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2021-03-31-accounts

Financial Statements for the year ended 31 March 2021

Outward Housing

Company no. 02151434 Registered charity no. 800529

Contents

The Board and professional advisors ................................................................................................................................................................................................3 Trustees’ Annual Report ....................................................................................................................................................................................................................................4 Strategic Report .........................................................................................................................................................................................................................................................15 Independent Auditor’s Report ..................................................................................................................................................................................................................17 Statement of financial activities ..............................................................................................................................................................................................................21 Balance sheet .............................................................................................................................................................................................................................................................22 Statement of cash flows ................................................................................................................................................................................................................................23 Notes to the financial statements ......................................................................................................................................................................................................24

2 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

The Board and professional advisors

Company number: 02151434 Charity number: 800529

Registered office and operational address

Newlon House 4 Daneland Walk Hale Village London N17 9FE

Trustees

Trustees, who are also directors under company law, who served during the year and up to the date of this report were as follows:

Jackie Ballard Chair Alan McNab Vice-chair

Michael Anderson Treasurer, resigned 10 March 2021

Nicola Bastin Newlon Housing Trust Nominee Appointed 16 December 2020

Key management personnel

Peter Little, Chief Executive and Secretary.

Directors

Nicky Boland Director of Business Development

Katerina Gutheim Director of Care and Support

Deborah Hammond Director of Human Resources

Salman Rao Director of Supported Housing Resigned 31 March 2021

Lindy Shufflebotham Director of Care and Support (maternity leave cover)

Peter Little is employed by Newlon Housing Trust and 95% of the costs are charged to Outward Housing.

Financial and Information Technology services are purchased from Newlon Housing Trust under service level agreements.

Maria Grogan Newlon Housing Trust Nominee Resigned 16 December 2020

Shelley Joyce

Eilish Kavanagh Treasurer

Zahra Maye Katherine Myers-Smith Resigned 2 December 2020

Joyce Saunds Carol Tilbury

Other trading styles

Bankers

Barclays Bank PLC Business Service Team Level 28 1 Churchill Place London E14 5HP

Solicitors

Devonshires 30 Finsbury Circus London EC2M 7DT

Auditors

BDO LLP 2 City Place Beehive Ring Road Gatwick West Sussex RH6 0PA

Nutley Edge Cottages

Websites

www.outward.org.uk www.nutleyedge.org.uk

3 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Trustees’ Annual Report for the year ended 31 March 2021

The Trustees present their report and the audited financial statements for the year ended 31 March 2021.

Reference and administrative information set out on page 3 forms part of this report. The financial statements comply with current statutory requirements, the memorandum and articles of association and the Statement of Recommended Practice – Accounting and Reporting by Charities: SORP applicable to charities preparing their accounts in accordance with FRS 102.

Objectives and activities

Purposes and aims

In 1975 a group of parents and professionals in Waltham Forest first got together to find a way for people with learning disabilities to live outside institutional care. At the time, before “care in the community”, this was a radical way of thinking, and is where the name ‘Outward’ comes from; living ‘out of the wards’, in local communities.

Outward Housing’s (Outward) purpose, as set out in our Memorandum of Association, is: “to provide housing, education, support and care to persons in necessitous circumstances, including people with learning disabilities, people with mental health problems and older people, on appropriate terms in accordance with their individual needs and in any way that is charitable in law.”

The main activities undertaken by Outward in relation to this purpose and for the public benefit are:

We provide services to people living in the community who may be vulnerable by nature of their age, disability, life circumstances or mental health and sometimes compounded by physical disability.

The Trustees review the activities that Outward has brought to those groups of people that it is set up to help, as set out in its aims and objectives. The review helps the Trustees to ensure that Outward’s aims, objectives and activities remain focussed on its stated purposes.

The Trustees have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing Outward‘s aims and objectives and in planning its future activities. In particular, the Trustees consider how planned activities will contribute to the aims and objectives that have been set.

Achievements and performance

Outward’s charitable activities are described below. All its charitable activities focus on improving people’s independence and life opportunities and are undertaken to further Outward’s charitable purposes for the public benefit.

Throughout 2020/21, Outward has delivered essential support and care services to 813 people with support needs including people with learning disabilities, autism, mental health issues, young people at risk and those who require support due to age (2020: 1,148). The reduction results from the ending of a volunteering and befriending contract and restrictions during the pandemic.

We have provided this support across ten London boroughs and from our Nutley Edge site in East Sussex, enabling people to maintain and increase their independence and social engagement and crucially, throughout 2020 and 2021, to keep people we support safe and healthy during a global pandemic.

4 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Trustees’ Annual Report for the year ended 31 March 2021

In 2020/21 our work has been focused on managing the COVID pandemic which had a huge impact on Outward and the social care and charitable sector generally. We are immensely proud of our amazing, committed and caring colleagues, especially our front-line support staff and managers who have worked tirelessly during COVID to keep people we support and the houses in which our services are based safe.

Throughout the year we had to quickly adapt to the changing world of the pandemic and respond quickly and effectively to, at times, unclear and contradictory government guidance, to keep our staff and the people we support safe.

Like the rest of the world we have had to adapt to the new reality, introducing zoom meetings to replace actual meetings, training and for 121 staff supervision and enabling the people we support to maintain much needed contact with their families and friends. We introduced Workplace to improve communication across the organisation, to share ideas and to keep staff in touch with each other.

Personal Protective Equipment (PPE) suddenly became a major issue in March 2020. We acted quickly to find new suppliers and committed whatever resources were necessary to ensure we maintained the required stock of PPE throughout the pandemic. We succeeded in maintaining good stock levels and continue to do so to ensure our staff are able to do their jobs safely. Across our services we have now introduced COVID testing regimes and are now positively encouraging all our staff to be vaccinated as well as the people we support.

Over the last year our staff have been really successful in coming up with creative ideas and solutions to improve the lives of the people we support where so much of people’s lives had been “closed down” including introducing zoom activities and social events, recruiting volunteers as phone befrienders and household activities such as ‘come dine with me’ and video diaries of their lockdown experiences.

To enable us to deliver these solutions safely we reviewed our safeguarding policy and developed a detailed COVID risk assessment and continuity plan, which we reviewed regularly throughout the pandemic to ensure we could continue to deliver essential services to the people we support.

We recognised that our respite activity breaks, which we operate from our holiday complex at Nutley Edge in East Sussex, would be in great demand from families and their loved ones with a learning disability or autism after long lockdown periods where people living at home with family had their usual support systems and activities stopped. This put great pressure on families and hugely impacted people’s mental wellbeing and feeling of isolation.

Funding from the Coronavirus Community Support Fund, distributed by The National Lottery Community Fund, helped us to run six COVID secure respite breaks and fund places for eight people who otherwise couldn’t afford to attend and whose wellbeing had been significantly impacted by COVID. We would like to thank the Government and very generous individual donors for making this possible.

One family, whose son attended one of these breaks told us: “Thanks again for giving M such a tremendous holiday. He came back so animated and happy. It was brilliant to see as he is generally very shy and anxious, particularly after lockdown. I am sure it has done wonders for his confidence and self-esteem and has given us so much confidence too.”

The National Lottery Community Fund also generously provided a second donation at the end of the year. This will ensure that we can offer activity breaks in 2021/22 for people whose wellbeing continues to be hugely impacted through the extended, long-term lockdowns and restricted re-opening of community support services.

Despite the challenges faced by the pandemic we are proud to have also achieved a number of our planned business targets and charitable activities.

In late 2019 we made a decision to invest in developing our fundraising capacity focused initially upon charitable trusts. We will seek to fund activities which the people we support tell us they value greatly and will make a considerable difference to their physical health and wellbeing but for which to-date we have received no funding. We have seen the impact we can make and the value we can bring to people

5 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Trustees’ Annual Report for the year ended 31 March 2021

in need with additional non-statutory funding. Therefore we worked in partnership with Astarita, Aldrich & Ward (AAW) to develop our fundraising strategy and recruit an interim fundraising manager to support our efforts in 2021/22. All charitable funds raised will be ring fenced to ensure they are not used to subsidise statutory activities but to provide added value services.

Growing support and care services and new operations during the last year was certainly not easy. However we did open two new supported living schemes and although moving people in was very difficult, with many delays, we now have these schemes up and running and we are concentrating on supporting people moving into the remaining empty flats. We have successfully tendered to be included in supported living frameworks in Tower Hamlets and Waltham Forest and opened a new spot purchased supported living scheme for young people.

Throughout the year we also ensured our services continued to deliver high quality care and this was evidenced through achieving and retaining CQC rating GOOD in all registered services.

Performance monitoring

Key Performance Indicators (KPIs) are set each year to ensure we can measure the achievement of our business plan aims and evidence that we are successfully mitigating the risks we face. These high level KPIs are supported by a subset of clear performance indicators, all of which are monitored and validated regularly.

In 2020/21 areas of performance identified as below target included:

Role of our volunteers

The volunteers Outward recruit and support bring great value to the local community. Often local people, with excellent knowledge of the resources and opportunities available to people in their communities, our volunteers provide a befriending and supportive role. Knowing that someone is giving their time for free and not for paid reward means that the people we support appreciate volunteers greatly as they have the time and space to build a friendship. The volunteers we recruit to assist existing service users of Outward provide a very valuable role. Volunteers assist people we support to try new activities such as sports or hobbies where statutory funding simply doesn’t stretch as it is mainly focused on meeting ‘physical care’ needs. They also facilitate social meetings to help bring people together and assist in running some group events such as theatre groups, music and art workshops. During the pandemic our amazing volunteers have been a great assistance offering phone calls to people to reduce their isolation, setting up activities calendars and social events on zoom. We are so grateful for their time and commitment during such a difficult year.

Financial review and reserves policy

Outward made a net operational surplus of £802,334 (2020: deficit £99,808), on a turnover of £18,274,755 (2020: £18,063,756). The revaluation gain on investments and property fixed assets was £507,890 (2020: Loss £165,909) and loss on accounting adjustments of Social Housing Pension Scheme (SHPS) liability was £494,751 (2020: Gain £654,244) which give a net movement in funds for the year of £815,474 (2020: Gain £388,527).

Inclusive of valuation adjustments, balance sheet net worth is £7,671,371 (2020: £6,855,897) including a cash holding of £5,397,035 (2020: £5,230,872) with a strong current ratio of 3.69 (2020: 3.45).

6 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Trustees’ Annual Report for the year ended 31 March 2021

As a care and support provider most of our income is provided by local authorities, either through care/ supported living/outreach contracts and housing benefit, or indirectly through direct payments from local authorities to people we support for statutory services. Care and support contract income by borough is provided in note 3 to these financial statements and amounts to 68% (2020: 70%) of the total income.

During the year we were grateful for funding passed through many of the local authorities with whom we work and the supply of personal protective equipment throughout the year in response to the pandemic.

At the start of 2020 we set out a three-year strategy to ensure all our staff were paid at no less than the London Living Wage. It is pleasing to report that during the year two more boroughs uplifted contract funding to enable our staff working in those boroughs to be paid the London Living Wage and others agreed above inflation uplifts to contractual rates.

Outward takes a risk-based approach to reserves so that the Trustees intend to hold a level of unrestricted free reserves (i.e.. excluding fixed assets) sufficient to meet the estimated financial impact of the most significant risks identified, provide reasonable flexibility and enable Outward to operate smoothly in the case of unforeseen circumstances.

The restricted fund is to ensure donations and grants intended for specific charities or causes are not used for other purposes. Unrestricted reserves are available to use as the Trustees see fit.

At 31 March 2021, unrestricted reserves were £7,637,165 of which £3,363,428 is represented by fixed assets, leaving £4,273,737 of unrestricted free reserves, representing 3 months of unrestricted expenses. Of this amount, Trustees have designated funds for planned purposes totalling £2,300,000, as shown in Note 20 to these accounts. The Trustees are confident the unrestricted free reserves level provides the organisation with reasonable financial flexibility and stability and contribute to longer-term sustainability. The Trustees review the level of reserves annually and may decide to adjust the policy level to ensure that the unrestricted free reserves kept are not insufficient nor excessive.

Financial risks and exposures

Outward continues to provide successfully its charitable services despite ongoing funding constraints and contract variations by diversifying the nature of the care and support services it provides over a variety of beneficiary groups spanning nine London boroughs.

Outward’s Board delegates oversight of financial performance and associated risk to an Operations Committee who meet quarterly in advance of Board meetings and feed back to the Board. The remit of the Operations Committee is reviewed regularly and includes operational, working capital and treasury financial performance as well as key performance indicators of service performance, efficiency and quality as standing agenda items.

Policies such as treasury management, insurance cover and delegated authorities, as part of Standing Orders are also reviewed regularly as is the risk register and the application and success of mitigating actions identified in the risk register. Additionally, Outward uses the services of a third party internal audit service, which also reports to the Newlon Group Audit & Risk Committee.

Outward continues to be an employer member of the Social Housing Pension Scheme (SHPS) and levels of reserves are exposed to material fluctuations in the valuation of Outward’s liability to the SHPS scheme. The Trustees consider that all cost effective mitigations available have been taken over the last fifteen years and continue to work with professional advisers to identify any further mitigating actions. However the Trustees recognise a material risk remains with former employees of Outward continuing to benefit from the scheme with pensions or deferred pensions, currently for the next approximately forty years.

Outward has been able to maintain cash flow with prudent treasury management and has built up sufficient cash reserves over the years to satisfy working capital requirements and risks and/or

7 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Trustees’ Annual Report for the year ended 31 March 2021

investment in charitable services.

Over the years of HM Government austerity policies financial performance had been challenged by frozen or reduced income rates and a general fragmentation of contracts and transfer of void property risks in our care and support contractual arrangements. This, in turn, impacted upon our ability to recognise and reward our staff. Progress, better than expected, was made during the year in reversing this trend.

Impact of COVID-19

Like all charities Outward was impacted by the COVID-19 pandemic from March 2020 and had to interpret and apply changing guidelines and the increasing and relaxing of the various lockdowns, primarily to keep people we support and staff safe. The main operational impacts were the suspension of a few services, severe reduction in activity breaks, reverting to the use of telephone to maintain contact with the people we support, staff sickness through symptoms, shielding or isolation, additional other costs, in particular PPE and a delay in tenanting some properties and implementing business plan objectives together with diversion of management and administrative time.

The financial impact was mitigated by local authorities passing on funds made available to them under various Government initiatives although this did not extend to funding lost rent and service charges where COVID restrictions resulted in delays in nominations and tenanting.

The Outward Board, in agreeing its revenue budget for 2020/21, made a £250,000 provision for the impact of COVID-19 with the eventual out turn loss due to pandemic restrictions being within the provision made.

Plans for the future

Outward’s new three year strategy ‘Our Three Year Plan 2020–2023’ was drafted in early 2020 but put on hold while we focused our resources and attention to managing the impact of COVID-19 on our support, care and housing services. Outwards Trustees approved the four key priorities of our plan, which, together with our 2021/22 business plan will guide our business in the coming year.

We will review our new strategy in full during 2021/22 when we hope to be coming out of the pandemic and know more about its longer term effects on the people we support and how our services may need to adapt and flex to meet changing needs.

Our key strategic priorities remain as:

  1. Delivering outcomes with the people we support

  2. Recruiting and retaining good staff

  3. Managing our resources and improving financial viability

4. Communicating well

Our primary aim for 2021/22 is to deliver positive outcomes with, and for, the people we support – to achieve this we need to recruit and retain the best quality staff who are well trained and able to communicate and coproduce with the people we support and their involved networks.

8 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Trustees’ Annual Report for the year ended 31 March 2021

1. Delivering Outcomes with the people we support

This begins with keeping people safe through testing, infection control, good communication and promoting and supporting the vaccination programme.

We will be working with every individual we support to review their support and care plans to identify their new personal goals and how these can be achieved in the emerging circumstances. We are concerned about the impact of the last year on people we support and colleagues in regard to their health and wellbeing and so we will be implementing projects to ensure people can access the health services they require and to assist people to adopt healthier lifestyles.

We will, in the coming year, invest in developing fundraising focused upon charitable trusts and foundations to fund expansion and new activities which the people we support tell us they value through goal setting and consultations. These new activities will be vital post COVID to getting people back as active citizens in their communities and re-engaged with others, reducing isolation. These include:

All charitable funds raised will be ring fenced to ensure they are not used to subsidise statutory activities but to provide added value services.

Over the last year we have further developed our positive behaviour support programme and next year, with commissioned external psychological support, will be improving our ability to support people who have most difficulty in engaging positively with services and who are most in need of community based homes and support.

2. Recruiting and retaining good staff.

Our plans are reliant on the recruitment and retention of good staff, and we remain firmly committed to improving how we reward our staff and, in particular, our front line staff.

We will continue to travel in the direction towards paying our front line staff at least the LLW, we accept this does not mean we can pay all our staff the London Living wage in 2021/22 but those on the lowest wages will get an above inflation pay rise to move closer to the LLW and further away from the National Living Wage.

In the last year we have had success in recruiting a more diverse workforce and we will be looking to further improve our recruitment and induction to ensure we reap the benefits from the wider pool of people considering working in care and support.

We will invest in learning and development in the coming year, developing our management teams to improve the support we offer our new staff.

3. Managing our resources and improving financial viability

For a number of years we have lived with contracts that were becoming less financially viable and presented increasing problems with sustainability. In 2021/22 we will be following up on the progress we have made to ensure the funding rates we receive for statutory services sustain those services without subsidy from Outward or we will exit them.

This will present challenges to us as in the short term we are seeing our turnover being static and we even risk it being reduced. We are looking at how we control overheads and central costs – in the coming year we will be scaling down our footprint and costs in the Group office and will be reviewing SLA Group costs to Outward to reflect this position.

9 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Trustees’ Annual Report for the year ended 31 March 2021

We know we have innovative and successful models of housing and service delivery and we will work with Newlon Housing Trust to develop a future programme of supported housing development that is in demand. The good news is that Newlon Housing Trust has confirmed its ongoing commitment to delivering supported housing as a significant part of its development programme. We plan to grow our outreach and ASD services having brought these into one area of operation with our community based services.

4. Communicating well

The last year has certainly presented significant challenges to how we can communicate effectively both within Outward and externally. In response to this we have invested in improved connectivity and equipment in our services to allow our staff and people we support to access information and keep in touch with those important to them.

The adoption of Workplace and Zoom has been a major part of our response to these demands. In the coming year we will increase our use of Workplace and Workchat looking to enable staff to use their own devices to access this platform.

We will be revisiting how we support people and their families to use iplanit to identify and report on goals and set the actions needed to achieve these with assigned staff and timeframes.

A major project for us going forward will be transferring to Office 365, in particular we see adopting Teams will improve internal communications and complement our use of Workplace.

Finance and growth

During the year care and support contracts in LB Camden were ended. On the positive side Outward opened a new service in Hackney and we worked closely with Hackney, dedicating some of our void homes, short-term to house the homeless during the first lockdown and in the summer of 2021 a further eight homes will be ready to house young adults in Hackney.

Despite the unprecedented conditions during 2020/21 income grew slightly and most services were maintained.

Our plans for the next two years require us to ensure we work with local authorities and other funders who will fund care and support contracts sufficiently and who recognise and fund front-line salaries at least at the London Living Wage. While we will always work towards expanding the number of people we can support this must be done in a financially viable way.

We are a specialist supported housing provider and our access to and ability to manage supported housing continues to provide us with real opportunities to develop housing based support services for a range of our customers. We will work with Newlon Housing Trust to continue reconfiguring existing properties and to develop new supported housing schemes. Rents will uplift, under the Government formula, from October 2021 to September 2022.

Our holiday cottages at Nutley Edge were supported by a hotel and leisure grant in the early stages of the pandemic and from the waiver of business rates. Demand for these cottages is now strong, supported by the move to ‘staycations’.

We are grateful to the LB Hackney for their ongoing support for our popular Hub Club service, set up as a cost effective alternative to traditional day centres which was unable to operate during the pandemic restrictions.

The revenue and capital budget for 2021/22 is set a surplus and funds have been set aside to invest in our IT infrastructure.

10 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Trustees’ Annual Report for the year ended 31 March 2021

Structure, governance and management

Outward is committed to sound corporate governance, and although not a registered provider, has adopted the National Housing Federation (NHF) Code of Governance 2015 and Code of Conduct 2012. The Board reviews compliance with the NHF Codes annually and confirms that Outward is compliant with both the NHF Code of Governance and Code of Conduct in 2020/21.

The organisation is a charitable company limited by guarantee, incorporated on 29 July 1987 and registered as a charity on 5 December 1988, and is a separate legal entity with its own governance structure within the Newlon Group.

Outward operates under memorandum and articles of association. The memorandum of association establishes Outward’s principal objective of providing care and support to vulnerable people to help them lead meaningful and independent lives, and to transition them to reduced levels of support wherever possible. The articles of association then govern the powers under which Outward must operate.

Outward receives no financial support from Newlon Housing Trust which in itself is a not for profit Community Benefit Society and a charitable housing association or any of the Newlon Group companies. Intra-group transactions and activity with Newlon are transacted at commercial equivalent rates and are governed by a formal intra-group agreement with Newlon Housing Trust that sets out the rights and responsibilities of both parties. Day to day operating arrangements and day to day control is exercised through the intra-group agreement. Outward does not trade with any other members of the Newlon Group.

Newlon Housing Trust has the right to appoint and remove Outward Board members, has 51% of voting rights at General Meetings and is a Member of Outward Housing. There is reciprocal representation on the Board of Trustees with Newlon Housing Trust.

We seek to ensure that Trustees, as far as possible, represent the diversity of those communities we serve, and have the range of experience, technical know how and professional skills required by Outward.

Potential new board members are identified by various processes, including advertisement, recommendations and referrals. They are then invited to attend and observe one Board meeting prior to recommendation of formal appointment which are, where appropriate, approved by the Newlon Housing Trust Board. Appointments are for a period of three years and Trustees do not receive remuneration. Outward embraces its responsibility for good governance and provides induction, ongoing training and support to board members, including regular reviews of their contribution and training needs. All trustees give their time voluntarily and receive no benefits from Outward.

Any expenses reclaimed from Outward are set out in note 8 to the financial statements.

The Board has an Operations sub-committee and a Remuneration sub-committee. Appropriate delegations are made to the Operations Committee. The Committee reports back to the Board, and minutes of Committee meetings are circulated to Board members. People we support’s views are represented at Board. The Remuneration sub-committee monitors trends in pay and rewards and makes specific recommendations to the Board concerning pay proposals.

The Executive Team meet regularly and are under the responsibility of the Chief Executive who, in turn, is accountable to the Board. The Executive Team are those post holders with functional responsibilities as listed in page 3 of this report.

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Trustees’ Annual Report for the year ended 31 March 2021

Related parties and relationships with other organisations

Outward works closely with a number of Newlon Group members, principally providing the intensive housing management service for the Newlon Group under a formal agreement. A formal agreement also exists for Outward’s use of the office building at Tottenham Hale, owned by Newlon Housing Trust.

Outward buys Finance, IT and reception services from Newlon Housing Trust. Outward also works collaboratively with Newlon Housing Trust’s Business Development team to develop new housing for supported housing tenants and on joint procurement exercises.

Remuneration policy for key management personnel

Remuneration for key management personnel is monitored by the Remuneration sub-committee and typically reviewed and determined with regard to current market rates and benchmarked against comparable industry salaries, with the objective of attracting, retaining and motivating personnel; ensuring consistent and stable management of services.

Policy for employment of disabled persons

Outward is committed to a positive policy of equal opportunities and diversity. We uphold our belief in a society in which every person has a fair and equal place, by seeking to ensure that there is total equality in all of the functions of the organisation and in the delivery of its services, integrating equality opportunity into all of our activities and actively opposing discrimination and prejudice in all forms. We recruit, train and promote on the basis of ability, and ensure that all members of the community have access to and equal treatment in the provision of our services. A programme of unconscious bias training has been commissioned.

Employee engagement

This year members of the Outward Executive Team have had limited opportunities to attend service and departmental team meetings for consultation purposes because of pandemic restrictions.

Whilst Outward has continued to deliver care and support services throughout the COVID-19 pandemic non-essential physical meetings have been replaced with conference calls and remote meetings that have enabled the organisation to continue to engage with staff either working from home or working in services. A schedule of daily calls related to COVID 19 concerns has now been reduced to an “as and when required” arrangement as focus has been more heavily tilted towards vaccination rather than high infection levels.

Previously Union representatives attended Board meetings but during the year the Union has become moribund due to staff turnover. We are in the process of replacing the role of the Union with arrangements for engaging with staff via Work Place and considering how this new type of engagement will feed into future Board meetings and influence the organisational Training and Development programme. A plan for engaging with staff around their post COVID 19 health and wellbeing is being undertaken in conjunction with a group of university health psychology students.

Statement of responsibilities of the Trustees

The Trustees are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the Trustees to prepare financial statements for each financial year in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the 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 Outward, and of the incoming resources and application of resources, including the income and expenditure, of Outward for that period.

12 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Trustees’ Annual Report for the year ended 31 March 2021

In preparing these financial statements, the Trustees are required to:

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

Trustees’ statement of internal control

The Trustees recognise that no system of internal control can provide absolute assurance against financial misstatement or loss or eliminate all risk. The system of internal control is designed to manage risk and to provide reasonable assurance that key business objectives and expected outcomes will be achieved. It also exists to give reasonable assurance about the preparation and reliability of financial and operational information and the safeguarding of Outward’s assets and interests.

The Trustees receive a detailed report on Internal Controls Assurance to the Group Audit and Risk Committee prepared by the Chief Executive. As a result of the consideration of this report the Board is prepared to make the following statement.

The Trustees confirm that there is an ongoing process for identifying, evaluating and managing the significant risks faced by Outward. This approach has operated throughout the year under review up to and including the date of approval of the annual report and accounts.

Key elements of the control framework that are established by the Outward Housing Board are:

Additional controls included within the Newlon Group internal control framework are:

13 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Trustees’ Annual Report for the year ended 31 March 2021

Auditors

BDO LLP were reappointed as Outward’s auditors during the year and have expressed their willingness to continue in that capacity.

The Trustees’ annual report which includes the strategic report has been approved by the Trustees on 30 June 2021 and signed on their behalf by

Jackie Ballard

Chair

Date: 30 June 2021

14 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Strategic Report for the year ended 31 March 2021

Financial context

Our geographical coverage has grown considerably, starting from Waltham Forest and then Tower Hamlets, to the current nine boroughs. Waltham Forest remains our biggest serviced borough amounting to 29% (2020: 28%) of total care and support income. Our contracts in Camden came to an end in September 2020 but continue to expand in Hackney.

Outward continues to maintain a range of services and customers, highlighted in the achievements and performance section allowing it to absorb the impact of a potential loss of a funder or customer group. Outward is building services that can be marketed on Outward terms rather than at local authority tendered or framework prices.

By 2020/21 it was viewed not appropriate to concede any further funding cuts, which impacted upon Outward’s ability to recruit, retain and recognise the valuable services our support workers and other staff provide. During our plan period 2020–2023 we plan to move all staff to at least the London Living Wage. In 2020/21 we were able to do this in two more boroughs and are now working to achieve this in the remaining two boroughs.

Our balance sheet and ratios remain strong buoyed by increased valuations of our fixed asset and commercial properties. Conversely the accounting valuation of our share of the deficit in the Social Housing Pension Scheme increased significantly at March 2021. We await the outcome of the actuarial valuation of the scheme, expected to be published in the autumn of 2021.

From May 2021 we are investing in fundraising activity to seek funds for non-statutory services including expanding our activity breaks and funding people who could not otherwise afford to attend our breaks to benefit from them.

Service provision and pricing is only one of a range of possible operational and strategic risks potentially impacting upon Outward.

Principal risks and uncertainties

Outward, in common with most organisations and in accordance with Newlon Group practice and procedures, has developed, regularly monitors and updates a risk register. The risk register identifies mitigating actions that are in place, or that are to be taken, to reduce or eliminate the identified risks. Residual risks are also assessed as to their potential impact. The risk register and mitigating actions were reviewed fundamentally during the year and were endorsed by the Board of Trustees in March 2021.

COVID-19 remains a risk and although it is expected there will be enduring changes to working patterns, particularly for non ‘front-line’ staff, further material disruption is not expected to our services.

To minimise potential risks through high redundancy costs we undertake exit strategies for services most at risk of decommissioning. Other service exits are usually covered under TUPE regulations.

Outward is a member of the Social Housing Pension Scheme and, in common with members of multiemployer defined benefit pension schemes, continues to look for ways to mitigate the ongoing risk of funding our share of scheme deficit liabilities. Longevity rates, inflation rates and movements in financial markets will have an impact on Outward’s exposure to this defined benefit scheme.

We manage 606 (2020: 630) tenancies over a wide range of property types on behalf of a number of landlords, principally Newlon Housing Trust. Due to the nature of some tenant groups, the levels of voids and rent arrears can be materially higher than in general needs tenancies. Work is being undertaken in some cases with Newton Housing Trust’s asset management team, to identify those properties making deficits and which require remodelling or returning to Newlon Housing Trust as they may no longer be suitable for supported housing. Together we are working to ensure the supported housing stock we manage is fit for purpose and will meet the future needs of our residents.

15 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Strategic Report for the year ended 31 March 2021

On our Risk Register we have categorised the risks we face in four key ongoing areas;

Financial: In addition to the risk associated with the defined benefit scheme given that we rely mainly on Health and Local Authority funding to deliver our services, after mitigation this remains a key area and high risk and our strategy will consider the approach of each local authority to sufficient funding, potentially leaving contracts which do not properly fund the services the people we support deserve and paying our staff at the London Living Wage.

People: for the delivery of our services we are dependent on people for staffing our services, our major task is to recruit and retain high quality care and support staff. This remains a major challenge in London and the South East and following mitigation including moving all our frontline staff to at least the London Living Wage in the medium term, we also believe this remains a high risk for us as it does for the whole sector.

Service delivery: it is essential to us that, as a charity, we deliver services that benefit the people we support and our residents. Given the risks in regard to the income we receive and the sector problems in recruiting, the right service delivery is challenging. It is only by ensuring we do not compromise on quality with our partners that we are able to maintain robust and effective quality assurance systems that we can reduce this risk. The feedback from the people we support, our stakeholders and our regulators clearly indicates we are successfully reducing the risks we face and continuing to deliver good quality services.

Health and safety: this is inherent in all we do, specifically in supporting vulnerable and disabled people to live as independently as possible. Outward has worked over the last year to ensure we are successfully meeting challenges in regard to health and safety.

Jackie Ballard

Chair

Date: 30 June 2021

16 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Independent Auditor’s Report to the members of Outward Housing

Opinion on the financial statements

In our opinion, the financial statements:

We have audited the financial statements of Outward Housing (“the Charitable Company”) for the year ended 31 March 2021 which comprise the statement of financial activities, the balance sheet, the cash flow statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

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

Independence

We remain independent of the Charitable Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions related to going concern

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

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

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

Other information

The Trustees are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditor’s report thereon. The other information comprises: the Trustees’ annual report and the Strategic 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

17 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Independent Auditor’s Report to the members of Outward Housing

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.

Other Companies Act 2006 reporting

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

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

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

Responsibilities of Trustees

As explained more fully in the Trustees’ responsibilities statement, the Trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Trustees determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Auditor’s responsibilities for the audit of the financial statements

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

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that

18 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Independent Auditor’s Report to the members of Outward Housing

an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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

Based on our understanding of the Charitable company and the sector in which it operates, we identified that the principal risks of non-compliance with laws and regulations related to the Charities Act 2011 and the Charities SORP (FRS 102), and we considered the extent to which non-compliance might have a material effect on the Financial Statements or their continued operation. We also considered those laws and regulations that have a direct impact on the financial statements such as compliance with the Companies Act 2006 and relevant tax legislation.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates.

Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the Directors and other management and inspection of regulatory and legal correspondence if any.

The audit procedures to address the risks identified included:

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

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

19 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Independent Auditor’s Report to the members of Outward Housing

Use of our report

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

Philip Cliftlands, Senior Statutory Auditor

for and on behalf of BDO LLP, Statutory Auditor

Gatwick, West Sussex, United Kingdom.

Date: 03 September 2021

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

20 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Statement of financial activities (incorporating an income and expenditure account) for the year ended 31 March 2021 Company no. 02151434

----- Start of picture text -----
2021 2020
Unrestricted Restricted Total Unrestricted Restricted Total
Note £ £ £ £ £ £
----- End of picture text -----

Note £
£
£
£
£
£
Income from:
Donations and legacies
2
Charitable activities
Rent
3
Service charges
3
Care and tenancy support
3
Investments
4
Other
5
Total income
Expenditure on:
Raising funds
6
Charitable activities
Rent
6
Service charges
6
Care and tenancy support
6
Other
6
Total expenditure
Net income/(deficit)
before net gains
on investments
Net gains/ (losses) on
investments
12
Net income/ (deficit)
before other recognised
gains and losses
7
Gains on revaluation of
fixed assets
11
(Losses)/gains
on defined benefit
pension schemes
18
Net movement in funds
Reconciliation of funds:
Total funds brought forward
Total funds carried forward		 126,803
9,581
136,384
16,505
-
16,505
3,322,646
-
3,322,646
3,209,676
-
3,209,676
2,300,427
-
2,300,427
2,124,703
-
2,124,703
12,266,619
-
12,266,619
12,498,986
-
12,498,986
224,420
-
224,420
193,037
-
193,037
24,259
-
24,259
20,849
-
20,849
18,265,174
9,581
18,274,755
18,063,756
-
18,063,756
-
-
-
-
-
-
3,527,596
-
3,527,596
3,292,809
-
3,292,809
2,071,887
-
2,071,887
2,386,708
-
2,386,708
11,703,730
-
11,703,730
12,348,007
-
12,348,007
159,627
9,581
169,208
136,041
-
136,041
17,462,840
9,581
17,472,421
18,163,565
-
18,163,565
802,334
-
802,334
(99,808)
-
(99,808)
438,168
-
438,168
(165,909)
-
(165,909)
1,240,502
-
1,240,502
(265,717)
-
(265,717)
69,723
-
69,723
-
-
-
(494,751)
-
(494,751)
654,244
-
654,244
815,474
-
815,474
388,527
-
388,527
6,821,691
34,206
6,855,897
6,433,164
34,206
6,467,370
7,637,165
34,206
7,671,371
6,821,961
34,206
6,855,897

All of the above results are derived from continuing activities. There were no other recognised gains or losses other than those stated above. Movements in funds are disclosed in note 20 to the financial statements.

The notes on pages 24 to 46 form part of these financial statements.

21 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Balance sheet as at 31 March 2021

Company no. 02151434

----- Start of picture text -----
2021 2020
Note £ £ £ £
----- End of picture text -----

Note £ £ £ £
Fixed assets:
Tangible assets
11
Investment properties
12
Investments
13
Current assets:
Debtors
14
Cash at bank and in hand
Liabilities:
Creditors: amounts falling due within one year
15
Net current assets
Total assets less current liabilities
Creditors: amounts falling due after one year
17
Net assets excluding pension liability
Defined benefit pension scheme liability
18
Total net assets
The funds of the Charity:
20
Restricted income funds
Unrestricted income funds:
Designated funds
Revaluation reserve
Pension reserve
General funds
Total unrestricted funds
Total charity funds		 1,768,844
5,397,035		 459,958
2,902,400
1,070		 1,788,998
5,230,872		 829,105
1,990,000
1,070
3,363,428
5,343,226		 2,820,175
5,106,507
7,165,879
1,822,653		 7,019,870
1,913,363
2,300,000
718,005
827,000
3,792,161		 1,752,477
648,282
436,000
3,984,932
8,706,654
208,282		 7,926,682
634,785
8,498,371
827,000		 7,291,897
436,000
7,671,371 6,855,897
34,206
7,637,165		 34,206
6,821,691
7,671,371 6,855,897

Creditors falling due within and after one year have been restated in the prior year to enable separate disclosure of a defined benefit pension scheme liability and a pension reserve.

Authorised and approved by the Trustees on 30 June 2021 and signed on their behalf by

Jackie Ballard, Chair Eilish Kavanagh, Treasurer

The notes on pages 24 to 46 form part of these financial statements.

22 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Statement of cash flows for the year ended 31 March 2021

----- Start of picture text -----
Note 2021 2020
£ £ £ £
----- End of picture text -----

£ £ £ £
Cash flows from operating activities
Net cash from operating activities
21
Cash flows from investing activities:
Dividends, interest and rents from investments
Purchase of fixed assets
Additions to investment properties
Net cash provided from investing activities
Change in cash and cash equivalents in the year
Cash and cash equivalents at the beginning of the year
Cash and cash equivalents at the end of the year
22		 24,259
(95,934)
(8,631)		 246,469
(80,306)		 20,849
(143,183)
(5,909)		 (556,654)
(128,243)
166,163
5,230,872		 (684,897)
5,915,769
5,397,035 5,230,872

The notes on pages 24 to 46 form part of these financial statements.

23 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Notes to the financial statements Year ended 31 March 2021

1. Accounting policies

a) Basis of preparation

Outward Housing is a charity incorporated in England and Wales under the Companies Act 2006. The registered office address is Newlon House, 4 Daneland Walk, Hale Village, London, N17 9FE. The financial statements have been prepared in accordance with Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2015) — (Charities SORP FRS 102), the Financial Reporting Standard applicable In the UK and Republic of Ireland (FRS 102) and the Companies Act 2006. These are the accounts of the individual Charity and are not consolidated.

Assets and liabilities are initially recognised at historical cost or transaction value unless otherwise stated in the relevant accounting policy or note.

b) Public benefit entity

Outward meets the definition of a public benefit entity under FRS 102.

c) Going concern

The Trustees consider that there are no material uncertainties about Outward’s ability to continue as a going concern. Outward coped well with the operational and financial challenges brought about by the pandemic restrictions and it is further considered only residual risks remain into 2021/22.

Expected cash flows have been forecast through to September 2022 and indicate a small net inflow of cash, further a range of stressed financial scenarios through to September 2022 has been prepared indicating that, even without further mitigation Outward would have funds to continue operating for at least four years.

The Trustees do not consider that there are any sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next reporting period. The fixed asset and investment properties were valued at 31 March 2021 and although there is some uncertainty in ongoing market conditions the Trustees have looked at the likelihood of a fall in property prices as part of the financial scenarios considered and there would need to be a fall of 30% to have a material impact on the investment properties. Therefore the Trustees do not consider the professional valuation to be an area of material uncertainty.

The outcome of the actuarial valuation of the Social Housing Pension Scheme is awaited and the Trustees consider Outward has sufficient resources to fund any increase in the current deficit repayment plan.

d) Income

Income is recognised when Outward has entitlement to the funds, any performance conditions attached to the income have been met, it is probable that the income will be received and that the amount can be measured reliably.

Income from government and other grants, whether ‘capital’ grants or ‘revenue’ grants, is recognised when Outward has entitlement to the funds, any performance conditions attached to the grants have been met, it is probable that the income will be received and the amount can be measured reliably and is not deferred.

Income received in advance of the provision of a specified service is deferred until the criteria for income recognition are met.

24 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

e) Donations of gifts, services and facilities

Donated professional services and donated facilities are recognised as income when the Outward has control over the item or received the service, any conditions associated with the donation have been met, the receipt of economic benefit from the use by the Charity of the item is probable and that economic benefit can be measured reliably. In accordance with the Charities SORP (FRS 102), volunteer time is not recognised. The Trustees’ annual report provides more information about volunteer contributions.

On receipt, donated gifts, professional services and donated facilities are recognised on the basis of the value of the gift to Outward which is the amount Outward would have been willing to pay to obtain services or facilities of equivalent economic benefit on the open market; a corresponding amount is then recognised in expenditure in the period of receipt.

f) Interest receivable

Interest on funds held on deposit is included when receivable and the amount can be measured reliably by Outward; this is normally upon notification of the interest paid or payable by the bank.

g) Fund accounting

Restricted funds are to be used for specific purposes as laid down by the donor. Expenditure which meets these criteria is charged to the fund.

Unrestricted funds are donations and other incoming resources received or generated for the charitable purposes.

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

h) Fundraising statement

Outward does not undertake widespread fundraising from the general public as defined by the Charities Act 2011 as ‘soliciting or otherwise procuring money or other property for Charitable purposes’. Any amounts receivable are presented in our accounts as ‘voluntary income’ and includes legacies and grants.

All fundraising activities are managed internally, without involvement of commercial participators or professional fund-raisers, or third parties and the daily management of such income is delegated to the Executive team, who are accountable to the Trustees.

Outward is not bound by any undertaking to any regulatory scheme. However, the Charity is a member of the Newlon Group and complies with the relevant codes of practice.

We have received no complaints in relation to our fundraising activities. Our terms of employment requires our staff to behave reasonably at all times. As we do not approach individuals for funds as such, we do not consider it necessary to design specific procedures to monitor such activities.

i) Expenditure and irrecoverable VAT

Expenditure is recognised once there is a legal or constructive obligation to make a payment to a third party, it is probable that settlement will be required and the amount of the obligation can be measured reliably. Expenditure is classified under the following activity headings:

25 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

Irrecoverable VAT is charged as a cost against the activity for which the expenditure was incurred.

j) Allocation of support costs

Resources expended are allocated to the particular activity where the cost relates directly to that activity. However, the cost of overall direction and administration of each activity, comprising the salary and overhead costs of the central function, is apportioned based on an estimate of the staff time attributable to each activity.

Where fixed assets have been revalued to market value, any excess between the revalued amount and the historic cost of the asset is recognised within the revaluation reserve in the balance sheet.

Support and governance costs are re-allocated to each of the activities on the following basis which is an estimate, based on demand for those support services:

Governance costs are the costs associated with the governance arrangements of Outward. These costs are associated with constitutional and statutory requirements and include any costs associated with the strategic management of Outward’s activities.

k) Operating leases

Rental charges are charged on a straight line basis over the term of the lease.

l) Tangible fixed assets

Items of equipment are capitalised where the purchase price exceeds £500. Depreciation costs are allocated to activities on the basis of the use of the related assets in those activities. Assets are reviewed for impairment if circumstances indicate their carrying value may exceed their net realisable value and value in use.

Where fixed assets have been revalued to market value, any excess between the revalued amount and the historic cost of the asset is recognised within the revaluation reserve on the balance sheet.

Depreciation is provided at rates calculated to write down the cost of each asset to its estimated residual value over its expected useful life. The depreciation rates in use are as follows:

26 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

m) Investment properties

Investment properties are measured initially at cost and subsequently included in the balance sheet at fair value. Investment properties are not depreciated. Any change in fair value is recognised in the statement of financial activities. The valuation method used to determine fair value is stated in the notes to the accounts

n) Investments in subsidiaries

Investments in subsidiaries are at cost.

o) Debtors

Trade and other debtors are recognised at the settlement amount due after any trade discount offered. Prepayments are valued at the amount prepaid net of any trade discounts due.

p) Cash at bank and in hand

Cash at bank and cash in hand includes cash and short term highly liquid investments with a short maturity of three months or less from the date of acquisition or opening of the deposit or similar account. Cash balances exclude any funds held on behalf of people we support.

q) Creditors and provisions

Creditors and provisions are recognised where Outward has a present obligation resulting from a past event that will probably result in the transfer of funds to a third party and the amount due to settle the obligation can be measured or estimated reliably. Creditors and provisions are normally recognised at their settlement amount after allowing for any trade discounts due.

Outward only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at amortised cost.

r) Pensions

Outward operates a pension scheme through Scottish Widows and the ‘auto enrolment’ pension scheme. Employer contributions are charged to resources expended as incurred. Outward also recognises liabilities for the current, deferred and pensioner members of a multi-employer Social Housing defined benefit pension scheme. Employer contributions are charged to resources expended as incurred. In addition, gains or losses recognising the discounted liability to fund past service deficits are recognised.

s) Judgements in applying accounting policies and key sources of estimation uncertainty

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

27 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

inflation, mortality, discount rate and anticipated future salary increases. Variations in these assumptions have the ability to significantly influence the value of the liability recorded and annual expense;

28 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

2. Income from donations and legacies

Donors 2021
2020
Unrestricted
Restricted
Total
Total
£
£
£
£
Legacy
Job Retention Scheme Grant
Other donations		 -
-
-
15,705
126,803
-
126,803
-
-
9,581
9,581
800
126,803
9,581
136,384
16,505

3. Income from charitable activities

----- Start of picture text -----
2021 2020
Unrestricted Restricted Total Total
£ £ £ £
----- End of picture text -----

£
£
£
£
Rent from tenants
Service charges from tenants
Sub-total for rent and service charges
London Borough of Bromley
London Borough of Camden
London Borough of Enfield
London Borough of Hackney
London Borough of Haringey
London Borough of Islington
London Borough of Newham
London Borough of Redbridge
London Borough of Tower Hamlets
London Borough of Waltham Forest
Activity breaks and other
Sub-total for care and tenancy support
Total income from charitable activities		 3,322,646
-
3,322,646
3,209,676
2,300,427
-
2,300,427
2,124,703
5,623,073
-
5,623,073
5,334,379
1,001,039
-
1,001,039
1,124,157
853,797
-
853,797
1,485,752
1,252,522
-
1,252,522
1,164,074
3,110,164
-
3,110,164
2,574,567
217,726
-
217,726
212,658
327,359
-
327,359
727,732
189,010
189,010
149,506
156,781
-
156,781
156,945
1,180,817
-
1,180,817
1,237,305
3,563,426
-
3,563,426
3,544,875
413,978
-
413,978
121,415
12,266,619
-
12,266,619
12,498,986
17,889,693
-
17,889,693
17,833,365

29 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

4. Income from trading activities

2021
2020
Unrestricted
Restricted
Total
Total
£
£
£
£
Hospitality and Leisure Continuity Grant
Nutley Edge accommodation
Private rent		 25,000
-
25,000
-
167,773
-
167,773
193,037
31,647
-
31,647
-
224,420
-
224,420
193,037

5. Income from investments

2021
2020
Unrestricted
Restricted
Total
Total
£
£
£
£
Interest received 24,259
-
24,259
20,849
24,259
-
24,259
20,849

30 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

6. Analysis of expenditure

----- Start of picture text -----
Charitable activities
Cost of Rent Service Care & Restricted Trading Governance Support 2021 2020
raising charges tenancy costs costs total total
funds support
£ £ £ £ £ £ £ £ £ £
----- End of picture text -----

Staf costs - 404,271 47,476 9,693,772 - 71,125 58,360 1,238,806 11,513,810 11,999,418
(Note 8)
Ofice rents - 1,000 - 60,555 - - - 86,461 148,016 220,193
Service - - 1,893,698 - - - - - 1,893,698 2,137,896
chargeable
costs
Tarif payments - 2,401,713 - - - - - - 2,401,713 2,313,098
to landlords
Bad and - 115,848 - 35,060 - - - - 150,908 32,224
doubtful debts
Other costs - 382,210 - 1,175,357 9,581 78,431 25,516 (306,819) 1,364,276 1,460,736
- 3,305,042 1,941,173 10,964,745 9,581 149,556 83,876 1,018,448 17,472,421 18,163,565
Support costs - 205,620 120,768 682,756 - 9,304 - (1,018,448) - -
Governance - 16,934 9,946 56,229 - 766 (83,876) - - -
costs
Total
expenditure - 3,527,596 2,071,887 11,703,730 9,581 159,627 - - 17,472,421 18,163,565
2021
Total
expenditure - 3,292,809 2,386,708 12,348,007 - 136,041 -- - - 18,163,565
2020

Of the total expenditure, £17,463,839 was unrestricted (2020: £18,163,565) and £9,581 was restricted (2020: nil). Support costs – other costs include and are reduced by £329,443 (2020: nil) following a review of prior years automated expenditure accruals that were identified as no longer required and written back. Revised controls will ensure material write backs are not required going forward.

31 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

Support costs comprise:

----- Start of picture text -----
2021 2020
£ £
----- End of picture text -----

£
£
Central costs
Human resources
Business development
Quality
Customer involvement
Directorate costs
Finance and IT services		 57,301
296,377
243,004
238,239
163,307
141,145
94,790
79,960
50,018
95,062
71,273
120,431
338,755
321,202
1,018,448
1,292,416

Central costs include and are reduced by £329,443 (2020: nil) following a review of prior years automated expenditure accruals that were identified as no longer required and written back. Revised controls will ensure material write backs are not required going forward.

7. Net (deficit)/income before gains and losses for the year

This is stated after charging:

----- Start of picture text -----
2021 2020
£ £
----- End of picture text -----

Financial services bought in 224,275 224,275
IT Support bought in 75,000 65,272
Operating lease rentals 55,405 55,368
Depreciation 69,201 80,299
Provision for doubtful debts and rent arrears 150,908 32,224
Auditors’ remuneration (excluding VAT):
Audit 11,250 10,700
Other services 1,589 5,227

32 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

8. Analysis of staff costs, Trustee remuneration and expenses, and the cost of key management personnel

Staff costs were as follows:

----- Start of picture text -----
2021 2020
£ £
Salaries and wages 10,183,979 10,115,937
Redundancy and termination costs 24,709 36,775
Social security costs 894,691 889,606
Employer’s contribution to defined contribution pension schemes 261,049 287,442
Operating costs of defined benefit pension schemes 26,233 24,002
Agency workers 123,149 645,655
11,513,810 11,999,417
----- End of picture text -----

The following number of employees received employee benefits (excluding employer pension costs) during the year between:

2021
No.		 2020
No.
£60,000 – £69,999 1 -
£80,000 – £89,999 1 1

Trustees consider those staff with material delegations of authority available to them to conduct operational activities as key management personnel. The total employee benefits including pension contributions of the key management personnel, comprising the Chief Executive and the executive team, were £369,509 (2020: £370,114). Within employee benefits, employers pension contributions of £17,865 were paid on behalf of five key management personnel (2020: £17,723) and five) into defined contribution schemes including the ‘auto enrolment’ scheme.

The Charity trustees were not paid nor received any other benefits from employment with the Charity in the year (2020: £nil). No Charity trustee received payment for professional or other services supplied to the Charity (2020: £nil).

Trustees’ expenses represent the payment or reimbursement of travel and subsistence costs totalling £nil (2020: £nil).

33 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

9. Staff numbers

The average number of employees (head count based on number of staff employed) during the year was as follows:

----- Start of picture text -----
2021 2020
No. No.
----- End of picture text -----

No.
No.
Rent
Service charges
Care and tenancy support
Support and trading activities
Governance		 13
17
1
2
431
438
22
23
1
1
468
481

The number of staff engaged in support and trading activities in the prior year comparator has been corrected and restated from 13 to 23 and for care and tenancy support from 448 to 438.

Staff numbers full time equivalent

Full time equivalent is based on a 38 hours working week. Staff teams comprise employees on both full time and part time contracts, staff who wish to work flexibly and, where necessary, agency workers. Staff may also work additional hours regardless of their contract status.

Including all contracted hours, additional hours worked by staff and hours worked by third party agency workers the average number of full time equivalent resources is 411 (2020: 480).

During the year charitable activities were supported by 250 hours of volunteer time (2020: 16,356 hours). A fuller description of the role played by volunteers is included within the Trustees’ report, however activities were severely curtailed by pandemic restrictions.

10. Taxation

The charitable company is exempt from corporation tax as all its income is charitable and is applied for charitable purposes.

----- Start of picture text -----
2021 2020
£ £
----- End of picture text -----

£
£
UK corporation tax for the year
The tax for the year difers to the standard rate of corporation tax applied
to profits before tax. The diferences are explained below:
Surplus for the year before tax
UK Corporation Tax at 19% (2020:19%)
Profit on non-primary purpose trading activities
Otherwise exempt charitable income
Current tax charge for the period		 -
-
815,474
388,527
154,940
73,820
67,533
3,536
(222,473)
(77,356)
-
-

34 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

11. Tangible fixed assets

----- Start of picture text -----
Freehold Reclassified Furniture and Furnishing Motor Total
property as investment equipment vehicles
property
£ £ £ £ £ £
----- End of picture text -----

£
£
£
£
£
£
Cost or valuation
At the start of the year
Reclassified in year
Additions in year
Disposals in year
Transferred to
investment property
Revaluation during the year
At the end of the year
Depreciation
At the start of the year
Reclassified in year
Charge for the year
Disposed in year
Transferred to
investment property
Revaluation during the year
At the end of the year
Net book value
at the end of the year
At the start of the year		 787,058
-
1,327,031
101,947
72,931
2,288,967
(457,058)
457,058
-
-
-
-
-
42,529
53,403
-
95,932
-
-
-
(101,947)
-
(101,947)
-
(499,587)
-
-
-
(499,587)
77,241
-
-
-
-
77,241
407,241
-
1,380,434
-
72,931
1,860,606
55,377
-
1,232,388
101,947
70,150
1,459,862
(27,689)
27,689
-
-
-
-
4,434
6,297
55,688
-
2,781
69,201
-
-
-
(101,947)
-
(101,947)
-
(33,986)
-
-
-
(33,986)
7,518
-
-
-
-
7,518
39,640
-
1,288,076
-
72,931
1,400,648
367,600
-
92,358
-
-
459,958
731,681
-
94,643
-
2,781
829,105

The freehold property Wood Street, London E17 comprised offices on the ground floor with accommodation above. During the year the upper floors were repurposed from social housing to privately rented flats, consequently the upper floor flats were reclassified as commercial properties.

The ground floor offices were valued at £367,600 as part of a composite building on an open market basis with an assumed rental yield of 6.5%, as at 31 March 2021 in a letter dated 29 April 2021 by an external firm Strettons Ltd. Strettons are RICS accredited valuers and undertook the valuation in accordance with the RICS Global Standards – 31 January 2020. The services of Strettons were procured in accordance with the Charity’s procurement procedures and the Trustees are satisfied of the independence of Strettons. On 28 August 2020 the RICS removed a requirement to include a material valuation uncertainty clause on certain properties and the valuation has been prepared on the basis of market conditions and evidence as at 31 March 2021.

The historical cost of the freehold property, including additions is £51,271. The net book value of the freehold property is £367,600 inclusive of land. Land with a value of £205,856 is included within freehold property and not depreciated.

All of the above assets are used for charitable purposes.

35 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

12. Investment properties

----- Start of picture text -----
2021 2020
£ £
----- End of picture text -----

£
£
Fair value at the start of the year
Additions
Reclassified during the year from freehold property fixed assets
Revaluation during the year
Fair value at the end of the year		 1,990,000
1,800,000
8,631
5,909
465,601
350,000
438,168
(165,909)
2,902,400
1,990,000

The fair value at the end of the year comprises three properties.

The leasehold property at Cedar Court, 267 Hainault Road, London E11 was valued at £350,000, on an open market basis, as at 31 March 2021 in a letter dated 23 April 2021 by an external firm Strettons Ltd. Strettons are RICS accredited valuers and undertook the valuation in accordance with the RICS Global Standards – 31 January 2020. The services of Strettons were procured in accordance with the Charity’s procurement procedures and the Trustees are satisfied of the independence of Strettons. On 28 August 2020 the RICS removed a requirement to include a material valuation uncertainty clause on certain properties and the valuation has been prepared on the basis of market conditions and evidence as at 31 March 2021.

The property was purchased in 2002 from a long lease of 999 years with 942 years now remaining. The historical cost of the leasehold property, including additions, is £168,274. Based on an expected life of 80 years accumulated depreciation would have been £42,068 giving a historic carrying value of £126,206.

The freehold holiday accommodation, at Nutley Edge in East Sussex was valued as at 31 March 2021 at £1,950,000, on an open market basis, as set out in a side letter dated 4 May 2021 by an external firm Avison Young (UK) Ltd, Leisure Division. Avison Young are RICS accredited valuers and undertook the valuation in accordance with the RICS Global Standards – 31 January 2020. The services of Avison Young were procured in accordance with the Charity’s procurement procedures and the Trustees are satisfied of the independence of Avison Young.

The property was purchased in 2012 was valued as a specialised property used for leisure purposes and method of valuation gave weighting to stabilised earnings, based on historic turnover and potential future turnover, at a capitalisation rate of 10.5% and to comparable local sales and properties offered for sale, in particular holiday complexes. On 28 August 2020 the RICS removed a requirement to include a material valuation uncertainty clause and the valuation has been prepared on the basis of market conditions and evidence as at 31 March 2021.

It was assumed the property has good title and is free from onerous or restrictive covenants and obligations, restrictions and statutory notices.

The historical cost of the Nutley Edge freehold property, including additions, is £1,904,884 including land valued at £92,390. Based on an expected life of 50 years accumulated depreciation would have been £362,499 giving a historic carrying value of £1,542,385.

During the year a freehold property in Wood Street, London E17, comprising two upper floor flats above offices previously carried as a fixed asset were repurposed from social housing to private rent and have been reclassified as a commercial property.

The offices continue to be classified as a property fixed asset. The flats were valued at £602,400 as part of the composite building, on an open market basis with an assumed rental yield of 6.5%, as at 31 March 2021 in a letter dated 29 April 2021 by an external firm Strettons Ltd. Strettons are RICS accredited valuers and undertook the valuation in accordance with the RICS Global Standards – 31 January 2020.

36 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

The services of Strettons were procured in accordance with the Charity’s procurement procedures and the Trustees are satisfied of the independence of Strettons. On 28 August 2020 the RICS removed a requirement to include a material valuation uncertainty clause on certain properties and the valuation has been prepared on the basis of market conditions and evidence as at 31 March 2021.

The historical cost of the upper floors at Wood Street, including additions, is £253,608 including land valued at £142,020 that is not depreciated. Based on an expected life of 50 years accumulated depreciation would have been £44,635 giving a historic carrying value of £208,973.

13. Investments

----- Start of picture text -----
|||| |---|---|---| |2021|2020| |£|£| |Cost at the start and end of the year|1,070|1,070|

----- End of picture text -----

Investments comprise 2 x £10 ordinary shares representing a 16.7% holding in Cedar Court Properties Ltd, a company incorporated in England registered company number 6821739, registered address Holford House, Holford Court, Heathcote Road, Swadlincote, Derbyshire, DE11 9BX.

14. Debtors

----- Start of picture text -----
2021 2020
£ £
----- End of picture text -----

----- Start of picture text -----
|||| |---|---|---| |Arrears of rent and service charges|494,018|356,372| |Trade debtors|370,709|712,183| |Prepayments|73,816|64,457| |Accrued income|415,829|156,278| |Other debtors|414,472|499,708| |1,768,844|1,788,998|

----- End of picture text -----

15. Creditors: amounts falling due within one year

----- Start of picture text -----
2021 2020
£ £
----- End of picture text -----

----- Start of picture text -----
|||| |---|---|---| |Trade creditors|310,693|220,010| |Rent in advance|376,251|317,682| |-|-| |Taxation and social security| |Other creditors|237,475|181,315| |Amounts owed to Group undertakings|217,622|217,690| |Accrued expenditure|618,481|886,386| |Deferred income|62,131|90,280| |1,822,653|1,913,363|

----- End of picture text -----

37 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

16. Deferred income

----- Start of picture text -----
2021 2020
£ £
----- End of picture text -----

£
£
Balance at the beginning of the year
Amount released to income in the year
Amount deferred in the year
Balance at the end of the year		 90,280
9,087
(90,280)
(9,087)
62,131
90,280
62,131
90,280

17. Creditors: amounts falling due after one year

2021
2020
£
£
Service charges refundable
208,282
634,785

Outward’s total future obligation to fund multi-employer defined benefit scheme deficit contributions is as follows for each of the following periods:

----- Start of picture text -----
2021 2020
£ £
----- End of picture text -----

£
£
Less than one year
Two to five years
More than five years		 121,126
118,751
705,874
317,249
-
-
827,000
436,000

18. Pension schemes

Outward Housing participates in the multi-employer Social Housing Pension Scheme and also makes available a defined contribution scheme, to certain staff where employer contributions match those of the employee and are progressively in the range of 5% to 7%.

Those staff who are not otherwise members of a pension scheme are enrolled automatically into a defined contribution scheme also offered by the Social Housing pension scheme. Employer and employee contributions were set at 3% and 5% respectively throughout the year.

There was a group of staff who transferred in to Outward under TUPE regulations and remained members of local government pension scheme. Three of those staff transferred out under TUPE regulations during the year.

Multi-employer Social Housing Pension Scheme (the scheme)

The company participates in the Social Housing Pension Scheme (the Scheme), a multi-employer scheme which provides benefits to some 500 non-associated employers. The Scheme is a defined benefit scheme in the UK.

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

38 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

The last completed triennial valuation of the scheme for funding purposes was carried out as at 30 September 2017. This valuation revealed a deficit of £1,522m. A Recovery Plan has been put in place with the aim of removing this deficit by 30 September 2026.

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

For financial years ending on or before 28 February 2019, it was not possible for the charity to obtain sufficient information to enable it to account for the Scheme as a defined benefit scheme, therefore the Charity has accounted for the Scheme as a defined contribution scheme.

For financial years ending on or after 31 March 2019, it is possible to obtain sufficient information to enable the company to account for the Scheme as a defined benefit scheme.

For accounting purposes, a valuation of the scheme was carried out with an effective date of 30 September 2018. The liability figures from this valuation were rolled forward for accounting year-ends from 31 March 2019 to 29 February 2020 inclusive.

Similarly, actuarial valuations of the scheme were carried out as at 30 September 2019 to inform the liabilities for accounting year ends from 31 March 2020 to 28 February 2021 inclusive, and as at 30 September 2020 to inform the liabilities for accounting year ends from 31 March 2021 to 28 February 2022 inclusive.

The liabilities are compared, at the relevant accounting date, with the Charity’s fair share of the Scheme’s total assets to calculate the Charity’s net deficit or surplus.

Fair value of plan assets, present value of defined benefit obligation and defined benefit asset (liability)

----- Start of picture text -----
31 March 2021 31 March 2020
(£’000) (£’000)
----- End of picture text -----

Fair value of plan assets 3,431 3,601
Present value of defined benefit obligation 4,258 4,037
(Deficit) in plan (827) (436)
Unrecognised surplus - -
Defined benefit (liability) to be recognised (827) (436)

Reconciliation of the opening and closing balances of the defined benefit obligation

----- Start of picture text -----
Period ended 31 March 2021
(£’000)
----- End of picture text -----

Defined benefit obligation at start of period 4,037
Current service cost -
Expenses 6
Interest expense 95
Actuarial losses/(gains) due to scheme experience (584)
Actuarial losses/(gains) due to changes in demographic assumptions 15
Actuarial losses/(gains) due to changes in financial assumptions 765
Benefits paid and expenses (76)
Defined benefit obligation at end of period 4,258

39 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

Reconciliation of the opening and closing balances of the fair value of plan assets

----- Start of picture text -----
Period ended 31 March 2021
(£’000)
----- End of picture text -----

Fair value of plan assets at start of period 3,601
Interest income 86
Experience on plan assets (excluding amounts included in interest income) – gain/(loss) (304)
Contributions by the employer 124
Benefits paid and expenses (76)
Fair value of plan assets at end of period 3,431

The actual return on the plan assets (including any changes in share of assets) over the period ended 31 March 2021 was (£218,000).

Defined benefit costs recognised in statement of financial activities

Period ended 31 March 2021
(£’000)
Expenses 6
Net interest expense 9
Defined benefit costs recognised in statement of financial activities 15

Defined benefit costs recognised in financial activities

----- Start of picture text -----
Period ended 31 March 2021
(£’000)
----- End of picture text -----

Experience on plan assets (excluding amounts included in net interest cost) – gain/(loss) (304)
Experience gains and losses arising on the plan liabilities – gain/(loss) 584
Efects of changes in the demographic assumptions underlying the present value of
the defined benefit obligation – gain/ (loss) (key assumptions listed on page 38 of (15)
these statements)
Efects of changes in the financial assumptions underlying the present value of the defined
benefit obligation – gain/ (loss) (key assumptions listed on page 38 of these statements)		 (765)
Total actuarial gains and losses (before restriction due to some of the surplus not being
recognisable) – gain/(loss)		 (500)
Efects of changes in the amount of surplus that is not recoverable (excluding amounts -
included in net interest cost) – gain/(loss)
Total amount recognised in the Statement of Financial Activities – gain/(loss) (500)

40 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

Assets

----- Start of picture text -----
31 March 2021 31 March 2020
(£’000) (£’000)
----- End of picture text -----

Global equity 547 527
Absolute return 189 188
Distressed opportunities 99 69
Credit relative value 108 99
Alternative risk premia 129 252
Fund of hedge funds - 2
Emerging markets debt 139 109
Risk sharing 125 122
Insurance-linked securities 82 111
Property 71 79
Infrastructure 229 268
Private debt 82 73
High yield 103 -
Opportunistic crredit 94 -
Corporate bond fund 203 205
Liquid credit 41 1
Long lease property 67 62
Secured income 143 137
Opportunistic illiquid credit 87 87
Liability driven investment 872 1,195
Net current assets 21 15
Total assets 3,431 3,601

None of the fair values of the assets shown above include any direct investments in Outward’s own financial instruments or any property occupied by, or other assets used by Outward.

Key assumptions

----- Start of picture text -----
31 March 2021 31 March 2020
% per annum % per annum
----- End of picture text -----

Discount rate 2.18 2.38
Inflation (RPI) 3.27 2.62
Inflation (CPI) 2.87 1.62
Salary growth 3.87 2.62
Allowance for commutation of pension 75% of 75% of
for cash at retirement maximum allowance maximum allowance

41 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

The mortality assumptions adopted at 31 March 2021 imply the following life expectancies:

Life expectancy at age 65
(Years)
Male retiring in 2021 21.6
Female retiring in 2021 23.5
Male retiring in 2041 22.9
Female retiring in 2041 25.1

Scottish Widows defined contribution scheme

During the year employer contributions of £17,822 (2020: £22,728) were charged to income and expenditure and at 31 March 2021 8 staff (2020: 13 staff) were in the scheme.

Social Housing Pension Scheme defined contribution (auto-enrolment)

During the year employer contributions of £243,227 (2020: £240,712) were charged to income and expenditure and at 31 March 2021 380 staff (2020: 394 staff) were in the scheme.

Local Government Pension Scheme

During the year employer contributions of £11,233 (2020: £24,002) were charged to income and expenditure and at 31 March 2021 1 member of staff (2020: 4 staff) was in the scheme.

Reported staff costs also include death-in-service benefit for all staff. The employer’s premium was £23,750 (2020: £19,860).

19. Analysis of net assets between funds

----- Start of picture text -----
General Designated Restricted Total funds
unrestricted
£ £ £ £
----- End of picture text -----

£
£
£
£
Tangible fixed assets
Investment properties
Investments
Net current assets
Long term liabilities
Defined benefit pension liability
Net assets at the end of the year		 459,958
-
-
459,958
2,868,194
-
34,206
2,902,400
1,070
-
-
1,070
3,043,225
2,300,000
-
5,343,225
(208,282)
-
-
(208,282)
(827,000)
-
-
(827,000)
5,337,165
2,300,000
34,206
7,671,371

42 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

20. Movements in funds

----- Start of picture text -----
At the start of Incoming Outgoing Transfers At the end of
the year resources resources the year
and gains and losses
£ £ £ £ £
----- End of picture text -----

£
£
£
£
£
Restricted funds:
Heritage Lottery Fund
National Lottery Community Fund
Other
Total restricted funds
Unrestricted funds:
Designated funds:
Salary contingency
Service quality initiatives
IT infrastructure
Grant match funding
Cyclical and renewals
Property investment
Total designated funds
Revaluation reserve
Pension reserve
General funds
Total unrestricted funds		 34,206
-
-
-
34,206
-
4,210
(4,210)
-
-
-
5,371
(5,371)
-
-
34,206
9,581
(9,581)
-
34,206
727,477
-
-
(727,477)
-
200,000
-
-
(200,000)
-
125,000
-
-
75,000
200,000
-
-
-
100,000
100,000
500,000
-
-
(500,000)
-
200,000
-
-
1,800,000
2,000,000
1,752,477
-
-
547,523
2,300,000
648,282
69,723
-
-
718,005
436,000
-
(391,000)
-
827,000
3,984,932
18,703,341
(17,566,590)
(547,523)
3,792,160
6,821,691
18,773,064
(17,957,590)
-
7,637,165

Purpose of restricted funds

Heritage Lottery Fund represents the cost of improvements at the Nutley Edge Holiday Cottages.

Purposes of designated funds

IT infrastructure recognises the need to improve connectivity and software supporting service delivery. Making available funds where needed to match grant givers requirements.

Service investment is to build up a fund for further investment in charitable service capacity including property.

43 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

21. Reconciliation of net income to net cash flow from operating activities

----- Start of picture text -----
2021 2020
£ £
----- End of picture text -----

£
£
Net (deficit)/income for the reporting period
(as per the statement of financial activities)
Depreciation charges
(Losses)/gains on investment properties
Actuarial gains/(losses) on defined benefit pension schemes
Dividends, interest and rent from investments
Decrease(/increase) in debtors
(Decrease)/increase in creditors
Increase/(decrease in pension liability)
Net cash (used in) from operating activities		 1,240,502
(265,717)
69,201
80,299
(438,168)
165,909
(494,751)
654,244
(24,259)
(20,849)
20,154
(9,917)
(517,210)
(421,623)
391,000
(739,000)
246,469
(556,654)

22. Analysis of cash and cash equivalents

At 1 April
2020
Cash flows
Other
changes
At 31 March
2021
£
£
£
£
Cash at bank and in hand
Notice deposit (less than three months)
Total cash and cash equivalents		 4,230,872
166,163
-
4,397,035
1,000,000
-
-
1,000,000
5,230,872
166,163
-
5,397,035

23. Operating lease commitments

Amounts payable as lessee:

Outward’s total future minimum lease payments under non-cancellable operating leases is as follows for each of the following periods:

Property
Equipment
2021
2020
2021
2020
£
£
£
£
Less than one year
One to five years
Over five years		 37,094
55,168
-
-
151,660
225,500
-
-
217,684
384,157
-
-
406,438
664,825
-
-

44 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

Amounts receivable as lessor:

The Charity’s total future minimum lease receipts under non-cancellable operating leases is as follows for each of the following periods:

Property
2021
2020
£
£
Less than one year 3,363,898
3,127,496
3,363,898
3,127,496

24. Financial Instruments

The Charity’s financial instruments may be analysed as follows:

2021
2020
£
£
Financial assets measured at historical cost:
Trade debtors and rent arrears
Prepayments and accrued income
Other debtors
Cash and cash equivalents		 864,727
1,068,555
489,645
220,734
414,472
499,708
5,397,035
5,230,872
7,165,879
7,019,869
2021
2020
£
£
Financial liabilities measured at historical cost:
Trade creditors and rent in advance
Deferred income
Other creditors
Defined benefit pension creditor		 686,945
537,692
62,131
90,280
1,160,733
1,801,425
827,000
436,000
2,736,809
2,865,397

25. Legal status of the Charity

The Charity is a company limited by guarantee and has no share capital. The liability of each member in the event of winding up is limited to £1.

26. Related party transactions

Creditors includes money due to Newlon Housing Trust of £82,412 (2020: £77,946).

45 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Year ended 31 March 2021 Notes to the financial statements

27. Subsidiary

The Finsbury Park Homeless Families Project (‘FPH’) is a company limited by guarantee, registered number 02879813 and registered charity number 1030970, registered office 4 Daneland Walk, London N17 9FE. FPH is a wholly-owned subsidiary of Outward Housing by virtue of a 51% voting share. The reserves of FPH were distributed to other local charities supporting homeless families and FPH no longer provides services.

28. Ultimate parent entity

The ultimate parent undertaking and controlling party is Newlon Housing Trust, a registered provider of social housing. Newlon Housing Trust is the parent undertaking of the smallest and largest group to consolidate these financial statements. Consolidated financial statements for Newlon Housing Trust are available from its registered office at Newlon House, 4 Daneland Walk, Hale Village, London, N17 9FE. Control is exercised by virtue of a 51% voting share available as part of reciprocal representation on the Boards of the two entities. Newlon Housing Trust authorises the proposed appointment and removal of Trustees from the Board of Outward Housing.

46 OUTWARD REPORT AND FINANCIAL STATEMENTS 2020/2021

Registered office: Newlon House, 4 Daneland Walk, Hale Village, London, N17 9FE. Registered company no. 02151434, Registered charity no. 800529, Registered CQC provider ref. 1-101675816. © Outward 2021. All rights reserved.