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2021-03-31-accounts

Company Registration Number: 01548338 (England and Wales) Homes England Number: 4660 Registered Charity Number: 511265

ACTION HOUSING AND SUPPORT LIMITED REPORTS AND FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2021

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

CONTENTS

FOR THE YEAR ENDED 31 MARCH 2021

Page
Trustees’ Report 1
Independent Auditor’s Report 9
Income and Expenditure Account 12
Statement of Total Recognised Surpluses and Deficits 13
Balance Sheet 14
Statement of Changes in Reserves 15
Statement of Cash Flows 16
Notes to the Financial Statements 17

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

TRUSTEES’ REPORT INCORPORATING THE OPERATIONAL AND FINANCIAL REVIEW

FOR THE YEAR ENDED 31 MARCH 2021

The trustees, who are the non executive directors of the company, present their report with the audited financial statements of the charitable company for the year ended 31 March 2021.

REFERENCE AND ADMINISTRATIVE DETAILS

Company registration number: 01548338 (England and Wales)
Charity registration number: 511265
Homes England registration number: 4660
Members of the board: Mr Tony De’Ath (Chair)
Mr A Hopton (Vice Chair) (Resigned 14 December 2020)
Mr A Stott
Mr I Knowles
Mrs P Warnock
Mr Niall MacPherson (Appointed 14 December 2020)
Co-opted member: Ms H Greig (Appointed 14 December 2020)
Chief Executive: Mr A Stott (Appointed 1 April 2020)
Registered office: 6 Genesis Business Park
Sheffield Road
Rotherham
South Yorkshire
S60 1DX
Auditor: BHP LLP
2 Rutland Park
Sheffield
South Yorkshire
S10 2PD
Solicitor: Bailoran
West Hill House
Allerton Hill
Leeds
LS7 3QB
Solicitor: Ward Hadaway
5 Wellington Place
Leeds
LS1 4AP
Hill Dickinson
Solicitor: 50 Fountain Street
Manchester
M2 2AS

1

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

TRUSTEES’ REPORT INCORPORATING THE OPERATIONAL AND FINANCIAL REVIEW

FOR THE YEAR ENDED 31 MARCH 2021

Bankers: The Royal Bank of Scotland PO Box 31 High Street Rotherham S60 1PS Bankers: Metro Bank 58-64 Fargate Sheffield S1 2HE Bankers: Unity Trust Bank plc Nine Brindleyplace Birmingham B1 2HB

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ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

TRUSTEES’ REPORT INCORPORATING THE OPERATIONAL AND FINANCIAL REVIEW

FOR THE YEAR ENDED 31 MARCH 2021

Principle Activities

The Trustees, who are the non executive directors of the company, present their report with the audited financial statements of the charitable company for the year ended 31 March 2021.

Action Housing and Support works for the public benefit through its principal activities of providing accommodation, support, education and employability training and related services to a wide variety of vulnerable people. Currently these activities are carried out in Yorkshire, Nottinghamshire and Derbyshire. The objective of the charity is expressed in its Articles of Association:

‘To educate and train and relieve poverty and sickness among persons who are suffering or who have suffered a legal restriction on their liberty in any penal or correctional establishment or through any means whatever including issues with learning difficulties, mental health, drug and alcohol, woman escaping domestic abuse, young people with multiple needs, sex workers and other vulnerable persons who require assistance to achieve and or maintain independence, also including (but not limited to) any orders made under the Mental Health Act or some other similar legislation and the families of such persons in such ways as the Board think fit and to further and promote the study of and research into all aspects and methods of the prevention of crime and delinquency and to obtain and make records of and disseminate information concerning the same, and to promote, support or carry on either alone or in co-operation with any subsidiary company of the Association or any other body, authority, or person, any project or scheme in connection with any methods of the prevention of crime and delinquency and to provide monies for such purposes whether by way of loans, grants, advances, gifts or otherwise as the Board think fit;

To carry on for the benefit of the community the business of providing social housing and any associated amenities, services, advice or assistance.

To promote or carry out any other charitable purpose that can be carried out by a company registered as a social landlord with the Tenant Services Authority or such similar authority from time to time.

The aim of the company is to work to enable vulnerable people to establish a home and live responsibly in society.’

Organisational Status

Action Housing and Support is a Registered Charity and a Company Limited by Guarantee, without a share capital. Its governing instrument is the Articles of Association.

Action Housing and Support is also a Registered Housing Provider and these accounts are prepared in accordance with the Companies Act 2006, the Housing Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019.

Internal Controls, Governance and Risk Management

A Board of Trustees governs the company. The Board exists to provide probity and governance to Action Housing and Support, set the strategic direction, ensure adherence to the Articles of Association, support the Executive Team as they run the business, appoint the Chief Executive and hold them to account, provide advice, scrutiny and fresh eyes, behaving as critical friends.

Our Governance Framework covers the principles by which our organisation is constituted. It also records who take decisions, and how the decisions taken are recorded, communicated and implemented. Our organisation is a values-led, ‘not for profit’ organisation, and all income goes into running the organisation and the services delivered by it.

The Trustees continually review the risks to which the charity is exposed. Systems are in place to mitigate those risks utilising our Risk Management Framework & Business Continuity Plan.

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ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

TRUSTEES’ REPORT INCORPORATING THE OPERATIONAL AND FINANCIAL REVIEW

FOR THE YEAR ENDED 31 MARCH 2021

Recruitment and appointment to the Board of Trustees is by a formal process as defined within the Code of Governance. Trustees undergo a period of induction in which they meet staff and clients, and are encouraged to attend events designed to promote their understanding of good governance.

Board Membership and Responsibilities

The members below have served in office from 1 April 2020 to the date of this report, except where otherwise indicated:

Mr Tony De’Ath (Chair)

Mr A Hopton (Vice Chair) – Resigned 14 December 2020

Mr A Stott – Resigned 1 April 2020, Appointed 1 April 2020.

Mr I Knowles

Mrs P Warnock

Mr Niall MacPherson (Vice Chair) - Appointed 14 December 2020 Ms H Greig (CoOpted) – Appointed 14 December 2020

No remuneration is paid to Trustees, in their capacity as trustees, and as the company is limited by guarantee, none of the Trustees has any interest in the shares or retained reserves.

Strategic Report

Operational Review

Our activities focus on tenancy sustainment, the provision of accommodation, the prevention of offending and homelessness, the provision of domestic abuse services and supporting individuals to independent and self-sufficient living. The delivery of our services benefits individuals through the creation of opportunity, enabling them to realise their potential and lead fulfilling lives.

Our funding currently enables the services we provide to be delivered to residents or people living in:

In 2020/21 services were provided to more than 1,000 individuals with the duration of support ranging from responsive phone calls which in effect last minutes to detailed and specific support programmes lasting up to two years. We also continue to provide units of supported accommodation to people with complex needs together with the provision of specified accommodation.

Our general needs accommodation units number increased by 6% from 124 units to 131.

We have worked closely with Homes England and by further utilising their affordable homes programme and working in partnership with our local authorities partners we intend to further develop our housing stock both in supported accommodation and general needs in the coming years.

The impact of our work goes beyond those we help directly; it reduces the distress suffered by families, friends and the wider society. It reduces demands upon statutory services and the public purse in terms of a reduction in crime, anti-social behaviour, drug abuse, poor health and social exclusion, and assists in the building of cohesive neighbourhoods.

The primary income sources of the Charity are rental income and contracts with local authorities. As mentioned above, Homes England provided development funding this year to enable us to increase our housing stock. We also received a number of smaller grants, which were used to purchase equipment and deliver activities to our client group across our programmes.

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ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

TRUSTEES’ REPORT INCORPORATING THE OPERATIONAL AND FINANCIAL REVIEW

FOR THE YEAR ENDED 31 MARCH 2021

Difficult strategic decisions had to be made in the previous year and as a result the organisation and its people adapted and responded positively and professionally. Despite the challenge and widespread disruption caused by the Covid pandemic the company managed to deliver its services effectively throughout the period.

The company maintained existing contracts built on the newly formed relationships with Mansfield council successfully working in partnership to house rough sleepers and won new contracts with Derby Homes delivering the housing first model of accommodation.

The organisation returned a reasonable surplus for the first time in 3 years and a viable 3-year business plan was approved by the board of trustees.

The plan focused on five key issues: -

Trustees remain committed to the generation of income for the Charity and opportunity for our clients, but are clear that diversification must be appropriate and sustainable in the longer term. The Board continue to work with the senior team to ensure our continued success, development and growth.

Against this unprecedented climate, the charity’s principal asset remains its staff and the Trustees acknowledge the contribution of every staff member and thank them for their work and commitment.

Financial Review

Action Housing & Support operates in a challenging financial environment and continues to experience restrictions on resources. Funding is on a contractual, cyclical basis and is often secured via competitive tender. Funding from the Communities and Local Government (administered by the local authorities) and in particular Housing Related Support, equates to 19% of all income. Our main source of income is via rental income from the units that we manage. This year we also received grant funding from Homes England and Derby City Council.

As a result of the challenges previously outlined, overall, the organisation returned a £292,446 surplus on activities before taxation (2020 - £397,735 deficit). This included £75,000 (2020 - £255,000) for FRS 102 pension adjustments. Without these non-cash adjustments, the operating surplus would have been £367,446 (2020 - £142,735 deficit).

The closing net liabilities at 31 March 2021 were £1,561,841 (2020 - £1,539,287) of which £362,884 (2020 - £402,888) was restricted funds and £3,305,275 (2020 - £2,897,825 was unrestricted reserves and £5,230,000 (2020 - £4,840,000) was a pension deficit reserve.

The trustees have prepared a three year financial plan showing forecasts of income, expenditure and cash flow for the period to 31 March 2024. The forecasts show that the company will generate future surpluses and has sufficient cash reserves to be able to continue its operations for the foreseeable future.

Reserves Policy

The Trustees have reviewed the charity’s needs for reserves in line with the guidance issued by the Charity Commission. The free reserves consist of unrestricted funds, net of fixed assets, and associated bank loans. Due to our strategic commitment to develop properties, which generate long-term income, our free reserves remain relatively low at £133,896 (2020 - £134,833). We have however been able to increase and grow the reserves in the past year, The level of reserves is monitored and reviewed by Trustees throughout the year as part of our ongoing management of risk. Our free reserves level is not assessed as a significant risk at present. We have in place a plan over the next three years to incrementally increase the level of free reserves held.

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ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

TRUSTEES’ REPORT INCORPORATING THE OPERATIONAL AND FINANCIAL REVIEW

FOR THE YEAR ENDED 31 MARCH 2021

Key Risks

The main risks faced by the Charity are identified as:

Directors’ Salaries

The Board of Trustees have overview of senior pay and terms and conditions. Salaries are benchmarked by use of the ACEVO pay survey and national CIPD pay survey information.

Investments

The company’s investment powers are set out in its Articles of Association and allow the company to invest funds not immediately required in securities and property, subject to such conditions as may be required by law. Those responsible for financial management remain mindful of the current economic climate and the need to invest to secure maximum income whilst managing associated risk.

Plans for future periods

Building on the work already carried out, in the forthcoming year we aim to:

Events since the Balance Sheet date

There are no other important events that have occurred since the balance sheet date which affect the company.

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ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

TRUSTEES’ REPORT INCORPORATING THE OPERATIONAL AND FINANCIAL REVIEW

FOR THE YEAR ENDED 31 MARCH 2021

Value for Money

Action Housing & Support has developed over the years by tendering for services in a continual, competitive cycle. This cycle ensures that services and the value they provide are reviewed and tested against the open market. It also continues to develop its property portfolio, which has resulted in the increased provision of both general needs accommodation and also supported accommodation to young people. During 2020/21, the organisation has focussed on delivering value for money through the following activity:

Value for money remains critical to the organisation and to the successful submission of tenders. Plans for 2021/22 include:

To comply with the Regulator of Social Housing Value for Money Metrics requirement, Action Housing and Support has calculated the following data:

2020 2019
Metric 1 Reinvestment %
3%		 6%
Metric 2 New supply delivered (social housing units)
3%		 3%
Metric 3 Gearing %
13%		 20%
Metric 4 Earnings before interest, tax and depreciation %
806%		 -408%
Metric 5 Headline Social cost per unit £10,329 £11,794
Metric 6 Operating Margin %
(social housing and overall the same)
7%		 -8%
Metric 7 Return on capital employed %
4%		 -4%

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ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

TRUSTEES’ REPORT INCORPORATING THE OPERATIONAL AND FINANCIAL REVIEW

FOR THE YEAR ENDED 31 MARCH 2021

Trustees’ Responsibilities

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

Company law and registered social housing legislation requires the trustees to prepare financial statements for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and 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:

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, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019. 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.

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.

Statement as to disclosure of information to Auditor

In so far as the trustees are aware:

Auditor

The auditor, BHP LLP will be proposed for re-appointment at the forthcoming Annual General Meeting.

On Behalf of the Board

This report was approved by the Board on 16 August 2021 and has been signed on its behalf.

A De'Ath

A De'Ath (Aug 16, 2021 15:30 GMT+1) ……………………………… T De’Ath – Trustee & Chair

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ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACTION HOUSING AND SUPPORT LIMITED

FOR THE YEAR ENDED 31 MARCH 2021

We have audited the financial statements of Action Housing and Support Limited (the ‘association’) for the year ended 31 March 2021 which comprise the Income and Expenditure Account, the Statement of Total Recognised Surpluses and Deficits, the Balance Sheet, the Statement of Changes in Reserves, the Statement of Cashflows and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the trustees’ report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the trustees’ report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACTION HOUSING AND SUPPORT LIMITED

FOR THE YEAR ENDED 31 MARCH 2021

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the association and its environment obtained in the course of the audit, we have not identified material misstatements in the board report (incorporating 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:

In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion:

Responsibilities of the board

As explained more fully in the board’s responsibilities statement set out on page 8, the Trustees (who are also the directors of the association 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 board determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the board is responsible for assessing the association’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the board either intends to liquidate the association or to cease operations, or has 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 is detailed below:

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ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF ACTION HOUSING AND SUPPORT LIMITED

FOR THE YEAR ENDED 31 MARCH 2021

  1. We gained an understanding of the legal and regulatory framework applicable to the association and the sector in which it operates, and considered the risk of such regulations, including fraud. We designed audit procedures to respond to the risk.

  2. We focused on laws and regulations relevant to the association which could give rise to a material misstatement in the financial statements. Our testing included discussions with management, trustees, and those staff with direct responsibility for the compliance of laws and regulations. We also reviewed legal expenses.

  3. We addressed the risk of management override of internal controls, including the testing of journals and review of the nominal ledger. We evaluated whether there was evidence of bias by management or the trustees that represented a risk of material misstatement due to fraud.

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 noncompliance. 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: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-andguidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

Use of our report

This report is made solely to the association’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the association’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 association and the association’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Jane Marshall (Aug 16, 2021 16:59 GMT+1)

Jane Marshall (Senior Statutory Auditor) Date: Aug 16, 2021 for and on behalf of BHP LLP

2 Rutland Park Sheffield S10 2PD

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ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

INCOME AND EXPENDITURE ACCOUNT

FOR THE YEAR ENDED 31 MARCH 2021

Note
Turnover
2
Cost of sales
3
Operating surplus / (deficit)
Interest receivable and similar income
5
Bank loan interest payable
5
Surplus / (deficit) on ordinary activities before taxation
6
Tax on (deficit) on ordinary activities
Surplus / (deficit) for the year		 2021
£
4,803,665
(4,447,175)
356,490
234
(64,278)
292,446
-
292,446		 2020
£
4,244,495
(4,570,802)
(326,307)
1,443
(72,871)
(397,735)
-
(397,735)

CONTINUING OPERATIONS

The results relate to wholly continuing activities.

On behalf of the Board

A De'Ath

A De'Ath (Aug 16, 2021 15:30 GMT+1)

………………………………

Niall Macpherson

…………………………… Niall Macpherson (Aug 16, 2021 15:38 GMT+1)

T De’Ath, Director

Niall MacPherson, Director

Date: Aug 16, 2021

12

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

STATEMENT OF TOTAL RECOGNISED SURPLUSES AND DEFICITS

FOR THE YEAR ENDED 31 MARCH 2021

Note
Surplus / (deficit) for the year
6
Actuarial gains / (losses) arising on defined benefit
pension
17
Operating (deficit) / surplus		 2021
£
292,446
(315,000)
(22,554)		 2020
£
(397,735)
1,343,000
945,265

13

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

BALANCE SHEET

FOR THE YEAR ENDED 31 MARCH 2021

Note
Fixed assets
Housing properties
10
Other tangible fixed assets
10
Current assets
Debtors
11
Cash at bank and in hand
Creditors: amounts falling due within one year
12
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after more than one year
13
Defined benefit pension liability
17
Total net liabilities
Reserves
Unrestricted reserves
15
Pension reserves
15
Restricted reserve
15
Total Reserves		 2021
£
6,755,206
816,829
7,572,035
532,534
1,068,054
1,600,588
(966,117)
634,471
8,206,506
(4,538,347)
(5,230,000)
(1,561,841)
3,305,275
(5,230,000)
362,884
(1,561,841)		 2020
£
6,730,858
743,562
7,474,420
589,301
605,512
1,194,813
(739,736)
455,077
7,929,497
(4,628,784)
(4,840,000)
(1,539,287)
2,897,825
(4,840,000)
402,888
(1,539,287)

The financial statements were approved and authorised for issue by the Board on 16 August 2021.

Signed on behalf of the board

A De'Ath Niall Macpherson A De'Ath (Aug 16, 2021 15:30 GMT+1) Niall Macpherson (Aug 16, 2021 15:38 GMT+1) ……………………………….. ……………………………………. T De’Ath, Director Niall MacPherson, Director

The notes on pages 17 to 34 form part of these accounts.

Company registration number: 01548338

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ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

STATEMENT IN CHANGES OF RESERVES

FOR THE YEAR ENDED 31 MARCH 2021

At 1 April 2019
(Deficit) / Surplus for the year
Remeasurement
gain
on
defined benefit pension plan
Total comprehensive income
at 31 March 2020
Surplus / (Deficit) for the year
Remeasurement
(loss)
on
defined benefit pension plan
Total comprehensive income
at 31 March 2021		 General
reserve
£
3,153,981
(256,156)
-
2,897,825
407,450
-
(5,230,000)		 Pension
reserve
£
(5,928,000)
(255,000)
1,343,000
(4,840,000)
(75,000)
(315,000)
(5,230,000)		 Restricted
reserve
£
289,467
113,421
-
402,888
(40,004)
-
362,884		 Total
£
(2,484,552)
(397,735)
1,343,000
(1,539,287)
292,446
(315,000)
(1,561,841)

15

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED 31 MARCH 2021

Note
Net cash flow from operating activities
16
Cash flow from investing activities
Purchase of tangible fixed assets
Social Housing Grants received
Interest received
Net cash flow from investing activities
Cash flow from financing activities
Proceeds from issue of new long-term loans
Repayment of long term loans
Interest paid
Net cash flow from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at 1 April
Cash and cash equivalents at 31 March
Cash and cash equivalents consists of:
Cash at bank and in hand
Cash and cash equivalents at 31 March		 2021
£
865,940
(364,982)
41,250
234
(323,498)
50,000
(65,622)
(64,278)
(79,900)
462,542
605,512
1,068,054
1,068,054
1,068,054		 2020
£
59,651
(487,305)
417,470
1,443
(68,392)
-
(59,560)
(72,871)
(132,431)
(141,172)
746,684
605,512
605,512
605,512

16

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

1 Summary of significant accounting policies

Status

The company is registered under the Companies Act 2006 and has been a registered charity since 21 April 1981. The charitable company registered with the Regulator of Social Housing as a housing provider on 2 June 2011.

General information and basis of preparation

Action Housing and Support Limited is a private registered provider of social housing in the United Kingdom. The address of the registered office is given in the company’s information on page 1 of these financial statements. The nature of the company’s operations and principal activities are the provision of social housing.

The company constitutes a public benefit entity as defined by FRS 102.

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard Applicable in the UK and Republic of Ireland (FRS 102), the Statement of Recommended Practice for Social Housing Providers 2018, and with the Accounting Direction for private registered providers of social housing in England 2019. The financial statements are also prepared under the requirements of the Housing and Regeneration Act 2008 and the Companies Act 2006. The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are prepared in sterling, which is the functional currency of the association, and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The company has net liabilities of £1,561,841 due to the inclusion of the defined benefit pension liability of £5,230,000. Although this has turned the balance sheet negative it is not a liability which will crystallise in the near future. What is important is that the company can meet its pension contributions payments under this scheme as they fall due. The forecasts referred to below include these and the Trustees confirm that this is the case.

The trustees have prepared a three year financial plan showing forecasts of income, expenditure and cash flow for the period to 31 March 2024. The forecasts show that the company will generate future surpluses and has sufficient cash reserves to be able to continue its operations for the foreseeable future. Therefore, the Trustees believe it is appropriate for the financial statements to be prepared on the going concern basis.

Tangible fixed assets

Housing properties

Social housing properties are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended, such as the cost of acquiring land and buildings, developments costs, interest charges on loans during the development period and expenditure on improvements. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or resulting in a significant extension of the useful economic life of the property.

17

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Major components of housing properties are depreciated at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Structure 100 years
Roofs 60 years
Kitchens 10 years
Bathrooms 15 years
Windows and doors 20 years
Boilers and fires 12 years
Electrics 30 years
Mechanical systems 20 years

Freehold land is not depreciated. Housing properties under construction are not depreciated until they are in use and the useful economic lives of all tangible fixed assets are reviewed annually.

Other

Other tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.

Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:

Land Not depreciated
Buildings - freehold 50 years straight line
Buildings - long leasehold Over lease term
Office furniture 5 years straight line
Office equipment 4 years straight line
Computer equipment 3 years straight line

Impairment

All properties are considered for impairment annually and detailed reviews of assets for impairment are carried out if there is an indication that impairment has occurred or if they are not being depreciated.

Impairments that are a result of a major reduction in the service potential of a property are recognised in the income and expenditure account. Impairments that reflect general changes in price are, where the property is shown at a valuation, recognised in the statement of total recognised surpluses and deficits until the value of the asset falls to depreciated historical cost.

Further impairments, or the full impairment if the property has not been revalued, are then recognised in the income and expenditure account.

18

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Debtors and creditors receivable / payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the income and expenditure in other administrative expenses.

Rights of social landlords to have improvement works carried out to properties by a third party (such as a local authority) are recognised as prepayments where payment has occurred in advance of the works being carried out and receipts in advance from the same third party recognised as liabilities. Assets and liabilities or income and expenditure are not offset.

Stocks

Stocks of paint, papers, sheets, blankets, cutlery and crockery are not taken, and items are charged in the accounts as an expense when purchased. The trustees do not consider that the value of stock is either significant or material.

Leases

Rentals paid under operating leases are charged in the income and expenditure account as incurred.

Tax

The company is considered to pass the tests set out in Sch. 6, para. 1 of the Finance Act 2010 and therefore it meets the definition of a charitable company for UK corporation tax purposes. Accordingly, the company is potentially exempt from taxation in respect of income or capital gains received within categories covered by Pt. 11, Ch. 3 of the Corporation Tax Act 2010 or s. 256 of the Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively to charitable purposes.

Turnover

Turnover represents rental and service charges income receivable in the year net of rent and service charge losses from voids, revenue grants from the government (local authorities) and the Homes England.

Grants

Grants receivable funding the general activities of the company are included in the year in which they are receivable.

Social Housing Grants

Social Housing Grants (SHG) are made by Homes England to assist with the acquisition or developments. SHG grants are included in deferred income and released in line with the depreciation of the assets.

Pension costs

The company operates a defined benefit pension scheme. An actuarial valuation was carried out at 31 March 2019 by a qualified independent actuary with a full valuation required every three years. The company’s share of changes in the deficit is recognised on the balance sheet. The company’s share of changes in the deficit is included in the income and expenditure account.

Employee benefits

When employees have rendered service to the charity, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service.

19

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Restricted reserves

Restricted reserves are those reserves which are only expendable in accordance with the wishes of the funder or regulatory body. Restricted reserves include funds raised in response to a specific appeal. Revenue and expenditure cannot be directly set against restricted reserves but is taken through the income and expenditure account and then a transfer to restricted reserves is made as appropriate.

Judgements and key sources of estimation uncertainty

There are no judgements (apart from those involving estimates) which have been made in the process of applying the above accounting policies that have had significant effect on amounts recognised in the financial statements.

The key assumptions concerning the future and other key 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 financial year include:

Property valuations – the carrying value of property and annual impairment reviews are subject to assessment involving estimates on future rental yield and state of repair of the properties.

South Yorkshire Pension Fund Liability – the present value of the liability depends on a number of factors that are determined on an actuarial basis using a variety of assumptions. Any changes in these assumptions will impact the carrying value of the pension liability.

20

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

2 Turnover

Rental income
Contracted income
Other grants
Commercial premises
Other income
Homes England
Statutory services
Total		 2021
£
3,637,477
933,203
13,190
64,092
88,968
66,735
-
4,803,665		 2020
£
2,983,483
904,708
25,625
53,139
2,361
241,611
33,568
4,244,495

Rental Income is included in the accounts after providing bad debts of £76,187 (2020: £132,690) and net of rental voids incurred during the year to the value of £258,862 (2020: £330,825).

Homes England and other grants income contains £64,232 (2020: £55,103) of amortised grant, the remainder relates to non-capitalised grant income.

3 Operating costs

Housing and support
Housing management
Housing maintenance
Housing services
Client services:
Project management
Administration expenditure
Governance costs
Pension finance costs
2020		 Staff Costs
£
Other
£
Depreciation
£
Total
2021
£
Total
2020
£
724,526
337,727
38,113
1,100,366
1,286,236
95,788
66,280
2,178
164,246
164,156
135,085
1,673,033
215,096
2,023,214
1,718,482
329,452
16,937
2,178
348,567
361,154
63,541
102,946
6,534
173,021
219,220
255,009
239,862
3,267
498,138
645,030
13,011
17,612
-
30,623
31,524
-
109,000
-
109,000
145,000
1,616,412
2,563,397
267,366
4,447,175
4,570,802
1,998,921
2,302,442
269,439
Governance costs include the following:
Salaries and office costs
Auditor’s fees- audit services
Legal and professional fees		 2021
£
2020
£
13,011
15,235
15,612
12,289
2,000
4,000
30,623
31,524

21

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

4 Accommodation owned, managed and in development

Social housing
General needs housing
Sustainable tenancy
Supported housing
Total Social housing
Non-social housing
General needs housing
Sustainable tenancy
Supported housing
Total Non-Social housing
Total housing
5
Interest and other finance income and expenses
a) Interest receivable and similar income
Deposit account interest
b) Interest payable and similar expenses
Bank loans and overdrafts
c) Other finance costs
Interest on net defined benefit pension liability		 Number
of units at
start date
2021
131
26
6
156
30
147
89
266
429
2021
£
234
2021
£
64,278
2021
£
109,000		 Number
of units at
end date
2020
124
26
6
156
30
116
89
235
391
2020
£
1,443
2020
£
72,871
2020
£
145,000

22

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

6 Surplus/(deficit)

Surplus/(deficit) is stated after charging:

2021 2020
£ £
Auditor’s remuneration (including expenses and 15,612 12,289
benefits in kind) for audit
Depreciation of housing properties and components 204,876 186,815
Depreciation of other tangible assets 62,490 82,624
Grants released against depreciation (64,232) (55,103)
Rent losses from bad debts 76,187 132,690
Operating lease rentals 888,506 880,270

7. Trustee remuneration and benefits

During the current year one trustee was paid remuneration for their role as Chief Executive, not in their capacity as a Trustee. This is disclosed in the highest paid director information below. Employer pension contributions for this employee totalled £15,570 (2020: £Nil). Employer pension contributions were paid into a personal pension scheme with no enhancements applied.

Trustee expenses

Travel expenses totalling £401 (2020 - £869) were paid to 1 trustee (2020- 1 trustee).

8. Board and key management personnel remuneration

The total remuneration for key management personnel, including employer’s national insurance amounted to £177,537 (2020 - £243,500).

During the year total pensions of £23,041 (2020 - £26,855) was payable to key management personnel.

The highest paid director received £100,206 (2020 - £129,033) remuneration (including employer’s NI but excluding pension contributions).

23

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

9 Staff costs

All employees were involved in direct charitable services, with a proportion of time of some staff taken up by administrative duties.

up by administrative duties.
Wages and salaries
Social security costs
Other pension costs
Agency costs
Total		 2021
£
1,230,143
98,920
153,803
1,482,866
133,546
1,616,412		 2020
£
1,442,775
100,704
353,147
1,896,626
102,295
1,998,921

Other pension costs include (£36,000) (2020 - £106,000), being the net pension costs movement as disclosed in note 17 to the accounts and in accordance with FRS 102.

The average number of employees, including members of the executive team, calculated on a full time equivalent basis was 49 employees (2020 - 68).

Three members of staff received redundancy payments, totalling £9,715 (2020 – 5 employees totalling £13,990).

The number of employees whose employee benefits (excluding employer pension costs) exceeded £60,000 was:

In the band £60,000 - £70,000 – nil (2020: 1) In the band £100,000 - £110,000 – 1 (2020: 1)

24

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

10 Tangible fixed assets – Housing properties for letting

Cost:
At 1 April 2020
Reclassification
Additions
At 31 March 2021
Depreciation:
At 1 April 2020
Reclassification
Charge for the year
At 31 March 2021
Net book value:
At 31 March 2020
At 31 March 2021		 Land and
buildings
Leasehold
improvements
Total
£
£
£
6,666,492
1,045,638
7,712,130
(8,053)
12,321
4,268
183,466
45,661
229,127
6,841,905
1,103,620
7,945,525
586,027
395,245
981,272
509
3,662
4,171
93,205
111,671
204,876
679,741
510,578
1,190,319
6,080,465
650,393
6,730,858
6,162,164
593,042
6,755,206

Tangible fixed assets – other

Cost:
At 1 April 2020
Reclassification
Additions
At 31 March 2021
Depreciation:
At 1 April 2020
Reclassification
Charge for the year
At 31 March 2021
Net book value:
At 31 March 2020
At 31 March 2021		 Freehold
buildings
Leasehold
improvements
Fixtures and
fittings
Total
£
£
£
£
901,208
73,015
1,213,935
2,188,158
360
(2,850)
-
(2,490)
-
-
135,855
135,855
901,568
70,165
1,349,790
2,321,523
238,664
72,648
1,133,284
1,444,596
90
(2,483)
1
(2,392)
18,042
-
44,448
62,490
256,796
70,165
1,177,733
1,504,694
662,544
367
80,651
743,562
644,772
-
172,057
816,829

25

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

11 Debtors

Trade debtors (gross social housing rent arrears)
Less: provision for doubtful debt
Trade debtors (others)
Prepayments and accrued income
Creditors: amounts falling due within one year
Bank loans
Trade creditors
Other tax and social security
Other creditors
Accruals and deferred income
Deferred income capital grants		 2021
£
248,686
(97,496)		 2020
£
310,833
(158,324)
151,190
89,660
291,684
532,534
2021
£
71,702
590,887
30,713
59,205
147,103
66,507
966,117		 152,509
95,773
341,019
589,301
2020
£
65,621
370,927
36,437
57,436
146,358
62,957
739,736

12 Creditors: amounts falling due within one year

Bank loans totalling £2,103,610 (2020 - £2,119,231) are secured by a first legal charge over freehold and leasehold residential properties owned by the charity. The above loans are repayable monthly over a 25 year period at rates of interest charged at 3% over the bank’s base rate, with a bullet repayment at the end of year ten (2027).

26

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

13 Creditors: amounts falling due after more than one year

Bank loans
Other creditors
Deferred income re capital grants		 2021
£
2,031,908
275,900
2,230,539
4,538,347		 2020
£
2,053,610
315,600
2,259,574
4,628,784

Bank loans, other creditors and deferred income re capital grants include aggregate amounts of £3,756,167 (2020 - £3,910,436) which fall due after five years and which are payable by instalments.

14 Leases

Operating leases - lessee

Total future minimum lease payments under non-cancellable operating leases are as follows:

Not later than one year
Later than one and not later than five years
Later than five years		 2021
£
734,766
1,166,469
474,563
2,375,798		 2020
£
701,412
1,290,069
447,585
2,439,066

27

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

15 Reserves

Unrestricted reserves
General reserves
Pension reserves
Restricted reserves
South Yorkshire Offender
Partnership
Homes England
Derbyshire Domestic
Abuse
Foundation Derbyshire
Open Gate Trust
Arbor PCC
Church on the Bus
Morrisons Foundation
Voluntary Action
Rotherham
RMBC Section 106
Land Aid
Derby City
Total reserves		 BF
01.04.20
Income
Expenditure
Transfers
Gains/
(losses)
CF
31.03.21
£
£
£
£
£
£
2,897,825
4,726,477
(4,319,027)
-
-
3,305,275
(4,840,000)
-
(75,000)
-
(315,000)
(5,230,000)
(1,942,175)
4,726,477
(4,394,027)
-
(315,000)
(1,924,725)
7,036
-
-
-
-
7,036
379,559
61,205
(111,837)
-
-
328,927
14,668
-
-
-
-
14,668
-
2,000
-
-
-
2,000
1,000
-
(800)
-
-
200
625
-
(365)
-
-
260
-
1,190
(1,067)
-
-
123
-
5,000
(330)
-
-
4,670
-
5,000
-
-
-
5,000
-
616
(616)
-
-
-
-
1,381
(1,381)
-
-
-
-
1,030
(1,030)
-
-
-
402,888
77,422
(117,426)
-
-
362,884
(1,539,287)
4,803,899
(4,511,453)
-
(315,000)
(1,561,841)

Restricted reserves consist of the following:

South Yorkshire Offender Partnership: Hope renovation project education and resources in Rotherham.

Homes England: Bringing empty homes into use within the private sector.

Derbyshire Domestic Abuse: The provision of resources to ensure that our support line in Derbyshire is accessible by all victims of domestic abuse including those from marginalised/isolated communities.

Foundation Derbyshire: To fund educational, developmental and life enhancing experiences as chosen by our young people in Chesterfield.

Open Gate Trust: Provision of Lifewise sessions at Newbold Court.

Arbor PCC: Crime reduction.

Church on the Bus: Microwaves for Newbold Court clients.

Morrisons Foundation: Newbold Court.

Voluntary Action Rotherham: Healthy eating.

RMBC Section 106: Conversion of premises to provide general needs affordable housing in Rotherham.

28

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

Land Aid: Conversion of premises to provide accommodation and raining facilities for young people in Rotherham.

Derby City: Capital grant to refurbish properties in Derby.

Prior year reserves

Unrestricted reserves
General reserves
Pension reserves
Restricted reserves
Action for Street Kids
South Yorkshire
Offender Partnership
Homes England
Derbyshire Domestic
Abuse
Foundation Derbyshire
Open Gate Trust
Arbor PCC
RMBC Section 106
Land Aid
Derby City
Total reserves		 BF
01.04.19
Income
Expenditure
Transfers
Gains/
(losses)
CF
31.03.20
£
£
£
£
£
£
3,153,981
3,978,702
(4,234,858)
-
-
2,897,825
(5,928,000)
-
(255,000)
-
1,343,000
(4,840,000)
(2,774,019)
3,978,702
(4,489,858)
-
1,343,000
(1,942,175)
806
-
(806)
-
-
-
7,036
-
-
-
-
7,036
256,192
238,665
(115,298)
-
-
379,559
25,420
24,000
(34,752)
-
-
14,668
13
-
(13)
-
-
-
-
1,000
-
-
-
1,000
-
625
-
-
-
625
-
616
(616)
-
-
-
-
1,300
(1,300)
-
-
-
-
1,030
(1,030)
-
-
-
289,467
267,236
(153,815)
-
-
402,888
(2,484,552)
4,245,938
(4,643,673)
-
1,343,000
(1,539,287)

29

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

16 Notes to the cash flow statement

Reconciliation of operating (deficit)/surplus to cash flow from
2021
operating activities
£
Surplus / (Deficit) for the year
292,446
Interest received
Interest paid
(234)
64,278
Depreciation and impairment of tangible fixed assets
267,366
Grants released
(66,733)
(Increase) / decrease in debtors
56,767
Increase / (decrease) in creditors
177,050
Defined benefit pension movements:
-
Net interest cost
109,000
-
Admin expenses
2,000
-
Current service cost (less employer contributions)
(36,000)
-
Settlements
-
-
Past service cost
-
Net cash flow from operating activities
865,940
Analysis of changes in net debt
At 1
April
Cash
flows
2020
£
£
Cash at bank
605,512
462,542
Debt due within 1 year
(71,702)
6,081
Debt due after 1 year
(2,031,908)
(21,702)
(1,490,098)
446,921		 Reconciliation of operating (deficit)/surplus to cash flow from
2021
operating activities
£
Surplus / (Deficit) for the year
292,446
Interest received
Interest paid
(234)
64,278
Depreciation and impairment of tangible fixed assets
267,366
Grants released
(66,733)
(Increase) / decrease in debtors
56,767
Increase / (decrease) in creditors
177,050
Defined benefit pension movements:
-
Net interest cost
109,000
-
Admin expenses
2,000
-
Current service cost (less employer contributions)
(36,000)
-
Settlements
-
-
Past service cost
-
Net cash flow from operating activities
865,940
Analysis of changes in net debt
At 1
April
Cash
flows
2020
£
£
Cash at bank
605,512
462,542
Debt due within 1 year
(71,702)
6,081
Debt due after 1 year
(2,031,908)
(21,702)
(1,490,098)
446,921		 2020
£
(397,735)
(1,443)
72,871
269,439
(241,613)
(144,234)
247,366
145,000
4,000
(34,000)
21,000
119,000
59,651
At 31
March
2021
£
1,068,054
(65,621)
(2,053,610)
(1,490,098)
446,921		 (1,051,177)

17 Pensions and other post-retirement benefits

Defined benefit pension plans

Certain employees of Action Housing and Support Limited participate in the South Yorkshire Pension Fund, a defined benefit, funded statutory scheme administered by the South Yorkshire Pensions Authority in accordance with the Local Government Pension Scheme Regulations 1995. An actuarial valuation of this fund was carried out in accordance with the Regulations as at 31 March 2019.

The pension cost is assessed every three years in accordance with the advice of a qualified independent actuary. The assumptions and other data that have the most significant effect on the determination of the contributions are as follows :

The end of year figures for the market value of the assets and split of the assets between investment categories have been calculated as at 31 March 2021. The corresponding figures for the start of the year have been calculated as at 31 March 2020. The major assumptions used by the actuary were:

Latest full actuarial valuation 31 March 2019
Market value of assets at date of the last full valuation £8,440 million
2021 2020
Rate of inflation 2.70% 2.10%
Rate of increase in salaries 3.95% 3.35%
Rate of increase in pensions 2.80% 2.20%
Discount rate 2.20% 2.30%

30

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

17 Pensions and other post-retirement benefits (continued)

Expected rate of return on assets:

2021 2021 2021 2020 2020 2020
Expected Value Split of Expected
Value of		 Split of
rate of of assets rate of assets assets
return assets return
£000 £000
Equities
6.5%		 7,095 49.1% 6.5% 6,230 51.7%
Government bonds
2.2%		 1,951 13.5% 2.2% 1,626 13.5%
Other bonds
2.9%		 1,185 8.2% 2.9% 880 7.3%
Property
5.9%		 1,315 9.1% 5.9% 1,084 9.0%
Cash/liquid
0.5%		 202 1.4% 0.5% 361 3.0%
Other
6.5%		 2,702 18.7% 6.5% 1,867 15.5%
Total market value of assets 14,450 12,048
Present
value
of
scheme
liabilities (19,680) (16,888)
Deficit in the scheme (5,230) (4,840)
The current mortality assumptions include sufficient allowance for future improvement in mortality
rates. The assumed life expectations on retirement aged 65 are:
2021 2020
Retiring today/current pensioners
Males 22.5 22.4
Females 25.3 25.2
Retiring in 20 years/future pensioners
Males 24.0 23.9
Females 27.2 27.1
Balance sheet items as at 31 March: 2021 2020
£000 £000
Present value of funded benefit obligations (19,661) (16,869)
Present value of unfunded benefit obligations (19) (19)
(19,680) (16,888)
Fair value of plan assets 14,450 12,048
Deficit in the scheme (5,230) (4,840)

31

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

17 Pensions and other post-retirement benefits (continued)

Components of pension costs for the period:

Current service cost
Employer contributions
Effect of curtailment or settlements
Past service cost
Interest on pension liabilities
Expected return on assets
Administrative costs
Amounts recognised in the income and expenditure account:
Current service cost
Effect of curtailment or settlements
Past service cost
Net interest cost
Administrative costs
Amounts recognised in the statement of total recognised gains and losses:
Actuarial gains / (losses)		 2021
£’000
(147)
183
-
-
36
(387)
278
(2)
(111)
2021
£’000
(147)
-
-
(109)
(2)
(258)
2021
£’000
(315)		 2020
£’000
(240)
274
(21)
(119)
(106)
(461)
316
(4)
(149)
2020
£’000
(240)
(21)
(119)
(145)
(4)
(529)
2020
£’000
1,343

32

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

17 Pensions and other post-retirement benefits (continued)

Change in benefit obligation during period to 31 March:

Benefit obligation at 1 April
Current service cost
Interest on pension liability
Member contributions
Past service cost
Curtailments
Actuarial losses/(gains) on liabilities
Benefits/transfers paid
Change in plan assets during period:
Fair value of assets plan at 1 April
Expected return of plan assets
Actuarial (gains)/losses on assets
Administration expenses
Employer contributions
Member contributions
Benefits/transfers paid
Fair value of plan assets at end of period
Actual return on plan assets
Experience gains on assets
Experience gains / (losses) on liabilities		 Unfunded
benefits
All
benefits
All
benefits
2021
2021
2020
£’000
£’000
£’000
19
16,888
18,525
-
147
240
-
387
461
-
28
51
-
0
119
-
0
21
1
2,371
(2,252)
(1)
(141)
(277)
19
19,680
16,888
Unfunded
benefits
All
benefits
All benefits
2021
2021
2020
£’000
£’000
£’000
-
12,048
12,597
-
278
316
-
2,056
(909)
-
(2)
(4)
1
183
274
-
28
51
(1)
(141)
(277)
-
14,450
12,048
-
2,334
(375)
-
410
1,927
-
(2,781)
325		 All
benefits
2020
£’000
18,525
240
461
51
119
21
(2,252)
(277)
16,888
The pension cost for the year was £390,000, (2020 - £529,000) excluding the adjustments required per the adjustments required per
FRS 102. The balance sheet includes £5,230,000, (2020 - £4,840,000) in respect of accrued pension
costs.
18 Capital funding and commitments
2021 2020
£ £
Capital expenditure that has been contracted for but has not been
provided for in the financial statements 143,440 60,413

33

ACTION HOUSING AND SUPPORT LIMITED (BY GUARANTEE)

NOTES TO THE FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2021

19 Related party transactions

Following the resignation of the Director of Assets, H3 Design (Andrew Hopton – Trustee) was engaged to ensure continuity of corporate memory and to boost senior staff level capacity. Fees for this role totalled £51,058 (2020: £20,844). At the year end, the balance owed to H3 Design was £0 (2020: £8,562).

WNTAI Services Ltd was engaged to provide interim data protection consultancy until this work could be absorbed by the new IT Manager. A Director of WINTAI Services Ltd is a close family member of a Trustee. Fees for this work totalled £1,425 (2020: £nil). At the year end, the balance owed to WINTAI Services Ltd was £nil (2020: £nil).

34