Page 10 - Housing Solutions Annual Report

Strategic Report
For the year ended 31 March 2020
REPORT OF THE BOARD
The Board of Housing Solutions presents its report
together with the audited financial statements of
Housing Solutions (the Association) and Housing
Solutions Group (the Group) for the year ended 31
March 2020.
The Group comprises of the Association and its
subsidiary undertakings Housing Solutions Capital
plc, HSG Property Services Limited, Housing
Solutions Development Limited and joint venture
Glassford LLP.
Housing Solutions is a Public Benefit Entity. It
changed its name with the Financial Conduct
Authority from Housing Solutions Limited to
Housing Solutions in October 2017.
PRINCIPAL ACTIVITIES
The Group’s principal activities are the development
and management of affordable and supported
housing and providing repairs services to its own
stock as well as external clients.
Housing Solutions has charitable status and
operates three key business streams:
• housing for rent, primarily for households who are
unable to rent or buy at open market rates;
• supported housing for people who need additional
housing-related support; and
• low-cost home ownership, primarily shared
ownership whereby residents purchase a share in
the equity of their home;
As well as owning, maintaining and managing
7,306 housing properties, the Group develops
new affordable housing and is a member of the
Sovereign Development Consortium (SDC) which
enables the Group to access Homes England
grant funding.
The Group provides a small amount of non-social
housing, in particular 75 market rent properties, as
well as housing properties we own 41 commercial
units. The Group’s focus remains its social housing
activities and these constitute 94% of the Group’s
activities by turnover.
BOARD MEMBERS AND EXECUTIVE DIRECTORS
The present Board members, committee structure
and executive directors of the Group are set out
on page 5.
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All executives work within the authority delegated
by the Board. Group insurance policies indemnify
Board members and officers against liability when
acting for the Group.
EMPLOYMENT CONTRACTS
Excluding the Chief Executive, Board members
are paid based on a scale reflecting their relative
responsibilities to the Group. The total amount paid
to Board members during 2019/20 was £60,953.
The Executive Directors, including the Chief
Executive, were employed on the same terms as
other staff. Their notice periods are six months.
The Chief Executive’s salary is set at the
market rate.
PENSIONS
Prior to its closure to new members, the Executive
Directors were entitled to join the Royal County of
Berkshire Pension Fund, a defined benefit (Career
Average) pension scheme. They participate in the
scheme on the same terms as all other eligible staff
and the Association contributes to the scheme on
behalf of its employees. With effect from 1st April
2014 the Royal County of Berkshire Pension Fund
scheme was closed to all new employees and a
new contributory Personal Pension Plan was set
up for new employees. The Executive Directors may
participate in this scheme on the same terms as all
other eligible staff and Housing Solutions makes
contributions into the Individual Personal Pensions.
The Royal County of Berkshire Pension Fund
is an average salary scheme, offering good benefits
for our staff. The Association has contributed to
the scheme in accordance with levels, set by the
actuaries, at 18.2 per cent. The latest actuarial
valuation of the scheme as at 31 March 2016 has
been rolled forward allowing for the different
financial assumptions required under FRS102 to
calculate the accounting valuation at 31 March
2020.
ACCOUNTING POLICIES
The Group’s principal accounting policies are set
out on page 47 - 51 of the financial statements.
The policies that are most critical to the financial
results relate to accounting for housing properties
and include: capitalisation of costs; deduction
of capital grant from the cost of assets; housing
property depreciation; and treatment of shared
ownership properties.
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