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2023-03-31-accounts

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

Trustees’ Report and

Financial Statements for the Year Ended 31 March 2023

for

Action Housing And Support Limited

Action Housing And Support Limited

Contents of the Financial Statements for the Year Ended 31 March 2023

Page
Trustees’ Report 1
Report of the Independent Auditors 9
Statement of Comprehensive Income 12
Balance Sheet 13
Statement of Changes in Equity 14
Cash Flow Statement 15
Notes to the Cash Flow Statement 16
Notes to the Financial Statements 17

Action Housing And Support Limited

Trustees’ Report Incorporating the Operational and Financial Review for the Year Ended 31 March 2023

Trustee's Report 22/23

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 2023.

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 T De'Ath (Chair)
Mr I Knowles
Mrs P Warnock
Mr P Baylis
Chief Executive: Mr A Stott
Registered office: 6 Genesis Business Park
Sheffield Road
Rotherham
South Yorkshire
S60 1DX
Auditor: Sutton McGrath Hartley
5 Westbrook Court
Sharrowvale Road
Sheffield
South Yorkshire
S11 8YZ
Solicitor: Bailoran
West Hill House
Allerton Hill
Leeds
L27 3QB
Solicitor: Ward Hadaway
5 Wellington Place
Leeds
LS1 4AP
Solicitor: Hill Dickinson
50 Fountain Street
Manchester
M2 2AS
Bankers: Metro Bank
58-64 Fargate
Sheffield
S1 2HE

Page 1

Action Housing And Support Limited

Trustees’ Report Incorporating the Operational and Financial Review for the Year Ended 31 March 2023

Bankers:

Unity Trust Bank Plc Nine Brindleyplace Birmingham B1 2HB

Principle Activities

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, women 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 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.

Page 2

Action Housing And Support Limited

Trustees’ Report Incorporating the Operational and Financial Review for the Year Ended 31 March 2023

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.

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 2022 to the date of this report, except where otherwise indicated:

Mr T De'Ath (Chair) Mr N A Macpherson (Vice-Chair) (resigned 3 July 2023) Mr I Knowles Mrs P Warnock Mr P Baylis

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.

Page 3

Action Housing And Support Limited

Trustees’ Report Incorporating the Operational and Financial Review

for the Year Ended 31 March 2023

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 2022/23 services were again 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 and in some instances even longer. We also continue to provide units of supported accommodation to people with complex needs together with the provision of specified accommodation.

We have worked closely with Home 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.

The company maintained existing contracts and also renegotiated and won a new larger contract to provide its ARBOR services in Derbyshire.

Having successfully worked with Rotherham council and Homes England in the previous year, delivering the RSAP (Rough Sleeper Accommodation Program) Action Housing successfully bid for and won new contracts to deliver this programme in Rotherham, Sheffield, Mansfield and Derby.

This contract will run until the end of April 2024 and will mean an increase in the properties owned which will be specifically for Supported accommodation use.

The organisation returned a healthy surplus for the third year in a row and continued to work to the board approved 3 business plan. This plan has subsequently been updated taking the organisation to 2025.

The plan focuses on five key issues: -

Page 4

Action Housing And Support Limited

Trustees’ Report Incorporating the Operational and Financial Review for the Year Ended 31 March 2023

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.

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 17% 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, Derby City Council, Mansfield District Council. Rotherham Council and Sheffield City Council.

As a result of the challenges previously outlined, overall, the organisation returned a £552,567 surplus on activities before taxation (2022 - £644,496). This included £72,000 (2022 - £118,000) for FRS 102 pension adjustments. Without these non-cash adjustments, the operating surplus would have been £624,567 (2022 - £762,496).

The closing net assets at 31 March 2023 were £6,862,222 (2022 - £584,655) of which £446,831 (2022 - £403,254) was restricted funds and £4,608,391 (2022 - £4,027,401 was unrestricted reserves and £1,807,000 pension surplus reserve (2022 - £3,846,000 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 2025. 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 £688,952 (2022 - £749,796). 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.

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.

Page 5

Action Housing And Support Limited

Trustees’ Report Incorporating the Operational and Financial Review for the Year Ended 31 March 2023

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.

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. During 2022/23, 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 2022/23 include:

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

2023 2022
Metric 1 Reinvestment % 13% 9%
Metric 2 New supply delivered (social housing units) 6% 4%
Metric 3 Gearing % 4% 8%
Metric 4 Earnings before interest, tax and depreciation % 846% 1413%
Metric 5 Headline Social cost per unit £12,392 £11,699
Metric 6 Operating Margin %
(social housing and overall the same) 9% 11%
Metric 7 Return on capital employed % 7% 7%

Page 6

Action Housing And Support Limited

Trustees’ Report Incorporating the Operational and Financial Review

for the Year Ended 31 March 2023

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 auditors, Sutton McGrath Hartley, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Page 7

Action Housing And Support Limited

Trustees’ Report Incorporating the Operational and Financial Review for the Year Ended 31 March 2023

ON BEHALF OF THE BOARD:

........................................................................ Mr T De'Ath – Trustee & Chair

06/10/2023 Date: .............................................

Page 8

Report of the Independent Auditors to the Members of Action Housing And Support Limited

Opinion

We have audited the financial statements of Action Housing And Support Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Reserves, Cash Flow Statement and Notes to the Cash Flow Statement, 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:

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Trustees' Report, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether 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.

Page 9

Report of the Independent Auditors to the Members of Action Housing And Support Limited

Opinions on other matters prescribed by the Companies Act 2006

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

Matters on which we are required to report by exception

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

We have nothing to report in respect of the following matters where 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 Trustees

As explained more fully in the trustees’ responsibilities set out on page 7, 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 directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our assessment of the susceptibility to material misstatement, whether by fraud or error, is made in a risk based approach.

In this approach, laws and regulations applicable to the entity, such as the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice including Financial Reporting Standard 102, the Housing Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing in England 2019, along with employment law, safeguarding legislation, data protection law and Health and Safety law.

The policies and controls the entity has in place to comply with these laws are reviewed, by discussion, reviews of correspondence and registrations monitored by external bodies. The engagement team remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Page 10

Report of the Independent Auditors to the Members of Action Housing And Support Limited

Policies and controls relating to the risk of material misstatement as a result of fraud, management override of controls, and revenue recognitions are also considered. These are assessed by obtaining an understanding of the company's operations and control environment. The policies and controls have been reviewed by discussion, review and sample testing of accounting entries, including journals, challenging assumptions and judgements, reviewing and evaluating related parties transactions, and wider background searches. Testing of income recognition and fund accounting is also completed.

We have ensured that the engagement team have appropriate levels of competence and experience to effectively monitor these risks and carry out work relevant to our assessment of each risk, including consideration of the sector the company operates in and its size and complexity.

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

Other matters which we are required to address

The financial statements for the prior period were audited by the predecessor auditor, BHP LLP. The prior period audit report was unqualified and dated 23 September 2022.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and section 137 of the Housing and Regeneration Act 2008. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Jonathon Dickens ACA (Senior Statutory Auditor) for and on behalf of Sutton McGrath Hartley 5 Westbrook Court Sharrowvale Road Sheffield South Yorkshire S11 8YZ

Date: .............................................

Page 11

Action Housing And Support Limited

Statement of Comprehensive Income (Including Income and Expenditure Account) for the Year Ended 31 March 2023

Notes
TURNOVER
3
Administrative expenses
OPERATING SURPLUS
Interest receivable and similar income
Interest payable and similar expenses
7
SURPLUS BEFORE TAXATION
8
Tax on surplus
9
SURPLUS FOR THE FINANCIAL YEAR
Remeasurement gains / (losses) on defined 20
benefit pension plan
TOTAL COMPREHENSIVE INCOME FOR THE
YEAR		 2023
£
5,930,338
5,378,261
552,077
1,512
553,589
1,022
552,567
-
552,567
5,725,000
6,277,567		 2022
£
5,683,456
5,038,586
644,870
127
644,997
501
644,496
-
644,496
1,502,000
2,146,496

The notes form part of these financial statements

Page 12

Action Housing And Support Limited (Registered number: 01548338)

Balance Sheet

31 March 2023

Notes
FIXED ASSETS
Tangible assets
12
Housing properties for letting
13
CURRENT ASSETS
Debtors
14
Cash at bank and in hand
CREDITORS
Amounts falling due within one year
15
NET CURRENT ASSETS
TOTAL ASSETS LESS CURRENT LIABILITIES
CREDITORS
Amounts falling due after more than one
year
16
DEFINED BENEFIT PENSION ASSET /
(LIABILITY)
20
NET ASSETS
RESERVES
Pension reserves
19
Restricted reserves
19
Unrestricted reserves
19		 £
533,819
1,615,409
2,149,228
1,010,526		 2023
£
823,499
8,025,951
8,849,450
1,138,702
9,988,152
(4,932,930)
1,807,000
6,862,222
1,807,000
446,831
4,608,391
6,862,222		 £
750,140
1,360,022
2,110,162
900,742		 2022
£
796,677
7,094,068
7,890,745
1,209,420
9,100,165
(4,669,510)
(3,846,000)
584,655
(3,846,000)
403,254
4,027,401
584,655

The financial statements were approved by the Board of Directors and authorised for issue 06/10/2023 on ............................................. and were signed on its behalf by:

........................................................................ Mr T De'Ath - Director

........................................................................ Mr P Baylis - Director

The notes form part of these financial statements

Page 13

Action Housing And Support Limited

Statement of Changes in Reserves for the Year Ended 31 March 2023

Balance at 1 April 2021
Surplus / (Deficit) for the year
Remeasurement gain on defined benefit pension
plan
Balance at 31 March 2022
Surplus / (Deficit) for the year
Remeasurement gain on defined benefit pension
plan
Balance at 31 March 2023		 General
reserves
£
3,305,275
722,126
-
4,027,401
580,990
-
4,608,391		 Pension
reserves
£
(5,230,000)
(118,000)
1,502,000
(3,846,000)
(72,000)
5,725,000
1,807,000		 Restricted
reserves
£
362,884
40,370
-
403,254
43,577
-
446,831		 Total
£
(1,561,841)
644,496
1,502,000
584,655
552,567
5,725,000
6,862,222

The notes form part of these financial statements

Page 14

Action Housing And Support Limited

Cash Flow Statement

for the Year Ended 31 March 2023

Notes
Cash flows from operating activities
Cash generated from operations
1
Finance costs paid
Defined benefit net interest cost
Defined benefit current service cost
Net cash from operating activities
Cash flows from investing activities
Purchase of tangible fixed assets
Purchase of investment property
Sale of tangible fixed assets
Sale of investment property
Interest received
Net cash from investing activities
Cash flows from financing activities
Loan repayments in year
Interest paid
Net cash from financing activities
Increase in cash and cash equivalents
Cash and cash equivalents at beginning of
year
2
Cash and cash equivalents at end of year
2		 2023
£
1,486,986
93,188
103,000
(31,000)
1,652,174
(102,098)
(1,205,221)
-
51,424
1,512
(1,254,383)
(48,194)
(94,210)
(142,404)
255,387
1,360,022
1,615,409		 2022
£
855,036
59,536
115,000
3,000
1,032,572
(97,086)
(746,552)
1,300
232,728
127
(609,483)
(71,084)
(60,037)
(131,121)
291,968
1,068,054
1,360,022

The notes form part of these financial statements

Page 15

Action Housing And Support Limited

Notes to the Cash Flow Statement

for the Year Ended 31 March 2023

1. RECONCILIATION OF SURPLUS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Surplus before taxation
Depreciation charges
Profit on disposal of fixed assets
Finance costs
Finance income
Decrease/(increase) in trade and other debtors
Increase in trade and other creditors
Cash generated from operations		 2023
£
552,567
304,043
(6,853)
1,022
(1,512)
849,267
216,321
421,398
1,486,986		 2022
£
644,496
334,353
(43,452)
501
(127)
935,771
(217,606)
136,871
855,036

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023

Cash and cash equivalents
Year ended 31 March 2022
Cash and cash equivalents		 31/3/23
£
1,615,409
31/3/22
£
1,360,022		 1/4/22
£
1,360,022
1/4/21
£
1,068,054

3. ANALYSIS OF CHANGES IN NET DEBT

Net cash
Cash at bank and in hand
Debt
Debts falling due within 1 year
Debts falling due after 1 year
Total		 At 31/3/23
£
1,615,409
1,615,409
(108,627)
(1,875,706)
(1,984,333)
(368,924)		 Cash flow
£
255,387
255,387
(13,965)
62,159
48,194
303,581		 At 1/4/22
£
1,360,022
1,360,022
(94,662)
(1,937,865)
(2,032,527)
(672,505)

The notes form part of these financial statements

Page 16

Action Housing And Support Limited

Notes to the Financial Statements for the Year Ended 31 March 2023

1. STATUTORY INFORMATION

Action Housing And Support Limited is a private company, limited by guarantee, registered in England and Wales. The company's registered number and registered office address are as below:

Registered number: 01548338 Registered office: 6 Genesis Business Park Sheffield Road Rotherham South Yorkshire S60 1DX

2. ACCOUNTING POLICIES

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 assets of £6,862,222. This is a significant change from last year's position of net assets of £584,655 and is largely due to the movement on the defined benefit pension asset/liability of £5,653,000.

The trustees have prepared a three year financial plan showing forecasts of income, expenditure and cash flow for the period to 31 March 2025. 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 a going concern basis.

continued...

Page 17

Action Housing And Support Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

2. ACCOUNTING POLICIES - continued

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, development 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 results in a significant extension of the useful economic life of the property.

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

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date.

If such indication exists, the recoverable amount is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in expenditure through the statement of comprehensive income.

continued...

Page 18

Action Housing And Support Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

2. ACCOUNTING POLICIES - continued

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 of 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 the 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 Homes England.

Grants

Government grants are received from Homes England in respect of housing properties. These grants are recognised at the fair value of the asset received or receivable. Where the assets are accounted for using the model then the government grant is accounted for using the accruals model. The difference between the fair value of the asset and the consideration is recognised as a liability and amortised over the useful economic life of the asset. The amortisation is recognised within turnover. Where the assets are accounted for using the valuation model then the government grant is accounted for using the performance model so that turnover is taken once the performance conditions have been met.

Government grants received as a contribution to revenue expenditure are recognised in the statement of comprehensive income on a systematic basis over the period in which the landlord recognises the related costs for which the grant is intended to compensate. The related expenditure is included under administrative expenses. Grants are recognised in the same period as the related expenditure provided the conditions for receipt have been satisfied and there is reasonable assurance that the grant will be received.

Social Housing Grants

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

continued...

Page 19

Action Housing And Support Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

2. ACCOUNTING POLICIES - continued

Pension costs

The company operates a defined benefit pension plan for the benefit of its employees. A liability for the company's obligations under the plan is recognised net of plan assets. the net change in the net defined benefit liability is recognised as the cost of the defined benefit plan during the period. Pension plan assets are measured at fair value and the defined benefit obligation is measured on an actuarial basis using the projected unit method. Actuarial valuations are obtained at least triennially and are updated at each balance sheet date.

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.

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 a 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 a actuarial basis using a variety of assumptions. Any changes in these assumptions will impact the carrying value of the pension liability.

Loans and borrowings

Loans and borrowings are initially recognised at the transactions price including transactions costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a financial transaction it is measured at fair value.

Provisions

Provisions are recognised when the RP has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Provisions for cyclical maintenance or major works to existing stock are not made unless they represent commitments or obligations at the Balance Sheet date where there is no discretion to avoid or delay the expenditure.

continued...

Page 20

Action Housing And Support Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

3. TURNOVER

The turnover and surplus before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

Rental income
Contracted income
Other grants
Commercial premises
Other income
Homes England		 2023
£
4,767,879
1,041,840
3,270
33,242
7,853
76,254
5,930,338		 2022
£
4,406,145
1,019,287
16,000
42,517
18,343
181,164
5,683,456

Rental income is included in the accounts after providing bad debts of £144,927 (2022: £152,123) and net of rental voids incurred during the year to the value of £372,502 (2022: £403,044).

Homes England and other grant income contains £76,254 (2022: 69,599) of amortised grant, the remainder relates to non-capitalised grant income.

4. STAFF COSTS

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

Wages and salaries
Social security costs
Other pension costs
Agency costs
Total		 2023
£
1,577,629
139,765
137,100
1,854,494
14,784
1,869,278		 2022
£
1,485,435
130,113
195,093
1,810,641
19,997
1,830,638

Other pension costs include net income totalling £31,000 (2022: £3,000 net cost), being the net pension costs movement as disclosed in note 17 to the accounts and in accordance with FRS 102.

continued...

Page 21

Action Housing And Support Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

4. STAFF COSTS – continued

The average number of employees, including members of the executive team, calculated on a full time equivalent basis was 64 employees (2022: 58). Full time staff work 39 hours per week and each correspond to 1 FTE. Part time staff have their hours pro-rated.

One member of staff received a redundancy payment of £10,302 during the year (2022: 1 employee totalling £1,454).

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

In the band £100,000 and £110,000 - 1 (2022: Nil). In the band £90,000 and £100,000 - Nil (2022: 1).

5. TRUSTEES REMUNERATION AND BENEFITS

During the prior year one trustee was paid remuneration for their role as Chief Executive, not in their capacity as a trustee. They resigned as a Trustee on 14 October 2021. Remuneration for this period was £Nil (2022: £60,290). Employer pension contributions for this period totalled £Nil (2022: £9,564).

Trustee expenses

There were no travel expenses paid to Trustees (2022: £Nil).

6. BOARD AND KEY MANAGEMENT PERSONNEL REMUNERATION

The total remuneration for key management personnel, including employer's national insurance amounted to £309,192 (2022: £231,059).

During the year total pensions of £46,008 (2022: £34,563) were payable to key management personnel.

The highest paid director received £104,073 (2022: £99,835) remuneration. Employer pension contributions of £28,784 (2022: £11,470) were paid into a personal pension scheme with no enhancements applied.

7. INTEREST PAYABLE AND SIMILAR EXPENSES

2023 2022
£ £
Bank loan interest 1,022 501

continued...

Page 22

Action Housing And Support Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

8. SURPLUS BEFORE TAXATION

Income
Rental income
Contracted
income
Other grants
Commercial
premises
Other income
Homes England
Expenditure
Salaries

Other staff costs
Premises costs
Office costs
Insurance
General costs
Support costs
Maintenance / van
costs
Housing costs
Depreciation

Pension service/
finance costs
Profit/(loss) on
sale of tangible
fixed assets
Operating
Surplus / (loss)		 General
needs
£
723,104
-
31,794
-
4,801
-
759,699
(279,135)
(1,465)
(1,988)
-
-
(13,310)
(4,109)
(66,778)
(766,252)
(148,553)
-
6,853
759,699
(515,038)		 Supported
housing
£
4,044,775
1,009,562
-
-
-
-
5,054,337
(1,091,239)
(39,328)
-
-
-
(41)
(43,647)
(15)
(1,383,789)
(94,514)
-
-
5,054,337
2,401,764		 Central
office
£
-
-
-
38,229
(1,451)
-
36,778
(484,120)
(81,028)
(179,526)
(127,675)
(126,431)
(271,948)
(10,127)
-
(1,025)
(60,976)
(103,000)
-
36,778
(1,409,078)		 Restricted
£
-
-
3,270
-
-
76,254
79,524
-
-
-
-
-
-
(5,047)
-
(48)
-
-
-
79,524
74,429		 2023 Total


£
4,767,879
1,009,562
35,064
38,229
3,350
76,254
5,930,338
(1,854,494)
(121,821)
(181,514)
(127,675)
(126,431)
(285,299)
(62,930)
(66,793)
(2,151,114)
(304,043)
(103,000)
6,853
5,930,338
552,077		 2022 Total
£
4,405,429
651,500
16,000
37,622
391,740
181,164
5,683,456
(1,814,571)
(122,201)
(165,858)
(85,213)
(107,175)
(181,902)
(61,751)
(67,892)
(2,026,235)
(334,354)
(115,000)
43,566
5,683,456
644,870

continued...

Page 23

Action Housing And Support Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

9. TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 March 2023 nor for the year ended 31 March 2022.

10. 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 owned and managed		 Number of
units at end
date 2023
120
26
31
177
18
101
130
249
426		 Number of
units at end
date 2022
117
19
28
164
18
102
151
271
435

continued...

Page 24

Action Housing And Support Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

11. SURPLUS/(DEFICIT)

Surplus/(deficit) is stated after charging:

2023 2022
£ £
Auditor's remuneration (including expenses and benefits in kind)
for audit 18,000 17,124
Depreciation of housing properties and components 228,766 222,169
Depreciation of other tangible assets 75,276 112,184
Grants released against depreciation (76,254) (69,599)
Rent losses from bad debts 144,927 152,123
Operating lease rentals 1,152,274 1,072,099

12. TANGIBLE FIXED ASSETS

COST
At 1 April 2022
Additions
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for year
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022		 Freehold
property
£
906,658
31,254
937,912
274,893
18,505
293,398
644,514
631,765		 Long
leasehold
£
70,165
-
70,165
70,165
-
70,165
-
-		 Fixtures
and
fittings
£
1,427,194
70,844
1,498,038
1,262,282
56,771
1,319,053
178,985
164,912		 Totals
£
2,404,017
102,098
2,506,115
1,607,340
75,276
1,682,616
823,499
796,677

continued...

Page 25

Action Housing And Support Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

13. HOUSING PROPERTIES FOR LETTING

COST
At 1 April 2022
Additions
Disposals
At 31 March 2023
DEPRECIATION
At 1 April 2022
Charge for the year
Eliminated on disposal
At 31 March 2023
NET BOOK VALUE
At 31 March 2023
At 31 March 2022
14.
DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Trade debtors (gross social housing rent arrears)
Provision for bad and doubtful debts
Trade debtors (other)
Prepayments and accrued income
15.
CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Bank loans and overdrafts (see note 17)
Trade creditors
Social security and other taxes
Other creditors
Accruals and deferred income
Deferred income capital grants		 Land and
Leasehold
buildings improvements
£
£
7,167,972
1,281,921
1,202,573
2,647
(50,675)
-
8,319,870
1,284,568
724,905
630,920
108,719
120,047
(6,104)
-
827,520
750,967
7,492,350
533,601
6,443,067
651,001
2023
£
331,621
(174,601)
185,515
191,284
533,819
2023
£
108,627
330,859
32,015
45,857
416,914
76,254
1,010,526		 Totals
£
8,449,893
1,205,220
(50,675)
9,604,438
1,355,825
228,766
(6,104)
1,578,487
8,025,951
7,094,068
2022
£
393,366
(210,716)
156,962
410,528
750,140
2022
£
94,662
407,502
35,487
60,808
220,015
82,268
900,742

Bank loans totalling £1,984,333 (2022: £2,032,527) 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 2.5% over the bank's base rate, with a bullet repayment at the end of year ten (2027).

continued...

Page 26

Action Housing And Support Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

16. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

Bank loans (see note 17)
Other creditors
Deferred income capital grants		 2023
£
1,875,706
187,800
2,869,424
4,932,930		 2022
£
1,937,865
233,300
2,498,345
4,669,510

Bank loans, other creditors and deferred income re capital grants include aggregate amounts of £4,324,181 (2022: £3,796,614) which fall due after five years and which are payable by instalments.

17. LOANS

An analysis of the maturity of loans is given below:

Amounts falling due within one year or on demand:
Bank loans
Amounts falling due between one and two years:
Bank loans - 1-2 years
Amounts falling due between two and five years:
Bank loans - 2-5 years
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more than 5 year by instalments		 2023
£
108,627
108,628
312,321
1,454,757		 2022
£
94,662
94,662
283,986
1,559,217		 2022
£
94,662
94,662
283,986

18. LEASING AGREEMENTS

Minimum lease payments under non-cancellable operating leases fall due as follows:

Within one year
Between one and five years
In more than five years		 2023
£
584,784
897,363
388,280
1,870,427		 2022
£
727,581
963,998
382,645
2,074,224

continued...

Page 27

Action Housing And Support Limited

Notes to the Financial Statements - continued

for the Year Ended 31 March 2023

19. RESERVES

Unrestricted
General
reserves
Pension
reserves
Restricted
South Yorkshire
Offender
Homes England
Derbyshire
Domestic Abuse
Foundation
Derbyshire
Open Gate
Trust
Arbor PCC
Church on the
Bus
Morrisons
Foundation
Anonymous
Mansfield
District Council
B&Q
Foundation
Stonecross
Total reserves		 BF
01.04.22
£
4,027,401
(3,846,000)
181,401
7,036
359,304
14,668
1,730
273
885
123
4,222
13
15,000
-
403,254
584,655		 Income
£
5,843,743
-
5,843,743
-
76,254
-
-
-
-
-
-
-
-
5,000
81,254
5,924,997		 Expenditure
£
(5,269,606)
(72,000)
(5,341,606)
-
(30,900)
(2,761)
(1,730)
-
(885)
-
-
(13)
-
(1,388)
(37,677)
(5,379,283)		 Transfers
£
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 Gains/
(losses)
£
6,853
5,725,000
5,731,853
-
-
-
-
-
-
-
-
-
-
-
-
5,731,853		 CF
31.03.23
£
4,608,391
1,807,000
6,415,391
7,036
404,658
11,907
-
273
-
123
4,222
-
15,000
3,612
446,831
6,862,222

continued...

Page 28

Action Housing And Support Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

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: Funding for client activities and equipment to deliver bikes, water bottles, walking kit, entry to museums, etc.

Church on the Bus: Microwaves for Newbold Court clients.

Morrisons Foundation: Provision of client activities, hobbies and interests at Newbold and Highfield Road.

Anonymous: To help individuals or families in need, due to hardship or distress, in Nottinghamshire.

Mansfield District Council: Works at the Carr Bank Pavilion to make accommodation safe and comfortable.

B&Q Foundation Stonecross: To fund the provision of kitchen equipment for Stonecross and a sofa for Resource Centre.

continued...

Page 29

Action Housing And Support Limited

Prior year reserv
Unrestricted
General
reserves
Pension
reserves

Restricted
South Yorkshire
Offender
Homes England
Derbyshire
Domestic Abuse
Foundation
Derbyshire
Open Gate
Trust
Arbor PCC
Church on the
Bus
Morrisons
Foundation
Voluntary
Action
Rotherham
RMBC Section
106
Anonymous
Mansfield
District Council
Land Aid
Derby City
Total reserves		 Notes to the Financial Statements- continued
for the Year Ended 31 March 2023
es
BF
01.04.21
Income
Expenditure
Transfers
£
£
£
£
3,305,275
5,493,999
(4,815,439)
-
(5,230,000)
-
(118,000)
-
(1,924,725)
5,493,999
(4,933,439)
-
7,036
-
-
-
328,927
170,333
(139,956)
-
14,668
-
-
-
2,000
-
(270)
-
200
-
73
-
260
625
-
-
123
-
-
-
4,670
-
(448)
-
5,000
-
(5,000)
-
-
616
(616)
-
-
1,000
(987)
-
-
15,000
-
-
-
1,381
(1,381)
-
-
629
(629)
-
362,884
189,657
(149,287)
-
(1,561,841)
5,683,583
(5,082,653)
-		 Gains/
(losses)
£
43,566
1,502,000
1,545,566
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,545,566		 CF
31.03.22
£
4,027,401
(3,846,000)
181,401
7,036
359,304
14,668
1,730
273
885
123
4,222
-
-
13
15,000
-
-
403,254
584,655

continued...

Page 30

Action Housing And Support Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

20. EMPLOYEE BENEFIT OBLIGATIONS

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 2023. The corresponding figures for the start of the year have been calculated as at 31 March 2023. 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

The amounts recognised in the balance sheet are as follows:

Present value of funded obligations
Fair value of plan assets
Present value of unfunded obligations
Surplus/(Deficit)
Net asset/(liability)		 Defined benefit
pension plans
2023
2022
£
£
(13,763,000)
(19,725,000)
15,586,000
15,899,000
1,823,000
(3,826,000)
(16,000)
(20,000)
1,807,000
(3,846,000)
1,807,000
(3,846,000)

The amounts recognised in surplus or deficit are as follows:

Current service cost
Net interest from net defined benefit
asset/liability
Past service cost
Actual return on plan assets		 Defined benefit
pension plans
2023
2022
£
£
146,000
201,000
532,000
433,000
-
-
678,000
634,000
-
-		 Defined benefit
pension plans
2023
2022
£
£
146,000
201,000
532,000
433,000
-
-
678,000
634,000
-
-
634,000
-

continued...

Page 31

Action Housing And Support Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

20. EMPLOYEE BENEFIT OBLIGATIONS - continued

Changes in the present value of the defined benefit obligation are as follows:

Opening defined benefit obligation
Current service cost
Contributions by scheme participants
Interest cost
Benefits paid
Remeasurements:
Actuarial (gains)/losses from changes in
demographic assumptions
Actuarial (gains)/losses from changes in
financial assumptions
Oblig other remeasurement		 Defined benefit
pension plans
2023
2022
£
£
19,745,000
19,680,000
146,000
201,000
27,000
36,000
532,000
433,000
(227,000)
(182,000)
686,000
-
(8,655,000)
(478,000)
1,525,000
55,000
13,779,000
19,745,000

Changes in the fair value of scheme assets are as follows:

Opening fair value of scheme assets
Contributions by employer
Contributions by scheme participants
Interest received
Benefits paid
Remeasurements:
Return on plan assets (excluding interest
income)
Assets other remeasurement		 Defined benefit
pension plans
2023
2022
£
£
15,899,000
14,450,000
176,000
197,000
28,000
37,000
429,000
318,000
(227,000)
(182,000)
(938,000)
1,079,000
219,000
-
15,586,000
15,899,000

continued...

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Action Housing And Support Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

20. EMPLOYEE BENEFIT OBLIGATIONS - continued

The amounts recognised in other comprehensive income are as follows:

Actuarial (gains)/losses from changes in
demographic assumptions
Actuarial (gains)/losses from changes in
financial assumptions
Oblig other remeasurement
Return on plan assets (excluding interest
income)
Assets other remeasurement		 Defined benefit
pension plans
2023
2022
£
£
(686,000)
-
8,655,000
478,000
(1,525,000)
(55,000)
(938,000)
1,079,000
219,000
-
5,725,000
1,502,000

The major categories of scheme assets as amounts of total scheme assets are as follows:

Equities
Government bonds
Property
Cash/liquid		 Defined benefit
pension plans
2023
2022
£
£
10,598,000
10,494,000
3,585,000
3,816,000
1,247,000
1,430,000
156,000
159,000
15,586,000
15,899,000

Principal actuarial assumptions at the balance sheet date (expressed as weighted averages):

2023 2022
Rate of inflation 3.30% 3.10%
Rate of increase in salaries 3.55% 4.20%
Rate of increase in pensions 2.95% 3.20%
Discount rate 4.75% 2.70%

continued...

Page 33

Action Housing And Support Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

20. EMPLOYEE BENEFIT OBLIGATIONS - continued

Mortality assumptions

The current mortality assumptions include sufficient allowance for future improvement in mortality rates. The assumed life expectations on retirement aged 65 are:

2023
Retiring today/current pensioners
Males
20.5
Females
23.7
Retiring in 20 years/future pensioners
Males
21.5
Females
25.2
Amounts recognised in the income and expenditure account:
2023
Current service cost
(146,000)
Effect of curtailment or settlements
-
Past service cost
-
Net interest cost
(103,000)
Administrative costs
-
(249,000)
Amounts recognised in the statement of total recognised gains and losses:
2023
Actuarial gains / (losses)
5,725,000		 2022
22.6
25.4
24.1
27.3
2022
(201,000)
-
-
(115,000)
-
(316,000)
2022
1,502,000

Page 34

Action Housing And Support Limited

Notes to the Financial Statements - continued for the Year Ended 31 March 2023

21. CAPITAL FUNDING AND COMMITMENTS

Prior to the year end, Action Housing and Support Ltd were contracted to capital expenditure amounting to £235,917 (2022: £Nil) which was not provided for in the financial statements. This is disclosed net of any funding which will be received.

22. RELATED PARTY DISCLOSURES

WINTAI Services Ltd was engaged to provide a statutory data protection service and also data protection consultancy services. A Director of WINTAI Services Ltd is a family member of Atholl Stott, the CEO. Fees for this work totalled £1,188 (2022: £2,023). At the year end, the balance owed to WINTAI Services Ltd was £Nil (2022: £Nil).

Niall Macpherson Property Services, owned by Niall Macpherson, a Trustee, provided technical consultancy services, to review the property portfolio for impairment. Fees for this work totalled £1,500 (2022: £1,650), which are included in accruals.

An annual membership fee was paid to Women in Social Housing (WISH). WISH was engaged to provide management training which was contracted out to Compassionate Leaders. Helen Greig, a Co Opted Trustee, was the Managing Director of WISH and resigned from wish on 31 January 2022. Fees for annual corporate membership totalled £996 in the 2022 financial year.

Hill Dickinson LLP provided professional services to the association during the year. Paula Warnock, a Trustee, is a partner at Hill Dickinson LLP. Fees for this work totalled £16,988 (2022: £800) and the year end balance was £Nil (2022: £Nil).

This page does not form part of the statutory financial statements

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