550 5,985,261

36

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

17 Creditors: Amounts Falling Due Within One Year

2024 2023
£ £
Loans and borrowings (Note 20) 2,162 1,938
Trade creditors (Note 29) 580,014 342,383
Taxation and social security (Note 29) 201,970 182,469
Prepaid rent accounts 104,051 63,681
Other creditors (Note 29) 100,556 24,249
Accruals and deferred income (Note 29) 1,664,106 5,689,014
Deferred Capital Grant (note 19) 196,203 200,203
2,849,062 6,503,937

Included within Other creditors is £3,202 relating to TPT Pension Liability due within one year.

18 Creditors: Amounts Falling Due After One Year

18
Creditors: Amounts Falling Due After One Year
2024 2023
£ £
Loans and borrowings (Note 20) 308,712 310,885
Deferred Capital Grant (Note 19) 12,406,949 12,574,825
TPT Pension Liability - 3,302
12,715,661 12,889,012

19 Deferred Capital Grant

19
Deferred Capital Grant
2024
2023
£
£
At 1stApril 2023
Addition (SCF)
Released toincome during year(Note 5)		 12,775,028
12,572,509
-
376,808
(171,876)
(174,289)
At 31stMarch 12,775,028
12,603,152
2024
2023
£
£
In one year or less, or on demand (Note 17)
In more than one year but not more than two years (Note 18)
In more than two years but not more than five years (Note 18)
In five years or more (Note 18)		 196,203
200,203
196,203
200,203
568,020
568,020
11,642,726
11,806,602

37

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024 ( continued )

20 Loans and Borrowings

Maturity of debt:

Bank Bank
Loans Loans
2024 2023
£ £
In one year or less, or on demand 2,162 1,938
In more than one year but not more than two years 2,399 2,172
In more than two years but not more than five years 8,895 8,016
In five years or more 297,418 300,697
310,875 312,823

Loans are secured by specific charges on the housing properties of BHT Sussex. The loans bear interest at fixed rates ranging from 9.25% to 13.375% or at variable rates calculated at a margin above the London Inter Bank Offer Rate. There were no issue costs associated with the loans. At the 31[st] March 2024 the BHT Sussex had no bank overdraft facility.

21 Provisions for Liabilities

Dilapidations 2024 2023
£ £
At 1stApril 2023 570,257 384,590
Released to income and expense (128,596) 185,667
Charged as at 31stMarch 441,661 570,257

Maintenance costs of returning properties, under operating leases, to their landlords in a lettable state. These costs are subject to the lease conditions; includes only client/tenant damage and excludes landlord responsibility repairs.

22 Pensions

Defined Contribution Scheme

A defined contribution pension scheme is operated by BHT Sussex on behalf of the employees. The assets of the scheme are held separately from those of BHT Sussex in an independently administered fund provided by Scottish Widows. The pension charge represents 5.5% (2023:5.5%) of pensionable salary contributions payable by BHT Sussex to the fund and amounted to £380,965 (2023: £348,036). Contributions totalling nil (2023: nil) were payable to the fund at the year end.

BHT Sussex also operates a defined contribution pension scheme for the ex-Sussex Oakleaf employees who TUPE’d to BHT Sussex. The assets of the scheme are held separately from those of BHT Sussex in an independently administered fund provided by TPT. The pension charge represents contributions payable by BHT Sussex to the fund and amounted to £30,140 (2023: £28,180).

In November 2021, BHT Sussex TUPE’d seven employees from South East Independent Living Limited (SEILL) and made contributions payable to the Local Government Pension Fund (LGPS) of £22,128 (2023 £22,128).

One (2023: 1) employee belong to the NHS pension scheme. Membership of this scheme is not open to other BHT Sussex employees. BHT Sussex contributes 14.38% (2023: 14.38%) of their pensionable salaries of members to this scheme.

Defined Benefit Scheme

TPT Retirement Solutions – The Growth Plan

The organisation participates in a multi-employer scheme which provides benefits to some 638 non-associated participating employers. The scheme is a defined benefit scheme in the UK. It is not possible for the company to obtain sufficient information to enable it to account for the scheme as a defined benefit scheme. Therefore, it accounts for the scheme as a defined contribution scheme.

The scheme is subject to the funding legislation outlined in the Pensions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actuarial Standards issued by the Financial Reporting Council, set out the framework for funding defined benefit occupational pension schemes in the UK.

38

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024

TPT Retirement Solutions – The Growth Plan (continued)

The scheme is classified as a 'last-man standing arrangement'. Therefore, the company is potentially liable for other participating employers' obligations if those employers are unable to meet their share of the scheme deficit following withdrawal from the scheme. Participating employers are legally required to meet their share of the scheme deficit on an annuity purchase basis on withdrawal from the scheme.

A full actuarial valuation for the scheme was carried out at 30 September 2020. This valuation showed assets of £800.3m, liabilities of £831.9m and a deficit of £31.6m. To eliminate this funding shortfall, the Scheme Trustees have asked the participating employers to pay additional contributions. The recovery plan contributions are allocated to each participating employer in line with their estimated share of the Series 1 and Series 2 scheme liabilities.

Where the scheme is in deficit and where the company has agreed to a deficit funding arrangement the company recognises a liability for this obligation. The amount recognised is the net present value of the deficit reduction contributions payable under the agreement that relates to the deficit. The present value is calculated using the discount rate detailed in these disclosures. The unwinding of the discount rate is recognised as a finance cost.

----- Start of picture text -----
31 March 2024 31 March 2023
TPT – The Growth Plan
(£s) (£s)
Present value of provision 3,141 6,724
31 March 2024 31 March 2023
Reconciliation Of Opening and Closing Provisions
(£s) (£s)
Provision at start of period 6,724 10,548
Unwinding of the discount factor (interest expense) 258 199
Deficit contribution paid (3,843) (3,843)
Remeasurements - impact of any change in assumptions 2 (180)
Remeasurements - amendments to the contribution schedule - -
Provision at end of period 3,141 6,724
----- End of picture text -----

31 March 2024
31 March 2023		 31 March 2024
31 March 2023
Rate of discount 5.31% 5.52%

Assumptions

The discount rates shown above are the equivalent single discount rates which, when used to discount the future recovery plan contributions due, would give the same results as using a full AA corporate bond yield curve to discount the same recovery plan contributions.

The company must recognise a liability measured as the present value of the contributions payable that arise from the deficit recovery agreement and the resulting expense in the income and expenditure account i.e. the unwinding of the discount rate as a finance cost in the period in which it arises. It is these contributions that have been used to derive the company's balance sheet liability.

23 Contingent Liabilities

BHT Sussex received Social Housing Grants which were used to fund the acquisition and development of housing properties and their components. A grant of £4,331,682 (2023: £4,173,530) was received in respect of housing properties held at 31[st] March 2024 in respect of adoption of historic cost. BHT Sussex has a future obligation to recycle such grants once the properties are disposed of. At 31[st] March 2024 the value of grants received in respect of these properties that had not been disposed of was £11,483,541(2023: £11,641,693).

In addition, non-social housing grants of £639,200 (2023: £639,200) had been received in respect of properties that had not been disposed of.

39

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024

24 Operating Leases

BHT Sussex had minimum lease payments under non-cancellable operating leases as set out below:

Amounts Payable as Lessee

Amounts Payable as Lessee
2024 2023
£ £
Not later than 1 year 1,555,135 1,511,002
Later than 1 year and not later than 5 years 2,862,601 2,658,898
Later than 5 years 1,763,858 2,110,107
Total **6,181,594 ** 6,280,007
Amounts Receivable as Lessor
2024 2023
£ £
Not later than 1 year 50,669 48,447
Laterthan 1yearandnotlaterthan5 years 35,860 65,567
Total 86,529 114,014
Averagerentsreceivablefromtenants per week 164,879 164,129

25 Capital Commitments

There were no capital commitments as at 31[st] March 2024 (2023: £325k).

26 Related Party Disclosures

Two members of our Board are also tenants of BHT Sussex. These Board members pay rent and service charges and these transactions have taken place at arm’s length. The average rent charge for the type of property rented is £123 (2023: £116) per week including service charges. The rent charge paid by both Board members is £123 (2023: £116) per week.

They no longer working here - One Board member whose partner is a member of The Board of Sussex Interpreting Services, who are a supplier of Services to BHT Sussex Advice, there were nil (2023: 9) transactions and the sum paid was nil (2023: £932).

There is also a further Board member who is a Trustee of BHT Charitable Trust. There were no transactions (2023: nil) with BHT Charitable Trust.

There were no other related party transactions in the year to 31[st] March 2024.

27 Members’ Liability

BHT Sussex has no share capital, and the liability of the members is limited by guarantee as set out in the provisions of the Articles of Association.

Each of the 10 (2023: 14) members has undertaken to contribute £1 in the event of BHT Sussex being wound up.

40

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024

28 Capital and Reserves

Restricted Reserves

Restricted Reserves
1 April
2023		 Income Expenditure Released
to General
Reserves		 31 March
2024
£ £ £ £ £
The Academy 159,752 99,515 (82,440) - 176,827
Fulfilling Lives - - - - -
East Sussex Floating Support 108,359 3,896,493 (3,858,993) - 145,859
Designated Reserves – Development 2,896 - - - 2,896
Property Maintenance Reserve 37,000 - - - 37,000
Restricted Reserves 2,496 - - - 2,496
Total Restricted Reserves 310,503 3,996,008 (3,941,433) - 365,078
Unrestricted Reserves* 11,168,557 13,383,285 (13,216,656) - 11,335,186
Total Reserves 11,479,060 17,379,293 (17,158,089) - 11,700,264
Released
1 April to General 31 March
2022 Income Expenditure Reserves 2023
£ £ £ £ £
The Academy 201,143 91,983 (133,374) - 159,752
Fulfilling Lives 304,565 437,235 (433,670) (308,130) -
East Sussex Floating Support 8776 3,312,405 (3,212,822) - 108,359
Designated Reserves – Development 2,896 - - - 2,896
Property Maintenance Reserve 37,000 - - - 37,000
Restricted Reserves 2,496 - - - 2,496
Total Restricted Reserves 556,876 3,841,623 (3,779,866) (308,130) 310,503
Unrestricted Reserves* 10,827,387 13,088,310 (13,055,270) 308,130 11,168,557
Total Reserves 11,384,263 16,929,933 (16,835,136) - 11,479,060
Reserve Purpose and restriction in use
The Academy Helping homeless people move into employment and accommodation
Fulfilling Lives Promoting change with people with multiple and complex needs
East Sussex Floating Support The provision of a Housing related Floating Support Services to support
people to live well and independently in their own homes in East Sussex
Designated Reserves – Development Transferred from Sussex Oakleaf and is for Millhaven Fund
Property Maintenance Reserve Transferred from Sussex Oakleaf and is for Capital Major Works
Restricted Reserves Transferred from Sussex Oakleaf and is for Children in Need

Release of Restricted Reserves to General Reserves is the result of funding for specific projects coming to an end and the funder confirming that no future liability exists. During 2023/24, a total sum of nil (2023: £308,130) was released from Restricted Reserves to General Reserves.

41

Notes Forming Part of the Financial Statements for the year ended 31[st] March 2024

29 Financial Instruments

The financial instruments may be analysed as follows:

2024 2023
£ £
Financial Assets
Financial assets measured at amortised cost
-
Trade receivables (Note 16)		 449,454 370,735
-
Other receivables (Note 16)		 1,706,097 5,614,526
Financial assets measured at historical cost
-
Cash and cash equivalents (SCF)		 2,757,056 2,615,983
Total Financial Assets **4,912,607 ** 8,601,244
2024 2023
£ £
Financial Liabilities
Financial liabilities measured at amortised cost
-
Loans payable (Note 17 & 18)		 310,875 312,823
Financial liabilities measured at historical cost
-
Trade creditors (Note 17)		 580,014 342,383
-
Other creditors (Note 17)		 2,070,682 5,959,413
Total financial liabilities at historic cost 2,650,696 6,301,796
Total Financial Liabilities 2,961,570 6,614,619
30
Net Fund Reconciliation
1 April 2023 Cashflows 31 March 2024
£ £ £
Cash at Bank and in Hand 2,615,983 141,072 2,757,055
Bank Loans (312,823) 1,948 (310,875)
TOTAL 2,303,160 143,020 2,446,180

42