2021-03-31-accounts - Hestia Housing And Support

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HESTIA HOUSING AND SUPPORT

CONSOLIDATED FINANCIAL STATEMENTS For the year ended 31 March 2021

Company Number: 02020165 Charity Number: 294555

HESTIA HOUSING AND SUPPORT

Consolidated financial statements for the year ended 31 March 2021

Contents	Page(s)
Reference and administrative details	3 – 4
Report of the Board of Trustees (incorporating the Directors’ Report and the	5 – 27
Strategic Report)
Independent auditor’s report	28 – 30
Consolidated Statement of Financial Activities	31
Group and Parent Balance sheets	32
Consolidated Statement of Cash Flow	33 – 34
Notes to the financial statements	35 - 55

HESTIA HOUSING AND SUPPORT

Reference and administrative details

Trustees		Committee Membership	Committee Membership
	Governance and Remuneration	Finance and Fundraising	Performance Review (Incorporating Approved Premises)	Digital and I.T.
Terrie Alafat – Chair	X
Malcolm Jenkin – Vice Chair (retired 1stDecember 2020)	X		Chair of Approved Premises
Anil Shenoy- Treasurer	X	Chair
Elizabeth Zacharias	X		Chair
Vic Rayner
Alex Hyde-Smith (resigned 7th September 2020)		X
Michael Trup		X		Chair
Helen Christina Marriott			X
Aisling Thompson (appointed 3rdDecember 2020)			X
Rebecca Pritchard			X
Lauren Bowes (appointed 24th March 2020)			X	X
Liz Meek (appointed 6th October 2020)		X
Brendan Sarsfield (co-opted 23rdMarch 2021)

The Governance Committee is chaired by Joanna Mark-Richards, a non-Trustee member. Other non-Trustee members during the year were Narvind Johal who sat on the Finance and Fundraising Sub Committee until his resignation on 17[th] May 2021, and Greg Solomon, Catalina Cernica and Tori Ellaway who sit on the Digital & IT Sub Committee).

Key management personnel

Secretary and Chief Executive Director of Finance Human Resources Director Regional Director of Operations Regional Director of Operations Regional Director of Operations Director of Performance and Development Director of Fundraising and Communications

Patrick Ryan Christopher Clarke Melanie Cox Gayle Lowery-Jones Abigail Ampofo Nahar Choudhury Paula Murphy Jo Tilley-Riley

HESTIA HOUSING AND SUPPORT

Reference and administrative details (continued)

Auditor

BDO LLP Chartered Accountants 55 Baker Street London W1U 7EU

Registered office

Maya House 134-138 Borough High Street London SE1 1LB

Principal Bankers

Barclays Bank plc 74 Shepherds Bush Green London W12 8QB

Solicitors

Russell-Cooke 2 Putney Hill London SW15 6AB

Company number: 02020165 Charity number: 294555

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021

The Trustees, being the Directors of the charitable company, present their report and the audited consolidated financial statements for the year ended 31 March 2021 of Hestia Housing and Support (Hestia).

STRUCTURE, GOVERNANCE AND MANAGEMENT

Structure

Hestia is a registered charity and is incorporated as a company limited by guarantee and its governing document is its Memorandum and Articles of Association. Every member of the company undertakes to contribute to its assets in the event of winding up such amount, as may be required, not exceeding one pound.

Hestia has been appointed as Corporate Trustee for the Corporate Alliance Against Domestic Violence (CAADV). CAADV operates via its own Board of Trustees which include Patrick Ryan (CEO – Hestia) and Jo Tilly-Riley (Director of Fundraising and Communications – Hestia). During the year proceedings commenced to wind up CAADV and this is due to be completed by 31 December 2021.

Governance and Management

The Trustees constitute the Directors of the charitable company for the purposes of the Companies Act 2006 and Trustees for the purposes of the Charities Act 2011 and provide leadership, direction and control in pursuit of the organisation’s charitable objectives. Trustees serve for a term of three years with a possible appointment for a second term of another three years.

Terrie Alafat has been Chair of the Charity since December 2018. Terrie was Chief Executive of the Chartered Institute of Housing until 2019 and has had a long career in housing policy and research at both local and national government levels.

Malcolm Jenkin, Hestia’s Vice Chair, retired from the Board in December having reached the end of his term of appointment and Alex Hyde-Smith resigned mid year. We are extremely grateful to both Malcolm and Alex for the contributions they made to the Charity over their years on the Board.

In December 2020, Aisling Thompson and Lauren Bowen who had been previously co-opted were formally appointed to the Board.

Liz Meek was appointed as a Trustee in December 2020: Liz had previously worked in the Civil Service and was Head of the Government Office for London and then the North West, delivering policies and programmes tackling poverty and disadvantage. Since leaving the Civil Service, Liz has been involved across a range of initiatives aimed at addressing mental health issues and chairs Twining Enterprise, a charity aimed at helping people with mental health problems into work.

Brendan Sarsfield was co-opted to the Board in March 2021: Brendan recently retired form his post as Chief Executive of Peabody, an RSL which owns and manages 68,000 homes across London and the South East. Brendan chairs the Sustainable Housing Standards Board which focusses on the relationship between housing and the finance sector on ESG issues.

Committee membership alos include members of Hesxtia who are not Trustees and the following have kindly agreed to contribute in the following roles:

Joanna Mark-Richards, a former Trustee of Hestia, who chairs the Governance and Remuneration Committee;
Narvind Johal, who sat on the Finance and Fundraising Sub Committee until his resignation on 17[th] May 2021; and
Greg Solomon, Catalina Cernica and Tori Ellaway who sit on the Digital and I.T. Sub Committee.

New Trustees are recruited based on an evaluation of the balance of diverse skills and experience needed to govern Hestia. They receive an induction pack which contains information about Hestia, its structure and operations, the Board and sub-committee structures, Trustee duties and responsibilities and the organisation’s key policies. Regular scheme visits are arranged to enable Trustees to obtain a better understanding of Hestia’s services and operating environment.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Governance and Management (continued)

Trustees can take part in scheme inspections. Regular contact with Hestia’s service users usually takes place via social events, recruitment, scheme inspections and visits and other operational activities. However, given the limited opportunities under COVID 19 and the resulting lockdowns for Trustees to visit services and have direct contact with service users, a number of service users and volunteers attended Board meetings to update on their experience and report back on relevant organisational surveys so that Trustees could hear directly from them in the absence of opportunities to meet in person.

Training is provided to the Board in line with identified needs. All Trustees undertake safeguarding training as this is a core responsibility of the Board. Trustees schedule away days to consider the operating environment and plan strategic direction.

The full Board of Trustees meets six times a year to discuss strategy, to formulate policy and to oversee operational matters. The Board is supported by three standing committees covering Governance; Finance and Fundraising, and Performance Review (which now oversees the work previously undertaken by the Approved Premises Committee). In addition, the Digital and I.T. Sub Committee is a time limited Sub Committee to oversee the development and implementation of Digital and I.T. Strategies. Sub Committees consider specific areas of activity in detail on behalf of the Trustees and to report to Trustees on key issues.

The Board have agreed that service transformation and service quality is a key strand in our strategic plans and in 2020 a new quality strategy was developed which will enable Trustees to have improved oversight on the quality of service delivery across Hestia. As well as an annual report to Trustees on quality, the Performance Review Committee will review performance against the quality strategy on a quarterly basis. Strategy outcome measures focus on service user outcomes, service user experience and staff experience as the key indicators of quality service delivery.

All Trustees receive an annual Governance update from the charity’s Solicitors. During 2020 Trustees received legal advice with recommendations to adopt the Charity Governance Code and to review Hestia’s practices against the seven key areas which make up the code. Trustees agreed to review the “Diversity” element of the code and, during the year, external consultants were appointed to undertake a review to examine organisational practices and challenge unconscious and institutional bias in response to the Black Lives Matter movement. The Board appointed a Steering Group to overview this work chaired by Joanna Mark Richard (Chair of Governance) supported by Christina Marriott who has a strong background in equality and diversity audits and reviews. Initial findings have been presented to Trustees in August 2021 with priorities for action to be reviewed in October 2021.

Day to day management of the organisation is delegated to the Chief Executive and senior management team. The Chief Executive is not a member of the company and has no legal status as Director although he acts as executive within the authority delegated by the Trustees.

The Corporate Alliance Against Domestic Violence operated through its own articles of association and Board of Trustees. Trustees were selected based on the range of skills required.

Pay Policy for Senior Staff

The pay of senior staff is reviewed by the Governance and Remuneration Sub Committee considering market conditions and pay rates in comparable organisations. A detailed market comparison is sought at the time any senior recruitment takes place.

Public Benefit

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives and in planning our future activities.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Energy and Carbon Reporting

As part of the obligations set out under the Energy and Carbon Report Regulations 2018, we are required to disclose the energy and carbon created as an organisation over the year to 31 March 2021.

The majority of our usage comes from the accommodation units provided to our service users but also office accommodation used by staff.

In completing this analysis, we have followed the 2019 HM Government Environmental Reporting Guidelines. We have also used the GHG Reporting Protocol - Corporate Standard and have used the 2020 UK Government's Conversion Factors for Company Reporting.

Usage: 2019-2020 and 2020-2021:

	01 April 2020 – 31 March 2021	01 April 2019 – 31 March 2020
Energy consumption used to calculate emissions (kWh)	7,469,636	7,185,005
Scope 1 emissions in metric tonnes C02e Gas Emissions	1119.96	1091.01
Scope 2 emissions in metric tonnes C02e Purchased Electricity	343.28	291.75
Scope 2 emissions in metric tonnes C02e Business Travel	13.47	-
Totalgross emissions in metric tonnes C02e	1,476.71	1,382.76
Intensityratio Tonnes C02eper occupant ¹	2,666	2,252

Note 1: The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per occupant.

Measures taken to improve energy efficiency

Gas and Electricity meter reads are taken regularly every month and saved into a meter read website which reports accurate consumption for billing and budgeting purposes. This helps control energy use and ensures energy bills are accurate and excessive consumption can be immediately targeted for investigation. We also have AMR metering installed on a significant number of sites which helps to manage energy use.

Strategic Review

The Trustees Report also incorporates the Strategic review with specific consideration of i) Review of Business on pages 9 to 16 ii) Key Performance Indicators on pages 11 to 12 and iii) and risks and uncertainties on pages 25 to 26.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

STRUCTURE, GOVERNANCE AND MANAGEMENT (continued)

Statement of Trustees' Responsibilities

The Trustees (who are also directors for the purposes of company law) are responsible for preparing the Report of the Board of Trustees and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the directors to prepare financial statements for each financial year. Under that law, the Trustees have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the Trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group and of the incoming resources and application of resources, including income and expenditure, of the charitable company for that period. In preparing these financial statements, the Trustees are required to:

select suitable accounting policies and then apply them consistently;
observe the methods and principles in the Charities Statement of Recommended Practice (SORP);
make judgements and estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explain the charitable company’s transactions and which disclose with reasonable accuracy at any time the financial position of the charitable company and which enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the charitable company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

In so far as the Trustees are aware:

there is no relevant audit information of which the charitable company’s auditor is unaware; and
the Trustees have taken all steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information.

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

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

OBJECTIVES

Hestia’s objects as outlined in the Memorandum and Articles of Association are for the public benefit:

To relieve hardship and distress by providing support and care for individuals who suffer mental or physical infirmity, are affected by domestic violence, are offenders or at risk of offending, are in need due to age or youth, are homeless, suffer substance abuse or are otherwise in need of assistance;
To provide housing, housing related support or care for the Beneficiaries so that they can live more independent lives and fulfil their potential in the community; and
To further such other exclusively charitable purposes according to the law of England and Wales as the Trustees in their absolute discretion from time to time determine.

Hestia’s mission is ‘Together we will deliver high quality and empowering services through our core values”. Our core values are: Respectful, Collaborative, Genuine, Dedicated and Courageous. Our aim is to support vulnerable adults and children in crisis to realise their aspirations and fulfil their potential and to have a life beyond crisis.

The support we offer varies depending on the needs and aspirations of the individuals. In the year to 31[st] March 2021, Hestia supported 14,007 individuals who accessed our services during the year, across a range of client groups broken down as follows:

nge of client groups broken down as follows:
Client Group	At 31 March 2021	At 31 March 2020
Domestic Abuse (including children)	3,877	2,830
Mental Health	4,078	3,720
Modern Slavery	2,599	3,308
Offenders, Ex-offenders and Mentally Disordered Offenders	111	388
Young People at Risk	62	72
Older People	490	713
Generic	2,764	3,450
Personal Budget Holders	-	803
Substance Misuse	26	24

Partnership Working

To meet the increasing and varied needs of vulnerable adults and children in crisis we work in partnership with a range of national and local government agencies, including 22 local authorities across London and the South East, Health Boards, Her Majesty’s Prison and Probation Service, the Mayor’s Office for Policing and Crime, the Department of Health, the Ministry of Justice, the Home Office and the Department of Culture, Media and Sport.

We work with closely with a number Registered Provider partners who provide most of the property which accommodates our service users.

We also work with a range of third sector partners on project-based work, including the Salvation Army, the Rayne Foundation, Pilgrim Trust and Great Portland Estates to work with people who have experienced Modern Slavery and the Employers Initiative on Domestic Abuse to provide guidance to a wide range of employers to support their employees identified as being at risk of domestic abuse.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

ACHIEVEMENTS AND PERFORMANCE

Our 5-year organisational strategy 2019 - 2024 focussed on:

Service quality;
Expanding our service offer; and
Strengthening our advocacy for our service users.

These overarching themes continued to drive activities across the organisation in 2020-21 and framed our response to the COVID 19 Pandemic.

Hestia’s COVID 19 Response

From March 2020, we moved quickly to address the challenges brought about the pandemic and sought to ensure service users and staff were supported, quality services were maintained, and risks minimised.

We established a crisis task force of senior staff which met weekly to review developments as they were happening and to formulate real time responses which we linked to regularly updated policies and procedures. The task force was supported by additional resources appointed to manage data analysis and oversee external intelligence. Specifically, we:

Moved all non-accommodation based staff to home working with immediate effect, supporting staff to continue to work through the provision of suitable I.T. equipment and digital interfaces.
Introduced measures to support accommodation-based services by reviewing rotas, sourced additional bank and agency workers to ensure that these services remained open with appropriate staffing levels.
Undertook a risk assessment of all service users identifying appropriate levels and methods of support according to vulnerability.
Implemented blended models of care across our floating support and outreach services, day centres and crisis centres using existing digital and I.T. facilities based on service user led requirements.
Accessed and provided suitable Personal and Protective Equipment for all staff and implemented Infection Control measures across all our accommodation services using funds generously provided by our local authority partners.
Recruited 170 volunteers to support vulnerable service users and those self isolating with grocery shopping / medication collection and other social interaction.
Achieved increases in fundraising income to support service users, including I.T. equipment to support children in services maintain their education and food vouchers for vulnerable service users.
Opened (in six weeks) 2 houses with 24 beds to support women escaping Domestic Abuse, supported by funding from MOPAC and MHCLG.
Developed our Safe Spaces campaign in conjunction with The Royal Pharmaceutical Society to provide victims of Domestic Abuse with the opportunity to obtain information in private and to access relevant helplines using phones provided for that purpose. These services were available in pharmacies across the UK including Boots, Superdrug and Morrisons Supermarkets.
Launched the Respond to Abuse advice line for employers concerned about staff who might be enduring domestic abuse.
In addition to providing staff with equipment to enable them to work from home, we introduced a range of wellbeing initiatives aimed at supporting staff adapt to the changing work environments and those who became ill as a result of COVID. From a staff team of 650 we furloughed 6 staff who could not be redeployed into other services.

We maintained liaison with all of our Commissioner to agree appropriate changes to service delivery models all Hestia remained opened during the year. Only one service – the Lewisham Older People’s Day Service – was closed by Commissioners in the year.

We managed service user exposure and experienced no major outbreaks in any of our services.

We continued to open services with six new services starting in the year, in addition to the emergency Domestic Abuse services noted above.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

During the year, we surveyed our service users to understand their experience of our response and see that else we could do. Over 3,200 service users were surveyed and 93% of respondents confirmed that they were happy with the support they received from us during the pandemic.

In terms of “business as usual” and linked to our strategic objectives in the year we achieved the following:

Objective 1: Service Quality

New KPI measures were developed and we started to collect service user experience and outcomes and staff experience to support the quality strategy. These will be reported annually to Trustees and quarterly to the Performance and Review Committee.
The transfer of all services across to InForm, our Client Management System was completed. This provides real time information on service user journeys linked to the Hestia Approach, our recovery focussed approach to working with service users. During the year, and working with service users, we have been developing a number of self service tools within InForm to increase and enhance direct service user involvement in their support journeys.
Using funds provided by Barclays Bank plc, we worked with staff to develop approaches and skills in providing support remotely using a range of digital tools and we will use the knowledge gained from this to influence our Digital and I.T. Strategy.
Senior specialist roles have been appointed to lead innovation and service quality across our mental health, criminal justice, digital, domestic abuse and modern slavery services. We have developed strategies for our offender and mental health services and have commenced a review of our Digital and I.T. strategies.
We developed a property strategy with the support of external experts so that we can support increased numbers of service users in more appropriate environments.

The majority of Hestia’s services are commissioned to achieve positive outcomes against the five domains from the Communities and Local Government outcomes framework.

As part of our annual service user satisfaction survey, we can report on the Adult Social Care Outcomes Framework (ASCOF) which measure how well care and support services achieve the outcomes that matter most to people. The ASCOF is used both locally and nationally to set priorities for care and support, measure progress and strengthen transparency and accountability. We are pleased to see positively how service users rate their experience at Hestia against comparative London wide measures:

Question	Overall Positive Response rate 2020	Overall	ASCOF
		Positive	Positive
		Response rate	response rate
		2019	London 2019-20
I am satisfied with my service / client satisfaction with care and support	95%	96%	58.6%
I know how the service works and what I am entitled to / I find it easy to get information	89%	89%	65.9%
I can control the kind of support I receive / Proportion of people who feel they have control over their daily life.	93%	93%	71.9%
I feel safe and secure in the service. / Proportion of people whose service help them to feel safe	95%	96%	83.1%
I am able to have as much social contact as I want with people I like. / Proportion of people who have as much social contact as they would like.	84%	88%	42.9%

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

Each year we conduct an annual service user survey to assess service user experience and the survey. The percentage of people requiring support in a given area who achieved an outcome was:

Domain	Indicator	% achieved	% achieved and partly achieved
Maximise economic well being	Achieve positive outcomes for those needing support to maximise their income by applying for the correct benefits	79%	94%
Enjoy and achieve	Service users seeking to improve the quality of life for children	89%	100%
	Service users requiring support to participate in activities	71%	83%
	Reported in our annual satisfaction survey, service users agreeing the service enabled them to develop independence and linked them into other services	96%
	Reported in our annual satisfaction survey, service users confirming they have as much social contact as they would like	84%
Being Healthy	Received support to better manage physical health	74%	95%
	Received support to better manage mental health	71%	93%
Staying Safe	Reduce the risk of harm from others	90%	94%
	Received support to maintain accommodation	89%	91%
	Reported in our annual satisfaction survey, service users confirming they felt safe and secure in the service	95%
Making a positive contribution	Received support to be more confident in accessing services	90%	93%
	Reported in our annual satisfaction survey, service users confirming they could access information about their service when needed; agreeing they were in control of their support; understanding how the service delivered the support they need and understanding their entitlements.	89%

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

Objective 2: Expanding our Service Offer

In 2020/21:

We opened three new services to provide safe spaces for individuals suffering mental health crises to meet outside a clinical environment which sit alongside four similar services previously opened. Six of these services are in London and one in Kent.
These services offer those in mental health crisis a supportive alternative to presenting at Accident and Emergency, which focusses on recovery and reduces pressure on the NHS.

Services which opened late March / April 2020 were switched to telephone support augmented by visit and drop services where necessary following the COVID-19 lockdown in March 2020. As a result we were able to maintain operational delivery and supported those in mental health crisis to access the support they needed whilst avoiding attending hospitals during the pandemic.

In 2021-22 we will open our eighth Crisis Alternative service in the London Borough of Camden.

We opened a house in Greenwich to provide 5 units of short-term crisis accommodation as an alternative to presenting at Accident & Emergency. The house is presently leased and in May 2021 we purchased a property to expand the delivery this service by a further 7 units. Funding for this service is provided by the Oxleas NHS Foundation Trust and is one of the first of its kind in London
We opened 24 additional refuge beds in May 2020 in response to requests from MOPAC and MHCLG to address the increase in domestic abuse cases following the COVID-19 lockdown. We have been able to keep these open into 2021-22 thanks to additional funding from MHCLG.
We took on the contract for the support and management of Latch House in Lambeth on 1[st] April – this service provides 15 units of accommodation for ex-offenders with substance misuse issues. One of the first priorities on taking on the contract was to address the poor accommodation standards in the property in conjunction with the owning RSL.
We were commissioned by the Brook House Public Inquiry to provide a free and confidential telephone support service to vulnerable witnesses. The Inquiry is investigating the mistreatment of detainees at Brook House Immigration Removal Centre. Hestia’s support is delivered by a specialist counselling team, working with witnesses in multiple languages as they prepare and present their evidence for the Inquiry. Hestia counsellors will also be attending the Hearings when they begin in November 2021 to provide in-person support for witnesses.
Hestia has been providing counselling and support to members of the Grenfell community attending the Grenfell Tower Inquiry since the start of the Inquiry in May 2018. We are now providing a hybrid service, with free telephone support as well as in-person support for people attending the Hearings. Hestia’s team delivers a culturally responsive and trauma-informed approach, adapting therapeutic support within the setting of the Inquiry.
We were appointed by Central and North West London NHS Foundation Trust to provide substance misuse, BME support and Arabic speaking outreach services across Westminster and Kensington & Chelsea.
We undertook a major refurbishment of our Approved Premise in Streatham which required the property to be decanted. The project was successfully re-opened in December 2020.
Over the year we attracted £319,000 of Infection Control Funds from commissioning partners to ensure our services were able to remain open safely and securely. We were able to supplement this by donations of both funds and in-kind supplies from a range of corporate and individual donors.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

Objective 2: Expanding our Service Offer (continued)

Following a competitive tender, the Salvation Army were reappointed to deliver the Victim Care contract for victims of human trafficking and we were successful in our bid to continue to act as a sub contractor in the London and South East.
We increased the number of safe houses in London to seven as well as the existing two houses in Kent.

Our outreach programme continued to expand and in January 2021 were contracted to support approximately 1,800 clients at any given point in time. From January 2021 we were also contracted to provide reach in support to clients after they have received a positive Conclusive Grounds Decision.

In addition to our contractual requirements, we:

Provide longer term volunteer support to victims of modern slavery through our Phoenix Project supported by funding via The Rayne Foundation, the Pilgrim Trust, Great Portland Estates and the Home Office;
Offer bespoke modern slavery and homelessness training funded by MHCLG and the Homes Office to statutory and voluntary sector organisations; and
In partnership with Crisis, BAWSO and Belfast & Lisburn Women’s Aid, we developed a database to improve national understanding of modern slavery across England, Wales and Northern Ireland.
With partners including Boots, Superdrug and Morrisons, we launched the Safe Spaces initiative in pharmacies across the UK, ensuring victims of domestic abuse could still access support during the Covid-19 pandemic and beyond.
We worked with Royal Mail Group to launch Online Safe Spaces on major consumer websites leading to around 1,400 users accessing an Online Safe Space every day.
We opened the Respond to Abuse Advice Line along side our existing App to enable employers to access free support on responding to victims and perpetrators of domestic abuse in their workforce

Objective 3: Strengthening our advocacy for our service users.

In 2020/21:

The third year of our #ArtIsFreedom exhibition show-cased photography by survivors of modern slavery through a social media takeover and Facebook lives with figures including the Bishop of London and the Independent Anti-Slavery Commissioner.
Our latest Underground Lives report called for improved training for police and legal services to help identify victims of criminal exploitation and was published at a digital summit bringing together experts from across the sector.
Through our campaign UK SAYS NO MORE, we secured changes to the Domestic Abuse Act including children being recognised in the definition of victims.
More employers achieved the Everyone’s Business Award including Hestia, Balfour Beatty, Wandle Housing and the Office of the Police and Crime Commissioner for Lincolnshire.
Our Bright Sky app was launched in Welsh as part of an ongoing collaboration with Vodafone and TecSOS.
Our Everyone’s Business IDVA team was awarded a Met Police Public Protection Award
• Our Recovery Café in Tooting won the public vote in the Charity Today Awards recognising its invaluable role in supporting people who are experiencing a mental health crisis.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

2020-21 in detail:

We provided support to a total of 14,007 adults and children in crisis across London, Kent and Berkshire.
1,629 adults were supported in our accommodation services, many of whom had previously been in hospital, prison, sleeping rough or living in an abusive relationship. Our accommodation gave them a safe place with the support to enable them to develop the skills and confidence they needed for a fresh start.
9,323 service users were supported in their own homes through outreach and floating support services, supporting their recovery, helping them to maintain their tenancies, avoid homelessness and actively participate in their local communities.
461 service users engaged with our mental health day centres in Kensington and Hounslow and our activities and older people’s day centres in Kingston, Lewisham and Wandsworth.
388 children were accommodated in our Domestic Abuse refuges.
Our Independent Domestic Violence Advocate (IDVA) Services supported 1,153 adults in Ealing, Slough and Harrow and across our Everyone’s Business network, aimed at reducing risk, safety planning, police reporting, gaining legal advice and housing support and signposting to other specialist agencies.
2,599 service users (with 1,034 dependents) were provided with accommodation and / or outreach services to help them escape the trauma of modern slavery.
54 offenders were accommodated and supported to re-integrate into the community and address their offending behaviours in our two Approved Premises services.
Our Brent Mental Health Service provided a range of services, including facilitation of a peer review network for users of local GP services, assistance with employment support. This year we supported 163 people towards employment and supported 548 people through the health service.
• The South West London Recovery Café received 1,662 visits across 2020-21 from 949 customers, when open for in-person visits; it also received 1,262 telephone calls during the periods it offered remote service. 95% of attendees reported improved quality of life in the three months following their first visit. In 2020-21 we expanded this provision with new services opening in Brent, Hillingdon, Kensington & Chelsea, Newham and Tower Hamlets, which provide support to 1,693 people through face-to-face and remote contact.
The Ealing Single Homeless Prevention Service supported 522 service users in the year: the service aims to prevent and relieve homelessness in the Borough through interventions which aim to create personal housing plans.
Our new Crisis House in Greenwich opened in February 2021 and we supported 28 individuals by offering an alternative to hospital admission in a non-clinical, homely environment with 24hour support offered by experienced mental health support workers. The team supports people to utilise their own networks and resilience and community resources as an alternative to hospital admission or emergency department presentation. The service provides extended assessment, advice and guidance to service users and a safe, therapeutic environment.
Our Integrated Student Model provided both training opportunities and additional support across Hestia services for 115 Social Work Students, 50 Mental Health nurses and 40 Trainee Counsellors.
600 volunteers provided 15,220 hours of support activities across Hestia with a further 230 corporate volunteers contributing and additional 636 hours.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

ACHIEVEMENTS AND PERFORMANCE (continued)

Added Value

In addition to our contracted services, we aim to offer added value through a range of activities to enhance the support we provide – either with the support of our commissioners or through fundraising activities. These included:

Providing support to children in our Domestic Abuse refuges with dedicated Children’s Workers, summer play schemes and our fitness programme supported via our Sport England Grant.
Offering additional targeted support to our service users in conjunction with a range of universities and professional training bodies via Student Social Work Placements, Trainee Mental Health Nurses and Trainee Counsellors
Funding a specific referral line aimed at ensuring women escaping domestic violence have access to a refuge space.
Supporting women without recourse to public funds to access refuge accommodation, providing short term financial support whilst working with them to stabilise their longer time financial future.
Providing post referral support programmes for victims of modern slavery, including carrying out a number of key research pieces on the effects of modern slavery on victims and hosting our annual Art is Freedom exhibitions to provide victims with voices.
Continuing to develop our Bright Sky App to support victims of Domestic Abuse across the UK (including the introduction of a Welsh language version).
Introducing a range of initiatives aimed at helping employers support victims of domestic abuse in their organisations.
Providing our Respond to Abuse App to support HR professionals to respond to employees affected by domestic abuse.
Provide a range of volunteering opportunities for service users supporting them with work experience and skills building providing a route into employment.

Post COVID-19 lockdown we were also able to provide support to our service users in direct ways, including food drops for those unable to leave home and buying additional equipment in our accommodation services (including laptops and tablets for children in refuges to support their ongoing education).

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

FINANCIAL REVIEW

The results for the year are set out in Statement of Financial Activities on page 31. The assets and liabilities of the Group at 31 March 2021 are shown in the Balance Sheet on page 32. The financial statements should be read in conjunction with their related notes which appear on pages 35 to 55.

Income and funding

Total income increased by 18% from £31.719 million in 2019-20 to £37.443 million in 2020-21.

Income from charitable activities – from contracts, grants and associated charges to residents for rents – continue to form the largest element of our income (97%). In total, these rose by £5.442 million to £36.210 million in 2020-21 as a result of additional contracts and grants that we were successful in attracting over the year.

Income from donations and legacies increased from £0.726 million to £1.026 million in 2020-21 thanks to a number of appeals to support service users at the outset of the COVID 19 pandemic.

Investment income fell to £207,255 from £225,048 although the underlying value of investments assets recovered from the March 2020 fall.

£33.342 million of income was unrestricted, an increase on 11.7% on the previous year: restricted income increased by 221% to £4.101 million reflecting the range of grants made available to support a range of organisational activities in the early days of the COIVD -19 pandemic.

Voluntary income

Hestia is grateful to our voluntary supporters whose help enables us to go beyond our contractual duties to improve the life chances of our service users. Over the year we worked with a range of government agencies, charitable trusts, community groups, corporate donors and individuals on a wide range of activities.

This includes:

John Lyon’s Charity, the Carole and Geoffrey Lawson Foundation, BBC Children In Need, Good Enough Mothering, London Borough of Hackney, and City Bridge Trust who supported our work with Children and Families in our refuges, and Sport England and the Nike Community Impact Fund (managed by the King Baudouin Foundation) who have continued to provide funding to support children in our refuges access a range of sports activities.
Department for Culture, Media and Sport who through the Tampon Tax support a number of Domestic Abuse and modern slavery initiatives. We would also like to recognise the Pilgrim Trust, Trust for London, the Rayne Foundation and the Department for Health and Social Care who have also supported our modern slavery programme

We are also extremely grateful for the many supporters whose help enabled us to respond swiftly and comprehensively to the emerging needs of the Covid pandemic, including the David and Ruth Lewis Family Charitable Trust, CVC, the National Lottery Community Fund’s Coronavirus Community Support Fund, Childhood Trust, the Mercers’ Company, the Merchant Taylors’ Foundation, the Master Charitable Trust, Enable Leisure and Culture, Great Portland Estates and Barclays 100x100 UK COVID-19 Community Relief Funding.

We would like to thank organisations who helped us to support of women and children fleeing domestic abuse under Covid 19, including: the Julia and Hans Rausing Trust, Tower Hamlets Local Community Fund, Cyril and Eve Jumbo Charitable Trust, Sutton Place Foundation, Permira, Lexington Partners, IKANO Insights, Talis Capital, Zoeva, JSF Pollitzer Charitable Trust, the Police and Crime Commissioner for Thames Valley, the Mayor’s Office for Policing and Crime, the Ministry of Justice, the Ministry of Housing, Communities, and Local Government, the Home Office, Berkshire Community Foundation, Reckitt (via Berkshire Community Foundation), Vodafone, UBER, HSBC, KKR & Co., and Wunderman Thompson.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

FINANCIAL REVIEW (continued)

Expenditure

Total expenditure in 2020-21 was £36.925 million, a rise of 16.9% on 2019-20. Unrestricted expenditure rose by 11.5% to £33.342 million, whilst restricted expenditure rose by 209% to £3.685 million. Both increases were in line with increase in income.

As a result, the net income before investments on unrestricted activities rose to £101,441 (2019-20: £37,753) and on restricted activities the surplus was £416,190 (2019-20: £91,504). The increase in the restricted surplus reflects the unspent portion of grants carried forward into future years.

Staff costs continue to be the largest element of expenditure, accounting for 63.3% of costs (2019-20: 63.2%). No across the board increase in salaries was made during the year: instead salaries are benchmarked across the sector. It is our aim that entry level salaries will always be in line with or above the London Living Wage

Support and Governance costs at £5.913 million represented 16% of expenditure (2019-20: 17.6%) as we managed the overall increase in activity largely within existing resources.

Balance Sheet

At 31 March 2021, Hestia’s total reserves totalled £15.098 million – up from £12.782 million at 31 March 2020 as a result of:

The surpluses for the year; Unrestricted (£101,441) and Restricted (£416,190).
Realised gains on the disposal of investments: £335,481.
Unrealised gains on investments - £1,485,932.

These were offset by the increased in the defined benefit pension liability of £23,000.

Hestia’s restricted reserves – those related to specific projects – rose to £2.418 million from £2.002 million reflecting the increase in grant income which carried restrictions on future uses.

Hestia maintains a positive Net Current Asset position at £3.925 million (31 March 2020: £1.523 million) to support effective working capital management. Debtor balances increased by £1.067 million to £5.520 million linked to timing of grant payments. More than 90% have been paid to date. Creditors decreased slightly by £159,036 to £5.238 million. Whilst we repaid more than £2 million to the London Borough funds in respect of funds held for Self Directed Support customers, at 31 March 2021 our accrual for annual leave increased from £30,000 to £900,000 reflecting the reduction in leave taken during the pandemic.

Hestia can call on its investment portfolio for funds to meet any shortfalls in working capital or significant items of expenditure.

Reserves

Hestia’s Trustees have adopted a reserves policy which they consider appropriate to safeguard the organisation’s operations and to ensure stability, taking into account future strategic plans and their associated risks and uncertainties. The main aim is to ensure that Hestia can meet all future financial obligations during any period when the charity needs to implement any required restructuring.

Hestia’s Trustees have approved designated reserves to cover planned strategic developments, including the development of our Digital, Health and Quality Strategies, as well as to provide for the ongoing development, maintenance and refurbishment of Hestia owned and leased property. At 31 March 2021, total designated funds were £1.489 million (31 March 2020: £1.469 million).

After taking into account restricted and designated reserves, the Operating Fund of Hestia rose from £9.311 million at 31 March 2020 to £9.811 million at 31 March 2021. Trustees have reviewed the reserves level and considers that, in the light of ongoing challenges in the funding environment, exacerbated by the potential impact Covid-19 on public funds, Hestia requires a reserve level of £8.874 million up from £8.020 million at 31 March 2020. The majority of the change reflects the increased wage roll and assumptions around redundancies.

Hestia’s operating of fund of £9.811 million equates to 111% of this requirement (31 March – Operating Fund of £9.311 million representing 116% of the risk requirement).

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

FINANCIAL REVIEW (continued)

Reserves (Continued)

In January 2021, Trustees reviewed the organisational strategy and agreed to continue to support the use of a proportion of its reserves as forward investment to support transformation and diversification aims. The Trustees continue to monitor reserves to ensure that they remain adequate and at an appropriate level to meet the ongoing requirements of the charity.

Investments

Hestia’s investment policy aims are to: (a) preserve the real capital value of the funds held over a 5 year period; (b) provide an income stream of 2% with low volatility; and (c) procure a long term return, net of all charges, of 1% p.a. in real terms.

During the year, Hestia withdrew £2 million from its investment portfolio to support working capital arrangements, including the return of £2 million of Self Directed Support Balances to Newham Council.

Hestia currently divides its investments between two managers:

UBS AG – who manage a Sustainable Investment Portfolio of fixed interest securities, equities and property. The portfolio is managed on the basis of positive inclusion of stocks taking into account environmental, social and governance impacts. At 31 March 2021 the value of the portfolio had increased to £6.872 million from £6.257 million after allowing for a withdrawal of £1 million. This reflects the recovery in world stock markets following the initial falls in the early days of the COVID 19 pandemic.
Ruffer LLP – Hestia’s investment is in a common investment fund which has an absolute return approach. The fund aims to invest in complementary stocks which provide a counter balance against market swings and over the year the value of the fund decreased from £2.461 million to £1.837 million. After taking into account the withdrawal of £1 million from the fund, the value of the fund increased by £376,000 over the year.

The Finance and Fundraising Sub Committee meet the fund managers at least annually and receive performance reports quarterly.

Pensions

Most of Hestia’s staff are in a defined contribution scheme operated by Legal and General and all new members of staff are automatically enrolled on joining. Hestia will match any employee contributions up to 5% subject to maintaining minimum contribution levels under pensions legislation.

Employees are entitled to opt out but to date less than 5% of staff have done so.

There are 4 employees who retain membership of the Royal Borough of Kensington & Chelsea’s defined benefits scheme. This scheme is linked to the contract to provide day centre services and the Commissioners have signalled their intention to retender the service in 2021-22.

The FRS102 position as reported by the actuaries changed from an asset of £25,000 at 31 March 2020 to a liability of £36,000 at 31 March 2021 as a result of changes in actuarial assumptions around salary and pension increases and the discount rate). Due to the inherent uncertainties arising from the calculation of the asset, the charity chose not to recognise the asset in the 2019-20 accounts but has recognised the liability in 2020-21.

Contributions to the scheme for 2021-22 have remained unchanged at 21.1%.

Hestia also contributes into the NHS pension scheme for two employees linked to the Wandsworth Recovery & Rehabilitation service and employer contributions on this scheme are fixed at 14.38% p.a.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

FINANCIAL REVIEW (continued)

Our Fundraising Practices

Most of the work of our fundraising team is focused on raising money from trusts and foundations, central and local government grants and corporate partnerships. Hestia does not use any third-party fundraising agencies or involve commercial participators.

Our Fundraising Policy was updated in March 2020 and confirms that we adhere to the Fundraising Regulator’s Code of Fundraising Practice and that all data we handle is compliant with GDPR regulations. There have been no complaints about fundraising activity in the past year and there have been no failures to comply with the Code of Fundraising Practice. Our adherence to the Code of Fundraising Practice sets out the main ways we ensure that we protect vulnerable people and members of the public from unreasonable or unwanted behaviour

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

PLANNING FOR FUTURE PERIODS

Hestia’s strategic plan for 2019-2024 was developed in consultation with service users, staff and Trustees, with three overarching strategic aims:

Service quality;
Expanding our service offer; and
Strengthening our advocacy for our service users.

Underpinning the delivery of these are a number of sub strategies focussed on delivering the different strands of these aims.

Service Quality

Hestia recognises that demand for the services that we provide continues to grow. We appreciate that all the agencies that we work with are under significant financial pressures and the challenge of providing more support and targeted interventions with less resources is a constant conversation. At the same time, we have restated our commitment to delivering the best outcomes for our service users. In 2021-22, we will:

a) Improve performance of our current services through our quality strategy:
Monitor and report on service user experience against expected standards and use that information to drive improvements.
Continue to review, develop and embed safeguarding strategies and policies which meet best practice in protecting our service users.
Support the senior resources in our services (mental health, domestic abuse, digital, modern slavery and offender services) to deliver new and enhanced models of support across our services that support service users’ recovery journeys.
Use the experiences gained during the pandemic to link our Digital Strategy into the development of alternative models of support and introduce service user access self management options.
Ensure our service users can participate across the organisation in a range of ways to maximise their input and provide opportunities for personal development, including participation in the Better Lives Forum and volunteering opportunities.
b) Develop and expand the Hestia Approach, our in-house psychologically informed approach based on recovery and co-production to reflect the increasing trauma our staff have to support and build capacity to respond in a trauma informed manner.. The Hestia Approach aims to improve outcomes for our service users by working with them collaboratively to build their resilience by focusing on their strengths and resources in order to secure sustainable recovery.
All operational projects on the InForm case management system are aligned with the Hestia Approach.
Provide all staff with relevant updated training on the Hestia Approach.
Seek to develop increased access to Hestia systems by service users, enabling them to review and interact with recovery plans on line and gain access to a range of support services.
Review and improve the physical environments from which we deliver services to support our psychologically informed approach and support recovery.
c) Implement the agreed property strategy. We recognise that access to secure housing is a priority for many of our service users and is a key part of their recovery journey. As a result, we have identified 3 strategic priorities for our strategy:
Use the experience of our crisis house provision in Greenwich to expand the provision of short term health interventions.
Seek to enhance the provision our mental health care homes.
Expand the provision of Approved Premises.
Develop models of move on using external funding initiatives.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

PLANNING FOR FUTURE PERIODS (continued)

Service quality (continued)

d) Attract and retain a high-quality workforce through our People Strategy:
Review and investigate alternative recruitment methods to increase candidate and employee quality.
Develop employment offers to attract alternative/ better skilled & wider candidate populations.
Establish higher paid entry roles and more specialist positions as we influence and pursue joint commissioning and health funded contracts.
Support our employees to maintain their health and wellbeing.
Provide opportunities for professional development and career opportunities.
Create a performance culture, which supports the delivery of high-quality services.
o Establish resource planning into the management DNA.
e) In response to the Black Lives Matter (BLM) movement, in 2020 we commissioned an independent review to consider practices and culture across the organisation to ensure that that we identify, expose and address any areas of conscious or unconscious institutional or interpersonal racism and inequality so that all staff at Hestia can play their full part in the life of the organisation at all levels. The review has three distinct but interrelated parts:
Employment
Governance
Service delivery.

Having appointed an expert independent third party to conduct the review we have completed the initial stages of practice review and staff engagement and received summary findings which will assist us in determining next steps.

Expanding our Service Offer

Hestia believes that we need to grow in order to achieve the economies that will support the delivery of the high-quality services that we aspire to. This recognises the costs pressures that the organisation, our staff and our service users face living and working in high costs areas of the country

The Care Act and the NHS long term plan recognise the benefit of further integration in the health and social care sectors which provides us with an opportunity to build on the expertise that we have developed in building in health related aspects to a number of our current services

With many of our services attracting minimum levels of investment, we believe it is incumbent on us to augment the services we deliver wherever possible through value added activities including fundraising and through expanding our support base.

In 2021-22, we will:

Continue to implement our Health Strategy to build on the successes in 2020-21:
Attract new income from health contracts with salaries that attract and retain more skilled and experienced staff allowing us to make interventions that are more effective.
Innovate and add value through increased fundraising building on our track-record for innovative and added value activities which support recovery:
Continue to review our Fundraising Strategy to maintain and expand our existing supporter base to maximise the offers we can make to our service users.
Build upon our offer of Social Work Students, Counselling Students, Mental Health Nurse Students and Occupational Health Students to provide learning opportunities and additional specific support to our service users.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

PLANNING FOR FUTURE PERIODS (continued)

Expanding our Service Offer (continued)

We will provide ongoing support victims of Modern Slavery after they have received their decision and remain in the country through the Phoenix Project.
We will continue to support our national anti-domestic abuse and sexual assault campaign – UK Says No More that aims to raise public awareness about the responsibility of everyone to tackle domestic abuse and sexual assault. We will seek to expand and embed Safe Spaces across the UK and continue to support businesses in their response to domestic abuse through Everyone’s Business.
We will continue to support other initiatives including our Domestic Abuse Referral Line and supporting women without recourse to public funds.
Assess which digital tools can be made available to our staff and service users to complement existing service delivery models and to build on the learning during Covid and lockdown when there was a greater use of digital support.
Continue to work closely with our volunteers to enhance our service delivery offer.

Strengthening our advocacy for our Service Users.

Building on our work to-date we will continue to ensure that the lived experiences of the people we work with influence policy development and result in better service design. We will have two key areas of focus: domestic abuse, where we believe we can have a significant impact on the Domestic Abuse Bill and on the wider role of businesses to respond; and modern slavery, where we will continue to showcase the talents of survivors and publish our Underground Lives series of reports.

Our new digital strategy will seek to ensure we are at the forefront of relational approaches in the digital world, enabling us to complement our work in-person with appropriate digital tools and support. We will be developing these approaches across the whole organisation, but with an initial focus in our communitybased mental health services.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

PLANNING FOR FUTURE PERIODS (continued)

Monitoring and reviewing the strategy

Trustees reviewed and reaffirmed the Strategy in January 2020. Following the outbreak of COVID-19 in March 2020, Trustees requested and received an update in June 2020. At that point in time Trustees agreed to maintain the strategy subject to further reviews at each subsequent Board meeting. The main concerns were:

(a) Continuing to support our service users and staff during the pandemic, understanding the impact in the initial phase, formulating initial responses and reviewing these to adapt to the constantly changing external environment.
(b) Delivering our growth assumptions – in terms of both contracts and fundraising. We developed indicators to point us in the likelihood of our growth forecasts holding up – and what that means for our overhead base if those forecasts are not achieved.

Trustees kept the strategy under review throughout the year and received regular updates on management around the pandemic as well as wider strategic updates at Board meetings throughout the year.

We continue to prepare management accounts and operational work plan reports which enable managers and staff to monitor progress against their planned objectives and to assess how this relates to achieving Hestia’s overall aims and objectives. This approach is underpinned by monitoring and reporting of key performance indicators from the in-house dashboard performance management system.

The Charity has a robust set of delegated authorities which outlines a detailed division of responsibilities between Trustees and Staff and the relationship between the Board and its sub committees.

Trustees review strategic risks on a quarterly basis, linking these to strategic plans and ensuring that an outward looking focus is incorporated. This approach is supported by detailed action plans at organisational, departmental and individual project level to ensure the successful delivery of both operational and strategic objectives.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

PRINCIPAL RISKS AND UNCERTAINTIES

As Hestia’s income is largely derived from contracts which are subject to regular re-tendering, the main risk to Hestia is around (a) the commissioning intentions of our partners and (b) our ability to retain and expand our contract base in a competitive environment.

Prior to the COVID-19 pandemic there were some signs that the future for public sector funding was looking more positive than it had for a number of years, however the cost to the UK government of the various measures taken during the pandemic – and the wider economic impact – suggest that a further round of austerity may be more likely than not.

At the same time there is much evidence to suggest that demand for crisis services will increase. Hestia speaks for many people who don’t have the opportunity to put their points of view forward, so part of our strategy is to use our policy and communications framework to ensure the valuable services that we provide are not lost merely because of funding challenges.

Hestia has always worked with our commissioners to ensure that the services we deliver are protected as much as possible and we have restructured services to deliver outcomes within funding constraints. One of our biggest challenges is our commitment to pay at least the London Living Wage (LLW) and in 2019-20 we were able to move all our front line workers to a salary in excess of the LLW which we believe is important if we want to recruit and retain a quality workforce to deliver our essential services.

One of the unintended benefits of the COVID-19 pandemic was to force Hestia to look to deliver models of care and support differently. We believe this offers an opportunity for Hestia to harness those lessons and develop alternative delivery models that remain attractive – and cost effective – for commissioning partners.

In 2019 Hestia’s Board of Trustees approved a Health Strategy where we have sought to build upon our experience of delivering health related services to develop of models of care and support which deliver real savings. These models are focussed on two areas: prevent alternatives to presentation at acute services – using our examples of our older people’s floating support services and our crisis cafes – and providing short term accommodation that reduces bed blocking in hospitals – based on our Hounslow Hospital Discharge Scheme. We have undertaken research on our service and proved that these services can produce net savings to the public purse. We now have a range of service funded by health partners, including seven Crisis Cafes and our first crisis house Greenwich.

We have also invested in a Digital Strategy which seeks to build upon the success of our Bright Sky App to look at how we maximise the use of digital tools in our delivery model – increasing our ability to reach service users in different ways – whilst making our offer to commissioners more attractive.

Our Fundraising Strategy developed an approach to focus on Trusts, and corporate and major donor giving and to resource the activity accordingly. By doing this we hoped to raise our profile and to improve the amount of unrestricted income that we can generate to support the added value that we believe provides our service users with a range of other opportunities they may not have always had.

New areas of activity require detailed assessment of the different risk profiles they will face and any investment in these requires prior approval by Trustees following robust analysis and challenge.

In June 2020, Trustees formally re-affirmed Hestia’s strategy which included growth ambitions, whilst recognising that these may not be achievable. Hestia’s Directorate subsequently produced a number of indicators for Trustees around commissioning and fundraising which are constantly measured to produce views on the likelihood of those forecasts. Linked to this are proposals about how we manage our cost base to ensure that we remain a financially viable organisation and do now draw unnecessarily on our reserves.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

PRINCIPAL RISKS AND UNCERTAINTIES (continued)

Management of Risk

The Board of Trustees is responsible for ensuring that Hestia has in place systems of internal control that are appropriate to the various business contexts in which it operates. These enable the organisation to manage rather than eliminate risks and so provide a reasonable but not necessarily absolute degree of assurance.

The Trustees have in place a formal risk management process to assess risks and implement risk management strategies. This process includes a review by Trustees, senior management and staff and identifies the types of risk faced by the organisation, prioritises the risks in terms of likelihood of occurrence and potential impact and identifies the means of managing or mitigating them.

Risk management is embedded in the day-to-day processes of the organisation and the monitoring of controls in place to manage risk is reviewed by the appropriate board committees.

The Board of Trustees has reviewed the operation and effectiveness of Hestia's system of internal controls. Key elements in Hestia's internal control systems are:

an organisational set of values and commitment to manage the organisation's affairs with integrity;
risk assessments embedded in a comprehensive business planning process;
clear and regularly reviewed delegated authorities;
a robust budget and quarterly review and reporting of financial performance;
appropriate authorisation levels and segregation of accounting duties; and
clear staff roles, responsibilities and accountabilities.

The Finance and Fundraising Sub Committee undertakes a detailed review of Hestia's quarterly management accounts reporting and oversees external audit activity.

Restrictions on Distribution

The Memorandum of Association prohibits the distribution of income and property of the charitable company to the members. Upon dissolution or winding up of the charitable company the assets shall be given or transferred to some similar institution or institutions having objects similar to the charitable company.

Going Concern

The Trustees receive and review three-year financial plans which assess the impact of various scenarios on the organisational free reserves. As the majority of Hestia’s income arises from contracts and grants this review focusses on the likelihood of these being retained at the end of the contract term as well as taking into account historical growth experience. The likelihood of retention is measured against a number of internal (performance, viability and deliverability) and external indicators (economic, social and political).

Trustees consider the expenditure implication of reductions in income. Most contracts and grants are linked to the provision of services, which if Hestia is unsuccessful at re-tender, require staff and other resources to be transferred to the successful tenderer leaving Hestia with little or no residual liability linked to that contract. However, Trustees endeavour to ensure that non project expenditure is commensurate with income from projects and grants, supported by fundraising if appropriate.

Organisational free reserves are reviewed annually to ensure that these remain at an adequate level over a three year period to support the charity’s strategy and to manage risks.

Having undertaken the review, Trustees have agreed that the accounts be prepared on a going concern basis.

Tax Status

Hestia Housing and Support is a registered charity and is therefore potentially exempt from taxation of its income and gains as it falls within the definition of a charitable company as defined in Part 1, Schedule 6 of the Finance Act 2010. No tax charge has arisen in the year.

HESTIA HOUSING AND SUPPORT

Report of the Board of Trustees (incorporating the Directors’ Report) for the year ended 31 March 2021 (continued)

Auditor

BDO LLP has indicated its willingness to be re-appointed as auditor in accordance with section 487 (2) of the Companies Act 2006.

The Report of the Board of Trustees, incorporating the Directors’ Report and Strategic Report was approved by the Board of Trustees on 7[th] December 2021.

Terrie Alafat Chair/Trustee

HESTIA HOUSING AND SUPPORT

Independent Auditor’s Report to the Members of Hestia Housing and Support

Opinion on the financial statements

In our opinion, the financial statements:

give a true and fair view of the state of the Group’s and of the Parent Charitable Company’s affairs as at 31 March 2021 and of the Group’s incoming resources and application of resources for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of Hestia Housing and Support (“the Parent Charitable Company”) and its subsidiary (“the Group”) for the year ended 31 March 2021 which comprise the Consolidated Statement of Financial Activities, Group and Parent Balance sheets, Consolidated Statement of Cash Flow and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remain independent of the Group and Parent Charitable 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.

Conclusions related to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group and the Parent Charitable 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 Trustees with respect to going concern are described in the relevant sections of this report.

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Report of the Board of Trustees, incorporating the Directors’ Report, other than the financial statements and our auditor’s report thereon. The other information comprises: Report of the Board of Trustees. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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.

HESTIA HOUSING AND SUPPORT

Independent Auditor’s Report to the Members of Hestia Housing and Support

Other Companies Act 2006 reporting

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

the information given in the Trustees’ Report, which includes the Directors’ Report and the Strategic report prepared for the purposes of Company Law, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors’ Report, which are included in the Trustees’ report, have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the Group and the Parent Charitable Company and its environment obtained in the course of the audit, we have not identified material misstatement in the Strategic report or the Trustee’s report.

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;

adequate accounting records have not been kept by the Parent Charitable Company, or returns adequate for our audit have not been received from branches not visited by us; or
the Parent Charitable Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of Directors’ remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.

Responsibilities of Trustees

As explained more fully in the Statement of Trustees’ Responsibilities, the Trustees (who are also the directors of the charitable company for the purposes of company law) 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 Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Trustees are responsible for assessing the Group’s and the Parent Charitable 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 Trustees either intend to liquidate the Group or the Parent Charitable Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

We have been appointed as auditor under the Companies Act 2006 and report in accordance with the Act and relevant regulations made or having effect thereunder.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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.

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

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

HESTIA HOUSING AND SUPPORT

Independent Auditor’s Report to the Members of Hestia Housing and Support

We obtained an understanding of the legal and regulatory frameworks through our accumulated knowledge and consideration of sector information that is applicable to the Charitable Company. We determined that the most significant which are directly relevant to specific assertions in the financial statements are those related to the financial reporting framework including but not limited to United Kingdom Generally Accepted Accounting Practice, the Charities Act 2011, the Companies Act 2006, Data Protection Act 2018 and Bribery Act 2010.
We understood how the Charitable Company is complying with those legal and regulatory frameworks by making enquiries to management. We corroborated our enquiries through our review of minutes.
We reviewed the financial statement disclosures and tested to supporting documentation to assess compliance with relevant laws and regulations discussed above.
We assessed the susceptibility of the Charitable Company’s financial statements to material misstatement, including how fraud might occur by discussing with management where it is considered there was a susceptibility of fraud relating to management override of controls and improper income recognition. In addressing the risk of fraud, including the management override of controls and improper income recognition, we tested the appropriateness of certain journals, reviewed the application of judgements associated with accounting estimates for the indication of potential bias and tested the application of cut-off and revenue recognition.
We considered completeness of related party transactions; and evaluated the business rationale of any significant transactions that are inappropriate or unusual.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, 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-compliance with laws and regulations is from the events and transactions reflected 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 at the Financial Reporting Council’s (“FRC’s”) website at:

https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the Charitable 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 Charitable 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 Charitable Company and the Charitable Company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Laurence Elliott (Senior Statutory Auditor) For and on behalf of BDO LLP, statutory auditor London, UK

Date: 29 December 2021

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

HESTIA HOUSING AND SUPPORT

Consolidated Statement of Financial Activities for the year ended 31 March 2021 (including a Consolidated Income and Expenditure Account)

	Note	Unrestricted Funds	Restricted Funds	Total Funds 2021	Total Funds 2020
Income and endowments from:		£	£	£	£
Donations	2	518,232	507,419	1,025,651	726,089
Charitable activities	3	32,616,490	3,593,625	36,210,115	30,767,477
Investments	4	207,255	-	207,255	225,048
Total income		33,341,977	4,101,044	37,443,021	31,718,614
Expenditure on:
Raising funds:		190,378	60,844	251,222	287,998
Charitable activities	5	32,999,343	3,624,010	36,623,353	31,089,921
Investment management		50,815	-	50,815	51,055
Impairment of investments	11	-	-	-	160,383
Total expenditure		33,240,536	3,684,854	36,925,390	31,589,357
Net income before gains / (losses) on investments		101,441	416,190	517,631	129,257
Realised net gains on investments	11	335,481	-	335,481	207,550
Unrealised net gains / (losses) on investments	11	1,485,932	-	1,485,932	(753,777)
Net Income / (Expenditure)		1,922,854	416,190	2,339,044	(416,970)
Actuarial (losses) /gains on defined benefit pension schemes	19	(23,000)	-	(23,000)	237,000
Net movement in funds		1,899,854	416,190	2,316,044	(179,970)
Reconciliation of funds:
Total funds brought forward		10,779,864	2,001,795	12,781,659	12,961,629
Total funds carried forward		12,679.718	2,417,985	15,097,703	12,781,659

All amounts relate to continuing activities of the Group.

The notes on pages 35 - 55 form part of these financial statements.

Comparative figures for the preceding year are attached as Note 23 on Page 55 of the accounts.

HESTIA HOUSING AND SUPPORT

Balance Sheets at 31 March 2021

		Group	Group	Company	Company
	Notes	2021	2020	2021	2020
		£	£	£	£
Fixed assets
Tangible assets	10	2,499,037	2,540,298	2,499,037	2,540,298
Investments	11	8,709,528	8,717,708	8,709,528	8,717,708
		11,208,565	11,258,006	11,208,565	11,258,006
Current assets
Debtors	12	5,519,796	4,452,606	5,519,796	4,460,310
Short term deposits		342,108	357,281	342,108	357,281
Cash at bank and in hand		3,301,606	2,111,174	3,301,606	2,101,075
		9,163,510	6,921,061	9,163,510	6,918,666
Creditors: amounts falling due within one year	13	(5,238,372)	(5,397,408)	(5,238,372)	(5,395,968)
Net current assets		3,925,138	1,523,653	3,925,138	1,522,698
Total assets less current liabilities		15,133,703	12,781,659	15,133,703	12,780,704
Defined benefit pension scheme liabilities	19	(36,000)	-	(36,000)	-
Net assets including pension liabilities		15,097,703	12,781,659	15,097,703	12,780,704
Represented by:
Unrestricted funds:
Operating fund	14	9,811,395	9,310,510	9,811,395	9,309,555
Designated funds	14	1,488,914	1,469,354	1,488,914	1,469,354
Revaluation reserve	14	1,343,409	-	1,343,409	-
Pensions reserve	14	36,000	-	36,000	-
		12,679,718	10,779,864	12,679,718	10,778,909
Restricted funds	15	2,417,985	2,001,795	2,417,985	2,001,795
Total funds		15,097,703	12,781,659	15,097,703	12,780,704

The financial statements were approved by the Board of Trustees and authorised for issue on 7[th] December 2021 and signed on its behalf by:

Terrie Alafat Chair of the Board of Trustees

HESTIA HOUSING AND SUPPORT

Company Number: 2020165

The notes on pages 35 - 55 form part of these financial statements.

Consolidated statement of cash flows for the year ended 31 March 2021

	Notes	2021 £	2020 £
Cash flows from operating activities:
Cash flows (used in) / provided by operating activities	(c)	(833,841)	(2,122,711)
Cash flows from investment activities
Investment income received		207,255	225,048
Purchase of investments		(3,189,381)	(4,854,679)
Proceeds from sale of investments		5,018,974	4,612,718
Purchase of tangible fixed assets		(27,748)	(17,636)
Transfer in of fixed Assets – CAADV		-	-
Net cash generated from / (used in) investing activities		2,009,100	(34,549)
Change in cash and cash equivalents in the reporting period		1,175,259	(2,157,260)
Cash and cash equivalents at 1 April 2020		2,468,455	4,625,715
Cash and cash equivalents at 31 March 2021	(a)	3,643,714	2,468,455
(a) Analysis of cash and cash equivalents Short term deposits Cash at bank and in hand (b) Analysis of changes in net debt Short term deposits Cash at bank and in hand	At 1 April 2020 £ 357,281 2,111,174	2021 £ 2020 £ 342,108 357,281 3,301,606 2,111,174
		3,643,714 2,468,455
		Cash Flows At 31 March 2021 £ £ (15,173) 342,108 1,190,432 3,301,606
	2,468,455	1,175,259 3,643,714

HESTIA HOUSING AND SUPPORT

The notes on pages 35 - 55 form part of these financial statements

Consolidated statement of cash flows for the year ended 31 March 2021 (continued)

(c) Reconciliation of net income / (expenditure) to net cash flow from operating activities Net income / (expenditure) for the year (Gain) / Loss on sale of investments Loss on sale of fixed assets FRS 102 adjustment Investment income received Depreciation (Increase) in debtors (Decrease) in creditors Net cash (used in) operating activities	2021 £ 2020 £ 2,339,044 (416,970) (1,821,413) 706,610 - 2,112 (23,000) 237,000 (207,255) (225,048) 69,009 75,992 (1,067,190) (492,773) (123,036) (2,009,634)
	(833,841) (2,122,711)

HESTIA HOUSING AND SUPPORT

The notes on pages 35 - 55 form part of these financial statements.

Notes to the financial statements for the year ended 31 March 2021

1. Accounting Policies

(a) Basis of accounting and assessment of going concern

The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) (effective 1 January 2019) – (Charities SORP (FRS 102)), the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. Hestia Housing and Support meets the definition of a public benefit entity under FRS 102. Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy note(s).

The Trustees consider that there are no material uncertainties around Hestia’s ability to continue as a going concern: they receive and review three-year financial plans, and which assess the impact of various scenarios on the organisational free reserves. As the majority of Hestia’s income arises from contracts and grants this review focusses on the likelihood of these being retained at the end of the contract term as well as taking into account historical growth experience. The likelihood of retention is measured against a number of internal (performance, viability and deliverability) and external indicators (economic, social and political).

Organisational free reserves are reviewed annually to ensure that these remain at an adequate level over a three year period to support the charity’s strategy and to manage risks.

(b) Basis of consolidation

The group financial statements consolidate the financial statements of the charity and its subsidiary, the Corporate Alliance Against Domestic Violence, on a line by line basis.

A separate statement of financial activities and income and expenditure account is not presented for the charity itself following the exemption afforded by section 408 of the Companies Act. The Charity’s gross income was £37.443 million, and the result was £519,000 surplus.

(c) Income and expenditure recognition

i) Charges to residents, interest from deposit accounts and tax refunds are included in the Statement of Financial Activities in the year in which they are receivable.
ii) Voluntary income received by way of donations and gifts is included in the Statement of Financial Activities when received.
iii) Grants are credited to the Statement of Financial Activities when receivable unless they related to a specified future period, in which case they are deferred. Grants are only recognised when the charity is satisfied that is has successfully met all contractual conditions.
iv) Expenditure is stated inclusive of VAT as the organisation is not able to reclaim VAT on non-taxable activities.

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

1. Accounting Policies (continued)

(d) Allocation of costs

The costs of functions which support more than one of Hestia’s activities have been allocated to those activities based on time spent. Further information is set out in note 3. Costs classified as “governance” relate to the general running of Hestia and include the operations of the Trustee Board and addressing constitutional, audit and other statutory matters. Costs classified as “raising funds” comprise fundraising costs. Costs classified as “investment management” represent fees paid to investment managers.

(e) Leasing

Rentals payable under operating leases are taken to the Statement of Financial Activities on a straight-line basis over the lease term.

(f) Designated Funds

Designated funds are unrestricted funds allocated by the Trustees for particular purposes.

(g) Restricted funds

Restricted funds are to be used for specified purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund. Grants for the purchase of fixed assets are credited to a restricted fund when received. Depreciation on the related assets is charged against the fund. The exceptions to this are grants received for normal running expenses of the organisation's projects which are treated as unrestricted.

(h) Investments

Investments are a form of basic financial instrument and are initially recognised at their transaction value and subsequently measured at their fair value as at the balance sheet date using the closing quoted market price. The Statement of Financial Activities includes the net gains and losses arising on revaluation and disposals throughout the year.

The investment portfolio does not acquire put options, derivatives or other complex financial instruments.

The main form of financial risk faced by the charity is that of volatility in equity markets and investment markets due to wider economic conditions, the attitude of investors to investment risk, and changes in sentiment concerning equities and within particular sectors or sub sectors. All gains and losses are taken to the Statement of Financial Activities as they arise. Realised gains and losses on investments are calculated as the difference between sales proceeds and their opening carrying value or their purchase value if acquired subsequent to the first day of the financial year. Unrealised gains and losses are calculated as the difference between the fair value at the year end and their carrying value. Realised and unrealised investment gains and losses are combined in the Statement of Financial Activities.

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

1. Accounting Policies (continued)

(i) Depreciation

Depreciation is provided using the following rates and bases to reduce by annual instalments the cost, less estimated residual value, of the tangible assets over their estimated useful lives:

Freehold land Nil Freehold buildings – residential 2% straight line Freehold buildings – non residential 1% straight line Leasehold improvements Over the anticipated term of the lease Fixtures, fittings and equipment 25% straight line Computer equipment 33.33% straight line Motor vehicles 25% straight line

Items are capitalised where the purchase price exceeds £1,000.

In the case of land and buildings the capital cost includes the purchase price and alterations, but not associated professional fees which are written off to expenditure.

Capital expenditure within and for project premises not owned by the organisation is written off immediately, after allowing for grants receivable. Depreciation costs are allocated to projects based on the use of the related assets.

(j) Pensions

Hestia operates one group personal pension plan. Contributions are also made to pension schemes of certain employees in accordance with their rights under TUPE. Employer contributions are charged to the Statement of Financial Activities in the year to which the contributions relate.

Hestia also participated in one multi-employer defined benefit scheme – the Royal Borough of Kensington & Chelsea Pension Fund.

For this scheme, the operating costs of providing retirement benefits to participating employees are recognised in the accounting periods to which the benefits are earned. The related finance costs, expected return on assets and any other changes in fair value of the assets and liabilities, are recognised in the accounting period in which they arise. The operating costs, finance costs, expected return on assets and any other changes in fair value of assets and liabilities are recognised in the statement of financial activities.

(k) Critical accounting judgements and estimates

In preparing these financial statements, management has made following judgements, estimates and assumptions that affect the application of the charities accounting policies and the reported assets, liabilities, income and expenditure and the disclosures made in the financial statements.

Housing property depreciation is calculated on an estimated economic life basis. The charity has undertaken a review of depreciation on a component by component basis and considered the difference between approaches to be immaterial.

Depreciation of assets is calculated based on the cost and the estimated useful lives of the assets. The expected useful lives for housing property components are estimated based on the expected replacement frequency used for asset management purposes.

Management's estimate of the defined benefit obligation is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the defined benefit obligation amount and the annual defined benefit expenses (as analysed in Note 19).

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

2. Income from donations Donations Grants: From local authorities From other organisations and individuals	2021 £ 833,921 101,910 89,820 1,025,651	2020
		£
		291,963

		233,380
		200,746
		726,089

In 2021, £518,232 (2020: £666,107) of donations income was attributable to unrestricted funds and £507,419 (2020: £59,982) to restricted funds.

3. Income from charitable activities Provision of care and support Income from support contracts Income from other grants and fees Residents’ fees and charges Operation of Approved Premises Grants Residents’ charges	2021 £ 8,787,418 17,375,458 8,351,284 34,514,160 1,694,444 1,511 1,695,955 36,210,115	2020
		£

		10,710,996
		10,658,336
		7,593,379
		28,962,711

		1,791,815
		12,951
		1,804,766

		30,767,477

In 2021, £32,616,490 (2020: £28,968,842) of income from charitable activities was attributable to unrestricted funds and £3,539,625 (2020: £1,798,635) to restricted funds.

4. Income from investments Interest receivable Dividends from equity shares Deduct: interest payable on defined benefit pension schemes	2021 £ 2,494 204,761 - 207,255	2020
		£
		12,080
		217,968
		(5,000)
		225,048
In 2021 all income from investments was attributable to unrestricted funds (2020: £225,048 – unrestricted).

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

5.	Analysis of expenditure on charitable activities Staff costs Premises running costs Residents’ expenditure Governance costs Support costs	Provision of care and support Operation of Approved Premises Total 2021 £ £ £ 19,915,370 932,032 20,847,402 5,975,345 595,069 6,570,414 3,279,597 13,360 3,292,957 129,741 8,557 138,298 5,632,262 142,020 5,774,282
		34,932,315 1,691,038 36,623,353

		Provision of care and support Operation of Approved Premises Total 2020
		£ £ £
	Staff costs	16,553,071 983,886 17,536,957
	Premises running costs	4,981,040 263,244 5,244,284
	Residents’ expenditure	2,708,895 43,464 2,752,359
	Governance costs	107,891 7,791 115,682
	Support costs	5,230,319 210,320 5,440,639
		29,581,216 1,508,705 31,089,921

Expenditure on charitable activities was £36,623,353 (2020: £31,089,921) of which £32,999,343 (2020: £29,322,808) was unrestricted and £3,624,010 (2020: £1,787,113) was restricted.

Summary analysis of expenditure and related income for charitable purposes Costs Recharges to residents Direct grant support Contribution to operations	Provision of care and support Operation of Approved Premises £ £ (34,932,315) (1,691,038) 8,351,284 1,511	Total 2021
		£
		(36,623,353)
		8,352,795
	(26,581,031) (1,689,527) 26,162,876 1,694,444	(28,270,558)
		27,857,320
	(418,155) 4,917	(413,238)

	Provision of care and support Operation of Approved Premises	Total 2020
	£ £	£
Costs	(29,581,216) (1,508,705)	(31,089,921)
Recharges to residents	7,593,379 12,951	7,606,330
	(21,987,837) (1,495,754)	(23,483,591)
Directgrant support	21,369,332 1,791,815	23,161,147
Contribution to operations	(618,505) 296,061	(322,444)

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

7. Analysis of governance and support costs

Salaries, wages and related costs Office running costs Audit Fees Legal and professional Trustee expenses	Salaries, wages and related costs Office running costs Audit Fees Legal and professional Trustee expenses	General Support Governance Function Total 2021 £ £ £ 2,234,689 86,990 2,321,679 3,315,777 - 3,315,777 - 36,242 36,242 223,816 15,066 238,882 - - -	General Support Governance Function Total 2021 £ £ £ 2,234,689 86,990 2,321,679 3,315,777 - 3,315,777 - 36,242 36,242 223,816 15,066 238,882 - - -		Basis of apportionment

					Time spent
					Staff nos. / no. of offices
					Governance
					Governance
					Governance
		5,774,282 138,298 5,912,580

		General Support Governance Function Total 2020			Basis of apportionment
		£ £ £
Salaries, wages and related costs		2,099,668 86,989 2,186,657			Time spent
Office running costs		3,221,249 - 3,221,249			Staff nos. / no. of offices
Audit Fees		- 23,065 23,065			Governance
Legal and professional		119,722 4,944 124,666			Governance
Trustee expenses		- 684 684			Governance
		5,440,639 115,682 5,556,321
Net income for the year


	Net income is stated after charging: Operating lease rentals Depreciation Auditor’s remuneration - Parent - Subsidiaries		2021 £ 774,254 69,008 28,502 -	2020
				£
				746,280
				75,992
				21,625
				1,440

8. Net income for the year

Net income for the year	Net income for the year
Net income is stated after		charging:	2021	2020
			£	£
Operating lease rentals			774,254	746,280
Depreciation			69,008	75,992
Auditor’s remuneration	-	Parent	28,502	21,625
	-	Subsidiaries	-	1,440

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

9. Staff and Trustees Wages and salaries Agency staff costs Social security costs Pension costs	2021 £ 18,203,834 3,411,053 1,621,361 695,066 23,931,314	2020
		£
		14,587,647
		3,411,053
		1,336,373
		616,212
		19,951,285

Staff in receipt of total employee benefits (excluding pension contributions) exceeding £60,000 in the year were as follows:

One employee earned between £100,000 and £110,000 (2020: none)

No employees earned between £90,000 and £100,000 (2020: one)

One employee earned between £80,000 and £90,000 (2020: one)

Four employees earned between £70,000 and £80,000 (2020: four) One employee earned between £60,000 and £70,000 (2020: one)

Pension contributions in respect of the above higher paid employees totalled £26,430 in the year (2020: £21,377).

The average number of employees during the year was as follows: Project staff Support staff	2021 Number 604 76 680	2020
		Number
		537
		68
		605

No Trustee received any remuneration for services during the year (2020: nil). No Trustees claimed expenses during the year (2020: One trustee claimed expenses of £684 to reimburse travel costs). No Trustee had any beneficial interest in any contract with Hestia.

Indemnity insurance was arranged on behalf of the Trustees of Hestia for the 12 months commencing 1 July 2020 at no additional cost to the organisation (2020: £nil).

The key management personnel of the parent Charity, Hestia, comprise the Trustees, the Chief Executive and the Senior Management Team. The total employee benefits of the key management personnel of Hestia were £584,210 (2020: £558,749).

The key management personnel of the Group comprise those of Hestia and the key management personnel of the Corporate Alliance Against Domestic Violence. The key management personnel of the Corporate Alliance Against Domestic Violence are the Trustees who do not receive any remuneration or other benefits.

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

10. Group tangible fixed assets Cost At 1 April 2020 Additions Disposals At 31 March 2021 Depreciation At 1 April 2020 Charge for the year Eliminated on disposals At 31 March 2021 Net Book Value At 31 March 2021 At 31 March 2020	Freehold Land and Buildings Fittings and Equipment Computer Equipment Total £ £ £ £ 2,988,118 233,712 210,806 3,432,636 - 23,756 3,992 27,748 - (8,464) (167,665) (176,129)
	2,988,118 249,004 47,133 3,284,255
	488,755 196,366 207,217 892,338 37,383 26,708 4,918 69,009 - (8,464) (167,665) (176,129)
	526,138 214,610 44,470 785,218
	2,461,980 34,394 2,663 2,499,037
	2,499,363 37,346 3,589 2,540,298

Ealing, Hammersmith and Hounslow Health Authority has a charge over the freehold property at Lynton Terrace which would require the property to be transferred back to the authority if it were to cease to provide qualifying services.

Hestia is also the registered owner of the freehold property in Streatham. Full funding was received from the Home Office for the purchase of this property and the organisation has entered an undertaking to pass the proceeds of any sale on this property to the Home Office.

The properties in Battersea, Hounslow, Wandsworth and Kent are owned outright by the Charity and are not subject to any charges.

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

11.Group and company Investments Listed investments Market value at 1 April 2020 Additions at cost Disposal proceeds Gains on disposal Impairment of investments Gains (Losses) on revaluation Market value Historic cost Listed investments are represented by: Fixed interest securities Equity shares Money market deposits Real estate funds Common investment funds	2021 £ 8,717,708 3,189,381 (5,018,974) 335,481 - 1,485,932 8,709,528 7,368,528 818,335 5,667,441 - 385,891 1,837,861 8,709,528	2020
		£

		9,182,357
		4,854,679
		(4,612,718)
		207,550
		(160,383)
		(753,777)
		8,717,708

		8,878,091


		926,483
		4,935,018
		-
		395,432
		2,460,775
		8,717,708

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

Debtors Grants receivable Rents and charges in arrears Other debtors Due from subsidiary undertakings Prepayments	Group 2021 2020 £ £ 4,245,313 2,977,558 135,161 4,756 804,450 1,161,620 - - 334,872 308,672 5,519,796 4,452,606	Group 2021 2020 £ £ 4,245,313 2,977,558 135,161 4,756 804,450 1,161,620 - - 334,872 308,672 5,519,796 4,452,606	Company	Company
		2020	2021	2020
		£	£	£
		2,977,558 4,756 1,161,620 - 308,672 4,452,606	4,245,313 135,161 804,450 - 334,872 5,519,796	2,977,558
				4,756
				1,161,620
				7,704
				308,672
				4,460,310

Creditors: amounts falling due within one year Trade creditors Income received in advance Accruals and deferred income Taxes and social security Other creditors	Group 2021 2020 £ £ 1,226,837 1,242,346 1,328,935 991,964 1,900,050 976,195 483,461 331,397 299,089 1,855,506 5,238,372 5,397,408		Company
		2020	2021	2020
		£	£	£
		1,242,346 991,964 976,195 331,397 1,855,506 5,397,408	1,226,837 1,328,935 1,900,050 483,461 299,089 5,238,372	1,242,346
				991,964
				974,755
				331,397
				1,855,506
				5,395,968

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

14. Unrestricted funds: Group	1 April 2020 Income Expenditure 31 March 2021
	£ £ £ £
Operating fund	9,310,510 33,694,177 (33,193,292) 9,811,395
Designated funds:
Development, maintenance and refurbishment of existing projects	510,282 66,804 (47,244) 529,842
Infrastructure and new project development	959,072 - - 959,072
Total designated funds	1,469,354 66,804 (47,244) 1,488,914
Revaluation reserve	- 1,343,409 - 1,343,409
Pension reserve	- 36,000 - 36,000
Total unrestricted funds	10,779,864 35,140,390 (33,240,536) 12,679,718

	1 April 2019 Income Expenditure 31 March 2020
	£ £ £ £
Operating fund	8,679,827 30,444,743 (29,814,060) 9,310,510
Designated funds:
Development, maintenance and refurbishment of existing projects	498,596 56,804 (45,118) 510,282
Infrastructure and new project development	998,470 - (39,398) 959,072
Total designated funds	1,497,066 56,804 (84,516) 1,469,354
Revaluation reserve	677,445 - (677,445) -
Pension reserve	197,000 (197,000) - -
Total unrestricted funds	11,051,338 30,304,547 (30,576,021) 10,779,864

The operating fund is a general reserve, which is the amount deemed prudent by the Trustees to hold in reserve to ensure stability and to safeguard Hestia’s operations.

The designated fund for the development, maintenance and refurbishment of existing projects includes:

Cyclical maintenance – funds required for regular maintenance and decoration of buildings for which responsibility is not assumed by the owning landlord.
Sinking funds – funds required for long-term major repairs of buildings including the potential for costs associated with decant of residents during any refurbishment works for which responsibility is not assumed by the owning landlord. The Charity prepares five yearly maintenance plans for all owned properties and the funds set aside are compared to these estimated commitments.
Furniture fund – funds for replacement of furniture on a three-year cycle which cannot be funded from the annual revenue budget.

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

14. Unrestricted funds: Group (continued)

The funds for infrastructure and new project development have been designated in relation to planned strategic developments which assist the organisation to respond to the external operating environment. These include:

Funding to meet the costs of organisational development, including bidding for new/ replacement contracts, merger activities and requirements necessary to adapt internal frameworks to meet external requirements. Current approved projects include: The Hestia Approach (three years); the Fundraising Strategy (five years); and the Digital Strategy (two years).
Project Assistance Funds to support upfront running costs of developed projects which cannot be funded from the annual revenue budget. These are reviewed on an annual basis linked to strategic plans.

A revaluation reserve, as required by the Companies Act 2006, is disclosed on the face of the balance sheet. The revaluation reserve represents the amount by which fixed investment assets exceed their historical cost.

A pensions reserve has been created to recognise any pensions liability arising from the defined benefit pension scheme with the Royal Borough of Kensington and Chelsea.

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

15. Restricted funds: Group	1 April	Income	Expenditure	31 March
	2020			2021
	£	£	£	£
Donations	157,260	507,419	(388,352)	276,327
Property Expenditure
i. Purchase of Lynton Terrace	390,501	-	(5,420)	385,081
ii. Purchase of Hestia Streatham	232,686	-	(3,078)	229,608
iii. Purchase of Chatsworth Crescent	213,716	-	(3,964)	209,752
Improvements to:		-
iv. Hestia Streatham	320,870	-	(4,243)	316,627
v. Hestia Battersea	11,835	-	(155)	11,680
Home Office Refurbishment Grants	43,530	-	(43,530)	-
Other Home Office Grants	2,148	-	(2,148)	-
Outreach services	130,834	265,380	(242,364)	153,850
Children and Family Funds	146,874	220,421	(147,163)	220,132
Women Without Recourse Funds	20,301	-	-	20,301
Community Engagement Funds	-	1,513,078	(1,285,829)	227,249
Digital Transformation Funds	72,000	163,414	(96,480)	138,934
UK Says No More	63,433	249,564	(228,908)	84,089
Everyone’s Business	1,338	638,193	(593,897)	45,634
The Phoenix Project	32,500	64,703	(55,131)	42,072
Sport England	32,886	160.057	(153,559)	39,384
Project TILI funding	-	-	-	-
Hestia Counselling Service	33,442	-	(33,442)	-
Bright Sky Development	95,641	-	(78,376)	17,265
Infection Control Funds	-	318,815	(318,815)	-
	2,001,795	4,101,044	(3,684,854)	2,417,985

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

Restricted funds: Group (continued)

	1 April 2019 Income Expenditure 31 March 2020
	£ £ £ £
Donations	152,811 59,982 (55,533) 157,260
Property Expenditure
i. Purchase of Lynton Terrace	395,921 - (5,420) 390,501
ii. Purchase of Hestia Streatham	235,764 - (3,078) 232,686
iii. Improvements to Hestia Streatham	325,113 - (4,243) 320,870
iv. Improvements to Hestia Battersea	11,990 - (155) 11,835
v. Purchase of Chatsworth Crescent	217,680 - (3,964) 213,716
Home Office Refurbishment Grants	43,530 - - 43,530
Other Home Office Grants	2,148 - - 2,148
Mercers Fund	635 - (635) -
Outreach services	121,711 238,570 (229,447) 130,834
Children and Family Funds	98,971 148,465 (100,562) 146,874
Women Without Recourse Funds	25,216 - (4,915) 20,301
Community Engagement Funds	74,714 - (74,714) -
InForm Client Management System	72,000 - - 72,000
UK Says No More	65,886 354,231 (356,684) 63,433
Everyone’s Business	188 409,715 (408,565) 1,338
The Phoenix Project	2,974 32,500 (2,974) 32,500
Sport England	415 158,706 (126,235) 32,886
Hestia Counselling Service	62,624 25,667 (54,849) 33,442
Project TILI Fund	- 330,781 (330,781) -
Bright Sky Development	- 100,000 (4,359) 95,641
	1,910,291 1,858,617 (1,767,113) 2,001,795

Restricted donations and grants comprise those funds used for specified purposes as laid down by the donor.

Restricted property funds comprise funding received for the purchase and improvement of the properties stated. The properties at Lynton Terrace, Hestia Streatham and Chatsworth Crescent are recorded in fixed assets. Depreciation of these properties and other specified property costs are charged against these funds.

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

15. Restricted funds: Group (continued)

Home Office refurbishment grants represent grants made by the Home Office to fund refurbishment of Hestia’s Approved Premises which were spent in the year in refurbishing premises in Streatham.

Other Home Office/ Ministry of Justice grants comprised various sundry grants for drugs testing, security training and scheme development / relocation in connection with Hestia’s Approved Premises.

Outreach funding comprises various restricted grants to fund the provision of outreach services in Hestia’s women's services projects.

Children & family funds are provided at each of Hestia's refuges and funded by a combination of Supporting People grants, other external grants and Hestia's own reserves.

The Women without recourse fund was set up in 2008/09 for women without recourse to public funds and includes donations from the Henry Smith Charity.

Community engagement income represents funds made available from the NHS to provide community crisis facilities – accommodation in Greenwich and drop in centres in West London, Tower Hamlets, Newham and Folkestone.

Digital transformation funds include grants from the Fidelity Trust to support the development of the InForm Client Management System focussing on increased direct access by service users as well as funds from the National Lottery and Barclays Bank plc to support staff and service user digital and training initiatives.

UK Says No More – the income represents grants from the Department of Culture, Media and Sport and Comic Relief, UBER and Ikano S.A. to support national anti Domestic Violence campaigns.

Everyone’s Business is funded by the Department of Culture Media and Sport via the Tampon Tax initiative to provide employers with toolkits and access to information on how to support employees who may be experiencing Domestic Abuse. The service also provides Independent Domestic Violence Advisors to corporate partners.

The Phoenix Project is funded by the Trust for London, Great Portland Estate, the Pilgrim Trust and the Rayne Foundation to support victims of Modern Slavery once they have been granted leave to remain.

The Sport England initiative is funded by the Department of Culture Media and Sport and seeks to encourage children in our refuges to engage in sports related activities.

The Hestia Counselling Service is funded via various corporate donations and is intended to provide access to service users across Hestia services with access to internally Hestia run counselling as part of their recovery journey.

Project TILI (Train, Identify, Learn, Intelligence) was a partnership programme to tackle homelessness and modern slavery funded by the Department of Digital, Culture, Media and Sport. It covered England, Wales and Northern Ireland and was delivered in partnership with Crisis UK and the women’s organisations BAWSO and Belfast Women’s Aid, and the UK network for shared living Share Lives Plus.

Bright Sky – this donation was provided by Vodafone to support the development of the Bright Sky App, including translation into multiple languages.

Infection Control Funds – these were funds provided by commissioning partners to reduce the risk of COVID infection across Hestia’s services, including staffing support, Personal Protective Equipment, additional cleaning and testing resources. All funds were spent during the year.

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

16. Analysis of net assets between funds

Unrestricted Funds Restricted Funds	Investments Tangible Fixed Assets Net Current Assets Less Current Liabilities Pension Liability Total Funds 2021 £ £ £ £ £ 8,709,528 1,346,289 2,659,901 (36,000) 12,679,718 - 1,152,748 1,265,237 - 2,417,985
	8,709,528 2,499,037 3,925,138 (36,000) 15,097,703

	Investments Tangible Fixed Assets Net Current Assets Less Current Liabilities Pension Liability Total Funds 2020
	£ £ £ £ £
Unrestricted Funds	8,717,708 1,370,690 691,466 - 10,779,864
Restricted Funds	- 1,169,608 832,187 - 2,001,795
	8,717,708 2,540,298 1,523,653 - 12,781,659

17. Operating Lease Commitments

The total amounts payable by Hestia in respect of operating leases are shown below:

Amounts due: In less than one year: Between one and five years In more than five years Total	Land and Buildings Other 2021 2020 2021 2020 £ £ £ £ 558,009 337,555 123,789 134,552 129,179 209,539 364,728 488,518 - - - -
	687,188 547,094 488,517 623,070

18. Capital commitments and capital grants

There were no capital commitments outstanding at the year end, nor any capital grants receivable.

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

19. Pensions

During the year, Hestia operated both defined contribution and defined benefit pension schemes which require contributions to be made separately to administered funds for the benefit of the employees. Contributions payable by Hestia in respect of the defined contribution schemes totalled £666,955 for the year (2020: £560,787).

Final salary pension scheme

During the year, Hestia was an admitted body of one defined benefit pension scheme with The Royal Borough of Kensington and Chelsea Pension Fund (RBKCPF).

The RBKCPF is a multi-employer scheme administered by the Royal Borough of Kensington and Chelsea under the regulations governing the Local Government Pension Scheme (LGPS), a defined benefit scheme.

The RBKCPF defined benefit scheme has been reported under Section 28 of FRS 102, “Employee benefits”. The figures included in the financial statements in respect of this scheme are based on an actuarial valuation carried out on 31 March 2021.

The employer’s contribution, relating to current employees, to the RBKCPF by the organisation for the year ended 31 March 2021 was £16,110 (2020: £21,424) and the employer contribution rate was fixed at 21.1% of pensionable pay up to 31 March 2022.

The financial assumptions used by the actuary to calculate the Scheme liabilities under FRS102 for the RBKCPF were as follows:

Assumptions Inflation rate (RPI) Inflation rate (CPI) Rate of increase in salaries Rate of increase in pensions in payment Discount rate The fair value of the assets of the Scheme and the expected return were: Equities Property Cash (including cash plus funds) Alternative assets Total market value of assets Present value of Scheme liabilities Net pension liability	31 March 2021 3.20% 2.85% 3.85% 2.85% 2.00% 31 March 2021 £ 1,400,000 90,000 264,000 - 1,754,000 (1,790,000) (36,000)	31 March 2020
		2.65%
		1.85%
		2.85%
		1.85%
		2.35%

		31 March 2020
		£
		946,000
		79,000
		187,000
		119,000
		1,331,000
		(1,331,000)
		-

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

19.Pensions (continued) Analysis of the amount charged to the Statement of Financial activities Current service cost Past service costs Total service cost Net interest on defined liability Administration expenses Total pension costs charged to the SOFA Analysis of the actuarial gain / (loss) recognised in the Statement of Financial Activities (Other Comprehensive Income – STRGL) Actual return less expected return on pension scheme assets Changes in assumptions underlying the present value of scheme liabilities Total (loss) / gain recognised in the SOFA Movement in defined benefit obligation in the year Opening defined benefit obligation Current service cost Interest cost Changes in finance assumptions Changes in demographic assumptions Experience (loss) on defined benefit obligations Estimated benefits paid net of transfers in Past service costs including curtailments Contributions by scheme participants and other employers Closing defined benefit obligation	2021 £ 28,000 - 28,000 - 1,000 29,000 2021 £ 413,000 (436,000) (23,000) 31 March 2021 £ 1,305,000 28,000 31,000 450,000 (14,000) (11,000) (4,000) - 5,000 1,790,000
		2020
		£
		39,000
		16,000
		55,000
		5,000
		1,000
		61,000

		2020
		£

		41,000
		196,000
		237,000

		31 March 2020
		£
		1,536,000
		39,000
		38,000
		(154,000)
		(42,000)
		(130,000)
		(4,000)
		16,000
		6,000
		1,305,000

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

19.Pensions (continued)
Movement in fair value of fund assets in the		year		31 March		31 March
					2021	2020
					£	£
Opening fair value of fund assets				1,331,000		1,339,000
Interest on assets				31,000		33,000
Return on assets less interest				376,000		(84,000)
Other actuarial gains					-	21,000
Administration expenses				(1,000)		(1,000)
Contributions by employers including unfunded				16,000		21,000
Contributions by scheme participants and other employers					5,000	6,000
Estimated benefits paid net of transfers in				(4,000)		(4,000)
Closing fair value of fund assets				1,754,000		1,331,000
The employee numbers in the Scheme at 31		March were:			2021	2020
Active employees					5	5
Deferred pensioners					7	7
Pensioners					1	1
					2021	2020
					£	£
Actual return less expected return on Fund assets					-	-
Contributions by scheme participants					5,000	6,000
Expected employer’s contributions for the year ended 31				21,000		21,000
March
	2021		2020	2019	2018	2017
History of experience gains and	£		£	£	£	£
losses
Defined benefit obligation	(1,790,000)	(1,331,000)		(1,536,000)	(1,436,000)	(1,409,000)
Scheme assets	1,754,000	1,331,000		1,339,000	1,178,000	1,084,000
Surplus/(Deficit)	(36,000)		-	(197,000)	(258,000)	(325,000)
Experience adjustments on Scheme	-		-	-	-	(154,000)
liabilities
Percentage of liabilities	-		-	-	-	(10.9%)
Experience adjustments on Funds	-		-	-	-	-
assets
Percentage of assets	-		-	-	-	-

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

20. Subsidiary company results

At 31 March 2021, the Charity controlled one other small charitable company (limited by guarantee), the Corporate Alliance Against Domestic Violence and their results are included in the consolidated financial statements. The results for the year to 31 March 2021 were as follows:

Total income Total expenditure Net (expenditure) for the year Funds brought forward Funds carried forward The aggregate of the assets, liabilities and funds was: Assets Liabilities Total funds	2021 £ - (955) (955) 955 - - - -	2020
		£
		74,693
		(77,094)
		(2,401)
		3,356
		955


		10,099
		(9,144)
		955

21 Related party transactions

During the year Hestia charged the Corporate Alliance Against Domestic Violence £Nil (year to 31 March 2020: £70,591) to cover a range of services provided under service level agreements. At 31 March 2021, the amount due by the Corporate Alliance Against Domestic Violence was £Nil (31 March 2020: £7,704).

22 Subsequent Events

Hestia continued to deliver services under COVID restrictions into 2021-2022 taking into account government recommendations and commissioner requirements. The financial implications of the revised delivery models were addressed in the 2021-2022 budget.

HESTIA HOUSING AND SUPPORT

Notes to the financial statements for the year ended 31 March 2021 (continued)

23. Comparative Consolidated Statement of Financial Activities for the year ended 31 March 2021

31 March 2021
	Note	Unrestricted Funds	Restricted Funds	Total Funds 2020	Total Funds 2019
Income and endowments from:		£	£	£	£
Donations	2	666,107	59,982	726,089	818,467
Charitable activities	3	28,968,842	1,798,635	30,767,477	29,135,429
Investments	4	225,048	-	225,048	258,039
Total income		29,859,997	1,858,617	31,718,614	30,211,935
Expenditure on:
Raising funds:		287,998	-	287,998	307,128
Charitable activities	5	29,322,808	1,767,113	31,089,921	29,620,862
Investment management		51,055	-	51,055	48,461
Impairment of investments	11	160,383	-	160,383	-
Total expenditure		29,822,244	1,767,113	31,589,357	29,976,451
Net income before gains / (losses) on investments		37,753	91,504	129,257	235,484
Realised net gains on investments	11	207,550	-	207,550	137,120
Unrealised net (losses) on investments	11	(753,777)	-	(753,777)	(4,375)
Reserves transferred (out)		-	-	-	(284,408)
Net Income		(508,474)	91,504	(416,970)	83,821
Actuarial gains on defined benefit pension schemes	19	237,000	-	237,000	91,000
Net movement in funds		(271,474)	91,504	(179,970)	174,821
Reconciliation of funds:
Total funds brought forward		11,051,338	1,910,291	12,961,629	12,786,808
Total funds carried forward		10,779,864	2,001,795	12,781,659	12,961,629