Birch Housing Limited - Charities report - 22.2

REGISTERED COMPANY NUMBER: 09053182 (England and Wales)

REGISTERED CHARITY NUMBER: 1160249

Trustees' Report and

Audited Financial Statements for the Year Ended 31 May 2022

for

Birch Housing Limited

(A Company Limited by Guarantee)

Page

Reference and Administrative Details

1

Trustees' Report

2

to

4

Statement of Trustees' Responsibilities

5

Report of the Independent Auditors

6

to

9

Statement of Financial Activities

10

Statement of Financial Position

11

Statement of Cash Flows

12

Notes to the Statement of Cash Flows

13

Notes to the Financial Statements

14

to

18

TRUSTEES

Mr John Christopher Nicholas

Mr David Alan Oakensen

COMPANY SECRETARY

MS Lisa Marie Wise

REGISTERED OFFICE

34 High Street

Westbury-On-Trym

Bristol

BS9 3DZ

REGISTERED COMPANY NUMBER

09053182 (England and Wales)

REGISTERED CHARITY NUMBER

1160249

AUDITORS

Chris Pantazis Ltd T/A CPS & Co

10A Aldermans Hill

Palmers Green

London

N13 4PJ

The Trustees present their annual report and accounts for the year ended 31 May 2022.

The board of trustees are satisfied with the performance of the charity during the year and the position at 31 May 2022 and consider that the charity is in a strong position to continue its activities during the coming year, and that the charity's assets are adequate to fulfill its obligations.

Principal activities

The object of the charity is to provide relief for those in need by reason of youth, age, ill-health, disability, financial hardship, or other disadvantage. The principal activity is to provide suitable long term living accommodation to vulnerable adults. This is done within government supported living initiatives.

OBJECTIVES AND ACTIVITIES

Public benefit

The Trustees are aware of their obligation to provide public benefit and the charity complies with this duty by offering its services in a way that ensures that the public have full and unrestricted access to the advice and support it provides.

STRATEGIC REPORT

Achievement and performance

The charity is an established housing provider in East Anglia and has expanded its operation to North London, Birmingham and the South West. It continues to expand the numbers of beneficiaries and the geographical area of benefit. Close working relationships are maintained with care providers to ensure the possible home lives are available to residents.

Financial Position

The charity made an operational surplus of £62,451 (2021 - Surplus of £72,564)

The Year in Focus

The year commencing 1 June 2022 has been a year of growth for Birch Housing. In May 2021 Birch completed the acquisition of 2 large portfolios; Birmingham portfolio and Encircle portfolio. The Encircle portfolio was transferred from Encircle Housing to Birch on 17th May 2021 and comprised 9 properties (74 units) with specialist supported living. The Birmingham portfolio was an amalgamation of a few smaller portfolios all based in Birmingham focusing on supported living for homeless tenants. The Birmingham portfolio comprised 59 properties (338 units) and expanded Birch Housing activities into direct care support for tenants. During the year Birch Housing continued to partner with Myshon to integrate the 2 portfolios into the existing Birch business.

Forward Strategy

The acquisition of the Birmingham and Encircle portfolios provides Birch with several opportunities.

Financial review

Payroll Costs

As part of the Birmingham acquisition Birch expanded into direct care support activities and indirectly employ approx. 40 staff. The staff are employed by Myshon and recharged to Birch Housing with VAT. Birch are unable to reclaim the VAT so have agreed with Myshon that the staff should TUPE to Birch. The proposed VAT saving would be approx. £100,000 per annum.

Occupancy

For year ended May 22 the Birmingham portfolio is operating at 80% occupancy. The management are looking to increase investment in referral staff to increase the occupancy to 90%. This will reduce void impact and increase profitability.

Capital Expenditure programme

As part of the Birmingham and Encircle acquisitions Birch received a £1,500,000 capex budget. Management have agreed to expand the directly employed maintenance team to undertake property repairs and maintenance activities and capital expenditure refurbishments. This will result in savings from VAT and external contractor margins as well as improved quality.

Utility Costs

Inflationary pressure has resulted in significant increase in utility costs. To reduce impact, the business is working with energy consultant to transfer gas and electricity for all properties onto group contracts.

Management Fee

Birch partner with Myshon to provide operational support. This operates well where properties are geographically dispersed but where we have a large portfolio in a single region such as Birmingham portfolio there is an opportunity to set up a local 'directly employed' operational team and benefit from a reduction in Myshon management fee.

Reserves policy

Reserve Policy As at 31/05/2022, the level of funds available for charity (ie unrestricted funds) was £2,000,000. These reserves are held to ensure that Birch Housing Ltd can fulfil its obligations in the provision of our services and operations and our employee obligations in the event of a reduction or absence of funds; and respond to some capital-intensive key services, e.g. more rental units.

Support Plans and Notes

Birch has seen an increased challenge from Birmingham CC on HB applications on tenant support notes which has had an impact on the accounts receivable position. Birch will be investing in staff training to improve quality of support notes which should result in an improved accounts receivable position.

Going concern

Existing contracts do not need to be terminated, so there is no cause for concern., therefore the Board of Trustees have no reason to believe that a material uncertainty exists which may cast significant doubt about the ability of Birch Housing Limited to continue as a going concern, or its ability to continue with the current banking arrangement.

Plans for future periods

Growth

Birch will continue to work with Local Authorities, Care Providers, and investors to identify future opportunities in the 'specialist supported living' and 'homeless supported living' markets. In addition, management will work with local authorities and explore new opportunities in temporary accommodation for families with the aim of reducing local authority expenditure on hotel costs for families.

STRUCTURE, GOVERNANCE AND MANAGEMENT

Governing document

The charity is a company limited by guarantee as set out in its memorandum and articles of association.

Organisational structure

Birch Housing Limited is a charitable company limited by guarantee and was incorporated in 2014.

It is governed by a Memorandum and Articles of Association.

The registered office is 34 High Street, Westbury-On-Trym, Bristol, BS9 3DZ..

The principal activity is to provide suitable long term living accommodation to vulnerable adults.

Appointment of trustees

Trustees are appointed by the members in General Meeting following a selection process considering the needs of the charity and the skills of the applicants.Our recruitment of trustees includes external advertising to attract professionals with the expertise and time to support our strategy and ensure good governance. Prospective board members will meet with our trustee and CEO and attend a board meeting prior to the appointment. A detailed instruction contains information about the structure, management and financial statements of Birch Housing Limited. Once a Trustee is appointed, team meetings, site visits and ongoing training are also available.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the trustees are aware, there is no relevant information (as defined by Section 418 of the Companies Act 2006) of which the charitable company's auditors are unaware, and each trustee has taken all the steps that they ought to have taken as a trustee in order to make them aware of any audit information and to establish that the charitable company's auditors are aware of that information.

AUDITORS

The auditors, Chris Pantazis Ltd T/A CPS & Co, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Trustees' report, incorporating a strategic report, approved by order of the board of trustees, as the company directors, on 22 August 2023 and signed on the board's behalf by:

Mr David Alan Oakensen - Trustee

The trustees (who are also the directors of Birch Housing Limited for the purposes of company law) are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice) including Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

Company law requires the trustees to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the charitable company and of the incoming resources and application of resources, including the income and expenditure, of the charitable company for that period. In preparing those financial statements, the trustees are required to

-	select suitable accounting policies and then apply them consistently;

-	observe the methods and principles in the Charity SORP;

-	make judgements and estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the charitable company will continue in business.

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

The trustees are responsible for the maintenance and integrity of the corporate and financial information included on the charitable company's website.

Opinion

We have audited the financial statements of Birch Housing Limited (the 'charitable company') for the year ended 31 May 2022 which comprise the Statement of Financial Activities, the Statement of Financial Position, the Statement of Cash Flows 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 (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In our opinion the financial statements:

-	give a true and fair view of the state of the charitable company's affairs as at 31 May 2022 and of its incoming resources and application of resources, including its income and expenditure, for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on 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 Report of the Independent Auditors thereon.

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

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Trustees' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Trustees' Report has been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

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

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

-	adequate accounting records have not been kept or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of trustees' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees (who are also the directors of the charitable company for the purposes of company law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine 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.

Our responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Independent Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

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:

As part of our planning process:

- We enquired of management the systems and controls the company has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The company did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the charity. We determined that the following were most relevant: FRS 102, the Companies Act 2006 , the Charities Act 2011, the Charity SORP, and United Kingdom Generally Accepted Accounting Practice and relevant tax legislation as issued by the Financial Reporting Council.

- We considered the incentives and opportunities that exist in the company, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries and the overall accounting records, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations, in particular those that are central to the entities ability to continue in operation.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Performing a physical verification of key assets , including stock.

- Obtaining third-party confirmation of material bank and loan balances.

- Documenting and verifying all significant related party and consolidated balances and transactions.

- Reviewing documentation such as the company board minutes, correspondence with solicitors, for discussions of irregularities including fraud.

- Testing all material consolidation adjustments.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the [directors/those charged with governance of the entity/management].

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

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 auditors' 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.

Chris Pantazis BA ACA (Senior Statutory Auditor)

for and on behalf of Chris Pantazis Ltd T/A CPS & Co

10A Aldermans Hill

Palmers Green

London

N13 4PJ

22 August 2023

31.5.22

31.5.21

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

INCOME AND ENDOWMENTS FROM

Charitable activities

3

Income from charitable activities

7,036,965

-

7,036,965

934,189

Other income

190

-

190

30

Total

7,037,155

-

7,037,155

934,219

EXPENDITURE ON

Expenditure on charitable activities

4

Expenditure on charitable activities

6,897,886

-

6,897,886

820,865

Other expenditure

76,818

-

76,818

40,790

Total

6,974,704

-

6,974,704

861,655

NET INCOME

62,451

-

62,451

72,564

RECONCILIATION OF FUNDS

Total funds brought forward

148,288

-

148,288

75,724

TOTAL FUNDS CARRIED FORWARD

210,739

-

210,739

148,288

31.5.22

31.5.21

Unrestricted

Restricted

Total

Total

fund

fund

funds

funds

Notes

£

£

£

£

CURRENT ASSETS

Debtors

7

1,415,460

-

1,415,460

133,736

Cash at bank

2,002,662

-

2,002,662

1,308,541

3,418,122

-

3,418,122

1,442,277

CREDITORS

Amounts falling due within one year

8

(2,413,242

)

-

(2,413,242

)

(213,596

)

NET CURRENT ASSETS

1,004,880

-

1,004,880

1,228,681

TOTAL ASSETS LESS CURRENT LIABILITIES

1,004,880

-

1,004,880

1,228,681

CREDITORS

Amounts falling due after more than one year

9

(794,141

)

-

(794,141

)

(1,080,393

)

NET ASSETS

210,739

-

210,739

148,288

FUNDS

10

Unrestricted funds

210,739

148,288

TOTAL FUNDS

210,739

148,288

The financial statements were approved by the Board of Trustees and authorised for issue on 22 August 2023 and were signed on its behalf by:

Mr David Alan Oakensen - Trustee

Cash flows from operating activities

Cash generated from operations

1

694,121

1,257,400

Net cash provided by operating activities

694,121

1,257,400

Change in cash and cash equivalents in the reporting period

694,121

1,257,400

Cash and cash equivalents at the beginning of the reporting period

1,308,541

51,141

Cash and cash equivalents at the end of the reporting period

2,002,662

1,308,541

1.	RECONCILIATION OF NET INCOME TO NET CASH FLOW FROM OPERATING ACTIVITIES

31.5.22

31.5.21

£

£

Net income for the reporting period (as per the Statement of Financial Activities)

62,451

72,564

Adjustments for:

Increase in debtors

(1,281,724

)

(105,438

)

Increase in creditors

1,913,394

1,290,274

Net cash provided by operations

694,121

1,257,400

2.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.6.21

Cash flow

At 31.5.22

£

£

£

Net cash

Cash at bank

1,308,541

694,121

2,002,662

1,308,541

694,121

2,002,662

Total

1,308,541

694,121

2,002,662

1.	CHARITY STATUS

The charity is a charitable company limited-by guarantee and consequently does not have share capital. Each trustee is required to contribute an amount not exceeding £1 to the charity's assets in the event of liquidation. The registered office is 34 High Street, Westbury-On-Trym, Bristol, BS9 3DZ. Its principal activity to provide suitable long term living accommodation to vulnerable adults. This is done within government supported living initiatives.

2.	ACCOUNTING POLICIES

Basis of accounting

The charity constitutes a public benefit entity as defined by FRS 102. 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 to the United Kingdom and Republic of Ireland (FRS 102) issued on 16 July 2014, the Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland (FRS 102), the Charities Act 2011, the Companies Act 2006 and UK Generally Accepted Practice as it applies from 1 January 2015.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

No significant judgements have had to be made in preparing these financial statements.

Incoming resources

All incoming resources are included in the Statement of Financial Activities when the charity is legally entitled to the income and the amount can be quantified with reasonable accuracy.

Resources expended

Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.

Charitable activities

Charity expenses include expenses incurred by the charity in providing activities and services to the beneficiaries. It includes both costs that can be directly attributed to these activities and indirect costs necessary to support them.

Taxation

The charity is exempt from tax on income and gains falling within section 505 of the Taxes Act 1988 or section 252 of the Taxation of Chargeable Gains Act 1992 to the extent that these are applied to its charitable objects.

Funds

Unrestricted funds can be used in accordance with the charitable objects at the discretion of the trustees.

Restricted funds can only be used for particular purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes. Expenditure which meets these criteria is charged to the fund. Further explanation of the nature and purpose of each fund is included in the notes to the financial statements. Birch Housing Ltd do not hold any restricted funds.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to the Statement of Financial Activities on a straight line basis over the period of the lease.

Debtors

Short term debtors are measured at transaction price, which is usually the invoice price, less any impairment losses for bad and doubtful debts.

Creditors

Short term creditors are measured at transaction price, which is usually the invoice price.

Government grants

Government grants are recognised based on an accrual model and measured at the fair value of the assets received or available. Government grants are classified as either revenue-related or asset-related.Revenue-related grants are recognised in revenue over the time period in which the associated costs are recognised. Asset-based grants are recognised over the time the asset is expected to be useful. If part of a grant relates to an asset, it is accounted for as deferred income.

3.	INCOME FROM CHARITABLE ACTIVITIES

31.5.22

31.5.21

Activity

£

£

Rents received

Income from charitable activities

5,874,341

744,380

Tenants service charges

Income from charitable activities

553,807

158,172

Void recharges

Income from charitable activities

312,971

12,364

Management fees

Income from charitable activities

288,843

19,273

Commercial lettings rent

Income from charitable activities

7,003

-

7,036,965

934,189

4.	CHARITABLE ACTIVITIES COSTS

Direct

Costs

£

Expenditure on charitable activities

6,897,886

5.	NET INCOME/(EXPENDITURE)

Net income/(expenditure) is stated after charging/(crediting):

31.5.22

31.5.21

£

£

Hire of plant and machinery

12,159

14,694

6.	TRUSTEES' REMUNERATION AND BENEFITS

There were no trustees' remuneration or other benefits for the year ended 31 May 2022 nor for the year ended 31 May 2021.

Trustees' expenses

There were no trustees' expenses paid for the year ended 31 May 2022 nor for the year ended 31 May 2021.

7.	DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.22

31.5.21

£

£

Trade debtors

988,875

82,738

Other debtors

45,361

50,998

Prepayments and accrued income

381,224

-

1,415,460

133,736

8.	CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.5.22

31.5.21

£

£

Trade creditors

2,081,059

149,565

Other creditors

2,000

4,400

Accrued expenses

330,183

59,631

2,413,242

213,596

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

31.5.22

31.5.21

£

£

Provision for future refurbishment

794,141

1,080,393

10.	MOVEMENT IN FUNDS

Net

movement

At

At 1.6.21

in funds

31.5.22

£

£

£

Unrestricted funds

General fund

148,288

62,451

210,739

TOTAL FUNDS

148,288

62,451

210,739

Net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

7,037,155

(6,974,704

)

62,451

TOTAL FUNDS

7,037,155

(6,974,704

)

62,451

Comparatives for movement in funds

Net

movement

At

At 1.6.20

in funds

31.5.21

£

£

£

Unrestricted funds

General fund

75,724

72,564

148,288

TOTAL FUNDS

75,724

72,564

148,288

Comparative net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

934,219

(861,655

)

72,564

TOTAL FUNDS

934,219

(861,655

)

72,564

A current year 12 months and prior year 12 months combined position is as follows:

Net

movement

At

At 1.6.20

in funds

31.5.22

£

£

£

Unrestricted funds

General fund

75,724

135,015

210,739

TOTAL FUNDS

75,724

135,015

210,739

A current year 12 months and prior year 12 months combined net movement in funds, included in the above are as follows:

Incoming

Resources

Movement

resources

expended

in funds

£

£

£

Unrestricted funds

General fund

7,971,374

(7,836,359

)

135,015

TOTAL FUNDS

7,971,374

(7,836,359

)

135,015

11.	CONTINGENT LIABILITIES

Insurance Claim by Funds

There is an Insurance claim for a potential void occupancy and subsistence at one property.

The property is and has been out of service since May 2021 and it is projected that the cost of repair will amount to £750,000.

Due to subsidence at the property and the risk of a litigation case by the local authority under section 77 of the Building's Act 1984, due to risk to health and safety of the public, which empowers local authorities (District Councils) to exert proceedings, when a building or structure is in a dangerous condition against the service provider being Birch Housing Ltd. Hence a decision was rendered appropriate by the freeholder of the property in consultation with Birch Housing Ltd, to raise an insurance claim for approximately £1,100,000 that will cover the costs of repairs including any rent arrears.

Legal case with Local Authority

A case tribunal will be decided for amounts owed by local authority that are in rent arrears where the case of one tenant that is supported by Birch Housing Ltd, this will set the precedent for the rest of what is being owed by local council. The defined amount of what is being owed will be determined post 30th September 2023 after the decision Is made by the Judge.

12.	RELATED PARTY DISCLOSURES

There were no related party transactions for the year ended 31 May 2022.

13.	POST BALANCE SHEET EVENTS

Rent Free period

Discussion are being undertaken with both funds on deed variations being undertaken for a rent-free period of 12 Months @ 50% for further income to be received by Birch Housing Ltd.

Disposal of Birmingham Portfolio

In March 2023 Birch Housing Ltd came to an agreement to release the whole portfolio of 59 properties, with £430,000 still outstanding by the council in terms of rental income.

14.	COMPANY LIMITED BY GUARANTEE

The company is limited by guarantee, not having a share capital. Every member of the company undertakes to contribute such amounts as may be required (not exceeding £1) to the assets of the company should it be wound up while he or she is a member, or within one year after he or she ceases to be a member, for payments of the company's debts and liabilities contracted before he or she ceases to be a member, and of the costs, charges and expenses of winding up, and for adjustment of the rights of the contributories among themselves.