Company number: 02020165 Charity number: 294555
## HESTIA HOUSING AND SUPPORT
Report and consolidated financial statements For the year ended 31 March 2024
HESTIA HOUSING AND SUPPORT
## Contents
## For the year ended 31 March 2024
Reference and administrative information ...................................................................................... 1 Trustees’ annual report (including the strategic report) ................................................................. 2 Independent auditor’s report ....................................................................................................... 35 Statement of financial activities (incorporating an income and expenditure account) ................... 39 Balance sheet ............................................................................................................................... 40 Statement of cash flows ................................................................................................................ 41 Notes to the financial statements ................................................................................................. 42
HESTIA HOUSING AND SUPPORT
## Reference and administrative information
For the year ended 31 March 2024
Company number 02020165 Country of incorporation United Kingdom Charity number 294555 Country of registration England & Wales
Registered office and operational address Fourth Floor, Beaufort House, 15 St Botolph Street, London EC3A 7DT
## Trustees
Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:
Dame Moira Gibb Chair (appointed 25/09/23) Terrie Alafat Chair (term of office ended 25/09/23) Joanna Mark-Richards Vice Chair Brendan Sarsfield Treasurer Elizabeth Zacharias Helen Christina Marriott Rebecca Pritchard Lauren Bowes Elizabeth Meek Sonal Shah Aisling Thompson (appointed 05/12/23) Catalina Cernica (appointed 05/12/23) Roger Rawlinson (co-opted 01/02/24)
|Key management|Patrick Ryan|Chief Executive and Secretary|
|---|---|---|
|personnel|Christopher Clarke|Executive Director - Finance|
||Mel Cox|Executive Director – People, Technology and Change|
||Gayle Lowery-Jones|
Executive Director Business Development|
||Naomi Neiland|Executive Director of Fundraising and|
|||Communications (from 06/09/23|
||Oliver Jacobs|Chief Executive – Twining Enterprise|
|Bankers|Barclays Bank PLC||
||74 Shepherds Bush|Green|
||LONDON||
||W12 8QB||
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HESTIA HOUSING AND SUPPORT
## Reference and administrative information
For the year ended 31 March 2024
Solicitors Russell Cooke 2 Putney Hill LONDON SW15 6AB Auditor Sayer Vincent LLP Chartered Accountants and Statutory Auditor 110 Golden Lane LONDON EC1Y 0TG
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HESTIA HOUSING AND SUPPORT
Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
The Trustees present their report and the audited financial statements for the year ended 31 March 2024.
Reference and administrative information set out on pages 1 and 2 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association, the requirements of a directors’ report as required under company law, and the Statement of Recommended Practice - Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.
On 31[st] January 2024, Hestia became the sole trustee of Twining Enterprise (Twining), a charity registered in England. This is reflected in the report and financial statements presented in this report, incorporating the assets of Twining from 31[st] January 2024 and their results for February – March 2024 in the Consolidated Statement of Financial Activities.
Both organisations are working on an integration plan which will see the two organisations achieve full merger by 31 March 2025.
## Objectives and activities
## Purposes and aims
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.
- 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.
The objectives of Twining Enterprise are:
The relief of need in people with mental health conditions in such ways as may be thought fit, including by (but not limited to):
- supporting them into work and towards being ready and available for work through the provision of educational, vocational and other training opportunities; and
- promoting the employment and retention in employment of people with mental health conditions by working with employers and others concerned with improving prospects of people with mental health conditions;
- promoting public understanding and awareness of mental health conditions;
- Working with others to relieve the needs of those suffering from disorders which commonly co-occur with mental health conditions, including by (but not limited to) addiction, musculoskeletal conditions and other disabilities.
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HESTIA HOUSING AND SUPPORT
## Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Vision and Mission
Hestia’s vision is “Empowering People, Changing Lives” and our 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.
## Strategic Objectives
In 2019, the Trustees agreed a 5-year strategy with 3 overarching aims:
- Service transformation.
- Growing with a diverse income portfolio.
- Building our profile and influence.
During 2023-24, with support from Social Business Trust and Bain Consulting, Trustees and staff across the Charity worked together and set the next strategy to be approved by Trustees in March 2024.
## Strategy Ambition 2024 - 29
Over the next five years Hestia’s ambition is to support more people across London and the Southeast who’ve experienced trauma with safety, hope and purpose.
Our service-user focused Hestia Approach, and our ability to deliver excellence in commissioned contracts and philanthropic partnerships, will sit at the heart of our strategy and ability to grow. Guided by the reality of our service users’ experience, we will bring their voice to the attention of policy makers, partners and communities and use our insight, evidence, and expertise to push for the change that matters.
We aim to achieve this by:
- i. Building our reputation as a voice of authority in supporting people in crisis or with trauma to recover
- ii. Grow our mental health offer.
- iii. Innovate in domestic abuse services.
- iv. Digitally enable our service user journey.
- v. Grow our philanthropic support
Trustees believe that these aims are consistent with and applicable to, the objectives of Twining Enterprise.
## Public benefit
The Trustees have referred to the guidance contained in the Charity Commission's general guidance on public benefit when reviewing the charity's aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.
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HESTIA HOUSING AND SUPPORT
Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Hestia’s year in numbers:
|For theyear ended 31 March 2024
Hestia’s year in numbers:|||
|---|---|---|
|OUR SERVICE USERS|2023-24|2022-23|
|Total number of service users supported across theyear|20,035|19,134|
|Number of accommodation units managed across our
servicegroups|733|741|
|% of clients satisfied with their care and support|95%|95%|
|% of clients feelingsafe and secure in our services|95%|95%|
|% of stated service user outcomes achieved|70%|69%|
- Further information on our service users is outlined in our strategic review on pages 10 to 13
|OUR PEOPLE|2023-24|2022-23|
|---|---|---|
|No. of staff directlyemployed byHestia|720|750|
|Staff retention rate|69%|71%|
|Staff sickness rate|3.6%|3.6%|
|Staff wellbeingand engagement|79%|78%|
- Further information on our people is outlined in our strategic review on pages 14 to 17
|OUR FINANCES|2023-24|2022-23|
|---|---|---|
|Total Income for theyear|£53,282m|£48.243m|
|Fundraised income in theyear|£923k|£593k|
|Annual Surplus for theyear|£1.203m|£1.332m|
|Net current assets|£6.305m|£5.336m|
|Total unrestricted reserves|£16.326m|£15.658m|
- Further information on our finances is outlined in our financial review on pages 25 to 26
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HESTIA HOUSING AND SUPPORT
Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Strategic Report
The analysis below considers, under each of our 2019 – 2024 strategic objectives, what we achieved in 2023-24, where we faced challenges and our ambitions for 2024-25.
## Strategic Objective 1 - Service Transformation
|In 2023-24
we:|Services:
•
Augmented our commissioned support by:
•
Providing up to one year’s free in-house counselling to 217 service
users
•
Making available placements across our services for 44 mental health
nursing students and 132 student social work placements.
•
Providing longer term post contract support for survivors of Moden
Slavery though our Phoenix Project and Reach In service supporting
190 service users.
•
Providing children and family support through the appointment of
Children and Family workers in our refuges and Modern Slavery Safe
houses, supporting 397 children over the year.
•
Continuing to develop our digital inclusion and mentoring
programme for service users, supporting hybrid delivery and
developing our in-house recovery college (RISE).
•
Delivering 27,113 volunteer hours by 1,092 volunteers with a
financial value estimated at £1.5 million. 78 of our volunteers were
service users and 12 of those volunteers moved into paid
employment.
•
Introduced Eye Movement Desensitisation and Reprocessing (EMDR)
therapy for adults and also for children (supported by Children and
Wellbeing Practitioners) to improve mental health outcomes and
psychoeducation for women and children in our Domestic Abuse
refuges.
•
Implemented a transformation programme across our Modern Slavery
Contract to better reflect service user journeys providing intensive
support when it is most needed.
•
Expanded our national Safe Spaces programme into 6,450 pharmacies
and bank branches as well as online with 40 corporate partners. Over
the year we achieved 4.5 million visits in person / online.
• Supported witnesses, core participants and staff groups across three
major Public Inquiries: the Covid Inquiry, the Post Office Horizon IT
Inquiry, and the Angiolini Inquiry. We worked on-site at public hearings,
witness interviews and community engagement events, as well as
providingtelephone and online support sessions forparticipants. Our|
|---|---|
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HESTIA HOUSING AND SUPPORT
## Trustees’ annual report (including the strategic report)
## For the year ended 31 March 2024
||team also worked with Grenfell Testimony Week to support the bereaved,
survivors and residents from the Grenfell community.
•
Began the process of streamlining and improving the quality,
understanding and use of data from the disparate sources, supported by
the appointment of a Director of Data in part funded by Social Business
Trust.
Staff
•
Worked with Commissioners to fund increases in front line salaries of up
to 13%, addressing staff cost of living concerns and supporting
recruitment and retention. We also funded the London Living Wage
increase 6 months early from November 2022 instead of May 2023.
•
Implemented our new recruitment system and on line checks which
achieved a 10 day reduction in time to recruit with further enhancements
expected..
•
Launched our EDI and Anti Racism Strategy focussing on embedding our
approach throughout the organisation with the ambition of becoming an
Anti Racist Organisation.
•
89% of service users in our annual satisfaction survey agreed that their
accommodation was welcoming and helped to improve their recovery.
We trained 10 service users to be PIPE inspectors who undertook
inspections across 27 oof Hestia’s operational services supporting
improvements to thephysical environment.|
|---|---|
|Our
challenges|Services
•
Addressing the increasing complexity of needs presented by service
users being referred to us / visiting our self-referral services.
•
Reduction in the availability of supporting / complementary external
services which are available to support service users - many of these are
being cut or scaled back due to the challenging public / philanthropic
funding environments.
•
Having to use numerous commissioner-based and internal systems to
record service users’ journeys makes using data to drive and
demonstrate improvements and outcomes for our service users is more
complex.
•
We are only seeing 69% of our service users face to face – often at the
service user’s request.
•
Only 65% of service users tell us they feel they have sufficient
opportunities to become involved in the way their services are delivered.
•
We failed to retain our Enabling Environments accreditation at our
Approved Premise in Streatham despite raising concerns about the
quality of the inspection.
•
Our Registered Care Home at Lynton Terrace in Ealing failed to retain its
Overall Good rating– 2 of the 5 areas investigated were rated as Good|
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HESTIA HOUSING AND SUPPORT
## Trustees’ annual report (including the strategic report)
## For the year ended 31 March 2024
||whilst 3 (Safe, Effective and Well Led) were identified as requiring
improvement.
Staff
•
Recruitment and retention in the buoyant UK employment market, with
our retention rate droppingfrom 71% lastyear to 69% thisyear.|
|---|---|
|In 2024-25
we will:|•
Build on the opportunities arising from the partnership with Twining
Enterprise to offer new and complementary employment services
•
Continue to innovate in in domestic abuse service provision building on
our track record in community and employer responses, digital and
survivor support especially children.
•
Continue to embed Safe Spaces as a national response to domestic abuse
with a Safe Space on every high street.
•
Reconfigure all our current domestic abuse service into complex needs
services.
•
Evaluate and profile our 3-part support models for children to
demonstrate its positive impact and effectiveness.
•
Grow our special domestic abuse offer for employers.
•
Launch project RISE which offers closed facilitated groups to combat
service user isolation and enhance skills development.
•
Ensure that all service users will have the opportunity to engage digitally
through the provision of skills, kit, and data.
•
Implement protocols and standards for hybrid contact with service users
in place.
•
Build opportunities for digital engagement with service users which
complement the support offer
•
Refocus efforts on KPI delivery – delivering improvements in:
Voids – currently 7.7% compared to 7% target.
Assessment completion – currently 71% compared to 95% target.
SU Satisfaction with involvement opportunities – currently 65%
compared to the target of 90%.
•
Deliver at least 70% of our client contact face to face.
•
Develop and implement improvement plans to upgrade CQC and
Enabling Environment ratings across all our services.|
## Strategic Objective 2 - Growing with a Diverse Income Portfolio
|In 2023-24
we:|•
Agreed the merger with Twining Enterprise, adding £2 million of
business in employment related support contracts to our income.
•
Opened a 6 bedspace house in Gillingham in partnership with Kent
CountyCouncil to supportpeople experiencingshort term mental health|
|---|---|
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HESTIA HOUSING AND SUPPORT
## Trustees’ annual report (including the strategic report)
## For the year ended 31 March 2024
||crisis. In total Hestia now provides 3 such services which provide a
valuable alternative to presenting at accident and emergency and
represent a potential future growth area.
•
We expanded community services to be delivered from our CNWL Crisis
Cafes, including supporting the mental health offer with NHS 111. We
also successfully retained the Tower Hamlets Crisis Café following
external tender.
•
Opened a new 6 bed complex needs domestic abuse refuge in
Wandsworth to complement our existing service in Brent.
•
Retained our Meron Domestic Abuse service and our complex needs
service in Lambeth.
•
Continued to increase the support we provide to many of the public
enquiries happening across the UK – including the COVID19 Inquiry, the
Post Office Inquiry and the Grenfell Inquiry.
•
Expanded our Everyone’s Business service using social enterprise
principles, providing Domestic Abuse Support to 5 external
organisations.
•
Achieved external funding to support children and families living in our
domestic abuse refuges and modern slavery safe houses and additional
wrap around support for victims of domestic abuse and survivors of
modern slavery to fill external gaps in provision of key interventions to
support service users recovery journeys.
•
Managed discussion with Commissioners to afford the 13% uplift in front
line salaries by (a) agreeing increases in contracts – many of which have
no in-built uplifts; or (b) by restructuring services to fit funding
envelopes. This was achieved with no redundancies.|
|---|---|
|Our
challenges:|•
Increasing competition in the sector, with more organisations chasing
fewer / reduced grants.
•
Financial pressures on Commissioners with many contracts being
retendered at lower grant values or seeking longer term grant awards
with no in-built increases.
•
Cancellation of the Approved Premise Expansion Programme and re-
tendering largely limited to existing provision.
•
Commissioning of bigger / wider services encompassing areas of work
in which Hestia has no experiences e.g. domiciliary care.
•
Reduced numbers coming through the Modern Slavery Victim Care
Contract on the back of antiimmigration legislation.
•
Health related contracts are more short-term in nature which increases
risk in medium to long term planning although our experience is that
these tend to be extended beyond the original contract end date.
•
Addressing the return of inflation and its impact on our cost bases – in
an environment where many contracts historically were let on a fixed
price.|
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HESTIA HOUSING AND SUPPORT
## Trustees’ annual report (including the strategic report)
## For the year ended 31 March 2024
||•
Facing an increase in the London Living Wage of 8.1% and supporting
our staff and their personal cost of living crises.
•
2 long standing services were sot on re-tender in the year our Hounslow
LIFE floating support contract, our domestic abuse contract in
Kensington & Chelsea. 2 of our crisis café service – Newham and
Folkestone were also lost at tender.
•
We halted implementation of our property strategy as increased interest
rates made this unviable in the short to medium term|
|---|---|
|In 2024-25
we will:|•
Build on our successes in the 2019- 2024 strategy to win £4.5 million
net new business each year with a significant part of this coming from
developing nonclinical mental health offers with our NHS partners
particularly crisis services, recovery houses, and hospital discharge
services.
•
Continue to address the cost-of-living challenge by seeking increases in
contract funding or implement restructures to match service delivery
with funding available.
•
Focus retention activity on contracts which are deemed to be viable.
•
Address the tender due in 2025-26 for our Victim Care Contract
(Modern Slavery) which accounts for 25% of our income.
•
Grow our fundraised income to £3.2 million over the life of the 2024-
2029 strategy of which £1.2 million will be unrestricted income.
•
Achieve net unrestricted income (income less the cost of fundraising by
2026-27 of £200K.
• Expand our Everyone’s Business services to other external agencies.|
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HESTIA HOUSING AND SUPPORT
## Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Strategic Objective 3 - Building Our Profile and Influence
|In 2023-24
we:|•
Continued to bring our survivors’ stories to the public and policy
makers, publishing ‘On Our Streets: The Changing Face of Modern
Slavery in London’ which shines a spotlight on the realities of
modern slavery, happening in every borough of London and
beyond; our tenth Underground Lives research which focuses on
mental health support for survivors of modern slavery; and our
London Mental Health Index which surveyed the mental health of
Londoners and identified the need for more mental health crisis
support like that provided by Hestia.
•
Hosted our Art is Freedom exhibition over two weeks in Trafalgar
Square, Victoria and London Bridge and a virtual display on World
Anti-Slavery Day (18th October) in the Piccadilly Circus lights.
•
Launched our Modern Slavery Manifesto for a new government
alongside 12 other leading support providers who are part of the
Modern Slavery Victim Care Contract, engaging policy makers in
practical ways they can re-new the UK's approach to supporting
victims of this serious and brutal crime.
•
Invested in developing our relationships with Health
Commissioners beyond our traditional partners e.g. Kent County
Council, opening the crisis house in Gillingham and the retention
of our Tower Hamlets crisis café.
•
Continued to expand our support to people in the community
experiencing domestic abuse via our over 6,300 Safe Spaces on
local high streets, online Safe Spaces, and our Bright Sky app. This
included media and social media activity to publicise Safe Spaces
during the Euros in response to the expected rise in domestic
abuse incidences, so that people knew where to go to access
routes to support and safety.|
|---|---|
|Our
challenges:|•
Obtaining sufficiently robust data which demonstrates evidence
and impact to support system change.
•
Decreasing resources for domestic abuse programmes, bringing
their viability into question.
•
An increasinglyhostile environment for victims of modern slavery.|
|In 2024-25
we will:|•
Build our reputation as a voice of authority in supporting people
in crisis or with trauma to recover:
•
We will build on our existing measures to better demonstrate our
expertise to enable hope, safety, and purpose.
•
We will identify discrete areas of our work which can profile this
expertise through research and/or evaluation focussing on:
`o`
The mental health experience of survivors of modern
slavery|
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HESTIA HOUSING AND SUPPORT
Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
|`o`|Supporting interventions with women and children in our|
|---|---|
||domestic abuse refuges|
|`o`|The experience of those using our innovative crisis mental|
||health|
## Strategic Report: - Our Performance
Hestia’s ambition is to provide more people across London and the Southeast who’ve experienced trauma with safety, hope and purpose.
The support we provide varies depending on the services that we are commissioned to deliver but irrespective of how individuals come into Hestia, we aim to recognise and work with their unique needs and aspirations.
During 2023-24 Hestia supported 20,035 men, women and children who accessed our services during the year – an increase of 585 from the previous year. Support was delivered across a range of client groups:
|Client Group|31 March
2024|31 March
2023|
|---|---|---|
|Domestic Abuse(includingchildren)|3,855|4,218|
|Mental Health|9,499|7,991|
|Modern Slavery|2,839|2,712|
|CriminalJustice|304|217|
|YoungPeople at Risk|68|70|
|Older People|544|550|
|Generic|2,876|3,334|
|Substance Misuse|50|42|
|TOTAL|20,035|19,134|
## Partnership Working
Partnership working is at the heart of what we do, and our work is commissioned by a wide range of public and private sector organisations:
- Central and Regional Government – the Home Office, Ministry of Justice, Ministry of Housing. Communities and Local Government (MHCLG), Mayor’s Office for Policing and Crime (MOPAC).
- Local Authorities – currently we have contracts with 23 London Local Authorities and contracts in Kent and Berkshire.
- NHS Trusts and Integrated Commissioning Boards across London and the South-East.
To deliver our services we work with a wide range of other agencies including:
- Registered Providers and private landlords, who make available property for our accommodationbased services.
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HESTIA HOUSING AND SUPPORT
Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
- Charitable foundations, businesses and private donors who provide funding for key programmes.
- Statutory Health Services who provide clinical and other support to our service users.
## Service Quality
We measure service quality in two ways:
- A set of Quality KPI’s, measured quarterly and reported to the Trustees.
- Our annual satisfaction survey of service users to understand their views on the quality of services that we deliver.
## KPI Reporting
We introduced quality KPIs in 2022 for both service users and staff indicators by combing data sets across systems. Performance over the last 2 years was as follows:
|Indicator||Target|March
2024|March
2023|
|---|---|---|---|---|
|User Experience:|Satisfaction|90%|88%|95%|
||Independence|90%|85%|79%|
||Involvement|90%|66%|52%|
|User Outcomes||75%|70%|69%|
|Staff Wellbeingand Engagement||75%|79%|78%|
The dip in satisfaction is disappointing in the year – but is contrary to the figure that we achieve in our satisfaction surveys which recorded a satisfaction level of 95% (see below). We believe this may be a data recording issue which we are exploring further as part of 2024-25 business plan. It was pleasing to see increases in the rates for independence and involvement, although the latter remains well below target: we are also working on introducing new co-produced initiatives to improvement our involvement rating.
## Service User Satisfaction Survey
We surveyed our Service Users in September 2023 and achieved 1,050 responses - a 5% increase from last year’s figure of 1,000 responses. This represents a 13% response rate for all service users.
Responses were received from 149 out of 47 active services (approx. 59%).
This year, 86% of responses were positive and 11% were negative which compares favourably to he 2022 survey where 73% were positive and 27% were negative, neutral or skipped.
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HESTIA HOUSING AND SUPPORT
Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## External Benchmarking
We use our annual service user satisfaction survey to report against the ASCOF which measures 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 how service users consistently rate their experience at Hestia against comparative London wide measures (last reported in 2021):
||Hestia|Hestia||
|---|---|---|---|
||||ASCOF|
||Positive|Positive||
||||Positive|
|Question|Response|Response||
||||response|
||rate|rate||
||||rate London|
||2023-24|2022-23||
|||||
|I am satisfied with my service / client
satisfaction with care and support|95%|95%|60%|
|I know how the service works and what I am
entitled to / I find it easy to get
information|
92%|89%|65%|
|I can control the kind of support I receive /
Proportion of people who feel they have
control over their daily life.|89%|88%|72%|
|I feel safe and secure in the service. /
Proportion of people whose service help
them to feel safe|95%|95%|82%|
|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.|
88%|84%|40%|
## Comparison with the Communities and Local Government Outcomes Framework
Most of Hestia’s services are commissioned to achieve positive outcomes against the five domains from the Communities and Local Government outcomes framework.
|Domain|Indicator|Target|2023-24
reporting
achieved
and partly
achieved|2022-23
reporting
achieved
and partly
achieved|
|---|---|---|---|---|
|Maximise
economic well
being|Achieve positive outcomes for those
needing support to maximise their
income|95%|95%|93%|
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HESTIA HOUSING AND SUPPORT
## Trustees’ annual report (including the strategic report)
## For the year ended 31 March 2024
|Domain|Indicator|Target|2023-24
reporting
achieved
and partly
achieved|2022-23
reporting
achieved
and partly
achieved|
|---|---|---|---|---|
|Enjoy and
achieve|Service users seeking to improve the
qualityof life for children|95%|91%|98%|
||Service users requiring support to
participate in activities|90%|84%|84%|
||Service users agreeing the service
enabled them to develop
independence and linked them into
other services|95%|91%|89%|
||Service users confirming they have as
much social contact as theywould like|90%|88%|84%|
|Being Healthy|Received support to better manage
physical health|95%|94%|95%|
||Received support to better manage
mental health|95%|94%|94%|
|Staying Safe|Reduce the risk of harm from others|95%|95%|97%|
||Received support to maintain
accommodation|95%|94%|93%|
||Service users confirming they felt safe
and secure in the service|100%|95%|95%|
|Making a
positive
contribution|Received support to be more
confident in accessingservices|95%|94%|96%|
||Service users agreed that they were
given information that they could
easily understand, agreeing they were
in control of their support,
understanding how the service
delivered the support they needed,
and understandingtheir entitlements.|90%|92%|91%|
Our results show performance to be consistent year on year and around target. The results of the survey continue to drive improvements in service delivery with a major focus in 2024-25 being to increase service user involvement opportunities.
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HESTIA HOUSING AND SUPPORT
Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Financial review
The results for the year are set out in Statement of Financial Activities. The assets and liabilities of the Charity at 31 March 2024 are shown in the Balance Sheet. The financial statements should be read in conjunction with their related notes.
## Income
Since 2019-20, income has grown steadily from £31,718 million in 2019-20 to £53.282 million – an increase of 68% (£21.564 million):
**----- Start of picture text -----**
Hestia Total Income By Year - £'000
60000
53282
48243
50000
42337
37443
40000
31718
30000
20000
10000
0
2019-20 2020-21 2021-22 2022-23 2023-24
Year
£'000
**----- End of picture text -----**
The 5-year growth in income has been achieved largely through the addition of contracts and annual increases in contract income although only 50% of Hestia’s contracts attract annual increases. Annual increases are applied to rents and service charges, where rents are linked to the Government rent increase limits and service charges are set to achieve full cost recovery.
## Income Breakdown – 2023-24
|Income Area|2023-24
£m|2022-23
£m|Change
%|
|---|---|---|---|
|Unrestricted Supporting People and
Other Grants|£31,435|£28.612|+10%|
|Restricted Grants|£4,512|£4.686|-4%|
|Rents and Service Charges|£12,675|£11.530|+10%|
|Approved Premises Grant|£3,440|£2.585|+33%|
|Donations and Legacies|£0.921|£0.593|+55%|
|Investment Income|£0.299|£0.237|+26%|
|Total|£53,282|£48.243|+10%|
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Income Breakdown – 2023-24 (continued)
- Income from Unrestricted Supporting People and Other Grants continue to form most Hestia’s income – the 10% year on year increase was largely due to new contracts in the year (Kent and Wandsworth) and inflation increases achieved through negotiation with Commissioners.
- Income from Restricted Grants fell slightly as some grant programmes with the Home Office came to an end.
- Rents and Service charges increased due to the rent increase applied in April 2023 (11%) and increased recovery from service charges offset by an increase in void losses.
- The Approved Premises Grant increased as the Highbury services was open for a full year and an inflation award from April 2023.
## Annual Surplus
Hestia continues to deliver operational surpluses (defined as net income before gains / losses on investments and pensions):
|Year|Net Income -
Unrestricted|Net Income -
Restricted|Total|
Net Income as a %
of Total Income|
|---|---|---|---|---|
|2019-20|£38k|£92k|£130k|0.41%|
|2020-21|£503k|£416k|£919k|2.45%|
|2021-22|£494k|£416k|£910k|2.16%|
|2022-23|£1.487k|(£155k)|£1,332k|2.76%|
|2023-24|£0.991k|£212k)|£1,203k|2.25%|
The overall surplus was down slightly despite the challenging inflationary environment and the pay award made in April 2023.
Hestia’s aim is to continue to generate surpluses on unrestricted funds that add to reserves, ensuring funds are available to support our work with service users.
## Balance Sheet
Hestia’s balance sheet remains strong with total assets increasing from £18.337 million at 31 March 2023 to £19.217 million at 31 March 2024 mainly through the retained surplus for the year.
Reserves were reduced by £654k as Trustees decided not to recognise the pension asset due to the uncertainly around being able to recover any calculated surplus from the scheme.
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Key financial indicators
Trustees consider 3 financial performance indicators which are those traditionally used by our commissioners as part of their financial monitoring analysis, and we have comfortably met or exceeded these over the last 2 years:
|Indicator|Target|Hestia
2023-24|Hestia
2022-23|
|---|---|---|---|
|Annual Surplus|>£0|£1,203k|£1,332k|
|Current Assets: Current Liabilities|>1:1|1.80|1.67|
|Gearing (Debt/Equity)|<40%|0%|0%|
## 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.
There were no capital additions or withdrawals in the year, therefore changes in the value of investments are a result of:
- Re-investment of dividend income.
- Management fees deducted by the fund managers.
- Net Investment gains and losses on stock disposals, reinvested in the portfolio.
- Net increases in portfolio valuations at 31 March 2024.
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 2024, the value of the portfolio had increased to £8.121 million from £7.601 million.
- At 28[th] August 2024, the value of the portfolio had increased to £8.6 million in line with increases in the Stock Market.
- 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 counterbalance against market swings and over the year the value of the fund decreased from £2.005 million to £1.858 million.
- At 28th August 2024 the value of the investment had recovered some of the previous losses to stand at £1.91 million.
The Finance and Fundraising Sub Committee monitor performance quarterly and meet with both fund managers annually. During the year Trustees reaffirmed their intention to remain invested in the medium to long term irrespective of short-term market fluctuations.
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Pensions
All staff are entitled to join Hestia’s defined contribution scheme operated by Legal and General and new employees 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 which we exepct to be retendered in 2024-25.
The FRS102 valuation position as reported by the actuaries showed an increase in the net value of the pension asset of £284k to stand at £938k at 31 March 2024. The present value of liabilities was largely unchanged, however the share of the scheme assets increased by £315k in line with increases in the Stock Market. Trustees have agreed not to recognise the asset in the financial statements, as we believe it is unlikely that this would be realised if our participation in the scheme were to cease due to the upcoming re-tender.
Contributions to the scheme for 2024-25 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.
## Twining Enterprise
Twining Enterprise became a fully owned subsidiary on 31[st] January 2024. Net assets of £616k were transferred into that Group on that date.
Details of their financial performance for the year to 31 March 2024 and assets and liabilities at 31 March 2024 are contained in Note 13 to the accounts on Page 54-55.
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Principal risks and uncertainties
The Board of Trustees is responsible for ensuring that Hestia has in place systems of internal control that are appropriate to the various business environments 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.
Hestia’s operating model predominantly relies on income generated from contracts awarded by commissioning partners. Many of these are for a fixed number of years and subject to retendering at various intervals. In previous years, Hestia was able to manage these fixed price contracts due to the low inflation environment. Rents and service charge income is also linked to commissioned contracts – Hestia owns very few properties.
The commissioning environment provides opportunities for Hestia as contracts currently provided by others are also put out of tender which provides potential to increase the contract base.
Traditionally, the main aim of our fundraising activity has been linked to added value initiatives to support the contracts that we deliver rather than achieving core unrestricted income.
The majority of income risk, lies therefore with our contract base.
## Approach to Risk Management
Hestia operates both a bottom-up and top-down approach to risk management: operational services each develop their own local risk management plans, and this informs the strategic risk register. The strategic risk register defines the risks that have the potential to seriously affect Hestia’s ability to continue to operate as an independent organisation delivering services to our beneficiaries. Risks can be added or deleted depending on the environmental assessment which is considered as part of each Board meeting.
For 2023-24 the following were identified as the top risks:
- Delivering service user outcomes / safeguarding
- Internal performance management
- Compliance – health and safety / information governance / business continuity planning
- • Workforce management
- Contract retention / Victim Care Contract
- Cost control
- Fundraising
- External reputation
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Top Strategic Risks
In 2023-24 Trustees identified that the two biggest risks facing Hestia are contract retention (with a focus on the Victim Care Contract which represents 25% of Hestia’s income and is due for retender in 2024-25) and workforce management given the buoyant job market, the impact of inflation on salary requests and workforce burnout.
Trustees received detailed updates on both these areas at each of their Board meetings, including a review of internal / external challenges, relevant KPIs, any independent third-party information and management activities. This ensures the Board is sighted on those major risk areas likely to affect Hestia.
## Controls
The Board of Trustees have put in place appropriate procedures and controls to adequately mitigate against the various risks Hestia faces including:
- An organisational set of values which commits us to managing the Charity's affairs with integrity.
- Operational services having clear local plans to manage risk, linked to annual business plans.
- The risk assessment process embedded in a comprehensive business planning process.
- An agreed quality strategy which is monitored as part of regular KPI reporting.
- Robust budgeting and quarterly review and reporting of financial performance.
- Clear and regularly reviewed delegated authorities.
- Appropriate authorisation levels and segregation of accounting duties.
- Clear staff roles, responsibilities and accountabilities.
The Board delegates authority to Hestia’s Sub Committees to monitor the review and outcome of the application of controls through regular reporting and deeper analysis of issues of concern. During 2023-24 the Board received reports on Fundraising, Void Management and Assessment reviews.
## Reserves policy and going concern
## Reserves
Hestia’s reserves policy is designed to reflect the underlying risk facing us and ensure we have an appropriate level of reserves to safeguard our operations and provide services to our beneficiaries. We hold restricted funds to meet commissioner and donor requirements around unspent income. Restricted reserves include amounts associated with fixed asset investments to reflect where property may be charged to external agencies.
Trustees have also agreed to hold designated reserves to meet non-operational activities, linked to property management requirements and organisational development. Funds held at 31 March 2024 totalled £1.400 million broken down as follows:
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## Trustees’ annual report (including the strategic report)
## For the year ended 31 March 2024
||£’000|
|---|---|
|Propertyupkeep /maintenance|425|
|Service deliveryimprovements|210|
|Service design improvements|463|
|Digital/I.T. Infrastructure improvements|254|
|Head Office Relocation Fund|48|
|TOTAL|1,400|
During the year expenditure from reserves was incurred on property renovations, and updating the organisational 5 year strategy. For 2024-25, the main areas of expenditure to be incurred are linked to the digital and fundraising strategies.
The £654k which was set off in the March 2023 accounts to reflect the FRS17 pension asset has been written off aside as it is not expected to be realised.
The Trustees consider the minimum level of free reserves annually – excluding restricted and designated reserves – required to support our operations. Relevant factors include projected financial performance with an assessment of risk to our income streams and cash flow requirements. Hestia’s income is largely contract linked which provides a degree of certainty in terms of understanding future income but also incorporates risks of contracts being cancelled or lost on re-tender. Our risk assessment considers the impact of potential contract losses taking account of the impact of contract cancellations (which have larger impact on staff and beneficiaries) compared to contracts which are transferred to alternative organisations to continue delivery.
Having undertaken a review of projected cash flows and contract end dates, Trustees have determined that Hestia requires 3 months’ worth of operating costs to manage short term cash flow variations and the potential loss of contracts. This must be held in liquid assets.
Following this review, Trustees have determined that the minimum level of free reserves is £12.0 million at 31 March 2024. The actual level of free reserves is £12.3 million (excluding the value of fixed assets). The Trustees review this amount annually and as such this minimum amount will change from time to time. Liquid assets (cash / short term investments and long-term investments all of which are accessible at short notice) are £16.6 million.
## Forecast and Budgets / Going Concern
The budget for 2024-25 predicts, that we will make a small deficit as we draw down on restricted reserves and invest in project restructuring. Unrestricted reserves are forecast to grow slightly. As a result, we expect overall reserves to be largely unchanged subject to any changes in our investments and pensions.
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
Projecting forward into 2025-26, Trustees have also considered an initial “no growth” budget which assumes:
- 5% inflation on salaries. 2% inflation on other costs (salaries account for 65% of expenditure).
- Contract inflation is restricted to 2%.
- 1major contract due for retender is not retained.
- The Victim Care Contract reduces by 20% over the year as referrals drop off.
Without taking corrective in year action, the deficit for 2025-26 would be £628k; general funds would decrease to £15.6 million and net current assets would remain positive at £5.8 million.
## Fundraising
Hestia’s fundraising strategy seeks to ensure we can help more people to a life beyond crisis.
The fundraising team works with a range of government agencies, charitable trusts, community groups, corporate donors and individuals on a wide range of activities. During the year the team raised £1.104 million from donations. legacies and gifts in kind and a further £0.504 million in other grants.
We would like to thank all of those who have supported programmes and made donations to provide safety, hope and purpose after crisis and trauma for the people in Hestia’s services:
- Our Children and Family Programmes – aimed at providing children and family workers and for activities in all our Domestic Abuse Refuges – has been made possible by the Greater London Authority and MOPAC, Compass Wellbeing and North Central and East London CAMHS Provider Collaborative (NCEL), Permira Foundation, John Lyon’s Charity, Childhood Trust, Croydon Relief in Need, De Brye Charitable Trust, Wimbledon Community Foundation, Hardy Family Foundation, Tower Hamlets Community Fund, B&Q Foundation, Sapio Research, Hasbro, Kingfisher Plc, WE Soda and HSBC Branch Network.
- Our wrap-around support for survivors in our Domestic Abuse Refuges across London – including our dedicated refuge referral helpline, our empowerment, well-being and counselling support, and resettlement and move-on support – has been made possible by grants and donations from the Greater London Authority and MOPAC, City Bridge Foundation, Uber, Tokio Marine HCC and KKR.
- Our Domestic Abuse Prevention Programmes, including our Safe Spaces initiative in pharmacies and banks, UK Says No More and Everyone’s Business, have been supported by grants from the Home Office as well as by a range of corporate partners purchasing Independent Domestic Violence Advocate (IDVA) services. Our digital innovation to support more survivors of domestic abuse - including the Bright Sky domestic abuse app and Online Safe Spaces – has expanded with the support of the Home Office, the Permira Foundation/Social Business Trust’s Digital Impact Fund, Vodafone, and the Royal Mail Group.
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Fundraising (continued)
- Our wrap-around support for survivors of Modern Slavery – including urgent essential items, social inclusion, independent living skills, dedicated support for children of survivors, and research and advocacy to raise awareness and giving survivors a voice - has been made possible through the generous support of the David and Ruth Lewis Family Charitable Trust, the Garfield Weston Foundation, and corporate donations from Bird & Bird, Ashurst, and WE Soda.
We are grateful for the sustained support from the Social Business Trust (SBT). The focused funding and deep expertise brought by Clifford Chance, Bain, Permira and other SBT partners has been invaluable in refocusing our organisational strategy and transforming our data infrastructure to effectively demonstrate our impact.
## Our Fundraising Practices
Hestia’s 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 2024 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.
## Structure, governance and management
## Structure
Hestia Housing and Support (“Hestia”) is a registered charity and is incorporated as a company limited by guarantee governed by 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.
All Trustees give their time voluntarily and receive no benefits from the charity. Any expenses reclaimed from the charity are set out in note 7 to the accounts.
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Governance
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 Charity’s charitable objectives. Trustees serve for a term of three years with a possible appointment for a second term of another three years.
Trustees are recruited based on an evaluation of the range of skills and experience needed to govern Hestia covering strategic and operational experience as well as a range of business and commercial experience, including financial and HR knowledge.
Dame Moira Gibb was appointed Chair of the Board of Trustees in November following the retirement of the previous Chair, Terrie Alafat at the end of her period in office. Dame Moira is a qualified social worker and was Director of Social Services at the Royal Borough of Kensington and Chelsea and Chief Executive of Camden Council. She has held a number of Board and Trustee appointments, including at NHS England and she was Chair of Skills for Care from 2014 – 2022.
We are extremely grateful to Terrie for her support and contribution during her tenure, and in particular, her oversight of the development and implementation of the strategic plan 2019 – 2024.
During the year, Aisling Thompson and Catalina Cernica who had been co-opted to the Board in 2023 were formally appointed to the Board. The Board were also pleased to welcome Roger Rawlinson to the Board of Hestia’s Trustees – Roget had previously been a Board Member of Twining. Roger is an HR consultant and a leader of organisational change with many years’ experience of executive responsibility for HR, Learning and Development and Communications across the retail, manufacturing and health sectors.
We were also pleased to welcome back former Treasurer and Vice Chair, Anil Shenoy as a co-opted member of the Finance and Fundraising Committee with a specific brief to support the management of our investment funds.
## Trustee Induction / Training / Involvement
Trustees 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. Trustees are encouraged to participate in visits to Hestia projects to provide first hand exposure to the services delivered and the operating environment. Trustees also get the opportunity to meet Hestia’s service users at social events, on recruitment panels, and at planned scheme inspections and visits. Over the course of the year, service users are also invited to attend Board meetings to provide direct and personal updates on their experiences at Hestia.
Training is provided to the Board aligned to identified needs. All Trustees undertake safeguarding training and the Board has appointed Rebecca Pritchard who has more than 30 years’ experience in the homelessness and social care sector as the Board safeguarding lead. Trustees also receive training on
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Trustees’ annual report (including the strategic report)
## For the year ended 31 March 2024
modern slavery annually reflecting the importance of this to Hestia’s overall operations. Trustees also attend annual 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 four standing committees who review specific areas in detail and report back to the full Board:
- Governance
- Finance and Fundraising
- Performance Review
- Digital and I.T.
Sub Committees may co-opt non-Trustee members to bring wider experience to specialist areas and the following individuals are currently co-opted to Hestia Sub Committees:
- Claudette Majomi and Anil Shenoy who sit on the Finance and Fundraising Sub Committee.
- Tori Ellaway sits on the Digital and I.T. Sub Committee:
- Matthew Kelly sits on the Performance Review Committee. Chris Fry who previously sat on the Performance Review Committee resigned his membership in May 2023.
Hestia’s Trustees have agreed to work towards full compliance with the Charity Governance Code and to review Hestia’s practices against the seven key areas which make up the code. In 2023-24 Trustees focussed on the “Organisational Purpose” element of the code as part of the process of developing the organisational strategy for 2024-29. Supported by investment partners, Social Business Trust and with significant pro bono support from Bain Consulting, an international agency aimed at supporting organisations update their strategic ambitions, the Board worked extensively with stakeholders across Hestia. This involved a detailed review of Hestia’s aspirations, its strengths and weaknesses, and undertook a detailed review of the external environment and market opportunities. From this work the Board and Directors co-produced the organisational strategy for 2024-29 to be implemented thought annual operational plans which are subject to regular monitoring and review.
## Twining Enterprise
On 31[st] January 2024, Hestia became the sole Trustee of Twining Enterprise (Twining) who provide employment related support to individuals who have experienced mental health trauma either to retain their employment or to rejoin the workforce.
The details of the transfer were agreed by a joint working party of Trustees and Directors from both organisations which included a statement of the aim of, and the benefits to be achieved by merger. Under the terms of the agreement, Twining’s Board resigned to be replaced by a shadow Board comprising 2 Trustees from the existing Board, 2 Trustees from Hestia and an independent chair. In addition, Hestia appointed one of the former Trustees from Twining, Roger Rawlinson, to its Board of Trustees.
Hestia nominated Brendan Sarsfield and Rebecca Pritchard to the Twining Board.
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
Twining has the right to withdraw from the arrangement within a twelve month period should the shadow board consider that the aims and objectives of the merger are not being realised.
## Management
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 Chief Executive and Senior Management Team attend Trustee Board Meetings, Sub Committee meetings and Trustee Away Days, presenting reports and analyses for discussion and to support decision making.
## Pay Policy for Senior Staff
The pay of senior staff is reviewed by the Governance 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.
## Trustees’ duty to promote the success of Hestia Housing and Support – section 172 statement
Trustees have a duty to promote the success of Hestia Housing and Support, and in doing so, are required by section 172(1) of the Companies Act 2006 to have regard to the following specific factors:
- The likely consequences of any decision in the long term
- Trustees work to an approved 5-year strategy and in March 2024, with the support of Social Business Trust and Bain Consulting, approved the new strategy for 2024-2029. This included an assessment of Hestia’s strengths and weaknesses, how those interlinked with the external environment and how that affected our ability to meet our objectives. Trustees agree an annual operation plan which includes an assessment of the longer-term impacts and ensures appropriate monitoring arrangements are in place. The Board may choose to delegate Sub Committees to undertake detailed analysis of plans and report back on their findings.
- The interest of Hestia’s employees
- The impact on staff of decisions to be taken are discussed by Trustees, who also receive an annual people update covering staff remuneration, retention, wellbeing, health and safety, and safeguarding. Hestia has a Trade Union recognition agreement in place with Unison, and also works closely with the Employee Forum, the internal staff consultative body.
- The need to foster Hestia’s business relationships with suppliers, customers and others
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
Trustees have approved a Quality Strategy which outlines the standards of how we wish to work with our stakeholders – commissioners of our services, our service users and other interested parties. Quality KPIs have been developed which are reported to the Board on a quarterly basis, along with an annual review of the Quality Strategy.
One of Hestia’s core values is Collaborative and Co-production which underpins our work wherever possible to ensure that our service users participate in the development of policies and procedures as well at the strategic direction of the Charity.
As the largest single provider of services to victims of human trafficking we have worked suppliers to support them in the development and implementation of their Modern Slavery Statements, providing support, guidance and training on the subject.
- The impact of Hestia’s operations on the community and the environment Our services are rooted in community provision and key to the success of our service delivery is the harnessing of community support. All projects are required to produce an annual business plan that looks at community assets and resources and how these might be utilised in supporting our service users.
As part of the annual Quality Strategy review, the Board receives regular quality updates on the services provided to ensure contracts are delivered efficiently and effectively with particular attention paid to CQC reviews and our own internal audit reviews.
- The desirability of Hestia a reputation for high standards of business conduct
- As a charity, the maintenance of Hestia’s reputation for keeping high standards of particular importance. Appropriate systems and processes are in place to ensure the highest standards in business conduct. The Senior Management Team will also update the board with any matters that may have given rise to a reputational risk including any mitigating actions being taken.
- The need to act fairly between members of Hestia
- As a registered charity Hestia does not have shareholders. The Trustees, who are members of the company, ensure that any surpluses are invested back into the business for the benefit of those for whom we provide care and support.
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Policy for employment of disabled persons and Employee Information
Hestia is committed to promoting equality, preventing discrimination and valuing diversity in all our services and across our workforce.
This continues to be progressed through our collaboratively developed and newly launched EDI/AR strategy and our organisational change programme one aspect of which focuses on building a more diverse, inclusive and equitable culture which promotes a sense of belonging in our colleagues. One of our key ambitions here is to achieve Disability Confident level 3 and membership of Race at Work Charter and Stonewall accreditation having gained membership already.
A major element of this work was improving our Equality, Diversity and Inclusion data to support strategic decision making and overlaying an EDI lens to all our people reporting. By encouraging people to self-report and automate data collection into easily accessible platforms we will be able to improve the robustness and quality of our data and by overlaying an EDI lens in this way we can gain insight on the experiences of our people from different heritage backgrounds. In addition, this year we are creating our EDI/AR dashboard to ensure that we can be fully transparent with our staff on a range of EDI data and progress against targets within our strategy.
Employee wellbeing continues to be a key focus for us. We work in partnership with two external organisations to offer our employees a very broad range of well-being support and information which includes helplines on legal, financial and personal issues, webinars, live zoom sessions, face to face support and access to information to meet their individual wellbeing needs. More recently we have developed our Trauma Informed approach to self, which supports colleagues to consider and manage vicarious trauma. We provide clinical supervision for staff groups every 4 weeks across our services and have responded to the cost-of-living crisis by developing a dedicated site for staff to access support, advice and information from trusted sources with the more recent introduction of an earnt wage access scheme called Wagestream.
Hestia is committed to the continuing development of all employees. We have an established learning platform through which all staff can access dedicated induction and personal development opportunities whether face to face or virtual workshops, e learning modules or through our knowledge hub. The second phase of The Hestia approach introduces Trauma Informed working and training to support the integration of this into our service delivery.
All staff have 6 weekly supervisions, annual appraisals which include 360-degree feedback about how they reflect our values, objectives development which flow from the organisational strategic plan and the creation of a personal development plan.
Learning and Development provision is provided by a specialist Social Care provider who can meet all our specialist subject development needs. and have just developed and piloted our first Leadership Excellence Programme. We now have 5 employees undertaking the fully funded social work degree apprenticeship and have identified 4 candidates about to start training via our Health and Social Care academy.
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Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Policy for employment of disabled persons and Employee Information (continued)
Hestia has supported 200 student placements from a range of universities and professional development institutions which enable our staff to gain line management experience and enhance the professional knowledge in our services from interactions and working with Social Work, Mental Health, Nurse students, Children and Family Practitioners students and trainee counsellors.
Hestia’s Gender Pay Gap was 4.31% in 2023/24 which has decreased slightly from 5.19% the previous year.
Trustees agree our Modern Slavery Statement each year and this is publicly available on our website.
## Relationships with stakeholders
## Service Users
Hestia aims to put service users at the heart of everything that we so – and the Hestia Approach, our in-house recovery model has co-production at its heart. We focus on building on service users’ capacity through our Strengths and Aspirations review which is one of the main elements of every key working session. The Hestia Approach is subject to regular formal review and updates.
Service users are encouraged to participate at all levels of the organisation, from leading and directing house meetings and contributing to service business plans, to joining the service user liaison group which undertakes service reviews, interviewing from staff and engaging with Senior Management and Trustees. During the year, in consultation with service users, the forum, previously referred to as the Better Lives Forum, was rebranded and refreshed as the Stronger Together Network. A main focus for the network is consideration of how we engage with those service users who only access Hestia’ service for a short time, including those who access our IDVA services and anyone who visits our drop-in crisis centres.
We survey our service users every year to better understand their view of the services we provide, and this is reported to Trustees along with annual actions plans to address areas of poor performance.
## Commissioners and Funders
As well as meeting with our commissioners and funders regularly via contract monitoring meetings, we seek to engage with this group on a less formal basis via monthly newsletters and invitation to events such as our “Art is Freedom” exhibition which showcases artworks created by survivors of Modern Slavery.
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We offer commissioners and funders direct support to increase awareness of Domestic Abuse and Modern Slavery in the workplace, with access to some of the tools we have developed, including our Bright Sky and Respond to Abuse Apps and help with Modern Slavery Statements.
We encourage funders to visit projects and participate in events: in the year, funders have built play equipment in refuges, painted rooms, and planted gardens. This provides a direct opportunity for funders to meet service users first hand to and to see the real benefits of the contributions that they make.
## Workforce
Hestia seeks to engage with our staff in a number of ways: we have a Hestia Intranet hub which acts as a single information and news hub for all staff to gain awareness of what is happening across Hestia. This is supported by a fortnightly Newsletter called Keep Connected.
Key messages and information are also cascaded through organisational reporting line.
We actively engage with staff via our Employee Forum, Hestia Voice made up of 10 elected staff representatives covering the whole organisation. This forum provides for a two-way dialogue between senior management and staff where representatives key concerns and organisational challenges and information are tabled both all parties. The Forum actively participated in discussions around the April 2024 pay award as well as supporting the development of an upfront expenses policy aimed at preventing staff from being out of pocket awaiting re-imbursement.
Hestia has entered into a recognition agreement with the trade union, UNISON to further support intelligence gathering and staff engagement. 15% of staff joined the union since the agreement was implemented.
Biannual employee engagement surveys and quarterly wellbeing and engagement questionnaires feed into our internal Quality Dashboard, the findings are shared with Trustees and staff groups for transparency and to encourage involvement.
## Suppliers
Hestia aims to work positively with our suppliers and is committed to paying suppliers earlier than their payment terms. In the year to 31 March 2024, 93% of suppliers received payments early or on time.
As part of Hestia’s Modern Slavery Statement, we aim to work with our major suppliers to support them develop their own Modern Slavery Statements and to understand the signs of modern slavery. Our aim is to develop a toolkit which we can make available to all suppliers to help them spot the risk of modern slavery in their own supply chains.
31
HESTIA HOUSING AND SUPPORT
Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
During 2024-25 we aim to review our approach to procurement, driven in part, by our aim to improve the quality of accommodation and improve working relationships with suppliers by opening up dialogue channels.
## 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 2024.
Most 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 2023 UK Government's Conversion Factors for Company Reporting.
## Energy Usage
|nergy Usage|||
|---|---|---|
||01 April 2023 –
31 March 2024|01 April 2022 –
31 March 2023|
|Energy consumption used to calculate emissions
(kWh)|7,771,399|7,584,032|
|Scope 1 emissions in metric tonnes C02e
Gas Emissions|1,147.57|1,110.75|
|Scope 2 emissions in metric tonnes C02e
Purchased Electricity|292.29|268.50|
|Scope 2 emissions in metric tonnes C02e
Business Travel|20.08|26.46|
|Totalgross emissions in metric tonnes C02e|1,459.94|1,405.70|
|Intensityratio Tonnes C02eper occupant ¹|2.355|2.086|
Note 1: The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e per occupant.
Measures taken to improve energy efficiency
Hestia continues to implement smart metering across all our sites. This is laying the foundation for energy management and reporting. Additionally, Hestia runs a programme for reading meters for both gas and electricity across all managed supplies.
32
HESTIA HOUSING AND SUPPORT
Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Statement of responsibilities of the trustees
The trustees (who are also directors of Hestia Housing and Support for the purposes of company law) are responsible for preparing the Trustees’ annual report including the strategic report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
Company law requires the Trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the 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 SORP
- Make judgements and estimates that are reasonable and prudent
- State whether applicable UK Accounting Standards and statements of recommended practice have been followed, subject to any material departures disclosed and explained in the financial statements
- Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charity will continue in operation
The Trustees are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the charitable company and 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 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
- 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 the 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.
Members of the charity guarantee to contribute an amount not exceeding £1 to the assets of the charity in the event of winding up. The total number of such guarantees at 31 March 2023 was 9 (2022: 12). The Trustees are members of the charity, but this entitles them only to voting rights. The trustees have no beneficial interest in the charity.
33
HESTIA HOUSING AND SUPPORT
Trustees’ annual report (including the strategic report)
For the year ended 31 March 2024
## Post Balance Sheet Event
In August 2023, the Board agreed a merger with Twining Enterprise to take effect from 1[st] February 2024 when Twining became a wholly owned subsidiary of Hestia. During 2024-25 the boards of both Hestia and Twining will work through an integration plan to fully integrate Twining into Hestia, making Twining dormant and effectively collapsing the group structure. The Boards have agreed for this to take place in the final quarter of 2024-25.
Twining support people who have experienced mental health issues into employment which complements much of the work already carried out by Hestia.
## Auditor
Sayer Vincent LLP was re-appointed as the charitable company's auditor during the year and has expressed its willingness to continue in that capacity.
The Trustees’ annual report which includes the strategic report has been approved by the Trustees on 3[rd] December 2024 and signed on their behalf by
Dame Moira Gibb Chair – Board of Trustees
34
Independent auditor’s report
## To the members of
## Hestia Housing and Support
## Opinion
We have audited the financial statements of Hestia Housing and Support (the ‘charitable company’) and its subsidiary (the ‘group’) for the year ended 31 March 2024 which comprise the consolidated and parent charitable company statement of financial activities, the group and parent charitable company balance sheets, the consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
- In our opinion, the financial statements:
- 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 2024 and of the group’s and parent charitable company’s incoming resources and application of resources, including its income and expenditure, for the year then ended
- Have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice
- Have been prepared in accordance with the requirements of the Companies Act 2006
## 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 group financial statements section of our report. We are 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. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
## Conclusions relating to going concern
In auditing the financial statements, we have concluded that the 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 Hestia Housing and Support'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.
35
Independent auditor’s report
To the members of
Hestia Housing and Support
## Other Information
The other information comprises the information included in the trustees’ annual report, including the strategic report, other than the group financial statements and our auditor’s report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the group 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 group 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 group 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.
## Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- The information given in the trustees’ annual report, including the strategic report, for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- The trustees’ annual report, including the strategic report, has been prepared in accordance with applicable legal requirements.
## Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent charitable company and their environment obtained in the course of the audit, we have not identified material misstatements in the trustees’ annual report including the strategic 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, or returns adequate for our audit have not been received from branches not visited by us; or
- The financial statements are not in agreement with the accounting records and returns; or
- Certain disclosures of trustees’ 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 set out in the trustees’ annual report, 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 determine
36
Independent auditor’s report
To the members of
Hestia Housing and Support
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
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.
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 are set out below.
## Capability of the audit in detecting irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
- We enquired of management and the finance and fundraising committee, which included obtaining and reviewing supporting documentation, concerning the group’s policies and procedures relating to:
- Identifying, evaluating, and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected, or alleged fraud;
- The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
- We inspected the minutes of meetings of those charged with governance.
- We obtained an understanding of the legal and regulatory framework that the group operates in, focusing on those laws and regulations that had a material effect on the financial statements or that had a fundamental effect on the operations of the group from our professional and sector experience.
- We communicated applicable laws and regulations throughout the audit team and remained alert to any indications of non-compliance throughout the audit.
- We reviewed any reports made to regulators.
37
Independent auditor’s report
## To the members of
## Hestia Housing and Support
- We reviewed the financial statement disclosures and tested these to supporting documentation to assess compliance with applicable laws and regulations.
- We performed analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud.
- In addressing the risk of fraud through management override of controls, we tested the appropriateness of journal entries and other adjustments, assessed whether the judgements made in making accounting estimates are indicative of a potential bias and tested significant transactions that are unusual or those outside the normal course of business.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: 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 and section 144 of the Charities Act 2011 and regulations made under section 154 of that Act. 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.
Fleur Holden (Senior statutory auditor)
12 December 024
for and on behalf of Sayer Vincent LLP, Statutory Auditor 110 Golden Lane, LONDON, EC1Y 0TG
38
## Hestia Housing and Support
Consolidated statement of financial activities (incorporating an income and expenditure account)
For the year ended 31 March 2024
|For theyear ended 31 March 2024||||||||
|---|---|---|---|---|---|---|---|
|||||2024|||2023|
|||Unrestricted|Restricted|Total|Unrestricted|Restricted|Total|
||Note|£'000|£'000|£'000|£'000|£'000|£'000|
|Income from:||||||||
|Donations and legacies|2|519|585|1,104|325|268|593|
|Charitable activities||||||||
|Provision of Care and Support|3|44,059|4,546|48,605|40,036|4,770|44,806|
|Operation of Approved Premises|3|3,457|-|3,457|2,607|-|2,607|
|Provision of Employment Support|3|27|138|165|-|-|-|
|Investments|4|302|-|302|237|-|237|
|Other|13|616||616||||
|Total income||48,980|5,269|54,249|43,205|5,038|48,243|
|Expenditure on:||||||||
|Raising funds|5|342|-|342|259|-|259|
|Charitable activities||||||||
|Provision of Care and Support|5|43,929|4,925|48,854|38,829|5,193|44,022|
|Operation of Approved Premises|5|2,883|-|2,883|2,630|-|2,630|
|Provision of Employment Support|5|223|128|351|-|-|-|
|Total expenditure||47,377|5,053|52,430|41,718|5,193|46,911|
|Net income / (expenditure) before net||||||||
|gains / (losses) on investments||1,603|216|1,819|1,487|(155)|1,332|
|Net gains / (losses) on investments||331|-|331|(196)|-|(196)|
|Net income / (expenditure) before other||||||||
|recognised gains and losses||1,934|216|2,150|1,291|(155)|1,136|
|Actuarial (losses) / gains on defined benefit||||||||
|pension schemes||(654)|-|(654)|280|-|280|
|Net movement in funds||1,280|216|1,496|1,571|(155)|1,416|
|Reconciliation of funds:||||||||
|Total funds brought forward||15,658|2,679|18,337|14,087|2,834|16,921|
|Total funds carried forward||16,938|2,895|19,833|15,658|2,679|18,337|
All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in Note 20a to the financial statements.
39
Hestia Housing and Support
Company no. 2020165
## Balance sheets
## As at 31 March 2024
|As at 31 March 2024
Balance sheets|As at 31 March 2024
Balance sheets|As at 31 March 2024
Balance sheets|Company no. 2020165|Company no. 2020165|
|---|---|---|---|---|
|2024
2023
Note
£'000
£'000
Fixed assets:
11
2,954
2,995
12
9,979
9,352
12,933
12,347
Current assets:
15
8,680
7,565
404
513
5,755
5,250
14,839
13,328
Liabilities:
16
(7,939)
(7,992)
6,900
5,336
19,833
17,683
19,833
17,683
18
-
654
19,833
18,337
20a
2,895
2,679
1,400
1,386
15,538
13,618
-
654
Total unrestricted funds
16,938
15,658
19,833
18,337
Debtors
Creditors: amounts falling due within one year
Net current assets
Total assets less current liabilities
Net assets excluding pension asset / (liability)
Funds:
Restricted income funds
Unrestricted income funds:
Designated funds
Pension reserve
General funds
Total net assets
Defined benefit pension scheme asset
Investments
Cash at bank and in hand
Short term deposits
Tangible assets
The group
Total funds|||2024
2023
£'000
£'000
2,933
2,995
9,979
9,352
12,912
12,347
8,468
7,565
404
513
5,236
5,250
14,108
13,328
(7,803)
(7,992)
6,305
5,336
19,217
17,683
19,217
17,683
-
654
19,217
18,337
2,891
2,679
1,400
1,386
14,926
13,618
-
654
16,326
15,658
19,217
18,337
The charity||
||12,933
8,680
404
5,755|12,347
7,565
513
5,250|12,912
8,468
404
5,236|12,347
7,565
513
5,250|
||14,839
(7,939)|13,328
(7,992)|14,108
(7,803)|13,328
(7,992)|
||6,900|5,336|6,305|5,336|
||19,833
19,833
-|17,683
17,683
654|19,217
19,217
-|17,683
17,683
654|
||19,833|18,337|19,217|18,337|
||2,895
1,400
15,538
-|2,679
1,386
13,618
654|2,891
1,400
14,926
-|2,679
1,386
13,618
654|
||16,938|15,658|16,326|15,658|
||19,833|18,337|19,217|18,337|
Approved by the trustees on 3rd December 2024 and signed on their behalf by
Dame Moira Gibb Chair - Board of Trustees
Brendan Sarsfield Treasurer
40
Hestia Housing and Support
## Consolidated statement of cash flows
## For the year ended 31 March 2024
|For the year ended 31 March 2024|For the year ended 31 March 2024|For the year ended 31 March 2024|||
|---|---|---|---|---|
|Note
£'000
£'000
Net income for the reporting period
2,150
(as per the statement of financial activities)
Depreciation charges
73
(Gains)/losses on investments
(331)
Dividends and interest from investments
(302)
(Increase) in debtors
(1,115)
(Decrease) / increase in creditors
(53)
Net cash provided by operating activities
422
302
(26)
(6)
1,308
(1,604)
(26)
396
5,763
a
6,159
Analysis of cash and cash equivalents and of net debt
At 1 April
2023
Cash flows
£'000
£'000
Short Term deposits
513
(109)
Cash at bank and in hand
5,250
505
a
Total cash and cash equivalents
5,763
396
Cash flows from operating activities
Net cash (used in) investing activities
Cash flows from investing activities:
Dividends and interest from investments
Purchase of fixed assets
Proceeds from sale of investments
Purchase of investments
Transfer in - fixed assets
2024
Cash and cash equivalents at the beginning of the
year
Cash and cash equivalents at the end of the year
Change in cash and cash equivalents in the year|||£'000
£'000
1,136
68
196
(237)
(1,004)
1,450
1,609
237
(30)
-
1,961
(2,514)
(346)
1,263
4,500
5,763
Other non-
cash
changes
At 31 March
2024
£'000
£'000
404
5,755
6,159
2023||
|||422
(26)
396
5,763||1,609
(346)
1,263
4,500|
||At 1 April
2023
£'000
513
5,250||Other non-
cash
changes
£'000||
|||6,159||5,763|
|||Cash flows
£'000
(109)
505||At 31 March
2024
£'000
404
5,755|
||5,763|396||6,159|
41
Hestia Housing and Support
## Notes to the financial statements
## For the year ended 31 March 2024
## 1 Accounting policies
## a) Statutory information
- Hestia Housing and Support a charitable company limited by guarantee and is incorporated in England and Wales.
The registered office address is 4th Floor, Beaufort House, 15 St Botolph Street, London, EC3A 7DT
## b) Basis of preparation
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 (FRS 102) - (Charities SORP FRS 102), The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) and the Companies Act 2006
These financial statements consolidate the results of the charity and its wholly-owned subsidiary Twining Enterprise Limited on a line by line basis. Transactions and balances between the charity and its subsidiary have been eliminated from the consolidated financial statements. Balances between the two entities are disclosed in the notes of the charity's balance sheet. A separate statement of financial activities, or income and expenditure account, for the charity itself is not presented because the charity has taken advantage of the exemptions afforded by section 408 of the Companies Act 2006, A summary of the result for the year is disclosed in the notes to the accounts.
Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.
Key judgements that the charity has made which have a significant effect on the accounts include the carrying value of fixed assets, the market valuation of investments, the recoverability of debtors and the pension scheme asset. However, the Trustees do not consider that within these there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period.
- c) Public benefit entity
The charity meets the definition of a public benefit entity under FRS 102.
- d) Going concern
The trustees consider that there are no material uncertainties about the charity's ability to continue as a going concern. Trustees agree a 5 year strategic plan and annual business plans with associated budgets. Reports consider the risk to contract and fundraising income based on contract end dates, likelihood of retention and growth based on historic performance.
Trustees also consider the impact on expenditure of reduction in income: the majority of contracts are linked to the provision of services which would require staff and other resources to be transferred to alternative providers leaving Hestia with limited residual liabilities.
Various scenarios are tested within budgets to look at the impact on free reserves and these are compared to minimum reserve requirements.
42
Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
- 1 Accounting policies (continued)
- e) Income
Income is recognised when the charity has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.
Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when the charity has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.
For legacies, entitlement is taken as the earlier of the date on which either: the charity is aware that probate has been granted, the estate has been finalised and notification has been made by the executor(s) to the charity that a distribution will be made, or when a distribution is received from the estate. Receipt of a legacy, in whole or in part, is only considered probable when the amount can be measured reliably and the charity has been notified of the executor’s intention to make a distribution. Where legacies have been notified to the charity, or the charity is aware of the granting of probate, and the criteria for income recognition have not been met, then the legacy is a treated as a contingent asset and disclosed if material.
Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.
- f) Donations of gifts, services and facilities
Donated professional services and donated facilities are recognised as income when the charity has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised so refer to the trustees’ annual report for more information about their contribution.
On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to the charity which is the amount the charity would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.
- g) Interest receivable
Interest on funds held on deposit is included when receivable and the amount can be measured reliably by the charity; this is normally upon notification of the interest paid or payable by the bank.
- h) Fund accounting
Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.
Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.
Designated funds are unrestricted funds earmarked by the trustees for particular purposes.
43
Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
- 1 Accounting policies (continued)
- i) Expenditure and irrecoverable VAT Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:
- Costs of raising funds relate to the costs incurred by the charity in inducing third parties to make voluntary contributions to it, as well as the cost of any activities with a fundraising purpose
- Expenditure on charitable activities includes the costs of delivering services undertaken to further the purposes of the charity and their associated support costs
- Other expenditure represents those items not falling into any other heading
Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.
- j) Allocation of support costs
Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the costs of overall direction and administration of central support services (salary and overhead costs), are apportioned on the estimates of direct costs.
Governance costs are the costs associated with the governance arrangements of the charity. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of the charity’s activities.
## k) Operating leases
Rental charges are charged on a straight line basis over the term of the lease.
- l) Tangible fixed assets
Items of equipment are capitalised where the purchase price exceeds £5,000. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.
Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:
- Freehold land
- Freehold buildings - residential
- Freehold buildings - non residential
- Fixtures, Fittings and Equipment
- Computer Equipment
Not depreciated 50 years 50 years 4 years 3 years
## m) Listed 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. Any change in fair value will be recognised in the statement of financial activities. Investment gains and losses, whether realised or unrealised, are combined and shown in the heading “Net gains/(losses) on investments” in the statement of financial activities. The charity does not acquire put options, derivatives or other complex financial instruments.
- n) Debtors
Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.
44
Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
- 1 Accounting policies (continued)
- o) Short term deposits
Short term deposits includes cash balances that are invested in accounts with a maturity date of between 3 and 12 months.
- p) Cash at bank and in hand
Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash held on behalf of service users under appointee ship programmes at 31 March 2024 was £32k (at 31 March 2023: £35k)
## q) Creditors and provisions
- Creditors and provisions are recognised where the charity has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.
- r) Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value
- s) Pensions
Hestia and Twining each operate one group personal pension plan. Hestia also makse contributions 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 has two members of staff who are members of the NHS Pension Schemes. Although these are defined benefit schemes, they are accounted for as defined contribution schemes, as assets/liabilities for each employer in the schemes cannot be reliably identified.
Hestia also participated in one multi-employer defined benefit scheme with the Royal Borough of Kensington & Chelsea Pension Fund.
The pension scheme Trustees informed Hestia in 2022 that the Defined Benefit Scheme was fully funded.
As at 31 March 2024, Hestia's FRS102 actuarial valuation showed that the fair value of the scheme's assets exceeded the scheme's liabilities. After discussion with our auditors, Hestia's Trustees have decided that the prudent approach is not to recognise the net assets in the accounts. Further details of the scheme can be found in note 18 of the Annual Accounts.
An actuarial loss has been recognised on the SOFA to bring the value of the pension asset to NIL from the value of last year's asset.
45
Hestia Housing and Support
## Notes to the financial statements
## For the year ended 31 March 2024
- 2 Income from donations and legacies
|Donations
Legacies
Donated services
Grants from Local
Authorities|Unrestricted
£'000
355
-
1
163|£'000
585
-
-
-
Restricted|2024
Total
£'000
940
-
1
163|Unrestricted
£'000
291
28
6
-|£'000
268
-
-
-
Restricted|2023
Total
£'000
559
28
6
-|
|---|---|---|---|---|---|---|
||519|585|1,104|325|268|593|
Gifts and Legacies represent income received from individuals, charitable trusts and corporate donors to augment the charitable work that Hestia and Twining do. Donated services refers to support provided to Twining Enterprise by Social Business Trust and EY to support with operational delivery models and assistance through the merger process with Hestia.
46
Hestia Housing and Support
## Notes to the financial statements
## For the year ended 31 March 2024
## 3 Income from charitable activities
|Residents charges
Income from support
contracts
Income from other
grants and fees
Residents fees and
charges
Sub-total for
provision of care and
support
Approved Premises
Grants
Sub-total for operation
of Approved Premises
Income from grants
and fees
Sub-total for provision
of employment support
Total income from
charitable activities|Unrestricted
£'000
10,379
21,022
12,658|£'000
34
4,512
-
Restricted|2024
Total
£'000
10,413
25,534
12,658|Unrestricted
£'000
10,023
18,505
11,508|£'000
84
4,686
-
Restricted|2023
Total
£'000
10,107
23,191
11,508|
|---|---|---|---|---|---|---|
||44,059
3,440
17|4,546
-
-|48,605
3,440
17|40,036
2,585
22|4,770
-
-|44,806
2,585
22|
||3,457
27
|-
138|3,457
165|2,607
-|-
-|2,607
-|
||27|138|165|-|-|-|
||47,543|4,684|52,227|42,643|4,770|47,413|
Grants are provided by a number of local, regional and central government departements and agencies, all linked to the delivery of the variosu services provided by Hestia and Twining.
## 4 Income from investments
|Income from investments|||
|---|---|---|
|Dividends from equity shares
Interest Receivable|2024
£'000
64
238|2023
£'000
18
219|
||302|237|
All income from investments is unrestricted.
47
Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
## 5a Analysis of expenditure (current year)
|Staff costs (Note 7)
Agency Staff Costs
Investment managers' fees
Premises Running Costs
Project administration costs
Service users costs / welfare
Office running costs
Audit Fees
Legal and professional fees
Trustee Expenses
Support costs
Governance costs
Total expenditure 2024
Total expenditure 2023|Raising
funds
£'000
152
-
54
-
70
2
-
-
-
-|Charitable activities|Charitable activities|Charitable activities|Governance
costs
£'000
82
-
-
-
-
-
40
49
8
-|Support
costs
£'000
2,884
410
-
-
-
-
2,955
-
74
-|2024 Total
£'000
23,683
6,624
54
9,205
3,484
6,246
2,995
49
90
-|2023
Total
£'000
23,001
4,589
53
7,926
2,920
5,226
3,116
40
40
-|
|---|---|---|---|---|---|---|---|---|
|||Proivsion of
Care and
Support
£'000
18,831
5,843
-
8,644
3,405
6,154
-
-
8
-|Operation
of Approved
Premises
£'000
1,519
371
-
561
(9)
88
-
-
-
-|Provision of
Employment
Support
£'000
215
-
-
-
18
2
-
-
-
-|||||
||278
62
2|42,885
5,808
161|2,530
343
10|235
110
6|179
-
(179)|6,323
(6,323)
-|52,430
-
-|46,911
-
-|
||342|48,854|2,883|351|-|-|52,430|46,911|
||259|44,022|2,630|-|-|-|||
48
Hestia Housing and Support
## Notes to the financial statements
## For the year ended 31 March 2024
## 5b Analysis of expenditure (prior year)
|Staff costs (Note 7)
Agency Staff Costs
Investment managers' fees
Premises Running Costs
Project administration costs
Service users costs / welfare
Office running costs
Audit Fees
Legal and professional fees
Trustee Expenses
Support costs
Governance costs
Total expenditure 2023
Total expenditure 2022|Raising
funds
£'000
111
3
53
-
29
1
-
-
-
-|Charitable activities|Charitable activities|Charitable activities|Governance
costs
£'000
86
-
-
-
-
-
28
40
-
-|Support
costs
£'000
2,538
332
-
-
-
-
3,088
-
37
-|2023 Total
£'000
23,001
4,589
53
7,926
2,920
5,226
3,116
40
40
-|
|---|---|---|---|---|---|---|---|
|||Proivsion of
Care and
Support
£'000
18,957
4,129
-
7,213
2,882
5,094
-
-
3
-|Operation
of Approved
Premises
£'000
1,309
125
-
713
9
131
-
-
-
-|Provision of
Employmen
t Support
£'000
-
-
-
-
-
-
-
-
-
-||||
||197
60
2|38,278
5,601
143|2,287
334
9|-
-
-|154
-
(154)|5,995
(5,995)
-|46,911
-
-|
||259|44,022|2,630|-|-|-|46,911|
||259|44,022|2,630|-|-|-||
49
Hestia Housing and Support
## Notes to the financial statements
## For the year ended 31 March 2024
6 Net income / (expenditure) for the year
This is stated after charging / (crediting):
|This is stated after charging / (crediting):|||
|---|---|---|
||2024|2023|
||£'000|£'000|
|Depreciation|73|68|
|Operating lease rentals:|||
|Property|636|662|
|Other|186|150|
|Auditor's remuneration (excluding VAT):|||
|Audit of charity|36|33|
|Audit of subsidiary|6|-|
|Other services - support with tax returns|5|-|
- 7 Analysis of staff costs, trustee remuneration and expenses, and the cost of key management personnel
Staff costs were as follows:
|Staff costs were as follows:|||
|---|---|---|
|Salaries and wages
Operating costs of defined benefit pension schemes
Redundancy and termination costs
Social security costs
Employer’s contribution to defined contribution pension schemes|2024
£'000
20,784
12
2,104
783
-|2023
£'000
19,739
-
2,089
1,037
136|
||23,683|23,001|
The redundancy and termination costs were settled and paid at the balance sheet date.
The following number of employees received employee benefits (excluding employer pension costs and employer's national insurance) during the year between:
|
employer's national insurance) during the year between:|||
|---|---|---|
||2024|2023|
||No.|No.|
|£60,000 - £69,999|9|5|
|£70,000 - £79,999|3|1|
|£80,000 - £89,999|2|3|
|£90,000 - £99,999|2|1|
|£100,000 - £109,999|-|-|
|£110,000 - £119,999|1|-|
The total employee benefits (including pension contributions and employer's national insurance) of the key management personnel were £579,666 (2023: £596,232).
The charity trustees were neither paid nor received any other benefits from employment with the charity in the year (2023: £nil). No charity trustee received payment for professional or other services supplied to the charity (2023: £nil).
Aggregate donations from Trustees, all of which were unrestricted were £1,137 (2023 - £1,000).
No Trustees received expenses in the year to 31 March 2024 (2023: No Trustees received expenses in the year).
50
Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
## 8 Staff numbers
The average number of employees (head count based on number of staff employed) during the year was 714 (2023: 742).
## 9 Related party transactions
There are no related party transactions to disclose for 2024 (2023: none) for either Hestia or Twining Enterprise.
## 10 Taxation
The charity is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.
## 11 Tangible fixed assets
|Tangible fixed assets|||||
|---|---|---|---|---|
|Cost
Depreciation
Net book value
Disposals in year
At the end of the year
At the start of the year
At the start of the year
Transfers In
Charge for the year
Additions in year
Eliminated on disposal
At the end of the year
At the end of the year
At the start of the year
The group
Transfers In|Freehold
property
£'000
3,570
-
-
-|Fixtures and
fittings
£'000
267
54
26
(20)|Computer
equipment
£'000
24
-
-
-|Total
£'000
3,861
54
26
(20)|
||3,570|327|24|3,921|
||613
-
43
-|235
48
27
(20)|18
-
3
-|866
48
73
(20)|
||656|290|21|967|
||2,914|37|3|2,954|
||2,957|32|6|2,995|
Land with a value of £1,785,000 (2023: £1,785,000) is included within freehold property and not depreciated.
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 Hestia has entered an undertaking to pass the proceeds of any sale on this property to the Home Office.
The properties in Battersea, Hounslow, Wandsworth, Kent and Bromley are owned outright by Hestia and are not subject to any charges.
All of the above assets are used for charitable purposes.
51
Hestia Housing and Support
## Notes to the financial statements
## For the year ended 31 March 2024
|e year ended 31 March 2024|||||
|---|---|---|---|---|
|Cost
The charity
At the start of the year
At the end of the year
Net book value
At the end of the year
Eliminated on disposal
Charge for the year
At the start of the year
Depreciation
At the end of the year
Disposals in year
Additions in year
At the start of the year|Freehold
property
£'000
3,570
-
-|Fixtures and
fittings
£'000
267
-
(3)|Computer
equipment
£'000
24
-
-|Total
£'000
3,861
-
(3)|
||3,570|264|24|3,858|
||613
43
-|235
16
(3)|18
3
-|866
62
(3)|
||656|248|21|925|
||2,914|16|3|2,933|
||2,957|32|6|2,995|
Land with a value of £1,785,000 (2023: £1,785,000) is included within freehold property and not All of the above assets are used for charitable purposes.
## 12 Listed investments
|Listed investments|||||
|---|---|---|---|---|
|UK Common investment funds
Shares listed on the London Stock Exchange
Fair value at the start of the year
Investments comprise:
Additions at cost
Disposal proceeds
Net gain / (loss) on change in fair value
Fair value at the end of the year|2024
2023
£'000
£'000
9,352
8,995
1,604
2,514
(1,308)
(1,961)
331
(196)
9,979
9,352
2024
2023
£'000
£'000
1,858
2,005
8,121
7,347
9,979
9,352
The group
The group||2024
2023
£'000
£'000
9,352
8,995
1,604
2,514
(1,308)
(1,961)
331
(196)
9,979
9,352
2024
2023
£'000
£'000
1,858
2,005
8,121
7,347
9,979
9,352
The charity
The charity||
||9,979|9,352|9,979|9,352|
52
Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
## 13a Subsidiary undertaking
The charity is the sole trustee of Twining Enterprise Limited, a company registered in England. The company number is 03045939 and charity number is 1048191. The registered office address is First Floor, 85 Great Portland Street, London W1W 7LT
Twining provides employment support under contracts from Local Authorities and Integrated
Commissioning Boards. All activities have been consolidated on a line by line basis in the statement of financial activities.
Trustees at 31 March 2024 are Shivana Lawrence, Richard White, Brendan Sarsfield, Rebecca Pritchard and Zeynap Bekbolet.
A summary of the results of the subsidiary is shown below:
|A summary of the results of the subsidiary is shown below:|||
|---|---|---|
|Income from Charitable Activities
Investment Income
Expenditure on Charitable Activities
Income from Donations and Legacies
Other Income
The aggregate of the assets, liabilities and reserves was:
Assets
Liabilities
Reserves
Net income for the year /
Net movement in Funds
Fund Balances
Total funds brought forward
Net movement in funds
Total funds carried forward|2024
£'000
199
1,883
10
2
(1,930)|2023
£'000
226
1,642
3
2
(1,756)|
||164|117|
||453
164|336
117|
||617|453|
||752
(135)|561
(108)|
||617|453|
There were no amounts owed to / from the parent undertaking at 31 March 2024.
## 13b Subsidiary undertaking at acquisition
On 31 January 2024, the charity acquired the above entity, Twinnig Enterprise Limited by means of a transfer of assets. The amount recognised in this transaction was £616k, details of which are presented below.
The aggregate of the assets, liabilities and reserves was:
|The aggregate of the assets, liabilities and reserves was:||
|---|---|
|Assets
Liabilities
Reserves|744
(128)|
||616|
53
Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
## 13c Subsidiary undertaking results since acquision
A summary of the results of the subsidiary for the period from 1 February - 31 March 2024, which has been included in these consolidated accounts, is as follows.
|
included in these consolidated accounts, is as follows.||
|---|---|
|Income from Charitable Activities
Investment Income
Net income for the period / Net movement in Funds
Income from Donations and Legacies
Expenditure on Charitable Activities|1 Februrary
2024 - 31
March
2024
£'000
184
166
3
(352)|
||1|
## 14 Parent charity
The parent charity's gross income and the results for the year are disclosed as follows:
||2024|2023|
|---|---|---|
||£'000|£'000|
|Gross income|53,282|48,243|
|Result for the year|1,625|1,136|
## 15 Debtors
|Debtors|||||
|---|---|---|---|---|
|Trade debtors
Other debtors
Prepayments
Accrued income|2024
2023
£'000
£'000
1,541
1,436
774
1,351
616
344
5,749
4,434
8,680
7,565
The group||2024
2023
£'000
£'000
1,344
1,436
774
1,351
601
344
5,749
4,434
8,468
7,565
The charity||
||8,680|7,565|8,468|7,565|
54
Hestia Housing and Support
## Notes to the financial statements
## For the year ended 31 March 2024
## 16 Creditors: amounts falling due within one year
|Creditors: amounts falling due within one year|||||
|---|---|---|---|---|
|Deferred income (note 17)
Other creditors
Taxation and social security
Trade creditors
Accruals|2024
2023
£'000
£'000
1,969
1,467
751
663
214
136
2,569
2,993
2,436
2,733
7,939
7,992
The group||2024
2023
£'000
£'000
1,945
1,467
713
663
204
136
2,505
2,993
2,436
2,733
7,803
7,992
The charity||
||7,939|7,992|7,803|7,992|
## 17 Deferred income
Deferred income comprises contract income for services received in advance
|Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year|2024
2023
£'000
£'000
2,733
2,597
(2,733)
(2,597)
2,436
2,733
2,436
2,733
The group|2024
2023
£'000
£'000
2,733
2,597
(2,733)
(2,597)
2,436
2,733
2,436
2,733
The group|2024
2023
£'000
£'000
2,733
2,597
(2,733)
(2,597)
2,436
2,733
2,436
2,733
The charity|2024
2023
£'000
£'000
2,733
2,597
(2,733)
(2,597)
2,436
2,733
2,436
2,733
The charity|
|---|---|---|---|---|
||2,436|2,733|2,436|2,733|
## 18 Pension schemes
During the year, Hestia and Twining operated defined contribution schemes. Hestia also operated a defined benefit pension scheme which required additional contributions to be made separately to administered funds for the benefit of the employees. Contributions payable by Hestia and Twining in respect of the defined contribution schemes totalled £783,910 for the year (2023: £1,023,048), including those contributed to the NHS Pension Schemes.
## 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.
Hestia has reviewed the FRS102 actuarial valuation carried out on 31st March 2024. The note below shows the details of this valuation for information only, as the value of the pension asset on the balance sheet has been capped at NIL and the pension asset at 31 March 2024 (£654k) has been debited back in the SOFA in the year ended 31st March 2024.
The employer's B260, relating to current employees, to the RBKCPF by the Charity for the year ended 31 March 2024 was fixed at 21.1% of pensionable pay up to 31 March 2025.
55
Hestia Housing and Support
## Notes to the financial statements
## For the year ended 31 March 2024
|e year ended 31 March 2024|||
|---|---|---|
|Assumptions
Inflation Rate (RPI)
Inflation Rate (CPI)
Rate of increase in salaries
Rate of increase in pensions in payment
Discount rate
Equities
Bonds
Property
Cash (including cash plus funds)
Total market value of assets
Present Value of Scheme Liabilities
Net pension asset
Net pension asset for Balance Sheet purposes
Analysis of the amount charged to the Statement of Financial Activities:
Current service costs
Net interest on defined liability
Administration expenses
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 gain / (loss) on defined benefit obligations
Estimated benefits paid net of transfers in
Contributions by scheme participants and other employers
Closing defined benefit obligation
The Fair Value of the Assets of the Scheme and the Expected Return were:|At 31
March
2024
3.00%
2.75%
3.75%
2.75%
4.85%|At 1 April
2023
3.20%
2.95%
3.95%
2.95%
4.75%|
||At 31
March
2024
£'000
1,781
111
223
111|At 1 April
2023
£'000
1,590
-
153
172|
||2,226
(1,288)|1,915
(1,261)|
||938|654|
||-|654|
||2024
£'000
-
(31)
-|2023
£'000
29
(10)
-|
||(31)|19|
||At 31
March
2024
£'000
1,261
19
60
(79)
(7)
39
(9)
4|At 1 April
2023
£'000
1,697
29
47
(708)
(109)
305
(4)
4|
||1,288|1,261|
56
Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
|e year ended 31 March 2024|e year ended 31 March 2024|||
|---|---|---|---|
|Movement in fair value of fund assets in the year
Opening fair value of fund assets
Interest on assets
Return on assets less interest
Administration expenses
Contributions by employers including unfunded
Contributions by scheme participants and other employers
Benefits paid
Other experience
Closing fair value of fund assets
The employee numbers in the Scheme at 31 March were;
Active employees
Deferred pensioners
Pensioners
Actuarial return less expected return on fund assets
Contributions from scheme participants
Expected employer's contribution for the year ended 31 March
2024
2023
2022
£'000
£'000
£'000
Defined benefit obligations
(1,288)
(1,261)
(1,697)
Scheme assets
2,226
1,915
2,071
Surplus / (Deficit)
938
654
374
History of experience gains and losses||At 31
March
2024
£'000
1,915
91
214
-
11
4
(9)
-|At 1 April
2023
£'000
2,071
57
(117)
-
14
4
(4)
(110)|
|||2,226|1,915|
|||2024
3
10
1|2023
3
10
1|
|||2024
£'000
-
4
11|2023
£'000
-
4
12|
|||2020
£'000
(1,790)
1,754|2019
£'000
(1,331)
1,331|
||938
654
374|(36)|-|
## NHS Pension Schemes
Past and present employees are covered by the provisions of the NHS Pension Scheme(s) relevant to their membership. Details of the benefits payable and rules of the Schemes can be found on the NHS Pensions website at: www.nhsbsa.nhs.uk/pensions.
Both are unfunded defined benefit schemes that cover NHS employers, GP practices and other bodies, allowed under the direction of the Secretary of State for Health and Social Care in England and Wales. They are not designed to be run in a way that would enable NHS bodies to identify their share of the underlying scheme assets and liabilities. Therefore, each scheme is accounted for as if it were a defined contribution scheme: the cost to the NHS Body of participating in the scheme is taken as equal to the contributions payable to that scheme for the accounting period.
In order that the defined benefit obligations recognised in the financial statements do not differ materially from those that would be determined at the reporting date by a formal actuarial valuation, the Financial Reporting Manual (FReM) requires that ‘the period between formal valuations shall be four years, with approximate assessments in intervening years’. An outline of these follows:
57
Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
## a) Accounting valuation
A valuation of scheme liability is carried out annually by the scheme actuary (currently the Government Actuary’s Department) as at the end of the reporting period. This utilises an actuarial assessment for the previous accounting period in conjunction with updated membership and financial data for the current reporting period, and is accepted as providing suitably robust figures for financial reporting purposes. The valuation of the scheme liability as at 31 March 2024, is based on valuation data as 31 March 2023, updated to 31 March 2024 with summary global member and accounting data. In undertaking this actuarial assessment, the methodology prescribed in IAS 19, relevant FReM interpretations, and the discount rate prescribed by HM Treasury have also been used.
The latest assessment of the liabilities of the scheme is contained in the report of the scheme actuary, which forms part of the annual NHS Pension Scheme Accounts. These accounts can be viewed on the NHS Pensions website and are published annually. Copies can also be obtained from The Stationery Office.
## b) Full actuarial (funding) valuation
The purpose of this valuation is to assess the level of liability in respect of the benefits due under the schemes (taking into account recent demographic experience), and to recommend contribution rates payable by employees and employers.
The latest actuarial valuation undertaken for the NHS Pension Scheme was completed as at 31 March 2020. The results of this valuation set the employer contribution rate payable from April 2024. The Department of Health and Social Care has recently laid Scheme Regulations confirming the employer contribution rate will increase to 23.7% of pensionable pay from 1 April 2024 (previously 20.6%). The core cost cap cost of the scheme was calculated to be outside of the 3% cost cap corridor as at 31 March 2020. However, when the wider economic situation was taken into account through the economic cost cap cost of the scheme, the cost cap corridor was not similarly breached. As a result, there was no impact on the member benefit structure or contribution rates.
58
Hestia Housing and Support
## Notes to the financial statements
## For the year ended 31 March 2024
- 19a Analysis of group net assets between funds (current year)
|Tangible fixed assets
Investments
Net current assets
Net assets at 31 March 2024|General
unrestricted
funds
£'000
1,848
6,790
6,900|£'000
-
1,400
-
Designated
funds|Restricted
funds
£'000
1,106
1,789
-|Total
funds
£'000
2,954
9,979
6,900|
|---|---|---|---|---|
||15,538|1,400|2,895|19,833|
19b Analysis of group net assets between funds (prior year)
|Net assets at 31 March 2023
Tangible fixed assets
Investments
Net current assets
Defined benefit pension asset|General
unrestricted
funds
£'000
1,873
9,352
2,393
654|£'000
-
1,386
-
-
Designated
funds|Restricted
funds
£'000
1,122
1,557
-
-|Total
funds
£'000
2,995
12,295
2,393
654|
|---|---|---|---|---|
||14,272|1,386|2,679|18,337|
59
Hestia Housing and Support
## Notes to the financial statements
## For the year ended 31 March 2024
|20a|Property expenditure:
Purchase of Leigham Court Road
Improvements to:
DOH - property purchase grant
Donations
Outreach services
Children & family services
Community Engagement
Digital Transformation
Domestic Abuse Prevention
The Phoenix Project
Age Activity Centre
Total restricted funds
Total designated funds
General funds
Pension reserve
Movements in funds (current year)
Purchase of Lynton Terrace
Leigham Court Road
Cologne Road
Revenue
Community Fund and ESF Better
Opportunities Grant
Unrestricted funds:
Designated funds:
Restricted funds:
Capital
Total funds
Development, maintenance and
refurbishment of existing projects
Infrastructure and new project
developments
Total unrestricted funds|£'000
375
224
309
12
202
317
186
302
576
-
114
62
-
-
At 1 April
2023|£'000
-
-
-
-
-
193
105
177
3,643
10
823
155
35
128
Income &
gains|£'000
(5)
(3)
(4)
-
(4)
(109)
(162)
(197)
(3,445)
(6)
(829)
(135)
(26)
(128)
Expenditure
& losses|£'000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfers|£'000
370
221
305
12
198
401
129
282
774
4
108
82
9
-
At 31
March
2024|
|---|---|---|---|---|---|---|
|||2,679|5,269|(5,053)|-|2,895|
|||586
800|84
-|(35)
(35)|-
-|635
765|
|||1,386|84|(70)|-|1,400|
|||13,618|49,227|(47,307)|-|15,538|
|||15,004|49,311|(47,377)|-|16,938|
|||654|-|(654)|-|-|
|||18,337|54,580|(53,084)|-|19,833|
The narrative to explain the purpose of each fund is given at the foot of the note below.
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Hestia Housing and Support
## Notes to the financial statements
## For the year ended 31 March 2024
20b Movements in funds (prior year)
|Movements in funds (prior year)||||||
|---|---|---|---|---|---|
|Property expenditure:
Purchase of Hestia Streatham
Improvements to:
DOH - property purchase grant
Donations
Outreach services
Children & family services
Community Engagement
Digital Transformation
Domestic Abuse Prevention
The Phoenix Project
People's Postcode Lottery
Starting Well Grant
Total restricted funds
Total designated funds
General funds
Capital
Unrestricted funds:
Designated funds:
Development, maintenance and
refurbishment of existing projects
Purchase of Lynton Terrace
Hestia Streatham
Hestia Battersea
Revenue
Restricted funds:
Total unrestricted funds
Pension reserve
Total funds [including pension reserve]
Infrastructure and new project
developments|£'000
380
227
313
12
206
324
187
255
520
57
288
51
7
7
At 1 April
2022|£'000
-
-
-
-
-
90
195
317
3,189
-
597
108
327
215
Income &
gains|£'000
(5)
(3)
(4)
-
(4)
(97)
(196)
(270)
(3,133)
(57)
(771)
(97)
(334)
(222)
Expenditure
& losses|£'000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Transfers|£'000
375
224
309
12
202
317
186
302
576
-
114
62
-
-
At 1 April
2023|
||2,834|5,038|(5,193)|-|2,679|
||551
876|84
-|(49)
(76)|`
-|586
800|
||1,427|84|(125)|-|1,386|
||12,286|42,925|(41,593)|-|13,618|
||13,713|43,009|(41,718)|-|15,004|
||374|280|-|-|654|
||16,921|48,327|(46,911)|-|18,337|
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Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
Purposes of restricted funds
- a 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.
- b The donations restricted reserve respresents numerous, one off donations made for specific purposes e.g. gransts to support service user move on, contributions to activitiesacross Hestia services.
- c Outreach funding comprises various restricted grants to fund the provision of community based services in Hestia's women's services in Ealing, Slough and Harrow and performance related awards in the Kingston Integrated Mental Health Service.
- d Children & family funds support children in Hestia's Domestic Abuse refuges through the provision of dedicated children and family workers. These are funded by a combination of Supporting People grants, MOPAC grants and other charitable donations.
- e Community Engagement funds are provided by partnering health boards across London and the South East to provide accommodation and out of hours crisis services for individuals experiencing mental health trauma. Services are complementary to acute hospital services and seek to provide cost effective support aimed at preventing hospital presentation.
- f Digital transformation funds included grants from the Fidelity Trust to support the development of Hestia's InForm Client Management System and a grant from Vodafone to support the ongoing development of the Bright Sky Domestic Abuse app. Both grants were fully expended by 31 March 2023.
- The outstanding balance relates to a grant awarded to Twining from Social Business Trust to assist in the transformation of their CRM system.
- g Domestic Abuse prevention funds support a range of Hestia programmes - UKSNM, Everyone's Business, Safe Spaces and Ask For ANI aimed at providing information and guidance as well as practical support to victims of domestic abuse, funded by grants from the Home Office, the Julia and Hans Rausing Trust as well as contract income from purchasers of our Everyone's Business IDVA services.
- h The Phoenix Project provides in reach support to survivors of Modern Slavery after they have received their positive CG decision - funding has been made available from the David and Ruth Lewis Foundation and the Rayne Foundation.
- i The People's Postcode Lottery project is funded by a grant from the Postcode Innovation Trust brings together partners across England, Wales and Scotland to scale up a new model of support for victims of domestic abuse created through Hestia’s Safe Spaces initiative and so provide additional communitybased support for victims.
- j Starting Well Grant is part of the VCSE (Voluntary, Community & Social Enterprise) Health and Wellbeing Fund with the theme of Starting Well. The aim is improving health outcomes for children from preconception to two and a half years old. Hestia work in partnership with the Happy Baby Community’s community-based model of perinatal support to highly disadvantaged pregnant women who have suffered multiple traumas.
- k The Age Activity Centre grant is a grant provided by JTi to provide addtioanal support at Hestia's Older People's Day Centre in Wandsworth by extending lunch provision and other well being activities.
- l The Community Fund Government Grant was provided to Twining with the aim of delivering activities specifically aimed to support communities and to help overcome any immediate liquidity or staffing issues through the COVID 19 pandemic.
- m The Digital Impact Fund is a grant received by Twining to develop and implement an in house CRM system.
62
Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
Purposes of designated funds
The designated fund for the development, maintenance and refurbishment of existing projects includes:
- a Cyclical maintenance – funds required for regular maintenance and decoration of buildings for which responsibility is not assumed by the owning landlord.
- b 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 organisation has prepared five yearly maintenance plans for all owned properties and the funds set aside are compared to these estimated commitments.
- c Furniture fund – funds for replacement of furniture on a three-year cycle which cannot be funded from the annual revenue budget.
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:
- a 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).
- b 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.
## 21 Operating lease commitments payable as a lessee
The group's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:
|
each of the following periods:|||||
|---|---|---|---|---|
|Less than one year
One to five years|2024
2023
£
£
640
744
928
1,145
1,568
1,889
Property||2024
2023
£
£
149
120
-
140
149
260
Equipment||
||1,568|1,889|149|260|
The charity's total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:
|
each of the following periods:|||||
|---|---|---|---|---|
|Less than one year
One to five years|2024
2023
£
£
640
744
928
1,145
1,568
1,889
Property||2024
2023
£
£
149
120
-
140
149
260
Equipment||
||1,568|1,889|149|260|
63
Hestia Housing and Support
Notes to the financial statements
## For the year ended 31 March 2024
## 22 Capital commitments
At the balance sheet date, the group had no capital commitments outstanding (31 March 2023: £Nil).
## 23 Contingent assets or liabilities
At the balance sheet date, the group had no contingent assets or liabilities (31 March 2023: £Nil).
## 24 Post balance sheet events
The Boards of both Hestia and Twining have agreed to fully integrate the activities of Twining into Hestia, making Twining dormant and collapsing the exsiting group structure. The intention is to have that completed before the end of the current financial year i.e. 31 March 2025.
## 25 Legal status of the charity
The charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.
64