chartered institute of housing
TRANSCRIPT
Charity numbers: 244067 & SCO40324
CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
TRUSTEES' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2020
CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
CONTENTS
Page
Reference and administrative details of the charity, its Trustees and advisers 1 - 2
Trustees' report 3 - 19
Independent auditors' report on the financial statements 20 - 22
Statement of financial activities 23
Balance sheet 24 - 25
Statement of cash flows 26
Notes to the financial statements 27 - 58
CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERSFOR THE YEAR ENDED 31 MARCH 2020
Trustees Geraldine Howley, Chief Executive Incommunities, Chairman1
Robert Grundy, Head of Housing Savills (Housing Division)2
Gordon Perry, Former Chief Executive of the Accent group (now a consultant)3
Julie Faden, Chief Executive SLH Group, Vice Chair4
Anne Chapman, Head of New Business and Commercial Services, GoldingHomes, Vice Chair5
Chan Kataria, Chief Executive, emh Group6
John Hannigan, Chief Executive, Circle Voluntary Housing Association7
Elly Hoult, Programme Director Notting Hill Genesis8
President and Vice PresidentAileen Evans, Chief Executive – Ex-officio board member Jo Richardson, Professor of Housing & Social Inclusion – DMU
Co-opteesJames Strang, Former Chief Executive, Parkhead Housing AssociationPaul Diggory, Retired Consultant
Retired TrusteesKeith Anderson, Chief Executive Port of Leith Housing Association – November 2019Hiten Patel, Worldwide PMO Director Micro Focus Ltd, Chair of the Audit and Risk Board – November 2019Jen Barfoot, Chief Executive, Homes in Sedgemoor (appointed 31 March 2019) – March 2020
Executive teamGavin Smart, Chief ExecutiveJosie Twinning Stroud, Director, Membership Services and CommunicationsSarah Dunkerley, Director, Knowledge and Learning Andy Orrey, Director of Finance James Prestwich, Director of Policy and External Affairs
Company Secretary Mary Aluko, Company Secretary and Head of Compliance
Charity registered numbers
244067 and SCO40324
Principal office
Chartered Institute of HousingSuites 5-6 Rowan HouseWestwood WayCoventryCV4 8HS
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISERS(CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2020
Independent auditors
Crowe U.K. LLPBlack Country HouseRounds Green RoadOldburyWest MidlandsB69 2DG
Bankers
Barclays Bank plc5 Colmore RowBirminghamB3 2WN
Solicitors
Trowers and Hamlins LLP3 Bunhill RowLondonEC1Y 8YZ
Investment Managers
Charles Stanley and Company Limited25 Luke StreetLondonEC2R 4AR
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
TRUSTEES' REPORT
FOR THE YEAR ENDED 31 MARCH 2020
The Trustees present their annual report together with the audited financial statements of the Charity for the year1 April 2019 to 31 March 2020.
The Trustees have adopted the provisions of the “Statement of Recommended Practice applicable to charitiespreparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republicof Ireland (FRS 102) (effective 1 January 2015)” in preparing the annual report and financial statements of thecharity.
Structure, governance and management
a. Structure
CIH is incorporated under a Royal Charter which was granted on 25 June 1984. The objects of CIH are topromote the science and art of housing, its standards and ideals and the training and education of thoseengaged in the profession of housing practice. CIH is registered as a charity with the Charity Commission(registered no. 244067) and the Office of the Scottish Charity Regulator (registered no. SCO40324).
HouseMark Limited is an associate company offering benchmarking and sector improvement services andbusiness intelligence. This company is registered at Companies House under company number 03822761.
CIH provides housing professionals and organisations across the UK, Asia and Canada the professional skillsand knowledge they need through a range of services and offerings which support professionals andorganisations in the work they do to create a future in which everyone has a place to call home.
CIH has wholly owned subsidiaries in Canada, China and Hong Kong to take advantage of any businessopportunities.
Its income comes principally from • almost 10,000 active paying members in the UK and a further 8,000 paying members in Asia / Pacific, Canada;• training courses and • conferences
It also has a joint venture with HouseMark offering benchmarking, sector improvement services and businessintelligence.
CIH is a non-share capital business which retains and re-invests any surpluses to build its reserves and into theservices it supplies.
The related party transactions are disclosed in Note 30 to these financial statements
b. Governance
The appointed CIH Governing Board comprises nine Trustees. The board is responsible for the management ofthe business of the Institute. This includes setting the strategic direction of the Institute as a whole, determiningpriorities, ensuring performance and managing risk and accountability, viability and sustainability.
The Governing Board exercises all the powers of the Institute which are not otherwise required by the Charterand Byelaws to be exercised by the membership in general meeting.
The Governing Board oversees the business of the national boards in Scotland, Wales and Northern Ireland, thenine regional boards in England, CIH Asia International and the region’s Executive Committee and the delegatedboards and committees:
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
Structure, governance and management (continued)
• Audit and Risk Board (ARB), • Professional Standards Committee, • Futures Board • Policy Advisory Committee. • Governance, Ethics, Remuneration and Nomination Committee (GERN)
The Trustees are required to meet a minimum of six times per year and in 2019/2020 they held six meetingsfrom April 2019 to March 2020. Governance costs include expenditure relating to advice on and compliance withall regulatory and legal obligations, audit costs, costs of meeting constitutional and statutory requirements,Trustee and board committee meetings, costs of all strategic planning processes and the executive staff costsincurred in supporting the governance activities, company secretariat and support staff.
A schedule of current Trustees and those who have served terms of office during 2019/2020 is included on page1.
Audit and Risk Board (ARB)The scope of ARB includes:• Providing strategic advice to the Governing Board in relation to risk and accountability. • Reviewing and monitoring CIH’s arrangements for compliance with relevant regulatory and legal requirements.• Reviewing disclosures, interim reports, preliminary results announcements and any other formal announcements relating to financial performance prior to their approval by the Board including the context of corporate governance statements relating to audit and to risk management.• Reviewing the appropriateness of adopting the going concern assumption and identify any material uncertainties to CIH’s ability to continue to do so over a period of at least twelve months from the date of approval of the annual financial statements and to make recommendation to the Governing Board where required.
The membership of ARB includes: Anne Chapman (Chair) - Assistant Director - Golding Homes and Vice Chair of the Governing BoardJohn Hannigan - Chief Executive - Circle VHARobert Grundy - Head of Housing - SavillsMaame-Yaa Bempah – Director of Finance, Notting Hill Genesis – Independent Board Member
Professional Standards Committee (PSC)The PSC examines cases where a member of CIH or other person or body has laid a complaint against amember or has alleged that such member has acted in contravention of the Bylaws.
The PSC oversees the code of conduct for CIH including:• Considering complaints against members about breaches of the code• It reviews CIH’s CPD policy and the auditing of members’ compliance• Direct action to be taken where a member has breached the code or the CPD policy• Report to the governing board annually on compliance with the code• Advise CIH on its complaints policy • Review the code of ethics every three years
The function of the PSC is being extended and it is hoped they can become more engaged in work connected tothe professional standards framework.
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
Structure, governance and management (continued)
Policy Advisory Committee (PAC)The PAC acts as a sounding board for CIH’s responses to emerging housing issues and policy development.Providing insight, advice and expertise on housing and related policy areas, PAC helps CIH to:• increase its influence and effectiveness in housing policy development• prioritise its resources effectively in policy and public affairs activities• reflect members’ interests in housing policy matters
In 2019/20 PAC provided advice on our work on building safety, professionalism, the way in which social housingis allocated and CIH’s policy priorities as well as shaping our submissions to the Treasury ahead of the Budgetand Comprehensive Spending Review. A recruitment campaign in the autumn attracted applicants of a very highcalibre and enabled us to bring a broader range of skills, knowledge and expertise to the group.
Futures BoardThe CIH Futures board seeks to increase membership among housing professionals under the age of 30.Membership numbers among this group increased again this year rising from 406 at 31 March 2019 to 460 atMarch 31 2020. This will be a key priority to continue to drive this number forwards in order to future proof CIHmembership. The average age of our membership base is 51, so the work of CIH Futures and the supportinginitiatives we are developing and building on, will help to ensure that this figure comes down.
CIH Futures have refreshed their board in the last year following a recruitment drive. Evie Copeland has takenover as chair, with James Ballatyne taking the vice chairs role. There has been a conscious effort to ensure thatCIH Futures has representation from across the UK. They have a strong focus for the year 2020-21 to continuethis work with them aiming to increase the wider diversity of the group.
Governance, Ethics, Remuneration and Nominations Committee (GERN)The core purpose of the GERN Committee is to:
Ensure that the Governing Board (GB) fulfils its legal, ethical, and functional responsibilities through
adequate governance policy development, recruitment strategies, training programs, monitoring of Board
activities, and evaluation of Board members’ performanec
Ensure a formal and transparent procedure for developing policy on executive remuneration and determining
director and senior management remuneration should be established
Ensure appointments to the board are subject to a formal, rigorous, and transparent procedure and an
effective succession plan is maintained for GB and senior management
Review the organisation’s governance matters and make recommendations to GB, take any actions to
enable the committee to fulfil its responsibilities and seek independent advice to perform its duties where
necessary
The membership of GERN includes: Elly Hoult - Group Director of Assets – Notting Hill Genesis Group – Chair of GERNGordon Perry - Former Chief Executive of Accent Group now retiredAnne Chapman - Assistant Director - Golding Homes and Vice Chair of the Board. Chair of the Audit and RiskBoardGeraldine Howley - Group Chief Executive – Incommunities and Chair of the Governing Board
Two Independent Members to be rotated on an annual basis.
Remuneration and nomination of the Governing Board and Executive TeamThe Charter and Bye laws require Governing Board members to be recruited by means of a selection panel.Members are appointed on the basis of their skills and experience and shall become Trustees after they havebeen approved by the Trustee Recruitment Panel and subsequently approved by the Members in GeneralMeeting.
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
Structure, governance and management (continued)
The Trustee Recruitment Panel is a sub committee of the Governing Board whose members are drawn from theGoverning Board (Chair and Vice Chair), the Recruitment Pool (drawn from the regional and devolved nationboards) and the President, where they are not applying for a position on the Board as a Trustee in their ownright.
The members of the Trustee Recruitment Panel are approved by the Members in General Meeting with theGoverning Board tasked with determining the constitution and operation of the Recruitment Panel and theRecruitment Pool.
Remuneration decisions in terms of appointment of Executive Directors or Directors, and any changes toremuneration of these staff members was historically discharged by the Remuneration Committee chaired byAnne Chapman, Vice Chair. This Committee was made up of 3 members who are all Trustees including theChair of the Committee and the Chair of the Governing Board. Decisions are based on benchmarked informationfor similar job roles in the market and any performance information that is relevant.
Nominations and appointment to the Governing Board must be done by transparent and rigorous procedures toensure candidates are chosen based on factors such as the skills and experience required on the GoverningBoard.
Following a review of the Governing Board’s governance in 2020, the GERN committee was established todischarge the requirements for Governance, Ethics, Remuneration and Nomination.
GERN now has the responsibility for setting and reviewing the remuneration policy of the Executive and seniormanagers including pension and benefit packages to ensure they are in line with other similar roles in themarket. GERN also has the remit to review the structure size and composition (including skills, knowledge,diversity and experience) and make any recommendations to the Governing Board of any changes. TheCommittee will also ensure that the policies and procedures in place are robust and transparent.
With regard to governance and ethics, the Committee will ensure all governance requirements are met in relationto board make up, duties and responsibilities. The Committee will also recommend to the Governing Board anychanges to the committee structure.
At each Annual General Meeting, one third of the Trustees retire (in addition to any otherwise required to retire)and where possible, the Trustees to retire are those who have been appointed Members of Governing Board forthe longest period since their appointment.
If a person has served on the Governing Board as a Trustee for a continuous period of six years, he or she shallbe ineligible for re appointment as a Trustee at the Annual General Meeting at which he or she ceases to holdoffice.
The President and Vice President are elected through a nomination and voting process. Calls for nomination forthe position of Vice President are made at the beginning of the financial year before the Annual General Meeting(AGM). At each AGM, the Vice President becomes President and a Trustee ex officio for so long as he or she isPresident. The retiring President ceases to hold office and retires as a Trustee. In 2020 it has been recognisedthat the timetable and the planning for the AGM will need to change due to the impact of the CoronavirusPandemic.
Each member of the board undertakes induction training, consisting of a comprehensive briefing by the Chair ofthe board, the Chief Executive and Company Secretary and Head of Governance with emphasis placed on thelegal status and the responsibility of a Trustee.
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CHARTERED INSTITUTE OF HOUSING
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TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
Structure, governance and management (continued)
In addition, all new Trustees have a thorough introduction with directors and key staff. An induction pack isprovided to each Trustee including CIH’s Charter and Bye Laws, Governance Framework and referencedocuments relating to the role of Trustee from the Charity Commission. This is updated as required throughoutthe year and updates are provided to the Trustees.
c. The Charity Governance Code and the CIH Governance Framework
Good governance is essential for the success of any organisation and is now more important than ever. Trusteesand board members play a vital role in serving their chosen causes and their wider communities. They bringpassion and commitment as well as skills and experience to the organisations they lead. Boards set the long-term vision and protect the reputation and values of their organisations.
To make a difference a board must have proper procedures and policies in place, but it should also work well asa team, have regard to its own purpose and development and foster good relationships within the organisationand across the wider community that it serves. CIH seeks to ensure that its governance arrangements are of thehighest order and inspire confidence and trust in the organisation.
In 2016, CIH introduced a revised code of governance and Governance Framework that aligns with the CharityGovernance Code. The Code now in its 13th year raises the bar in response to the challenges that the Charitysector has faced over the last few years.
The Charity Governance Code does not work in the same way Governance codes operate in other industries -it’s not enforced by the regulator and the rule is not ‘comply or explain’ but ‘apply or explain’, recognising thediversity of the sector. The same core principles apply to all charities, but they apply in different ways in terms oftailored good practice.
The CIH Governance Framework aligns with the Charity Governance Code and adopts the “apply or explain”approach that is the trademark of the Charity Governance Code. It is the foundation of the CIH GovernanceFramework’s flexibility.
The Framework is not a rigid set of rules, although of necessity some structure is applied so that the affairs ofthe Institute are regulated in such manner as the Governing Board sees fit. Rather, the Framework consists ofseven key principles which are to be applied across the wider governance of the organisation and provisions.
It is recognised that, from time to time, an alternative to following a provision may be justified in particularcircumstances if good governance can be achieved by other means. A condition of doing so, however, is that thereasons for it should be explained clearly and carefully to members and other stakeholders as appropriate.
CIH has a strong reputation throughout the housing sector and it plays a vital role, through its members and itsinfluence, in shaping the lives of millions of people through its work to improve the homes and communities inwhich they reside.
CIH Trustees and Board members therefore carry an important responsibility to manage the organisation anddeliver on its objectives in a way that enhances trust and support among its stakeholders.
The Governance Framework sets out clearly the principles that Trustees and other decision makers follow. Italso provides clear information about what those principles mean in practice.
Good governance in charities is fundamental to their success. It enables and supports a charity’s compliancewith the law and relevant regulations. It also promotes a culture where everything works towards fulfilling thecharity’s vision.
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
Structure, governance and management (continued)
d. Leadership
Geraldine Howley was confirmed as the Chair of the Chair of the Governing Board on the 27th of March 2019following a period of holding an interim Chair position and after due consultation and approval by themembership ahead of the AGM. The Chair is supported by Julie Fadden and Anne Chapman both confirmed asVice Chairs.
Aileen Evans took over as President in November 2019 at the AGM. The current Vice President is Jo Richardsonwho would normally take up office as President at the AGM in 2020. But due to the pandemic a decision hasbeen made and resolution put to the members for the tenure of President and Vice President to be extended thisyear only. This means the usual vote will not be held at the AGM in December 2020
The Governing Board took the decision to extend the tenure of Robert Grundy as Board Member given theunusual circumstances raised by the pandemic and it was felt this was not an appropriate time to recruit.
e. Management
The day to day management of CIH is delegated by the Governing Board to the Chief Executive and theExecutive Team. The Finance Service function was managed on an interim basis by Executive Directorspending permanent recruitment.
The Executive Team for 2019/ 2020 comprises of:
Chief Executive: Gavin SmartInterim Director of Finance: Andy Orrey Director, Membership Services and Communication: Josie Twinning-StroudDirector, Knowledge and Learning: Sarah Dunkerley Director of Policy and Internal Affairs: James Prestwich (appointed 24 February 2020)Company Secretary and Head of Compliance: Mary Aluko
f. Risk management
Policies and procedures are designed to identify, assess and mitigate risk. The Audit and Risk Board examinesand actively reviews the major strategic, business and operational risks that CIH faces and reports back to theGoverning Board Trustees, via the Chair of the Audit and Risk Board who is a member of the Governing Boardand a Trustee.
The Executive Team carries out regular reviews of the strategic risk register, and twice a year conducts adirectorate review of operational risks.
The results of these reviews are reported to the Chief Executive in a directorate declaration statement, enablingassurance to be given by the Chief Executive to the Audit and Risk Board on the key risks and controls in placeand their operation.
The key strategic risks which have been identified are:
CIH fails to deliver against its financial strategy due to changes in the sector. A challenging economic climate
and changing markets for our customers continues to impact upon CIH's income streams and membership
Financial underperformance of commercial subsidiaries as well as JV and other partners
CIH fails to fulfil its regulatory requirements
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TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
Structure, governance and management (continued)
Pension liabilities for past service which on cessation are substantial would detrimentally impact CIH’s
financial position
We have referred specifically to the impact of Covid-19 later in this report, within the section ‘Achievements andperformance’.
These key strategic risks are recorded in the strategic risk register, which records the mitigation that is in place,together with further action. The Executive Team and Audit and Risk Board keep the risks under review andconsider appropriate mitigating actions which are detailed in the risk register.
The mitigating actions are ranked in order of priority and have contingency plans built in. The Governing Boardreceives regular reports from the Audit and Risk Board.
The Trustees, as a body, are together responsible for establishing, implementing and monitoring the internalfinancial controls. The detailed oversight of the internal financial controls is delegated to the Audit and RiskBoard.
The Audit and Risk Board have taken note of the guidance from the Charities Commission on Internal FinancialControls and have completed the check list provided by the Charity Commission as guidance to evaluate theCIH’s performance against the legal requirements and good practice recommendations set out in this guidance.
The Audit and Risk Board is satisfied with the level of compliance and any actions identified to improve thecontrols.
The Audit and Risk Board met six times between April 2019 and March 2020. An assurance framework wasdeveloped in conjunction with the appointed Internal Auditors, RSM. The framework includes a three year auditstrategy and annual internal audit plan.
In 2019/20 CIH undertook one internal audit during 2019/20:• 1.2019 Financial Controls – Creditor Payments
It was concluded that the Governing Board could take partial assurance in respect of this work (options aresubstantial assurance, reasonable assurance, partial assurance, no assurance). The internal auditors raisedseven management actions which were prioritised as follows:• Three Low• Two Medium• Two High
The Plan for 2019/20 also included two other reviews:• CRM: Benefits Realisation Arrangements• Follow UpAt the request of management, these were not undertaken.
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TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
(continued)
Objectives and activities
In setting the objectives, planning the activities, and reporting on the performance of CIH the Trustees havegiven careful consideration to the Charity Commission guidance on public benefit. Our charitable objectives andpublic interest requirement guide our business and corporate planning.
CIH is the independent voice for housing and the home of professional standards. We exist to promote thescience and art of housing, its standards and ideals and the training and education of people who work inhousing.
We maintain our public benefit by providing education and training programmes and using evidence, bothresearch and practice based, to influence and shape housing policy and implementation. We disseminateinformation and knowledge to and for the industry through our membership and communication networks.
Our objectives and activities in 2019-20 were driven by our corporate plan for 2018-21, which sets out our visionfor CIH and the profession.
The plan’s mission is “to support housing professionals to create a future in which everyone has a place to callhome.” It sets out how we will:• build a sustainable and successful organisation• grow our membership• provide relevant knowledge and education for a modern housing profession• be the leading voice for the UK housing profession.
Achievements and performance
a. Main achievements of the charity
Education, training and learningA total of 1,760 CIH qualifications were delivered across the UK and internationally in 2019-2020. We revalidated3 university programmes and approved 2 HE programmes in Hong Kong and one in China. We have embeddeda UK-wide approach to the delivery of qualifications and training, while continuing to deliver nation-specificcontent where appropriate or needed. We have continued to build relationships and bespoke programmes withemployers across the UK, with partners such as the NIHE (Northern Ireland Housing Executive), LandlordsAuthority Scotland, and with an increasing number of new customers in the public sector and local authorities.We have continued to develop more bespoke training offers for employers, including packages combiningtraining courses and formal qualifications, and we are seeing an increase in repeat business from employers formore bespoke/customised training that incorporates their values, missions and polices. This has beensupported by materials developed in the housing academy and providing a timetable for future activity. We arealso ensuring that our offer links to events programmes, themes and topics to provide a holistic offer for ourmembers. The focus of our delivery this year has been to develop our foot print, align products and offers tothose across the wider CIH portfolio and for our offer to be flexible and reactive to the change in market needs
ApprenticeshipsSince starting in 2016 we have been actively promoting the new standards for apprenticeships and assessmentsfor housing and property management professionals. We have gained approval to deliver the apprenticeshipprogramme through the Housing Academy and also we are the only active end-point-assessment organisationfor housing and property management apprenticeships, recognised through our awarding body. Each apprenticemust complete a final assessment, and their employer must appoint an organisation to do this before they begintheir training. We believe this represents a fantastic opportunity to bring new talent into the sector, allowinghousing and property management organisations to build a bespoke programme of training around a youngperson to give them the skills they need to excel in a specific role.
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TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
Achievements and performance (continued)
We have built on our delivery of apprenticeship programmes in 2019-2020; we have streamlined andstrengthened the programme of delivery; 194 apprentices came on programme during the year with the CIHHousing Academy on the new apprenticeships, and we developed our apprenticeship end-point assessmentservices, with 1300 apprentices registered with CIH during the period. Eleven apprentices have successfullycompleted their programme of learning in the last 12 months. We have continued to work with the devolvednations on their review of the apprenticeship’s framework and are closely involved in the development of a newframework in Northern Ireland.
ProfessionalismWe have continued to develop our professionalism work, including making a start on building a professionalstandards framework which focuses on behaviours and values. This is a cross CIH initiative which will underpinall of our work as a professional body, linking in development opportunities for organisations and providing routemaps for individuals through their careers. We have continued to build a network of professional champions andare consulting widely on the content and focus of the framework.
We have continued to embed messages on the value and importance of professionalism in all platform eventsand discussions with key stakeholders.
Work on building professionalism in the sector as a result of Dame Judith Hackitt’s work on building safety hascontinued and we will carry on exploring opportunities for supporting our members in relation to this.
Membership performanceOur membership base increased by 7% at 31 March 2020, compared to 17,207 at 31 March 2019. This is asignificant increase as we have continued to see a continuation in the increased focus on professionalism acrossthe sector. We have seen the number of members among corporate partner organisations increase over thisperiod, along with increased numbers of student members through the apprenticeship programmes and otherqualifications.
Paying membership also increased this year rising from 10,151 at 31 March 2019 to 10,169 at 31 March 2020.This again is a significant achievement given the decline in the number of paying members in recent years.Being able to stabilise this has been pivotal in membership.
This year also saw an increase in the number of Chartered and Fellow members joining the CIH (an increase of22% on last year). Again, this has stemmed from the increasing focus on professionalism, but also a significantlyhigher conversion rate when students complete their course, converting them to become full paying members.On average our conversion rate was 18% compared to 8% in the previous year.
Our CIH Futures group saw the recruitment of new board members and the appointment of a new chair in thelast year. The success of their work continued, with them increasing the number of members under the age of 30from 406 at 31 March 2019 to 460 members at 31 March 2020. This will continue to be a focus for themembership team moving forwards as we seek to be more representative of the whole sector.
Overall, there has been a shift in the approach of membership, to one that continually reviews our valueproposition. This is now more important than ever before so will continue in the next year with substantivereviews of key member benefits and continual engagement with organisations and individuals, makingmembership more agile and responsive.
Conference and events activityThis year we focused on building on the strong foundations we had set the previous year. We sought to developleading content for housing professionals, keeping them up to date with the most crucial industry topics. Wecontinued to develop free events for CIH members, which drive member value but also commercial exhibition
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Achievements and performance (continued)
and sponsorship. COVID-19 had a major impact on our last quarter’s performance with the postponement of oneof our major events, Total Housing.
Corporate PartnershipsOur corporate partnership products performed well this year, generated £1.238m of revenue. Our partnershipsfocus on delivering key account management to our high spend clients, providing revenue for each of ourcommercial business areas.
Influencing and providing evidenceSeptember 2019 saw the publication of our Rethinking Allocations research report which highlighted the ways inwhich rules and processes designed to decide who gets access to social housing could be failing the people ingreatest need. Faced with a scarcity of genuinely affordable homes, councils and housing associations areforced into rationing them and the way they do this can exclude the people who need social housing the most.The report called on government to increase its investment in new homes at social rents and to review theimpact of its welfare policy on people’s ability to afford a decent place to live. It also called on housing providersto review the way they allocate empty homes to make sure that people are not being unfairly screened out
Housing has a big impact on people’s mental and physical health and wellbeing and so we were pleased to becommissioned by The Health Foundation to investigate the impacts of living in the private rented sector foryoung people aged 18-24, as part of its inquiry into young people’s future health. Our research revealed arelative lack of focus on young people by housing policy makers, and the limited choice and control that theyhave over their housing options, which has implications for their wellbeing and particularly their mental health. Toaddress this, we suggested an ambitious overarching objective for housing policy: to enable all young people toexercise choice and control over their housing situation. Specific recommendations included providing realistichelp with housing costs, making sure that private renting provides a good quality housing option and improvingsecurity by ending ‘no fault’ evictions for private renters
We undertook detailed analysis of the impact of four years of below-inflation increases and a four-year freeze onthe amount of help that private renters on low incomes receive with their housing costs via local housingallowance (LHA). Our Frozen Out report showed that, while LHA should enable people to afford around 30 percent of the private rented homes in an area, this had fallen to 10 per cent in many areas and was a contributingfactor in rising levels of homelessness and was causing financial hardship for many. Recommendations togovernment included uprating allowances for essential living expenses (other than rent) every year by at leastthe rate of inflation and to fully restore them to at least their 2012 real-terms value and fully restoring the realvalue of LHA so that it covers the rent for at least 30 per cent of homes in every housing market area
We responded to a range of government consultations on topics including homelessness, making homeownership affordable, and creating a new deal for private renters. We submitted written evidence the All PartyParliamentary Group on aging and older people and to the Building Better, Building Beautiful commission
CIH ScotlandCIH Scotland alongside Scottish Women’s Aid published guidance for the social housing sector on domesticabuse which was published in August 2019. In May 2019 we published good practice guidance for housingpractitioners on Housing First alongside Homeless Network Scotland and in October 2019 published a dementiacharter alongside Healthcare Improvement Scotland, setting out the steps housing organisations can take toimprove their support for tenants, homeowners and customers with dementia.
Building on the domestic abuse guidance we were asked to co-chair a social housing and domestic abusepathway by the Scottish Government. It met for the first time in February 2020 and final recommendations areexpected in the autumn of 2020 setting out required changes to policy and practice to improve housing outcomesfor victims of domestic abuse
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Achievements and performance (continued)
The Scotland team also led the organisation and delivery of the fourth Scottish Housing Day in 2019, which wassupported by more than 100 organisations and increased public and stakeholder awareness about housing. Wepublished a paper setting out our the case for housing as a human right.
We organised our second young professional’s event, the Big Conversation, which was attended by 100practitioners in Glasgow and we supported the delivery of Scotland Housing Festival which took place in March2020.
We commissioned research into succession planning in the sector and have commissioned work alongsideShelter Scotland and the SFHA on affordable housing supply need which was published in the Summer 2020.
We have been working with educational practitioners on how to improve access to housing education, researchhas been ongoing throughout 2019 and 2020 and a report is due in the autumn of 2020.
CIH Northern IrelandCIH Northern Ireland achieved 17 mentions in the regional press and national trade press, including BBCtelevision and radio interviews, and coverage/platforms pieces in the Belfast Telegraph, Irish News, and BelfastNewsletter.
We ran a series of policy and membership development events:
Tackling domestic abuse in the housing sector. The event was attended by 30 delegates making the
event NI’s best attended seminar. As a free for members event, it led to action on lapsed memberships. Paid
bookings from non-members and sponsorship in the surplus exceeding target.
Housing festival. The NI Futures group welcomed 90 people to see 11 speakers and six sponsors. The
festival was tailored for younger professionals and the focus this year was on personal and professional
resilience. We received excellent verbal feedback. The attendance was up by 20 and the sponsorship target
was exceeded, with the overall margin outperforming target.
Delivering genuinely affordable homes in Northern Ireland. We held a joint conference with Housing
Rights looking at how to deliver affordable housing most effectively. Two sponsors were secured, and the
final delegate number was 90. 97% of delegates who completed the evaluation (33) said the overall
experience was good or excellent and 94% said the event increased their knowledge on the topic. CIH
Northern Ireland presented on learning from the Rethinking allocations project as well as the latest on
Rethinking social housing NI.
Two graduate trainees from the Housing Executive were secured on placement to assist with the second phaseof the Rethinking social housing Northern Ireland project. The aim of the second phase was to advance and/ordevelop further the recommendations from the initial report in 2018/19. This was achieved through two projectworking groups which examined access and supply issues, respectively. An output document was drafted thatcontinues to inform our regional influencing work.
CIH CymruThe policy team in Wales has continued to work with Shelter Cymru and Tai Pawb on the campaign to fullyincorporate the Right to Adequate Housing into Welsh law. The Minister agreed to put the “Due Regard” elementof the right int the statutory guidance attached to the Local Government & Elections (Wales) Bill which iscurrently undergoing scrutiny in the Welsh Parliament. The Equalities, Communities & Local GovernmentCommittee recommended in their scrutiny report of the legislation that the Due Regard element should beincluded on the face of the Bill, although the passage of the Bill has been held-up due to COVID-19. Two of thethree main political parties in Wales have agreed to include full incorporation into their manifestos ahead of the2021 Welsh Parliament Elections.
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CHARTERED INSTITUTE OF HOUSING
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TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
Achievements and performance (continued)
The team has continued to work with the Welsh Government on the implementation of the recommendations ofthe Independent Review of Affordable Housing Supply by sitting on the Welsh Government’s implementationboard and also securing a grant through the WG’s Innovative Housing Programme to host a strand of worklooking at scaling up at pace council house building in Wales. Again implementation has been hampered byCOVID-19.
The Oak Foundation funded Tyfu Tai Cymru project continues to go form strength to strength, recentlypublishing the results of a survey of local government housing professionals and a piece of research onallocations policies in Wales. We are currently working to identify a suitable COVID-related piece of researchwhich will add value to post-COVID recovery discussions.
COVID-19The team in Wales worked with colleagues across the UK to provide the Welsh context for our policy & practiceadvice sheets at the beginning of the crisis. We have also provided written and oral evidence to the WelshParliament’s Equalities, Communities & Local Government Committee for their COVID-impact inquiry. We havealso provided written evidence to the Commissioner for the Well-being of Future Generations with regard tohousing’s role at the centre of the post-COVID green economic recovery. We are working with a coalition ofhousing organisations to further develop the “Homes for All Cymru” campaign which aims to campaign forhousing to be repositioned at the centre of the public health and economic recovery debate. And we are workingwith Community Housing Cymru and the Welsh Local Government Association on a joint campaign ensuring thatWelsh Government provides enough capital investment to the sector to meet their ambitions for more socialhousing. We continue to place the call for the full incorporation of the “Right to Adequate Housing” at the centreof all our policy & public affairs activity in Wales with a relaunch of the campaign in the autumn around back adraft bill that we have developed with Dr Simon Hoffman form Swansea University.
Media coverageWe continued to identify and exploit high profile broadcast, online and print media opportunities for CIHmessages, including our research, policy positions and campaigns (particularly Make a Stand and our mostrecent presidential campaign, Shine a Light), learning role and the benefits of membership.
We were featured in a range of media and channels. We also saw a significant increase in mentions in regionalmedia and maximised our use of social media to share news and key messages to our members and the widerhousing community. Across the year, we had the potential reach of over 3billion – this is measured on thenumber of visitors to a potential media source we were mentioned in. The biggest spike of media mentionshappened between 17 June and 1 July, following a high amount of mentions due to Housing 2019, ourManchester conference with OMG.
We are continuing our collaboration with ITN Productions and this year, our film will focus on the future ofhousing. The series will feature the work of around 10 housing associations and local authorities and will launchat the Virtual Housing Festival in September. Alongside this, ITN will also be putting together a news itemfocusing on this year’s presidential campaign to shine a light on mental health in housing. This will feature ourpresident, Aileen Evans, plus some heartfelt case studies.
b. Investment strategy and performance
The Trustees’ investment powers are set out within CIH’s charter and byelaws. Accordingly, Trustees engageand instruct Charles Stanley & Company Limited (“Charles Stanley”) and Barclays Bank to manage theinvestment portfolio. Both managers act within CIH’s investment policy and, in addition, use an independentscreening and monitoring agency which ensures that the requirements of the CIH Socially and EnvironmentallyResponsible Investment Policy are upheld. Charles Stanley is instructed to follow an approach that is consistentwith sustainable investment.
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CHARTERED INSTITUTE OF HOUSING
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TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
Achievements and performance (continued)
Not only must our investments offer sound potential return, but the companies should conduct themselves in away that is both socially and environmentally responsible. We favour selection of those companies with ethicalbusiness practices that promote desirable goals such as sustainable development and mitigating climatechange. Our investment objective is to maintain the real value of assets and protect the capital base whilstproviding a rising level of investment income.
The portfolio made a total loss of 6.9%, comprised of a capital loss of 10.69% and an income return of 3.77%.We use the 'Total Returns Index' as this combines the two components of investment return, capital and income.This compares to the FTSE 100 (TR) return of -1.3%. Our portfolio spans a wider range of asset classes thanEquity and Bonds and seeks to generate return from a variety of sources. Our portfolio is reviewed continuouslyto ensure it remains within market indicators.
Financial review
In addition to CIH’s own activities these accounts include the licence fee received from HouseMark Limited, anassociate company offering benchmarking and sector improvement services and business intelligence.
a. Financial position
The trading environment for the Charity pre-pandemic was positive, with improved profitability in Events,Conferences and Education/Learning. . We continued to build on our business to business relationships withcorporate partnerships entering their third year. The main one-off impacts on our financial position at 31 March2020 were a revaluation gain on the defined beneifit pension scheme arising from the defined benefit pensionscheme of £1.24m (£4.47m at 31.3.2020 v: £5.71m as at 31.3.2019) and a revaluation gain on the former officesin Coventry (Octavia House) of £300k.
The net expenditure was £8.324m for the year, which represents an increase of approximately £0.15mcompared to the prior 15 months on an annualised basis.
As a result of the above, the balance sheet shows a net liability position with the funds showing a negativereserve for the pension liability. In 2019/20 there were no further drawdowns from our investment portfolio, with£250k of cash being re-invested from the positive cashflows generated during the year.
By the year end, incoming resources were £8.508m with investment in charitable activities at £8.007m, directlysupporting delivery of our services to members and the housing sector.
Our associate company HouseMark Limited, a joint venture with the National Housing Federation, accounted fora return in respect of it’s licence fee of £230k for the year, although this remains outstanding at 31/3/20. Arevised payment plan has been proposed by Housemark and accepted by both its joint owners. Paymentsreceived after year-end have exceeded the agreed payment plan.
b. Reserves and designated funds
CIH holds financial reserves to be applied to future activities in a number of categories:
Unrestricted funds (excluding the pensions reserve) of £3.615m are available to be applied, at the discretion
of the Trustees, to any of CIH's charitable purposes. Within the unrestricted funds, there is a general fund, a
research/development fund and the revaluation reserve arising from our land and buildings and investments
in subsidiaries and associate companies;
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CHARTERED INSTITUTE OF HOUSING
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TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
Restricted funds (£0.147m) are available to be applied to the specific purpose(s) intended by the donor. The
main long-term restricted fund is the David Butler Bursary Fund which provides financial support for people
wishing to pursue a career in housing and at the end of the year was £52k. Other Restricted reserves relate
to Grants received, with expenditure yet to be incurred
Pension deficit reserve (£4.470m) is a negative reserve, arising from the recognition of the long tail liability
on the defined benefit pension fund, more detail of which appears below. The trustees have expressed an
intention to establish a designated reserve in unreserved funds in the future to build up the resources to
meet the long-term pension liability. The ability to set aside such funds is dependent upon CIH generating
surpluses which then become available
CIH’s assets are predominantly unrestricted and Trustees actively manage the proportion that is freely availableas reserves. It is the intention of the Trustees to hold sufficient reserves to enable expenditure to be reduced in amanaged fashion, should the need arise, avoiding the need to halt work abruptly. The Trustees have agreed thatfree reserves should normally be within a range of six months of such essential expenditure and the abovefigures are believed to be within that limit.
At 31 March 2020 the level of net assets is £3.762m, excluding the long-term pension liability, of which 8.8%(£0.3m) is cash and 56.7% (£2.082m) is freely available being investment funds. The Trustees have approved anew 3-year financial plan, in which the Institute returns to positive annual cashflow and therefore consider thereserve position above to be within their target level and to be sufficient for the continuing operation of thecharity.
This is, however, subject to the level of pension contributions remaining at levels that enable the Charity to fundthe deficit over the longer-term, and the Trustees have concluded negotiations with the LPFA pension fund tothis effect.
In 2019/20, the pension liability has decreased to £4.47m to reflect what is due on the LPFA pension fund whichhas resulted in a net liabilities position of £0.8m. Details of the pension scheme can be found in the notes to thefinancial statements. The next pension triennial review is underway and we expect the outcome in 2020.
The movements on these funds are detailed in the notes to the accounts.
c. Going concern
Chartered Institute of Housing has net assets excluding pension scheme liabilities of £3.762m (2019: £3.663m)at the balance sheet date. We have re-budgeted for 2020/21 taking into account the impacts of the COVID-19pandemic and have reduced expenditure to broadly match the expected reduced income. We expect incomestreams to recover in following years and we are looking at ways to supplement this with new products andmore general cost savings. The currently approved three-year business plan included a return to positive cash-flows, and the implementation and outcomes of the plan will be vigorously monitored. The board have reviewedfuture cash projections, and have been assured that the impacts of COVID-19 can be contained with no materialimpact in 20/21. Thereafter, the cash position reverts to a more favourable picture, and the board take comfortthat further savings opportunities are available should the need arise.
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CHARTERED INSTITUTE OF HOUSING
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TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
CIH’s negotiations with LPFA about future contribution rates for its final salary pension scheme members andthe level of contributions towards the past pensions deficit were successfully concluded during the financial year,which mitigated a significant historic risk. As part of these discussions CIH closed the scheme to new andexisting members and agreed in principle to the deficit management agreement proposed by the LPFA which willsee CIH pay increased contributions in future years and grant a level of security on certain assets held by thecharity.
The Directors consider the following to be the key risks to be considered in assessing going concern:
- the impact of reduced membership during the renewal in January 2021- the impact of closing physical events and conferences due to the pandemic- revenue reductions in Learning, training and Education incomes if investment in personal development reduces significantly- an inability to reduce costs should any or all of the above occur.
Having reviewed stress testing on the ability to mitigate income reduction, the favourable liquidity position, themanagement reporting framework including the identification of opportunities not included in forecasts, theopportunity to secure additional funding should the need arise, the initial improved performance against theapproved budget, the more general risk management framework and the process of regularly reviewing financialperformance, the Directors believe that material uncertainties can be mitigated and/or managed appropriatelyand on this basis CIH’s Governing Board confirms the CIH’s going concern status.
d. Future plans
CIH responded to challenges over recent years by introducing a number of measures including having had adifficult couple of years with income declining as CIH went through introduced cost cutting measures. The effectsof the COVID-19 lockdown resulted in the cancellation of the Brighton conference earlier this year, which is ourmost revenue generating event.
CIH have been on a journey the last couple of years to streamline their operations and have developed a resilientcorporate plan. A restructuring has been crucial for improving the operations and this is reflected in the numberswith costs falling and revenue rising from FY 2022 onwards. This section sets out our goals for the future.
Objective: Build a sustainable and successful organisationOur priority is to improve the organisation’s financial position to create a strong and stable base from which togrow. We have already significantly reduced our costs and will continue to do so from FY 2021 to FY 2023
Over the next year we will focus on building a financially sustainable organisation by:• Delivering a business transformation plan• Delivering a break-even operating model that creates a foundation for growth in future years• Reviewing our financial management information and processes and developing options to upgrade our financial management system• Maximising the market potential to grow our partnership business• Developing with Ocean Media Group a renewed partnership to maximise the value for CIH.
The strategic aim is to reach 6% net income on turnover 1 by 2022/3, which will ensure CIH will remain profitableeven without the expected income from both HouseMark and Ocean Media Group.
Objective: Grow our membershipMembers are at the heart of CIH, and we will reinvigorate our efforts to make sure everything we do reflects this.
We will launch a range of special interest groups focusing on the most pressing issues facing housingprofessionals today. We will also raise the profile of our member opinion panel.
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
We are transforming our digital services, meaning that visitors to our website will have a better onlineexperience, including better information and access to the key courses offered. We will continue to develop ouronline offering for CIH members.
The strategic medium-term aim is to increase paying membership by 2% and increasing overall memberretention by 2% by 2021-22.
We will be developing our new member champion network and creating an outreach programme to housingorganisations across the UK to sell the benefits of membership to a wider audience.
Working with our young members group, CIH Futures Advisory Group, we are aiming to grow the number ofunder 30 members to more than 600, with the goal of 10 per cent of our paying membership being under 30 by2020-21.1Net income excluding actuarial gains or losses
Objective: Provide relevant knowledge and education for a modern housing professionWe are focusing on making sure that we are clear on the skills and knowledge housing professionals need rightnow and in the future. To do this we are strengthening our existing relationships and creating new partnershipswith housing organisations to develop a series of new products to address the needs of a post-Grenfell housingworld.
Further plans include:• Developing a consistent qualification offer across the UK • Further developing the CIH Housing Academy in the devolved nations• Maximising opportunities to expand our apprenticeships offer in the devolved nations• Reviewing the role and function of housing management through our rethinking housing management project
Objective: Be the leading voice for the housing profession across the UKWe will look to maintain our position as an influencer in the housing industry – something which is oftenhighlighted as an important area of activity by our members.
The strength of our voice is founded on our values; CIH is independent, evidence-based, cross-sector and worksacross the UK and beyond. We are the voice of housing professionals who collectively have a profoundknowledge and understanding of housing issues and real expertise in delivering services.
We want to use our public voice, influence and reputation to effect positive change in housing in the publicinterest. To achieve this we will focus our energies on building our relationships with stakeholders across thesector, working collaboratively with partners, via the Homes at the Heart, campaign to make the case forinvestment in social housing as being central to the economic recovery from the COVID-19 pandemic.
CIH Northern Ireland will continue to lead its own Rethinking social housing project while CIH Cymru is aiming toinfluence the policy debate in Wales through the Tyfu Tai Cymru project and influencing the implementation ofthe recommendations of the Welsh Government’s Independent Affordable Housing Review.
CIH Scotland is leading the debate on the future of affordable housing by launching new research setting outScotland’s 5 year housing need over the next five years and coordinating Scottish Housing Day which is focusedon the value of social housing.
We will continue to actively generate media opportunities to promote the work of our members and the widerhousing profession, and to make the case for the voice of housing professionals to be heard in policy design andoperational delivery.
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
TRUSTEES' REPORT (CONTINUED)FOR THE YEAR ENDED 31 MARCH 2020
Statement of Trustees' responsibilities
The Trustees are responsible for preparing the Trustees' report and the financial statements in accordance withapplicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted AccountingPractice).
The law applicable to charities in England & Wales and Scotland requires the Trustees to prepare financialstatements for each financial year which give a true and fair view of the state of affairs of the charity and of itsincoming resources and application of resources, including its income and expenditure, for that period. Inpreparing these financial statements, the Trustees are required to:
select suitable accounting policies and then apply them consistently;
observe the methods and principles of the Charities SORP (FRS 102);
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards (FRS 102) 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
charity will continue in business.
The Trustees are responsible for keeping adequate accounting records that are sufficient to show and explainthe charity's transactions and disclose with reasonable accuracy at any time the financial position of the charityand enable them to ensure that the financial statements comply with the Charities Act 2011, the Charity(Accounts and Reports) Regulations 2008, the Charities and Trustee Investment (Scotland) Act 2005, theCharities Accounts (Scotland) Regulations 2006 (as amended) and the provisions of the Royal Charter. They arealso responsible for safeguarding the assets of the charity and hence for taking reasonable steps for theprevention and detection of fraud and other irregularities.
Disclosure of information to auditors
Each of the persons who are Trustees at the time when this Trustees' report is approved has confirmed that:
so far as that Trustee is aware, there is no relevant audit information of which the charity's auditors are
unaware, and
that Trustee has taken all the steps that ought to have been taken as a Trustee in order to be aware of
any relevant audit information and to establish that the charity's auditors are aware of that information.
Auditors
The auditors, Crowe U.K. LLP, have indicated their willingness to continue in office. The designated Trustees will propose a motion reappointing the auditors at a meeting of the Trustees.
Approved by order of the members of the board of Trustees and signed on their behalf by:
___________________________Geraldine Howley
Date: 20 October 2020
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARTERED INSTITUTE OF HOUSING
Opinion
We have audited the financial statements of Chartered Institute of Housing (the 'charity') for the year ended 31March 2020 which comprise the Statement of Financial Activities, the Balance sheet, the Statement of cashflows and the related notes, including a summary of significant accounting policies. The financial reportingframework that has been applied in their preparation is applicable law and United Kingdom AccountingStandards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UKand Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
The financial statements have been prepared in accordance with Accounting and Reporting by Charitiespreparing their accounts in accordance with the Financial Reporting Standards applicable in the UK and Republicof Ireland (FRS 102) in preference to the Accounting and Reporting by Charities: Statement of RecommendedPractice issued on 1 April 2005 which is referred to in the extant regulations but has been withdrawn.
This has been done in order for the accounts to provide a true and fair view in accordance with the GenerallyAccepted Accounting Practice effective for reporting periods beginning on or after 1 January 2015.
In our opinion the financial statements:
give a true and fair view of the state of the charity's affairs as at 31 March 2020 and of its incoming
resources and application of resources for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting
Practice; and
have been prepared in accordance with the requirements of the Charities Act 2011, the Charities and
Trustee Investment (Scotland) Act 2005 and regulation 8 of the Charities Accounts (Scotland) Regulations
2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicablelaw. Our responsibilities under those standards are further described in the Auditors' responsibilities for the auditof the financial statements section of our report. We are independent of the charity in accordance with the ethicalrequirements that are relevant to our audit of the financial statements in the United Kingdom, including theFinancial Reporting Council's Ethical Standard, and we have fulfilled our other ethical responsibilities inaccordance with these requirements. We believe that the audit evidence we have obtained is sufficient andappropriate to provide a basis for our opinion.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us toreport to you where:
the Trustees' use of the going concern basis of accounting in the preparation of the financial statements is
not appropriate; or
the Trustees have not disclosed in the financial statements any identified material uncertainties that may
cast significant doubt about the charity's ability to continue to adopt the going concern basis of accounting
for a period of at least twelve months from the date when the financial statements are authorised for issue.
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARTERED INSTITUTE OF HOUSING(CONTINUED)
Other information
The Trustees are responsible for the other information. The other information comprises the information includedin the Annual report, other than the financial statements and our Auditors' report thereon. Our opinion on thefinancial statements does not cover the other information and we do not express any form of assuranceconclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, indoing so, consider whether the other information is materially inconsistent with the financial statements or ourknowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such materialinconsistencies or apparent material misstatements, we are required to determine whether there is a materialmisstatement in the financial statements or a material misstatement of the other information. If, based on thework we have performed, we conclude that there is a material misstatement of this other information, we arerequired to report that fact.
We have nothing to report in this regard.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Charities (Accounts and Reports)Regulations 2008 and the Charities Accounts (Scotland) Regulations 2006 (as amended) requires us to report toyou if, in our opinion:
the information given in the Trustees' report is inconsistent in any material respect with the financial
statements; or
sufficient and proper accounting records have not been kept; or
the financial statements are not in agreement with the accounting records and returns; or
we have not received all the information and explanations we require for our audit.
Responsibilities of trustees
As explained more fully in the Trustees' responsibilities statement, the Trustees are responsible for thepreparation of the financial statements which give a true and fair view, and for such internal control as theTrustees determine is necessary to enable the preparation of financial statements that are free from materialmisstatement, whether due to fraud or error.
In preparing the financial statements, the Trustees are responsible for assessing the charity's ability to continueas a going concern, disclosing, as applicable, matters related to going concern and using the going concernbasis of accounting unless the Trustees either intend to liquidate the charity or to cease operations, or have norealistic alternative but to do so.
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CHARTERED INSTITUTE OF HOUSING
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CHARTERED INSTITUTE OF HOUSING(CONTINUED)
Auditors' responsibilities for the audit of the financial statements
We have been appointed as auditor under section 144 of the Charities Act 2011 and section 44(1)(c) of theCharities and Trustee Investment (Scotland) Act 2005 and report in accordance with the Act and relevantregulations made or having effect thereunder.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes ouropinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted inaccordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arisefrom fraud or error and are considered material if, individually or in the aggregate, they could reasonably beexpected to influence the economic decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located on the FinancialReporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of ourAuditors' report.
Use of our report
This report is made solely to the charity's trustees, as a body, in accordance with Part 4 of the Charities (Accounts and Reports) Regulations 2008 and regulation 10 of the Charities Accounts (Scotland) Regulations 2006. Our audit work has been undertaken so that we might state to the charity's trustees 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 charity and its trustees, as a body, for our audit work, for this report, or for the opinions we have formed.
Crowe U.K. LLPStatutory AuditorBlack Country HouseRounds Green RoadOldburyWest MidlandsB69 2DG
Date: 3 November 2020
Crowe U.K. LLP are eligible to act as auditors in terms of section 1212 of the Companies Act 2006.
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
STATEMENT OF FINANCIAL ACTIVITIESFOR THE YEAR ENDED 31 MARCH 2020
Unrestrictedfunds2020
Restrictedfunds2020
Totalfunds2020
Totalfunds2019
Note £000 £000 £000 £000
Income from:
Donations and legacies 4 25 171 196 133
Charitable activities 5 8,065 - 8,065 7,430
Investments 6 73 - 73 97
Other income 7 232 - 232 186
Total income 8,395 171 8,566 7,846
Expenditure on:
Charitable activities 8 8,240 84 8,324 8,111
Total expenditure 8,240 84 8,324 8,111
Net (losses)/gains on investments (208) - (208) 12
Net movement in funds before otherrecognised gains (53) 87 34 (253)
Other recognised gains:
Gains on revaluation of fixed assets 300 - 300 307
Actuarial gains on defined benefitpension schemes 29 1,006 - 1,006 746
Net movement in funds1,253 87 1,340 800
Reconciliation of funds:
Total funds brought forward (2,107) 60 (2,047) (2,847)
Net movement in funds 1,253 87 1,340 800
Total funds carried forward(854) 147 (707) (2,047)
The Statement of Financial Activities includes all gains and losses recognised in the year.
The notes on pages 27 to 58 form part of these financial statements.
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
BALANCE SHEETAS AT 31 MARCH 2020
2020 2019Note £000 £000
Fixed assets
Intangible assets 13 209 92
Tangible assets 14 755 2,264
Investment property 15 1,950 -
Investments 16 2,082 2,066
4,996 4,422
Current assets
Debtors 17 1,541 1,111
Cash at bank and in hand 324 1,183
1,865 2,294
Creditors: amounts falling due within oneyear 18 (3,091) (3,049)
Net current liabilities (1,226) (755)
Total assets less current liabilities 3,770 3,667
Provisions for liabilities 20 (8) (4)
Net assets excluding pension liability 3,762 3,663
Defined benefit pension scheme liability 29 (4,470) (5,710)
Total net assets (708) (2,047)
Charity funds
Restricted funds 21 147 60
Unrestricted funds:
Unrestricted funds excluding pension asset 21 3,615 3,603
Pension reserve 21 (4,470) (5,710)
Total unrestricted funds 21 (855) (2,107)
Total funds (708) (2,047)
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
BALANCE SHEET (CONTINUED)AS AT 31 MARCH 2020
The financial statements were approved and authorised for issue by the Trustees and signed on their behalf by:
Geraldine Howley
Date: 20 October 2020
The notes on pages 27 to 58 form part of these financial statements.
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
STATEMENT OF CASH FLOWSFOR THE YEAR ENDED 31 MARCH 2020
2020 2019Note £000 £000
Cash flows from operating activities
Net cash used in operating activities 24 (453) (89)
Cash flows from investing activities
Dividends, interests and rents from investments 73 97
Proceeds from the sale of tangible fixed assets 123 -
Purchase of tangible/intangible fixed assets (431) (109)
Proceeds from sale of investments 1,239 724
Purchase of investments (1,410) (78)
Net cash (used in)/provided by investing activities (406) 634
Change in cash and cash equivalents in the year (859) 545
Cash and cash equivalents at the beginning of the year 1,183 638
Cash and cash equivalents at the end of the year 25 324 1,183
The notes on pages 27 to 58 form part of these financial statements
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
1. General information
Chartered Institute of Housing (CIH) was incorporated in the United Kingdom under Royal Charter on 25June 1984 and has no share capital . CIH is registered as a charity with the Charity Commission Englandand Wales (registered no. 244067) and the Office of the Scottish Charity Regulator (registered no.SCO40324).
The registered and principal office is Chartered Institute of Housing, Octavia House, Westwood Way,Coventry, CV4 8JP.
2. Accounting policies
2.1 Basis of preparation of financial statements
The financial statements have been prepared in accordance with the Charities SORP (FRS 102) -Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charitiespreparing their accounts in accordance with the Financial Reporting Standard applicable in the UKand Republic of Ireland (FRS 102) (effective 1 January 2015), the Financial Reporting Standardapplicable in the UK and Republic of Ireland (FRS 102) and the Charities Act 2011, the Charities andTrustee Investment (Scotland) Act 2005 and the Charities Accounts (Scotland) Regulations 2006 (asamended).
The financial statements have been prepared to give a 'true and fair' view and have departed fromthe Charities (Accounts and Reports) Regulations 2008 only to the extent required to provide a 'trueand fair' view. This departure has involved following the Charities SORP (FRS 102) published on 16July 2014 rather than the Accounting and Reporting by Charities: Statement of RecommendedPractice effective from 1 April 2005 which has since been withdrawn.
Chartered Institute of Housing meets the definition of a public benefit entity under FRS 102. Assetsand liabilities are initially recognised at historical cost or transaction value unless otherwise stated inthe relevant accounting policy.
CIH has a wholly owned subsidiary CIH Canada.
CIH has an interest in a joint venture, HouseMark Limited.
Asia Pacific is, in accordance with FRS102, treated as a branch of CIH and is a dormant company.
2.2 Going concern
The Trustees consider they have sufficient reserves and cash to continue operating on a goingconcern basis for the foreseeable future.
As stated in the Trustee’s Report, Trustees believe there are no material uncertainties that call intodoubt the Charity's ability to continue as a going concern and the accounts have therefore beenprepared on the basis that the Charity is a going concern. In light of the current climate in relationto the COVID-19 pandemic the Trustees have reviewed the Charity's finances. In the short termcash holdings are sufficient to ensure adequate cashflow for the foreseeable future. In the medium tolong term plans for, and the structure of, Chartered Institute of Housing remain extant and willcontinue to be reviewed regularly.
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
2. Accounting policies (continued)
2.3 Income
All income is recognised once the charity has entitlement to the income, it is probable that the incomewill be received and the amount of income receivable can be measured reliably.
Incoming resources are represented by subscriptions, training/education courses, conferences, rentalincome, investment income, grants and amounts receivable for services provided excluding VAT.
For subscriptions, entitlement is taken at the date on which the subscription starts and the income isrecognised over the life of the subscription.
For training/education courses and conferences, entitlement is taken on the date on which theservice is provided, being the date the conference/course takes place.
The grants received during the year are performance related grants in nature. They have thereforebeen recognised in the Statement of financial activities in line with entitlement triggered byachievement of the performance conditions over the grant period.
2.4 Expenditure
Expenditure is recognised once there is a legal or constructive obligation to transfer economic benefitto a third party, it is probable that a transfer of economic benefits will be required in settlement andthe amount of the obligation can be measured reliably.
Expenditure is classified by activity. The costs of each activity are made up of the total of direct costsand shared costs, including support costs involved in undertaking each activity. Direct costsattributable to a single activity are allocated directly to that activity. Shared costs which contribute tomore than one activity and support costs which are not attributable to a single activity are apportionedbetween those activities on a basis consistent with the use of resources. Central staff costs areallocated on the basis of time spent, and depreciation charges allocated on the portion of the asset’suse.
Support costs are those costs incurred directly in support of expenditure on the objects of the charityand include project management carried out at Headquarters.
Charitable activities and governance costs are costs incurred on the charity's educational operations,including support costs and costs relating to the governance of the charity apportioned to charitableactivities.
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
2. Accounting policies (continued)
2.5 Intangible assets and amortisation
Intangible assets are stated at cost, less amortisation. Development costs were included within theinitial cost capitalised based on the considerations made by Trustees of the future economic benefitand enhancement of services received from the asset.
Amortisation is provided on intangible assets at rates calculated to write off the cost of each asset ona straight-line basis over its expected useful life.
The estimated useful lives are as follows:
Amortisation is provided on the following bases:
CRM and website - % over the useful economic life of the asset (6years)
Other projects/software - % 20%-33.3% straight line
Assets in the course of development are not amortised until the project has completed and the assetis in use.
2.6 Tangible fixed assets and depreciation
A review for impairment of a fixed asset is carried out if events or changes in circumstances indicatethat the carrying value of any fixed asset may not be recoverable. Shortfalls between the carryingvalue of fixed assets and their recoverable amounts are recognised as impairments. Impairmentlosses are recognised in the Statement of financial activities
Tangible fixed assets are carried at cost or valuation net of depreciation and any provision forimpairment. Depreciation is provided at rates calculated to write off the cost or valuation of fixedassets, less their estimated residual value, over their expected useful lives on the following bases:
Leasehold land - over the period of the leaseLong leasehold buildings - over the period of the lease up to maximum of
50 yearsShort leasehold improvements - over the period of the leaseEquipment, fixtures and vehicles- 20% of cost
The Institute's long leasehold property is valued on the basis of open market value for existing use byan external valuer at least once every five years and in the interim by the Trustees on the samebasis.
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
2. Accounting policies (continued)
2.7 Revaluation of tangible fixed assets
The charity has adopted the revaluation model to revalue items of property, plant and equipmentwhose fair value can be measured reliably. The revaluations shall be made with sufficient regularityto ensure that the carrying amount does not differ materially from that which would be determinedusing fair value at the end of the reporting period.Revaluation of tangible fixed assets
The fair value of land and buildings is usually determined from market-based evidence by appraisalthat is normally undertaken by professionally qualified valuers. The fair value of items of plant andmachinery is usually their market value determined by appraisal.
Revaluation gains and losses are recognised in other comprehensive income and accumulated inequity.
2.8 Investments
Quoted investments are stated at market value in the Balance sheet.
Total unrealised and realised gains and losses arising on investment assets are disclosed within theStatement of Financial Activities. The gain or loss is calculated with regard to the market value at thebeginning of the year, or its cost if purchased during the year.
Investments in subsidiaries are stated at cost less impairment.
The joint ventures are stated at cost within the charity accounts less any accumulated impairmentlosses where necessary.
All other unlisted investments are measured initially at a cost and subsequently measured at fairvalue unless the fair value cannot be measured reliably in which case they are measured at cost lessimpairment.
Investment properties for which a fair value can be measured reliably, are revewied annually, withany changes recognised in the Statement of Financial Activities.
2.9 Debtors
Trade and other debtors are recognised at the settlement amount after any trade discount offered.Prepayments are valued at the amount prepaid net of any trade discounts due.
2.10 Cash at bank and in hand
Cash at bank and in hand includes cash and short-term highly liquid investments with a short maturityof three months or less from the date of acquisition or opening of the deposit or similar account.
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
2. Accounting policies (continued)
2.11 Creditors
Creditors and provisions are recognised when there is an obligation at the Balance sheet date as aresult of a past event that will probably result in a transfer of funds to a third party, and the amount ofthe settlement can be estimated reliably.
The dilapdations provision relates to the London office which is held under an operating lease and isan area of significant estimation/judgement. For more details see Note 3.
Provisions are made where an event has taken place that gives the Charity a legal and constructiveobligation that probably requires settlement by transfer of economic benefit, and a reliable estimatecan be made of the amount of the obligation.
Provisions are charged as an expense to the Statement of Financial Activities in the year that theCharity becomes aware of the obligation, and are measured at the best estimate at the BalanceSheet date of the expenditure required to settle the obligation, taking into account relevant risks anduncertainties. When payments are eventually made, they are charged to the provision carried in theBalance Sheet.
2.12 Financial instruments
The charity only has financial assets and financial liabilities of a kind that qualify as basic financialinstruments. Basic financial instruments are initially recognised at transaction value and subsequentlymeasured at their settlement value with the exception of bank loans which are subsequentlymeasured at amortised cost using the effective interest method.
2.13 Pensions
Retirement benefits to employees are funded by contributions from both the Charity and employees,administered through two schemes, one a stakeholder scheme and the other a defined benefitscheme.
The defined benefit scheme is a multi-employer scheme held with the London Pensions FundAuthority (LPFA). The Charity's share of the underlying assets and liabilities in the LPFA schemehave been identified and the requirements of S.28, Employee Benefits, within FRS 102, have beenfollowed.
The Charity also operates a defined contribution pension scheme. Contributions are charged to theStatement of Financial Activities as they become payable in accordance with the rules of the scheme.
2.14 Branch accounting in Asia Pacific
Asia Pacific is, in accordance with SORP FRS102, treated as a branch of CIH and their results areincluded herein.
2.15 Operating leases
Rentals paid under operating leases are charged to the Statement of financial activities on a straightline basis over the lease term.
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
2. Accounting policies (continued)
2.16 Fund accounting
General funds are unrestricted funds which are available for use at the discretion of the Trustees infurtherance of the general objectives of the charity and which have not been designated for otherpurposes.
Designated funds comprise unrestricted funds that have been set aside by the Trustees for particularpurposes. The aim and use of each designated fund is set out in the notes to the financialstatements.
Restricted funds are funds which are to be used in accordance with specific restrictions imposed bydonors or which have been raised by the charity for particular purposes. The costs of raising andadministering such funds are charged against the specific fund. The aim and use of each restrictedfund is set out in the notes to the financial statements.
Investment income, gains and losses are allocated to the appropriate fund.
3. Critical accounting estimates and areas of judgment
Preparation of the financial statements requires management to make significant judgements andestimates. Estimates and judgements are continually evaluated and are based on historical experienceand other factors, including expectations of future events that are believed to be reasonable under thecircumstances.
Critical accounting estimates and assumptions:
Useful economic lives of intangible and tangible assets
The annual amortisation and depreciation charges for the intangible and tangible assets are sensitive tochanges in the estimated useful economic lives and residual values of the assets. The useful economiclives and residual values are amended when necessary to reflect current estimates, based ontechnological advancement, future investments, economic utilisation and the physical condition of theassets. See Notes 13 and 14 for the carrying amount of the intangible and tangible assets and Notes 2.5and 2.6 for the useful lives for each class of asset.
Dilapidation provision
As part of the Charity's property leasing arrangements there is an obligation to maintain the state of theproperties as generally set in the dilapidations provision of a lease. As a result of alterations taking placeat the properties, a dilapidation provision had been recognised over the period of the lease with the costsbeing charge to the Statement of Financial Activities.
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
4. Income from donations and legacies
Unrestrictedfunds2020
Restrictedfunds2020
Totalfunds2020
£000 £000 £000
Donations 25 - 25
Grants - 171 171
25 171 196
Restrictedfunds2019
Totalfunds2019
£000 £000
Donations - -
Grants 133 133
133 133
5. Income from charitable activities
Unrestrictedfunds2020
Totalfunds2020
£000 £000
Subscription and fees 2,045 2,045
Publications 3 3
Education 3,066 3,066
Corporate partnership 330 330
Professional practice 231 231
Training and conferences 2,390 2,390
Total 2020 8,065 8,065
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
5. Income from charitable activities (continued)
Unrestrictedfunds2019
Totalfunds2019
£000 £000
Subscription and fees 2,235 2,235
Publications 2 2
Education 1,972 1,972
Corporate partnership 320 320
Professional practice 226 226
Training and conferences 2,675 2,675
Total 2019 7,430 7,430
6. Investment income
Unrestrictedfunds2020
Totalfunds2020
£000 £000
Investment income 73 73
Unrestrictedfunds2019
Totalfunds2019
£000 £000
Investment income 97 97
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
7. Other incoming resources
Unrestrictedfunds2020
Totalfunds2020
£000 £000
Property income 58 58
Other income 174 174
232 232
Unrestrictedfunds2019
Totalfunds2019
£000 £000
Property income 30 30
Other income 156 156
186 186
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
8. Analysis of expenditure on charitable activities
Summary by fund type
Unrestrictedfunds2020
Restrictedfunds2020
Totalfunds2020
£000 £000 £000
Subscription and fees 42 - 42
Publications and guides 35 - 35
Education 2,881 - 2,881
Professional practice 557 - 557
Training and conferences 2,881 84 2,965
Regional costs 449 - 449
Support salaries and staff costs 703 - 703
Legal and audit fees 162 - 162
Past service pension costs 385 - 385
Other 145 - 145
8,240 84 8,324
Unrestrictedfunds2019
Restrictedfunds2019
Totalfunds2019
£000 £000 £000
Subscription and fees 78 - 78
Publications and guides 56 - 56
Education 2,542 - 2,542
Professional practice 858 - 858
Training and conferences 2,627 144 2,771
Regional costs 364 - 364
Amortisation of website & CRM 21 - 21
Support salaries and staff costs 796 - 796
Legal and audit fees 121 - 121
Past service pension costs 387 - 387
Other 117 - 117
7,967 144 8,111
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
9. Analysis of expenditure by activities
Activitiesundertaken
directly2020
Supportcosts2020
Totalfunds2020
£000 £000 £000
Subscription and fees 42 - 42
Publications and guides 35 - 35
Education 2,881 - 2,881
Professional practice 557 - 557
Training and conferences 2,965 - 2,965
Regional costs 449 - 449
Support salaries & staff costs - 703 703
Legal and audit fees - 162 162
Past service pension costs - 385 385
Other - 145 145
6,929 1,395 8,324
Activitiesundertaken
directly2019
Supportcosts2019
Totalfunds2019
£000 £000 £000
Subscription and fees 78 - 78
Publications and guides 56 - 56
Education 2,542 - 2,542
Professional practice 858 - 858
Training and conferences 2,771 - 2,771
Regional costs 363 1 364
Amortisation of website & CRM - 21 21
Support salaries & staff costs - 796 796
Legal and audit fees - 121 121
Past service pension costs - 387 387
Other - 117 117
6,668 1,443 8,111
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
10. Net income/(expenditure)
This is stated after charging:
2020 2019£000 £000
Depreciation of tangible fixed assets 49 199
Amortisation of web, CRM and other projects - 21
Auditor's remuneration - audit 19 18
Auditor's remuneration - other services 3 3
Foreign exchange loss 1 7
Operating lease rentals - land and building 180 124
11. Staff costs
2020 2019£000 £000
Wages and salaries 3,204 3,494
Social security costs 295 289
Other pension costs 294 296
3,793 4,079
The average number of persons employed by the charity during the year was as follows:
2020 2019No. No.
Direct charitable services and support 83 90
Management and administration of the charity 5 5
88 95
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
11. Staff costs (continued)
The number of employees whose employee benefits (excluding employer pension costs) exceeded£60,000 was:
2020 2019No. No.
In the band £60,001 - £70,000 1 1
In the band £70,001 - £80,000 1 1
In the band £80,001 - £90,000 1 -
In the band £100,001 - £110,000 - 1
In the band £110,001 - £120,000 1 -
In the band £120,001 - £130,000- 1
The remuneration (including employers national insurance contributions) of the senior management teamfor the charity totalled £406k (2019: £430k).
During the period there were redundancy or termination payments made which amounted to £19k (2019:£15k).
12. Trustees' remuneration and expenses
During the year, no Trustees received any remuneration or other benefits (2019 - £NIL).
During the year ended 31 March 2020, expenses totalling £6,016 were reimbursed or paid directly to 5Trustees (2019 - £2,995 to 7 Trustees). They were incurred for travel and subsistence costs for trusteesinvolved in business meetings and working groups.
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
13. Intangible assets
Website,CRM and
otherprojects
Assets in thecourse of
development Total£000 £000 £000
Cost
At 1 April 2019 1,985 92 2,077
Additions - 117 117
At 31 March 2020 1,985 209 2,194
Amortisation
At 1 April 2019 1,985 - 1,985
At 31 March 2020 1,985 - 1,985
Net book value
At 31 March 2020 - 209 209
At 31 March 2019 - 92 92
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
14. Tangible fixed assets
LongLeasehold
Land &Buildings
Shortleasehold
improvements
Equipment,Fixtures and
Vehicles Total£000 £000 £000 £000
Cost or valuation
At 1 April 2019 2,198 37 387 2,622
Additions - 181 131 312
Disposals (123) - (145) (268)
Transfers between classes (1,650) - - (1,650)
At 31 March 2020 425 218 373 1,016
Depreciation
At 1 April 2019 20 9 328 357
Charge for the year 1 20 28 49
On disposals (1) - (144) (145)
At 31 March 2020 20 29 212 261
Net book value
At 31 March 2020 405 189 161 755
At 31 March 2019 2,178 27 59 2,264
During January 2020 the Coventry premisies included in long leasehold land and buildings werereclassified to investment property (see note 15).
The historical cost less depreciation of leasehold properties was £415k (2019: £1,482k).
All assets of material value held for use on a continuing basis are used for charitable purposes.
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
15. Investment property
Freeholdinvestment
property£000
Valuation
Surplus on revaluation 300
Transfers between classes 1,650
At 31 March 2020 1,950
Properties held at year end were valued by a RICS registered valuer in 2020.
The valuer has attached less weight to previous market evidence for comparison purposes to inform theiropinion of value. The valuation was reported on the basis of material valuation uncertainty as per VPS3and VPGA 10 of the RICS Red Book Global. Consequently less certainty is attached to the valuation.
The Trustees considers the carrying value to be appropriate.
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
16. Fixed asset investments
Subsidiarycompany CIH Canada
Quotedinvestments
Loaninvestment
toHouseMark
Cash ondeposit Total
£000 £000 £000 £000 £000 £000
Cost or valuation
At 1 April 2019 5 24 1,784 126 127 2,066
Additions 3 24 1,383 - 67 1,477
Disposals - - (1,241) - - (1,241)
Revaluations - - (208) - - (208)
At 31 March 2020 8 48 1,718 126 193 2,093
Impairment
Charge for the year - 11 - - - 11
At 31 March 2020 - 11 - - - 11
Net book value
At 31 March 2020 8 37 1,718 126 193 2,082
At 31 March 2019 5 24 1,784 126 127 2,066
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
16. Fixed asset investments (continued)
Subsidiary companyCIH Asia International LimitedThe institute owns 100% of the issued share capital of CIH Asia International Limited. CIH AsiaInternational Limited was incorporated on 9 November 2017 and has been dormant throughout theperiod.
CIH CanadaIn 2013 the Institute entered into a contractural agreement with the Housing Services Corporation (HSC)in Canada to advance the principles of housing education, accreditation and membership.
Joint VenturesHouseMarkThe Institute holds all of the issued A share capital of HouseMark Limited, which provides a knowledgemanagement and benchmarking service. The National Housing Federation holds all of the issued Bshare capital of the company. The company is treated as a joint venture.
The joint ventures are stated at cost less any accumulated impairment losses where necessary.
Quoted investmentsInvestment management costs amounted to £13,019 (2019: £12,889). All quoted investments are statedat market value.
The market value of investments held outside the UK was £473,070 (2019: £473,070).
Investments which individually comprised more than 5% of the portfolio were in Barclays Charity Fund of£847,124 (2019: Primary Health Properties Plc of £99,946).
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
17. Debtors
2020 2019£000 £000
Due within one year
Trade debtors 989 763
Amounts owed by group undertakings 39 2
Amounts owed by participating interests 58 58
Other debtors 66 43
Prepayments and accrued income 389 245
1,541 1,111
Trade debtors and amounts due from group companies are stated after provision for bad debts of £124k(2019: £25k)
18. Creditors: Amounts falling due within one year
2020 2019£000 £000
Payments received on account 474 334
Trade creditors 394 311
Other taxation and social security 204 272
Other creditors 91 151
Accruals and deferred income 1,928 1,981
3,091 3,049
2020 2019£000 £000
Deferred income at 1 April 2019 1,430 1,679
Resources deferred during the year 1,488 1,430
Amounts released from previous periods (1,430) (1,679)
1,488 1,430
The value of deferred income included above relates to income for future periods beginning on or after 1April 2020. The deferred income relates to membership fees and income from corporate partnerships forthe year 1 April 2020 to 31 March 2021.
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
19. Financial instruments
2020 2019£000 £000
Financial assets
Financial assets measured at fair value through income and expenditure 1,718 1,784
2020 2019£000 £000
Financial liabilities
Financial liabilities measured at amortised cost 1,399 1,347
Financial assets measured at fair value through income and expenditure comprise listed investments.
Financial liabilities measured at amortised cost comprise trade creditors, payments received on account,other creditors (including intercompany) and accruals.
20. Provisions
Dilapidationprovision
£000
At 1 April 2019 4
Additions 4
8
As part of the charity’s property leasing arrangements there is an obligation to repair damages whichincur during the life of the lease, such as wear and tear. The cost is charged to Statement of financialactivities as the obligation arises. The provision is expected to be utilised by 2023 as the leasesterminate.
Due to the difficulties in predicting expenditure that will be required on return of a property to the landlordmany years into the future, the dilapidations provision is considered a source of significant estimationuncertainty. The provision has been calculated using historical experience of actual expenditure incurredon dilapidations and estimated lease termination dates.
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
21. Statement of funds
Statement of funds - current year
Balance at 1April 2019
£000Income
£000Expenditure
£000
Gains/(Losses)
£000
Balance at31 March
2020£000
Unrestricted funds
General Fund 1,810 8,394 (8,474) (208) 1,522
Designated research anddevelopment fund 152 - - - 152
Revaluation reserve 1,641 - - 300 1,941
Pension reserve (5,710) - 234 1,006 (4,470)
(2,107) 8,394 (8,240) 1,098 (855)
Restricted funds
Regional fund 1 - - - 1
Learning to Let - 23 - - 23
Tri country bursary fund 5 - - - 5
David Butler bursary 52 - (2) - 50
Oak Foundation grant 2 104 (52) - 54
WHQ - 44 (30) - 14
60 171 (84) - 147
Total of funds (2,047) 8,565 (8,324) 1,098 (708)
The Designated research and development fund is being held for future expenditure on implementationof the new IT strategy.
The David Butler Bursary fund is CIH's educational grant scheme to provide financial support for peoplewishing to pursue a career in housing.
The incoming resources of CIH also include grants made by government departments for specificpurposes.
Total grant income credited in the year was £171k, with £84k having been expended (2019: £133kincome and £144k expenditure).
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CHARTERED INSTITUTE OF HOUSING
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
21. Statement of funds (continued)
Statement of funds - prior year
Balance at1 April 2018
£000Income
£000Expenditure
£000
Transfersin/out£000
Gains/(Losses)
£000
Balance at31 March
2019£000
Unrestrictedfunds
General Funds 1,715 7,713 (7,908) 278 12 1,810
Designatedresearch anddevelopmentfund 152 - - - - 152
Revaluationreserve 1,628 - - (294) 307 1,641
Pension reserve (6,397) - (59) - 746 (5,710)
(2,902) 7,713 (7,967) (16) 1,065 (2,107)
Restrictedfunds
Regional fund 1 - - - - 1
Tri countrybursary fund 5 - - - - 5
David Butlerbursary 36 - - 16 - 52
Oak Foundationgrant 2 71 (71) - - 2
UK HousingReview - 12 (12) - - -
Rethinking 11 4 (15) - - -
Learning to let - 28 (28) - - -
WHQ - 18 (18) - - -
55 133 (144) 16 - 60
Total of funds (2,847) 7,846 (8,111) - 1,065 (2,047)
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
22. Summary of funds
Summary of funds - current year
Balance at 1April 2019
£000Income
£000Expenditure
£000
Gains/(Losses)
£000
Balance at31 March
2020£000
General funds (2,107) 8,394 (8,240) 1,098 (855)
Restricted funds 60 171 (84) - 147
(2,047) 8,565 (8,324) 1,098 (708)
Summary of funds - prior year
Balance at1 April 2018
£000Income
£000Expenditure
£000
Transfersin/out£000
Gains/(Losses)
£000
Balance at31 March
2019£000
General funds (2,902) 7,713 (7,967) (16) 1,065 (2,107)
Restricted funds 55 133 (144) 16 - 60
(2,847) 7,846 (8,111) - 1,065 (2,047)
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NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
23. Analysis of net assets between funds
Analysis of net assets between funds - current period
Unrestrictedfunds2020
Restrictedfunds2020
Totalfunds2020
£000 £000 £000
Tangible fixed assets 755 - 755
Intangible fixed assets 209 - 209
Fixed asset investments 2,082 - 2,082
Investment property 1,950 - 1,950
Current assets 1,718 147 1,865
Creditors due within one year (3,091) - (3,091)
Provisions for liabilities and charges (4,478) - (4,478)
Total (855) 147 (708)
Analysis of net assets between funds - prior period
Unrestrictedfunds2019
Restrictedfunds2019
Totalfunds2019
£000 £000 £000
Tangible fixed assets 2,264 - 2,264
Intangible fixed assets 92 - 92
Fixed asset investments 2,066 - 2,066
Current assets 2,234 60 2,294
Creditors due within one year (3,049) - (3,049)
Provisions for liabilities and charges (5,714) - (5,714)
Total (2,107) 60 (2,047)
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(Incorporated under Royal Charter)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
24. Reconciliation of net movement in funds to net cash flow from operating activities
2020 2019£000 £000
Net income/expenditure for the period (as per Statement of FinancialActivities) 34 (253)
Adjustments for:
Depreciation charges 49 220
Gains/(losses) on investments 143 (12)
Dividends, interests and rents from investments (73) (97)
Loss/(profit) on the sale of fixed assets (1) -
Decrease/(increase) in debtors (429) 54
Increase/(decrease) in creditors 42 (114)
Net pension scheme costs (234) 59
Increase/(decrease) in provisions 4 (5)
Impairment of investments 12 59
Net cash used in operating activities (453) (89)
25. Analysis of cash and cash equivalents
2020 2019£000 £000
Cash in hand 324 1,183
Total cash and cash equivalents 324 1,183
26. Analysis of changes in net debt
At 1 April2019 Cash flows
At 31 March2020
£000£000 £000
Cash at bank and in hand 1,183 (859) 324
1,183 (859) 324
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
27. Related party transactions
Other transactionsThe following transactions took place with another business in which one of the Trustees are a memberof the board, CEO or similar.
Balance outstanding
2020 Sales Purchases as at 31 March 2020
Ark Consultancy 6,708 - 6,019
Broadacres Housing Association 4,359 - -
CIH Canada 25,610 - -
De Montford University 310 - -
East Midlands Housing Group 21,635 - 18,022
Golding Homes 7,778 - -
Incommunities Group 4,084 555 (96)
Notting Hill Genesis 57,574 - (1,413)
Parkhead Housing Association 8,821 - (468)
Savills 10,501 - (61)
South Liverpool Homes 18,657 111 960
Balance outstanding
2019 Sales Purchases as at 31 March 2019
Ark Consultancy 6,382 - 2,189
Broadacres Housing Association 2,555 - -
Circle Housing Group 2,187 - 2,227
Crisis UK - 60 -
East Midlands Housing Group 2,870 - -
Golding Homes 3,340 - -
Incommunities Group 5,447 525 648
Notting Hill Genesis 9,253 119 8,168
Parkhead Housing Association 11,034 - -
Port of Leith Housing Association 6,213 309 -
Savills 7,407 4,731 -
South Liverpool Homes 9,798 130 -
TPAS 745 - -
Trafford Housing Trust 964 - -
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
Joint Venture - HouseMark Limited
The Institute owns all of the £1 A shares in HouseMark Limited, a company which helps housingorganisations to achieve continuous improvement in service delivery and to achieve value for money.
The transactions with this joint venture are listed below:
2020 2019£000 £000
License fees and other institute service sales 237 246
Balance due from the company at 31 March 277 58
Joint arrangement - Ocean Media Group
The Institute has an arrangement with Ocean Media Group to collaborate a new vision for closer workingon media initiatives and other activities that will better deliver and develop products and services for thehousing sector.
The transactions with the joint arrangement are listed below:
2020 2019£000 £000
Sales 363 323
Purchases (1) (21)
Balance due from the company at 31 March 230 180
There are no other related party transactions.
28. Capital commitments
2020 2019£000 £000
Contracted for but not provided in these financial statements
Acquisition of intangible assets 39 147
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
29. Pension commitments
The charity operates a defined benefit pension scheme.
CIH is an admitted body to the London Pensions Fund Authority. The LPFA Board oversees themanagement of the Fund whilst the day to day fund administration is undertaken by the Local PensionsPartnership. Where appropriate some functions are delegated to the Fund's professional advisers.
Contributions are set every three years as a result of the actuarial valuation of the Fund required by theRegulations. The next actuarial valuation of the Fund will be carried out as at 31 March 2019 and will setcontributions for the period from 1 April 2020 to 31 March 2023. There are no minimum fundingrequirements in the LGPS but the contributions are generally set to target a funding level of 100% usingthe actuarial valuation assumptions.
CIH’s negotiations with LPFA about future contribution rates for its final salary pension scheme membersand the level of contributions towards the past pensions deficit continued during the financial year.
As part of these discussions CIH closed the scheme to new and existing members and agreed in principleto the deficit management agreement proposed by the LPFA which will see CIH pay increasedcontributions in future years and grant a level of security on certain assets held by the charity. The detailsbehind the negotiations over this arrangement are still on-going.
The cost of employee and employer contributions into this fund was £382,000 (2019: £263,000).
Principal actuarial assumptions at the Balance sheet date (expressed as weighted averages):
At 31 March2020
At 31 March2019
% %
Discount rate 2.35 2.40
Future salary increases 1.9 2.40
Future pension increases 1.9 2.40
The current mortality assumptions include sufficient allowance for future improvements in morality rates.
The assumed life expectations on retirement age 65 are:
At 31 March2020
At 31 March2019
Years Years
Mortality rates (in years)
- for a male aged 65 now 22.1 21.6
- at 65 for a male aged 45 now 23.5 23.3
- for a female aged 65 now 24.4 24.0
- at 65 for a female aged 45 now 25.8 25.9
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
29. Pension commitments (continued)
Sensitivity analysis
At 31 March2020
At 31 March2019
£000 £000
Discount rate +0.1% 16,074 17,580
Discount rate -0.1% 16,714 18,282
Mortality assumption - 1 year increase 16,939 18,561
Mortality assumption - 1 year decrease 15,860 17,315
Long term salary increase +0.1% 16,391 17,943
Long term salary increase -0.1% 16,391 17,912
Pension increases and deferred revaluation +0.1% 16,715 18,266
Pension increases and deferred revaluation -0.1% 16,072 17,595
The charity's share of the assets in the scheme was:
At 31 March2020
At 31 March2019
£000 £000
Equities 6,434 6,646
Target return porfolio 3,071 3,258
Infrastructure 869 736
Property 1,183 1,149
Cash and other liquid assets 364 428
Total fair value of assets 11,921 12,217
The actual return on scheme assets was £45,000 (2019 - £1,032,000).
The amounts recognised in the Statement of Financial Activities are as follows:
2020 2019£000 £000
Current service cost - 121
Interest income 132 160
Administrative expenses 16 15
Total amount recognised in the Statement of Financial Activities 148 296
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
29. Pension commitments (continued)
Movements in the present value of the defined benefit obligation were as follows:
2020 2019£000 £000
Opening defined benefit obligation 17,927 17,774
Contributions by scheme participants - 26
Actuarial gains (1,344) (2)
Benefits paid (394) (438)
Current service cost - 121
Interest cost 425 448
Unfunded pension payments (2) (2)
Experience gain on defined benefit obligation (221) -
Closing defined benefit obligation 16,391 17,927
Movements in the fair value of the charity's share of scheme assets were as follows:
2020 2019£000 £000
Opening fair value of scheme assets 12,217 11,377
Interest income 293 288
Actuarial (losses)/gains (338) 744
Other actuarial losses (221) -
Contributions by employer 382 237
Administration expenses (16) (15)
Contributions by scheme participants - 26
Benefits paid (396) (440)
Closing fair value of scheme assets 11,921 12,217
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
30. Operating lease commitments
At 31 March 2020 the charity had commitments to make future minimum lease payments under non-cancellable operating leases as follows:
2020 2019£000 £000
Not later than 1 year 180 93
Later than 1 year and not later than 5 years 1,031 243
Later than 5 years 875 -
2,086 336
31. Post balance sheet events
The Covid-19 crisis, which began to build in February 2020 before a total lockdown in March 2020,resulted in a significant decline in investment asset valuations and the charity noted an unrealised loss ininvestments of £208,000 (2019: Gain of £12,000). Post year end investment valuations have recoveredand as at 31 August 2020 are valued at £1,980,000, an increase of £91,000 when compared to 31 March2020.
The Covid-19 pandemic continues to impact investments and it is expected that there may be furthersignificant investment fluctuations in the year ahead.
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CHARTERED INSTITUTE OF HOUSING
(Incorporated under Royal Charter)
NOTES TO THE FINANCIAL STATEMENTSFOR THE YEAR ENDED 31 MARCH 2020
32. Principal subsidiaries and associates
The following was a subsidiary undertaking of the charity:
Names Companynumber
Registered office or principalplace of business
Principal activity
CIH Asia International Limited 2605335 16 Wang Hoi Road, KowloonBay, Kowloon, Hong Kong
Dormant
CIH Canada 1891387 30 Duncan Street, Suite 500,Toronto, ON M5V 2C3
Housing services &advice
Class ofshares
Holding Included inconsolidation
Ordinary 100% No
Common 100% No
The financial results of the subsidiary for the period were:
Names Income£000
Expenditure£000
Profit/(Loss)/ Surplus/
(Deficit) forthe period
£000
Net assets£000
CIH Asia International Limited - 12 (12) -CIH Canada 48 65 (18) (113)
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