homes for haringey annual general meeting 19th september … · 2017-09-14 · successfully...

Homes for Haringey

Annual General Meeting

19th September 2017 20.30pm

Conference Room 1, 1st Floor, 48 Station Road

Homes for Haringey Limited - Annual General Meeting

28:30 – Tuesday 19th September 2017 Conference Room 1, 48 Station Road, Wood Green N22 7TY

Item Presenter Subject

1 Aman Dalvi Chair, Board of Management, Homes for Haringey Limited

Welcome and introductions Verbal

2 Chair Propose the approval of the minutes of the Annual General Meeting (AGM) held on 24 October 2016

3 Esther Campbell Head of Finance Cllr David Beacham Chair, Finance, Audit and Risk

Overview of Group Financial Statements 2016-17 Propose the approval of Group Financial Statements for 2016-17

4 Chair Propose appointment of the external auditors

5 Chair Propose approval of the retirement of Independent Board Member Verbal Jenny Coombs

6 Chair Invitation for the Council Member to address the meeting

Close

AGM minutes, page I of VII Homes for Haringey Ltd

Homes for Haringey

Annual General Meeting 24th October 2016

Present: Tracie Evans, Chief Operating Officer, LBH- Haringey Council

Shareholder Representative In Attendance: Tom McGregor (TM) - Chair, Lorna Reith (LR), Philip Goodwin (PG),

Laurie White (LW), Jenny Coombs (JC), Adzowa Kwabla-Oklikah (AKOK), David Beacham (DB), Joanna Christophides (JC), Yvette Davis (YD), El-Farouk Cheik (EFC), Andrew Billany (AB), Astrid Kjellberg-Obst (AKO), David Sherrington (DS), Dawn Kent-Payne (DKP), Esther Campbell (EC), Puneet Rajput (PR), Harriet Rushton (HR)

Apologies: Georgina Walters (GW), Anastasia Bloom (ABl)

Item Minutes 1. Welcomes and Apologies for Absence

The Chair welcomed all present to the Homes for Haringey Annual General Meeting. Apologies were noted.

2.

Declarations of Interest None

3. Minutes of the AGM held on the 12th October 2015. The Chair recommended the minutes to the Council Representative as a true record and recommended that they be adopted. The minutes were adopted by the Council Representative as an accurate record of the meeting held on the 12th October 2015.

4. Overview of Annual Accounts 2015/16 Esther Campbell, Head of Finance presented the Annual Accounts 2015/16 and gave an overview of performance for the last financial year. She noted that the auditors had given an unqualified audit. The Chair recommended that the Annual Accounts 2015/16 for Homes for Haringey Limited be adopted. The Council Representative approved adoption of the Annual Accounts 2015/16

5. Approval of the procurement of Auditors The results of the procurement exercise for the appointment of the external auditors had been carried out and it was confirmed that PWC were recommended to be appointed for the year 2016/17. The Council Representative approved appointment of PWC as external auditor for

AGM minutes, page II of VII Homes for Haringey Ltd

2016/17. Retirement of Resident Board Members

The Chair moved that the following resident board members retirements be accepted: Tenant - Phil Goodwin Tenant - Laurie White Leaseholder - Adzowa Kwabla-Oklikah Tenant - Georgina Walters

The Council representative approved this motion

Appointment of Resident Board Members

The Company Secretary read the results of the recent Resident Board Member election with the percentage votes: Leaseholder - Adzowa Kwabla-Oklikah 24.91% Tenant - Georgina Walters 31.58% Tenant - El-Farouk Said Mohamed Cheik 22.27% Tenant - Yvette Davis 21.31%

The Council representative approved the appointment of the resident board members.

LW and PG were thanked for their service to the board, and the positive impact that they made of the work of both the board and Homes for Haringey. LW and PG were invited to speak and both expressed their thanks for the time spent on the board.

Retirement of Independent Board Members;

The Company Secretary moved that Tom McGregor’s retirement be accepted. The Council Representative approved this motion.

Appointment of Independent Board Members

The Company Secretary moved that Tom McGregor be reappointed as a Board Member for a three year term.

The Council Representative approved this motion.

The Chair moved that Anastasia Bloom’s term be confirmed for three years

The Council Representative approved this motion.

Invitation to the Council Representative to address the meeting.

TE thanked the Board and staff of Homes for Haringey and outlined key achievements for the year.

Working with residents to provide quality

housing services and decent homes

Annual report and financial statements

2016/17

www.homesforharingey.org

Homes for Haringey Limited

Company limited by guarantee

Company number: 05749092

Financial year ended 31 March 2017

Homes for Haringey Limited Company No: 05749092

___________________________________________________________________________

Annual report and financial statements | year ended 31 March 2017

2

Contents

Company information ....................................................................................................................... 4

Strategic Report for the year ended 31 March 2017 .............................................................................. 6

Statement of directors’ responsibilities in respect of the financial statements ............................................. 14

Statement on internal control ........................................................................................................... 16

Independent auditors’ report to the members of Homes for Haringey Limited ........................................... 19

Consolidated profit and loss account for the year ended 31 March 2017 ................................................ 21

Consolidated statement of comprehensive income for the year ended 31 March 2017 .............................. 22

Consolidated and company balance sheet as at 31 March 2017 ........................................................... 23

Consolidated statement of changes in reserves for the year ended 31 March 2017................................... 24

Consolidated statement of cash flows for the year ended 31 March 2017 ............................................... 25

Notes to the financial statements for the year ended 31 March 2017 ..................................................... 26

1. General information ...................................................................................................................................... 26

2. Statement of compliance ............................................................................................................................... 26

3. Principal accounting policies ......................................................................................................................... 26

4. Key accounting estimates and assumptions ................................................................................................. 30

5. Turnover ......................................................................................................................................................... 31

6. Operating loss................................................................................................................................................ 32

7. Employee costs ............................................................................................................................................... 33

8. Employee information .................................................................................................................................... 33

9. Employee remuneration ................................................................................................................................. 34

10. Directors’ emoluments ............................................................................................................................... 34

11. Interest payable and similar expenses ...................................................................................................... 35

12. Tax on loss.................................................................................................................................................. 35

13. Tangible assets ........................................................................................................................................... 35

14. Inventories .................................................................................................................................................. 36

15. Debtors ....................................................................................................................................................... 36

16. Creditors: amounts falling due within one year ....................................................................................... 37

17. Borrowings - current .................................................................................................................................. 37

18. Borrowings – non-current .......................................................................................................................... 37

19. Pensions ...................................................................................................................................................... 38

20. Provision for other liabilities ...................................................................................................................... 42


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21. Operating leases ........................................................................................................................................ 43

22. Capital and reserves .................................................................................................................................. 43

23. Related party transactions .......................................................................................................................... 44

24. Controlling party ........................................................................................................................................ 45

25. Subsidiary undertaking .............................................................................................................................. 45

26. Haringey Repairs Service (HRS) ................................................................................................................. 46

27. Notes to the statement of cash flows ........................................................................................................ 46


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4

Company information

Name and registered office

Homes for Haringey Limited

48 Station Road

London

N22 7TY

Company Registration Number

05749092

Company secretary

Puneet Rajput

48 Station Road

London

N22 7TY

Independent external auditors

PricewaterhouseCoopers LLP

1 Embankment Place

London

Solicitors

Haringey Council

Legal Services

Alexandra House

10 Station Road

London

N22 7TR

Trowers & Hamlins LLP

3 Bunhill Row

London

EC1Y 8YZ

Pension administrators

Haringey Council

Pensions Team

Alexandra House

10 Station Road

London

N22 7TR

WC2N 6RH

Internal auditors

Mazars LLP

Tower Bridge House

St Katherine’s Way

London E1W 1DD


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5

Company information (continued)

Board of directors

Aman Dalvi OBE (Chair)

Independent expert | Appointed: 19/09/17

Tom McGregor


Appointed Interim Chair: 27/09/16 – 18/09/17

Adzowa Kwabla-Oklikah (Vice Chair)

Resident representative | Appointed: 21/10/13

Appointed Vice Chair: 29/04/17

Cllr. David Beecham

(Chair of Finance, Audit and Risk Committee)

Council representative | Appointed: 19/05/15

Cllr. Joanna Christophides

(Interim Chair of Human Resources and

Remuneration Committee)


Cllr. Lorna Reith


Jenny Coombs


Anastasia Bloom


Georgina Walters


El-Farouk Said Mohammed Cheik


Yvette Davis


Laurie White


| Resigned: 24/10/16

Philip Goodwin


| Retired: 24/10/16

Keith Jenkins


| Resigned: 26/09/16

Executive leadership team

Chris Liffen

Interim Managing Director | Appointed: 22/06/17

Andrew Billany

Managing Director | Resigned: 21/06/17

Astrid Kjellberg-Obst

Executive Director of Operations

Denise Gandy

Executive Director of Housing Demand

David Sherrington

Interim Executive Director of Property | Appointed:

22/06/17

Puneet Rajput

Director of Corporate Affairs and Company

Secretary | Appointed: 03/10/16


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6

Strategic Report for the year ended 31 March 2017

The Board of Directors present their strategic report and audited consolidated financial statements for Homes for

Haringey for the year ended 31 March 2017.

Overview of business

Homes for Haringey Limited is the Council’s housing management company, under the control of Haringey

London Borough Council (the Council). The principal activity for the company is the provision and management

of housing and appropriate housing support services for people in need.

Our company was established in April 2006 with no share capital and is limited by guarantee. We manage over

20,000 Council properties and c2800 units of temporary accommodation to help tackle homelessness on behalf

of the Council under the terms of an extended Management Agreement which ends in March 2018.

A new Management Agreement, to be implemented from April 2018, is currently subject to Council consultation

with tenants and approval from the Homes and Communities Agency.

Key highlights and challenges

Key highlights and challenges during the year are set out below.

Responsibility for the management of housing demand and homelessness services was transferred from

the Council to Homes for Haringey Limited in May 2016. The service helped prevent over 700 households

from becoming homeless during the year.

Conversion of a hostel facility at Broadwater Lodge which now provides over 50 rooms for homeless

families is helping to reduce our reliance on expensive private sector accommodation.

Three large scale restructures within the Property, Operations and Housing Demand Directorates were

successfully completed as part of Homes for Haringey’s transformation programme.

Transformation and efficiency initiatives helped Homes for Haringey achieve a surplus of £1.1million

before pension cost adjustments.

Continued investment in information technology including mobile working for front line staff, the

introduction of a new repairs management system, online CCTV systems to help tackle estate dumping

and anti-social behaviour and the launch of a new website.

Recruitment of new Board members via direct election with a high turnout (compared to peers) of 48%.

In recognition of our work on developing our staff, we were re-accredited with the Investors in People Gold

award in October 2016 and the Top Employers award for the eighth year in a row in 2017.

48 properties were successfully recovered from fraudulent use and a further 30 where tenancy fraud has

been identified were progressing through the Courts for recovery.

100 potentially fraudulent Right to Buy applications were successfully stopped.

A decision to move the subsidiary, the Community Interest Company, into dormancy in 2017/18.


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Strategic Report for the year ended 31 March 2017 (continued)

A disappointing reduction of 3% in tenants’ overall satisfaction with our services to 67% (2015/16: 70%)

with leaseholder satisfaction static at 36%.

Our performance

We set ourselves ambitious targets for 2016/17 to help us meet our goal of becoming a top quartile performer.

At year end, we had achieved or exceeded 67% of our key performance indicators. The full end of year position

is set out on page 8.

Our top achievements were:

100% compliance with valid gas certificates. This includes temporary accommodation and we also

introduced a process to ensure that no property is without a valid gas certificate so we can be sure all

our residents are safe.

67 fewer households in temporary accommodation which is contrary to the trend in the rest of London

that saw an overall increase of 6.3%.

Above target rent collection in both general needs properties and temporary accommodation including

a reduction in tenants in rent arrears.

Meeting our target for planned capital programmes completed on time and with residents being satisfied

with the outcome of those works.

The average cost of a repair job has decreased over the year meaning our repairs service is providing

better value for money for our residents.

The restructure within the Housing Demand directorate has resulted in a more efficient service for those

requiring a homelessness decision and we are now operating within governmental timescales having

worked through a backlog of cases.

We exceeded our homelessness prevention target by 4% meaning that more people were able to remain

in their home or suitable alternative accommodation.

We have analysed the reasons for our underperformance in certain areas at both senior and Board level and we

will be looking to address the following over the course of the next financial year:

The average time taken to re-let empty properties was 27.3 days against a target of 23. We will be

carrying out a complete review and re-engineering of voids and related processes to improve the

efficiency and speed of turning around empty properties for re-letting.

Overall satisfaction with Homes for Haringey fell by 3% to 67% for tenants and stayed at the same level

of 36% for leaseholders. Improving levels of satisfaction will be a key priority in 2017/18.

We were unable to meet reply targets for Freedom of Information requests and Member Enquiries which

was disappointing for us. This was largely due to staff shortages and training needs, which are being

addressed in the forthcoming year. We are also strengthening the process for ensuring that responses are

received on time, and are anticipating meeting the tighter Information Commissioners Office reply target

by the end of 2017/18.

Satisfaction with repairs was lower than we hoped as were the amount of repairs fixed first time. In

relation to both of these we are investigating the causes for dissatisfaction and the problems our

operatives face so that we can streamline this process and perform in line with our targets.


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8


Employee sickness was a cause for concern at an average of 11.3 days’ sickness absence per person

and especially as 62% is related to long term sickness. For the coming financial year, we have engaged

the services of a nurse led absence management service to help reduce sickness absence.

Ref Key Performance Indicator 2015/16 Target

2016/17

2016/17

Income Collection

1 % of rent collected 99.67% 95.00% 99.60%

2 % of rent collected for all temporary accommodation 98.49% 98.75% 98.90%

3 Current tenant rent and service charge arrears 5.43% 5.00% 4.54%

Empty Properties

4 Average time (days) to re-let empty properties 28.0 23.0 27.3

5 % rent loss from empty properties 0.67% 0.69% 0.52%

6 Average cost of repairs to empty properties NEW £4,000 £3,175

Repairs and Asset Management

7 Average cost of responsive repairs £103.58 £100 £96.47

8 % of urgent repairs completed in government time limits 99.3% 99.0% 99.6%

9 % of repairs fixed first time 84.7% 90.0% 83.3%

10 % of tenants satisfied with the quality of their repair 78.1% 78.0% 76.0%

11 % of all properties with a valid gas certificate 100% 100% 100%

12 % of capital projects completed in time NEW 85% 94%

13 % of residents satisfied with capital works 89% 91% 91%

Tenancy Management

14 % of antisocial behaviour tasks completed in time 89.5% 80.0% 83.0%

15 % of Support Plans in date 100% 100% 99.5%

16 No. of private tenancy sign ups (assured short hold) 174 400 191

17 % of lettings to applicants in temporary accommodation 77.4% 70.0% 79.7%

Feedback

18 % of freedom of information requests responded in time 95% 100% 86%

19 % stage 1 complaints responded to in 20 working days 95% 90% 94%

20 % of Members enquiries answered within 10 days 92% 93% 90%

Homelessness and Temporary Accommodation

21 % of all homeless decisions made in 33 working days NEW 70% 46%

22 No. of homeless households in temp. accommodation 3,164 2,800 3,147

23 % of homeless preventions 31% 35% 37%

24 No. of homeless acceptances 603 546 683

25 No. of homeless preventions 728 600 716

People

26 Average No. of days sickness per person per year 8.6 6.0 11.3

27 % of staff turnover - voluntary 11.13% 15% 12.57%


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9


Financial highlights

In 2016/17, the amount of money paid for our services (the Management Fee) increased to £40.669m to reflect

the additional services that Homes for Haringey is undertaking on behalf of the Council.

The management fee we receive from the Council must cover all our operational costs. For 2016/17, Homes

for Haringey realised an initial surplus for the year of £1.166m before pension calculations. After taking into

account pension adjustments, and our subsidiary’s position, our group position was a deficit of £1.2m.

Within the last year, our business has experienced significant, sustained change. In 2016/17 we delivered £925k

of Medium Term Financial Savings (MTFS) and are on target to deliver a further £1.3m in 2017/18. This has

required us to operate as efficiently and effectively as is possible without impacting adversely on the services we

deliver.

We have agreed with the Council a new ring-fenced reserve. For 2016/17, we transferred £629k of our surplus

to this reserve. This will help fund innovation, growth and unforeseen cost pressures.

Full details of our financial performance and position are set out in the financial statements.

Operational costs (see Fig1)

We are pleased to report continued efforts to control our operational costs. This past year, operating expenditure

increased by £7.406m. We remain one of the largest employers in the borough; we employ almost 700 staff

and add £31.1m to the economy in salaries and benefits.

Our contractor repair costs totalling circa £11.2m and representing 19% of our expenditure, is largely made up

of the following:

Gas contractor payments - £7.484m

Mechanical and electrical contractor payments - £1.278m

Haringey Repairs Service sub-contractor payments - £2.466m

We work in partnership with the Council; 13% of our operating costs relate to services we procure from them,

through service level agreements. IT and customer services, at a cost of £4.03m, comprise the bulk of services

provided by the Council.

Our Haringey Repairs Service (HRS) operates as a trading unit. Their contract for undertaking the repairs for the

Council started in 2008. Their trading profit has been steady for the past two years, with an operating surplus of

approximately 3% of income in 2016/17.


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10


Value for money

We continue to work toward meeting our Medium-Term Financial Strategy savings targets whilst offering a better

service to our residents. We are focusing on using technology to work smarter and enable our residents to

interact with us better. Our recent restructures have enabled us to review all of our working processes and identify

ways that the teams can work better, with less, for our residents. An example includes a newly created Move-on

team in our Housing Demand directorate to assist those in temporary accommodation to find new, permanent

homes.

Human resources

During the course of the year we were very proud to retain our Top Employers accreditation.

One of the challenges of the previous financial year was the planning and implementation of three restructures.

These are now complete and embedded. The restructures have largely worked well although feedback from staff

surveys indicates that there is more we need to do to ensure our staff feel connected to the organisation. This

finding was reflected in the mid-year test that we requested Investors in People undergo in September 2016. We

are working on ways to address these findings and this will be reflected in a new People strategy to be developed

in 2017/18.

In the next financial year, we will continue to implement further stages to our transformation programme including

a complete review and restructuring of our sheltered housing service with a view to introducing a modern and

innovative service offering for our residents.

55%

19%

14%

8%

Fig 1: Group operating costs 2016/17

Employee costs

Contractors - Repairs

Overheads

Supplies & Services

Transport costs

Contractors - Others

Premises costs

Vehicle leases


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11


Personal development and ongoing learning are a key aspect of our approach to managing human resources

and integral to our Investors in People accreditation. Training and development encompasses satisfying both staff

and Board member learning needs. Induction, supervision and appraisal processes help to identify learning and

development needs which are addressed through an ongoing training programme.

Equalities and diversity

We are committed to meeting our obligations under equalities legislation, guidance, and codes of practice. We

will work towards eliminating all forms of discrimination, disadvantage and unfair treatment. This commitment is

underpinned in our equality policy.

We recognise the importance and benefits of equalities and diversity, as an organisation, as a service provider

and as an employer. We aim to reflect the diversity of the community we serve, provide appropriate and accessible

services for all, and to be a representative, democratic, and accountable organisation. We will continue to

develop appropriate monitoring and review mechanisms to assess our performance and progress in achieving

our aims.

The gender pay gap refers to the difference in the average pay between men and women. The UK gender pay

gap is 18.1% for all workers. The gender pay gap at Homes for Haringey at the end of the year was 4.2%. This

is positive in comparison to the national position and helps to underline our commitment to gender equality at

Homes for Haringey.

Risk review

Risks are recorded in a corporate risk register under six risk areas – strategic, corporate, health and safety,

housing management, housing demand and property and maintenance. Individual risks are assessed and

analysed according to their probability of occurrence and corresponding impact, the product of which gives rise

to a corresponding risk score. The risk register is reviewed on a quarterly basis by management and the Audit

and Risk Committee. Key risks identified in the register are also reviewed by the Board.

We operate a controls assurance framework that sets out for each risk:

a) The controls in place to manage that risk

b) An assessment of the effectiveness of those controls

c) Remedial action for any controls assessed as weak

The key risks and their controls at the end of the year are set out below.

Description Severity Movement Controls

Failure to effectively manage the Council’s

statutory homelessness duty resulting in a rise in

homelessness and non-fulfilment of Homes for

Haringey obligations.

High

Transformation programme & restructure;

resources and focus on prevention activity;

joint working with the Council.

Excessive reliance on temporary

accommodation resulting in substantial

financial pressure on the Council.

High

Greater use of Council owned stock and

decant properties; implementation of Council

policy to move people out of London; divert

people to private rented accommodation;

reduction in reliance on private landlords.

Unforeseen and significant increase in

homelessness leading to further pressure on

demand for temporary accommodation and

Council finance.

High

Monitoring role and analysis of trends to help

direct focus and attention; resources and focus

on prevention activity.


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12

Description Severity Movement Controls

Implementation of the Homelessness Reduction

Bill which will broaden our responsibility to a

much wider range of people putting further

pressure on resources and finance.

High

Training staff and being prepared with

resources in advance of implementation;

resources and focus on prevention activity;

maintaining a watching brief and raising

awareness with the Council.

Poor procurement and tendering practices

resulting in more costly engagement of supply

chain and possible breach of regulations and

potential fines.

Medium

High

Procurement contract regulations; executive

oversight, Council & Homes for Haringey

regulations; corporate procurement support.

Existing leaseholder perception of a poor

service resulting in a failure to achieve a key

Council objective.

Medium

High

Estate services staff checking process,

leasehold panel; service charge advance

consultation (with detailed information on

repairs charges available); biannual

satisfaction surveys

Negative publicity from moving people out of

London to meet housing needs resulting in

damage to reputation and political unrest.

Medium

High

Learning from experience of others; Council

support for this approach; fit for purpose

approach that targets the right people,

properties and ensures follow up services are

responsive.

Claims against Homes for Haringey from

contractors resulting in financial loss / contract

overspend.

Medium

High

Robust contract management practices;

insurance; contract contingencies.

Delays / lengthy timescale / lack of clarity for

determining capital works programmes (1-30

year) impacting ability to mobilise resources

and deliver and poorer standard assets.

Medium

High

Regular meetings with the Council to identify

and agree budgets; stock investment plan and

asset management strategy.

Failure to manage budgets effectively and

realise target efficiency savings.

Medium

High

Board and Executive monitoring and oversight;

value for money framework; budgetary control

and financial management.

Serious injury or death of a resident/tenant/third

party as a result of a failure of duty by Homes

for Haringey to manage converted street

properties

Medium

High

Five yearly Fire Risk Assessment programme

A failure to adequately prepare residents for the

impact of welfare reform leading to poor

tenancy sustainment and detrimental financial

impact on both the Council and Homes for

Haringey.

Medium

High

Proactive support service to help people out of

benefit dependency; multi agency approach to

helping residents gain employment; resources

(IT and staff) dedicated to helping upskill

residents.

Non-compliance with regulatory or legal

obligations in relation to e.g. gas, fire, asbestos,

legionella resulting in risk to health and safety,

reputational damage and fines.

Medium

High

Health and safety advisor; compliance

framework; policies and procedures

We continue to robustly manage the known risks on our risk register. In addition, we regularly scan the horizon,

consider the housing sector risk profile and scrutinise our plans to identify any potential new and emerging risks.

By order of the Board

The strategic report was approved by the Board and signed on its behalf by:

Aman Dalvi OBE

Chair of the Board of Directors

19 September 2017


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13

Directors’ report for the year ended 31 March 2017

The Board of Directors present their report and audited consolidated financial statements for the year ended 31

March 2017.

Board Structure and Governance

The Board comprises four independent members, four resident members, three Council nominated members and

a Chair.

Following the resignation of Keith Jenkins, the Chair at the time, Tom McGregor, an independent Board member,

was appointed interim Chair in September 2016.

An independent governance assurance review that was carried out shortly after concluded that the Board of

Homes for Haringey was on a journey of improvement. Strengths identified included a sense of “team” amongst

the Board and a high level of confidence in the Executive both from the Board and Council Officers. The key

areas of the Board’s focus have been on implementing recommendations from the review and the recruitment of

a permanent Chair. Aman Dalvi OBE was recruited as permanent Chair in June 2017. Following an induction

process throughout the summer, he took up his permanent appointment on 19 September 2017.

Elections were held for Resident Board member positions in the summer of 2016 which saw the re-election of

two incumbent Board members and the election of two new residents at the AGM in October 2016.

Standing committees during the year were the Audit and Risk Committee (now called Finance, Audit and Risk

Committee) and the Appointments and Remuneration Committee (now called Human Resources and

Remuneration Committee). The Audit and Risk Committee met four times during the year and the Appointment

and Remuneration Committee met five times during the year to review and approve revised departmental

structures arising from a transformation programme. Minutes from both committees were reported to the Board

of Directors.

Executive Leadership Team

The Executive Leadership Team comprises the Managing Director, Executive Director of Operations, Executive

Director of Property, Executive Director of Housing Demand, Director of Asset Management (currently acting up)

and Director of Corporate Affairs. The Executive Leadership team are not directors of the company for legal

purposes.

A new Director of Corporate Affairs and Company Secretary took up the position in October 2016. The

Managing Director resigned in April 2017 to take up a Chief Executive role for a national charity from June

2017. Following a recruitment process, the Executive Director of Property was appointed Interim Managing

Director whilst recruitment for the permanent post takes place. We expect a permanent Managing Director to be

appointed in autumn 2017.

The role of the Executive Leadership Team is to implement policies and strategies approved by the Board as well

as a Board approved Business Plan. They are also responsible for achieving the operational targets of a

Performance Management Framework which forms part of the Management Agreement between Homes for

Haringey and the Council.

Homes for Haringey Residential Community Interest Company, trading as Move 51°N

The Community Interest Company has been unable to effectively support the housing priorities of the borough.

It was, therefore, agreed by both the Board of Move 51°N and Homes for Haringey that the Community Interest

Company should be put into dormancy. This decision is supported by the Council and the Move 51°N Board is

now in the process of putting the Community Interest Company into dormancy. This is expected to be completed

during 2017/18.


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14

Directors’ report for the year ended 31 March 2017 (continued)

Statement of disclosure of information to auditors

In the case of each director; so far as the director is aware, there is no relevant audit information of which the

Company’s independent auditors are unaware; and (s)he has taken all the steps that he or she ought to have

taken in his or her duty as a director in order to make himself or herself aware of any relevant audit information

and to establish that the Company’s independent auditors are aware of that information.

Statement of directors’ responsibilities in respect of the financial statements

The directors are responsible for preparing the Annual Report and the financial statements in accordance with

applicable law and regulation.

Company law requires the directors to prepare financial statements for each financial year. Under that law the

directors have prepared the group and company financial statements in accordance with United Kingdom

Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 102 “The

Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law).

Under company law the directors must not approve the financial statements unless they are satisfied that they

give a true and fair view of the state of affairs of the group and company and of the profit or loss of the group

and company for that period. In preparing the financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

state whether applicable United Kingdom Accounting Standards, comprising FRS 102, have been

followed, subject to any material departures disclosed and explained in the financial statements;

make judgements and accounting estimates that are reasonable and prudent; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the

group and company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain

the group and company's transactions and disclose with reasonable accuracy at any time the financial position

of the group and company and enable them to ensure that the financial statements comply with the Companies

Act 2006.

The directors are also responsible for safeguarding the assets of the group and company and hence for taking

reasonable steps for the prevention and detection of fraud and other irregularities.

The directors of the ultimate parent company are responsible for the maintenance and integrity of the of the

ultimate parent company’s website. Legislation in the United Kingdom governing the preparation and

dissemination of financial statements may differ from legislation in other jurisdictions.

In the case of each director in office at the date the Directors’ Report is approved:

so far as the director is aware, there is no relevant audit information of which the group and company’s

auditors are unaware; and

they have taken all the steps that they ought to have taken as a director in order to make themselves

aware of any relevant audit information and to establish that the group and company’s auditors are

aware of that information.

Going Concern

The directors believe that preparing the financial statements on the going concern basis is appropriate due to the

continued financial support of the ultimate parent entity, Haringey London Borough Council. The directors have

received written confirmation that the Council intends to support the company for at least one year after these

financial statements are signed.


___________________________________________________________________________


15

Directors’ report for the year ended 31 March 2017 (continued)

Taxation status

The Company is a local authority controlled company within the meaning of Part V of the Local Government and

Housing Act 1989, being a company under the control of Haringey London Borough Council.

Directors’ interests

The Council is the sole member (owner) of the Company. No director was a member of the Company between

1 April 2016 and 31 March 2017 inclusive.

Independent Auditors

PricewaterhouseCoopers LLP were re-appointed via resolution as the Company’s auditors at the Annual General

Meeting held on 24 October 2016.

By order of the Board

The Director’s report was approved by the Board and signed on its behalf by:

Aman Dalvi OBE


19 September 2017


___________________________________________________________________________


16

Statement on internal control

This statement is given in respect of the financial statements for Homes for Haringey Limited. We acknowledge

our responsibility for making sure that an effective system of internal control is maintained and operated in

connection with risk management, internal control and corporate governance.

The Board states that from 1 April 2016 to the date these financial statements have been signed (19 September

2017) Homes for Haringey’s internal control framework has operated effectively and as intended.

Controls assurance

The Board acknowledges that it is responsible for Homes for Haringey’s system of internal control and for

reviewing its effectiveness. However, it accepts that such a system is designed to manage rather than to eliminate

the risk of failure to achieve business objectives. Therefore, such a system can only provide reasonable and not

absolute assurance that assets are safeguarded, that transactions are authorised and properly recorded, and that

material errors or irregularities are either prevented or would be detected within a timely period.

The system of internal control

The key controls that were in place and operating throughout the year are set out below.

Policies and procedures We have written policies and procedures which are kept under review and cover a range

of areas intended to ensure consistency and quality in working practices and service

delivery.

Business continuity and

disaster recovery plans

We have plans in place that are periodically tested, which minimise the risk of interruption

to our business in the event of a major disruption to normal functioning arrangements.

Budgets We produce annual budgets, in accordance with a clearly outlined methodology and which

reflect the target efficiency savings for each year in accordance with an overarching Medium

Term Financial Savings plan. These, together with quarterly management accounts are

reviewed and approved by the Board. Monthly management accounts are produced and

reviewed by the Executive Management Team.

Insurance We have a comprehensive portfolio of insurance that covers our business activities and

helps to insure against risks where appropriate.

Scheme of delegation and

limits of authority

We have a Board approved scheme of delegation that sets out delegations of authority to

committees, management and staff. Financial Regulations and Contract Regulations set out

levels of financial decision making authority delegated by the Board.

External accreditations We have Investors in People accreditation at the Gold standard and are an accredited Top

Employer.

Resident scrutiny panel We have a trained panel of residents who help to scrutinise services for quality and for

compliance with policies and customer standards.

Internal audit We employ internal auditors to provide independent assurance on the adequacy and

effectiveness of our systems of governance, risk management and control. The service also

includes targeted investigation of housing and tenancy fraud. During the year they were

able to provide an overall opinion that Homes for Haringey has adequate and effective

controls in place.

External audit Our external auditors provide an independent opinion on the financial statements of Homes

for Haringey and that the financial statements comply with all relevant accounting

regulations.

Performance management We have a performance management framework agreed with the Council and a

comprehensive set of performance indicators that reflect our diverse range of operations.

The Board receives regular reports on financial and operational performance and matters

of potential strategic significance. The Executive reviews performance of the business on a

monthly basis.

An effective Board Board performance is appraised regularly and during the year an externally commissioned

review of governance identified areas for further improvement that will help to strengthen

the Board’s governance of Homes for Haringey.


___________________________________________________________________________


17

Statement on internal control (continued)

NHF Code of Governance

Homes for Haringey has adopted the National Housing Federation’s code of governance and code of conduct.

We review compliance against these codes each year and confirm that Homes for Haringey complies with all

material principles in those codes with the exception of:

Code of governance exceptions:

B8 refers to shareholder policies. Homes for Haringey has a sole shareholder (the Council) with a closed

shareholding, therefore, this part of the code is not applicable.

Section D relates to the recruitment and reappointment of Board members. Homes for Haringey has a

constituency based Board and in relation to Council nominees to the Board, the selection and

appointment process differs from that of the code.

Code of conduct exceptions:

E1, E3 and E4 refer to anti bribery and corruption policies. Homes for Haringey has an anti-fraud policy

that makes reference to bribery and corruption. Policies and procedures in relation to bribery, corruption

and also money laundering will be developed and implemented in 2017/18.

Health and safety

The management of health and safety continues to be strong and robust at Homes for Haringey. Health and

safety related risks are identified in the corporate risk register and reviewed regularly by the Audit and Risk

Committee. A Board member champion for health and safety also has an oversight and scrutiny remit in this area

and this provides the Board with an independent source of assurance.

Learning from accidents and incidents is an integral part of regular team briefings and ongoing training

programmes.

On 14 June 2017 a catastrophic fire at Grenfell Tower in the London Borough of Kensington and Chelsea

resulted in a loss of lives, injury and significant property damage. The tragic event has had significant ramifications

for Council housing and in particular cladded tower blocks.

All tower blocks managed by Homes for Haringey have valid fire risk assessments and regularly serviced fire

fighting equipment. Residents are signposted to the latest fire safety information and guidance from the London

Fire Brigade. Of the 12 cladded tower blocks managed by Homes for Haringey, none have the same type of

cladding that was in place on Grenfell Tower.

Homes for Haringey will review the asset management strategy for tower blocks under its management in

partnership with the Council in 2017/18. Improvements in the ongoing management of fire safety across

properties under Homes for Haringey’s management will also be a particular area of focus in 2017/18.

Significant internal control issues

Annually, all members of the Executive Leadership Team undertake self-assessments in relation to the extent to

which internal controls have been effective. For 2016/17 the Executive Leadership Team acknowledge their

respective roles and responsibilities for providing the Board with the assurance it needs in order to determine the

overall effectiveness of Homes for Haringey’s internal control and assurance framework.

Key exception items of note from the Executive’s control assessments are set out below.

Information Commissioners Office (ICO) enquiry

In November 2016, a determination was received from the ICO regarding a failure to retain information. After

an internal investigation, Homes for Haringey responded to the ICO with information on our document retention

processes. The ICO confirmed that they were satisfied with the steps taken.


___________________________________________________________________________


18

Statement on internal control (continued)

Legal action

In August 2016 judicial review proceedings were commenced by a leaseholder association against Homes for

Haringey, challenging the decision to abolish recognition for borough wide groups from its resident engagement

strategy. The hearing for the claim was listed for 14 June 2017. On 13 June 2017 the parties reached an out

of court settlement and the claim was withdrawn.

Coroner’s inquest

An occupant of a Council property took his own life in January 2016. An internal review was carried out by

Homes for Haringey and, together with the Council, this instigated a safeguarding review. There were a number

of learning outcomes and improvements to processes. A coroner’s inquest was held in March 2017 and the

coroner was satisfied that the case had been taken seriously and that internal controls and processes had been

reviewed and improved where required. The coroner recommended two additional actions which have been put

in place and the inquest has now been concluded with no further action.

The statement on internal control was approved by the Board and signed on its behalf by:

Aman Dalvi OBE


19 September 2017


___________________________________________________________________________


19

Independent auditors’ report to the members of Homes for Haringey Limited

Report on the financial statements

Our opinion

In our opinion, Homes for Haringey Limited’s group financial statements and company financial statements (the

“financial statements”):

give a true and fair view of the state of the group’s and of the company’s affairs as at 31 March 2017

and of the group’s loss and cash flows 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 Companies Act 2006.

What we have audited

The financial statements, included within the Annual Report and Financial Statements (the “Annual Report”),

comprise:

the consolidated and company balance sheets as at 31 March 2017;

the consolidated profit and loss account for the year then ended;

the consolidated statement of other comprehensive income for the year then ended;

the consolidated statement of cash flows for the year then ended;

the consolidated statement of changes in reserves for the year then ended; and

the notes to the financial statements, which include a summary of significant accounting policies and

other explanatory information.

The financial reporting framework that has been applied in the preparation of the financial statements is United

Kingdom Accounting Standards, comprising FRS 102 “The Financial Reporting Standard applicable in the UK

and Republic of Ireland”, and applicable law (United Kingdom Generally Accepted Accounting Practice).

In applying the financial reporting framework, the directors have made a number of subjective judgements, for

example in respect of significant accounting estimates. In making such estimates, they have made assumptions

and considered future events.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Strategic Report and the Directors’ Report for the financial year for which

the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and the Directors’ Report have been prepared in accordance with applicable legal

requirements.

In addition, in light of the knowledge and understanding of the group, the company and their environment

obtained in the course of the audit, we are required to report if we have identified any material misstatements in

the Strategic Report and the Directors’ Report. We have nothing to report in this respect.

Other matters on which we are required to report by exception

Adequacy of accounting records and information and explanations received

Under the Companies Act 2006 we are required to report to you if, in our opinion:

we have not received all the information and explanations we require for our audit; or

adequate accounting records have not been kept by the company, or returns adequate for our audit

have not been received from branches not visited by us; or

the company financial statements are not in agreement with the accounting records and returns.

We have no exceptions to report arising from this responsibility.


___________________________________________________________________________


20

Independent auditors’ report to the members of Homes for Haringey Limited

(continued)

Directors’ remuneration

Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of directors’

remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.

Responsibilities for the financial statements and the audit

Our responsibilities and those of the directors

As explained more fully in the Statement of Directors’ Responsibilities, the directors are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view.

Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable

law and International Standards on Auditing (UK and Ireland) (“ISAs (UK & Ireland)”). Those standards require

us to comply with the Auditing Practices Board’s Ethical Standards for Auditors.

This report, including the opinions, has been prepared for and only for the company’s members as a body in

accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in

giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this

report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

What an audit of financial statements involves

We conducted our audit in accordance with ISAs (UK & Ireland). An audit involves obtaining evidence about the

amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial

statements are free from material misstatement, whether caused by fraud or error. This includes an assessment

of:

whether the accounting policies are appropriate to the group’s and the company’s circumstances and

have been consistently applied and adequately disclosed;

the reasonableness of significant accounting estimates made by the directors; and

the overall presentation of the financial statements.

We primarily focus our work in these areas by assessing the directors’ judgements against available evidence,

forming our own judgements, and evaluating the disclosures in the financial statements.

We test and examine information, using sampling and other auditing techniques, to the extent we consider

necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing

the effectiveness of controls, substantive procedures or a combination of both.

In addition, we read all the financial and non-financial information in the Annual Report to identify material

inconsistencies with the audited financial statements and to identify any information that is apparently materially

incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the

audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications

for our report. With respect to the Strategic Report and Directors’ Report, we consider whether those reports

include the disclosures required by applicable legal requirements.

Andrew Lowe (Senior Statutory Auditor)

for and on behalf of PricewaterhouseCoopers LLP

Chartered Accountants and Statutory Auditors

London

19 September 2017


___________________________________________________________________________


21

Consolidated profit and loss account for the year ended 31 March 2017

2016/17 2015/16

Note £000 £000

Turnover 5 59,825 51,269

Operating costs (60,322) (52,924)

Operating loss 6 (497) (1,655)

Other income 5 90 -

Interest payable and similar expenses 11 (793) (1,170)

Loss on ordinary activit ies before taxation (1,200) (2,825)

Tax on loss on ordinary activities 12 - -

Loss for the financial year (1,200) (2,825)

All amounts relate to continuing operations.

The notes on pages 26 to 46 form part of these financial statements.

The Company has elected to take the exemption under section 408 of the Companies Act 2006 not to present

the Company profit and loss account. The loss for the Company for the year was £1,143K (2015/16 loss:

£2,508K)


___________________________________________________________________________


22

Consolidated statement of other comprehensive income for the year ended 31

March 2017

2016/17 2015/16

Note £000 £000

Loss for the financial year (1,200) (2,825)

Other comprehensive income:

Actuarial gains on the pension scheme 19 23,937 15,415

Total comprehensive income for the year 22,737 12,590



___________________________________________________________________________


23

Consolidated and company balance sheets as at 31 March 2017


The financial statements were approved and authorised for issue by the Board on 19 September 2017 and

were signed on its behalf by:

Aman Dalvi OBE Chris Liffen

Chair of the Board of Directors Interim Managing Director

19 September 2017 19 September 2017

Group Company

2016/17 2015/16 2016/17 2015/16

Note £000 £000 £000 £000

Fixed assets:

Tangible assets 13 5 29 - -

Current assets:

Inventories 14 367 510 367 510

Debtors 15 11,055 10,109 11,134 10,158

Cash at bank and in hand 5 39 - -

Total current assets 11,427 10,658 11,501 10,668

Creditors: amounts falling due within one

year

16 (3,832) (4,848) (3,830) (4,815)

Borrowings - current 17 (7,437) (5,325) (7,437) (5,325)

Total current liabilities (11,269) (10,173) (11,267) (10,140)

Net current assets 158 485 234 528

Pensions net assets

19 327 - 327 -

Total assets less current liabilities 490 514 561 528

Borrowings - non current 20 (303) (303) - -

Provisions for liabilities

Pensions and similar obligations 19 - (22,525) - (22,525)

Provision for other liabilities 20 (330) (566) (330) (566)

Net (liabilities) / assets (143) (22,880) 231 (22,563)

Capital and reserves:

Reserves 22 (143) (22,880) 231 (22,563)

Total shareholders' (deficit) / funds (143) (22,880) 231 (22,563)


___________________________________________________________________________


24

Consolidated statement of changes in reserves for the year ended 31 March 2017

R etained

earnings

P ens ion

res erv e

T otal

res erv es

£000 £000 £000

Balance as at 1 April 2015 6,327 (41,797) (35,470)

Los s for the financial year (2,825) - (2,825)

Other comprehens ive income for the year - 15,415 15,415

Total comprehens ive income/(expens e) for the year (2,825) 15,415 12,590

Balance as at 31 March 2016 3,502 (26,382) (22,880)

R etained

earnings

P ens ion

res erv e

T otal

res erv es

£000 £000 £000

B alance as at 1 April 2016 3,502 (26,382) (22,880)

Los s for the financial year (1,208) - (1,208)

Other comprehens ive income for the year - 23,937 23,937

T otal comprehens iv e income/(expens e) for the year (1,208) 23,937 22,729

B alance as at 31 March 2017 2,294 (2,445) (151)



___________________________________________________________________________


25

Consolidated statement of cash flows for the year ended 31 March 2017

2016/17 2015/16

Note £000 £000

Net cas h flow from operating activities 27 (2,146) (2,838)

Net cas h us ed in operating activ it ies (2,146) (2,838)

Cas h flow from inv es ting activ it ies

P urchas e of tangible as s ets - (34)

Net cas h us ed in inv es ting activ it ies - (34)

Cas h flow from financing activ it ies

P roceeds from loan - 303

Interes t paid - (8)

Net cas h generated from financing activ it ies - 295

Net decreas e in cas h and cas h equiv alents (2,146) (2,577)

Cas h and cas h equiv alents at the beginning of the year (5,286) (2,709)

Cas h and cas h equiv alents at the end of the year (7,432) (5,286)

Cas h and cas h equiv alents cons is ts of:

Cas h at bank and in hand 5 39

Borrowings - current (7,437) (5,325)

(7,432) (5,286)



___________________________________________________________________________


26

Notes to the financial statements for the year ended 31 March 2017

1. General information

Homes for Haringey Limited ('the Company') and its wholly owned subsidiary (Homes for Haringey Residential

Community Interest Company) (together 'the Group') operate housing management services in the London

Borough of Haringey. The Company is wholly owned by Haringey London Borough Council ('the Council').

The Company manages and maintains council homes under the terms of a management agreement with the

Council. The Company also assesses homeless applications and provides management and support for

homeless households in temporary accommodation on behalf of the Council.

The Company is a private company incorporated in England with no share capital and limited by guarantee.

The address of its registered office is 48 Station Road, London N22 7TY.

2. Statement of compliance

The consolidated and company financial statements of Homes for Haringey Limited have been prepared in

accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The

Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") and

the Companies Act 2006.

3. Principal accounting policies

The principal accounting policies, which have been applied in the preparation of these consolidated and

company financial statements are set out below. These policies have been applied consistently to all the years

presented.

Basis of preparation

The consolidated and company financial statements are prepared on a going concern basis, under the historical

cost convention. Historical cost is generally based on the fair value of the consideration given in exchange for

the assets. These financial statements are prepared in pounds sterling rounded to the nearest thousand (‘£000’).

Going concern

The directors believe that it is appropriate to prepare the consolidated and company financial statements on the

going concern basis due to the continued financial support of the ultimate parent undertaking, Haringey London

Borough Council.

The directors have received written confirmation that the Council intends to support the Company and the Group

for at least one year after these financial statements are signed.

Basis of consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiary as at

31 March 2017. The subsidiary is wholly owned and directly controlled by the Company. Control comprises the

power to govern the financial and operating policies of the subsidiary so as to obtain benefit from its activities.


___________________________________________________________________________


27


3. Principal accounting policies (continued)

Intra-group balances and transactions have been eliminated in preparing the consolidated financial statements.

Further details about the subsidiary are shown in note 25.

Revenue recognition

Revenue is measured at the fair value of the consideration received or receivable. Revenue excludes Value

Added Tax (VAT).

The Group recognises revenue as below:

1. Management fee

The management fee receivable from the Council is set through the Council’s annual review of its Medium

Term Financial Strategy (MTFS). The management fee is recognised on a straight line basis over twelve

months during the financial year.

Income from the Council’s capital programme and other departments is recognised when the cost of the

related goods or works/services carried out have been incurred by the Group.

2. Rendering of services

(i) Revenue from repairs services is recognised by reference to the stage of completion of each job and

excludes part-complete jobs. The stage of completion is measured by reference to the materials and

labour hours incurred at 31 March 2017 as a percentage of the National Housing Federation (NHF)

schedule of rates for each job.

(ii) The Group offers the following services through its lettings and property management agency:

Securing the letting for the landlord including rent collection; and

Managing the letting on behalf of the landlord.

Commissions earned on the above services are recognised as follows:

(1) Commissions on securing the letting are recognised immediately subject to a deferral of revenue in

recognition of the following:

(a) contracts that have break clauses may require a refund if the tenant breaks early; and

(b) the Group is contracted to provide a rent collection service for the estimated duration of the

outstanding tenancies and the related revenue associated with the service is recognised on a

straight line basis over that period.

(2) The property management fee is recognised monthly at a fixed percentage of the monthly rental.

Employee benefits

The Group provides a range of employment benefits, including paid annual leave, paid sick leave, bonuses

and defined benefit and defined contribution pension schemes.


___________________________________________________________________________


28



(i) Short term employee benefits

(ii) Short term employee benefits are recognised as an expense in the period the service is received and

include gross salaries and wages, bonuses, employer's national insurance contributions, pension costs,

sick pay and holiday pay. Termination benefits

Termination benefits are usually one-off payments to employees as a result of a decision to terminate

employment before the normal retirement date or as a result of an employee’s decision to accept voluntary

redundancy. Termination benefits are recognised as an expense in the profit and loss account immediately the

decision to terminate an employee’s contract becomes irrevocable or when voluntary redundancy is accepted.

(iii) Defined benefit pension scheme

The Group operates a defined benefit pension scheme by participating in the local government pension scheme

(‘LGPS’) for employees of the Company. Remeasurement of the defined benefit liability is reflected in the

consolidated statement of comprehensive income, and the service cost and net interest expense are shown in

the consolidated profit and loss account. The pension cost charge has been calculated by an independent

actuary. Note 19 details the impact of the defined benefit pension scheme.

(iv) Defined contribution pension plan

The Group also operates a defined contribution pension plan for employees of the subsidiary. The plan is with

the People's Pension, and provides automatic enrolment into the pension plan for employees.

A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate

entity. Once the contributions have been paid, the Group has no further payment obligations. The pension cost

charged to the profit and loss account is equal to the contributions payable into the plan in the year on an

accruals basis. The assets of the plan are held separately from the Group in independently administered funds.

Tangible assets

The Group’s tangible assets comprise those acquired and used by the subsidiary and are stated at cost less

accumulated depreciation. Cost includes the original purchase price and costs directly attributable to bringing

the asset to its present location and condition for its intended use.

Depreciation is calculated, using the straight line method. Office equipment is depreciated over the useful

economic life of three years to their residual value.

The Company owns no fixed assets and there is therefore no depreciation charge in the Company’s profit and

loss account.

Inventories

Inventories are stated at the lower of cost and net realisable value. Inventories are recognised as an expense in

the period in which the related revenue is recognised.


___________________________________________________________________________


29



Raw materials and consumables are valued using the weighted average method and are not materially different

from their replacement cost.

Work in progress consists of part-completed repairs at the end of the financial year. The cost of work in progress

includes materials, direct labour and other direct costs related to the rendering of services.

Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks and bank overdrafts and

balances within the Council’s banking. The Company’s banking is contained within the Council’s financing

arrangements. The Company’s overdrafts comprise of balances represented through inter-company balances

with the Council and shown within borrowings under current liabilities.

Provisions and contingencies

(i) Provisions

Provisions are recognised when the Group has a legal or constructive obligation as a result of a past event and

it is probable that an outflow of economic benefits will be required to settle the obligation.

Restructuring provisions are recognised when management has made a decision to eliminate certain positions

and a detailed formal plan has been communicated to the employees affected. Restructuring provisions include

redundancy pay, payment in lieu of notice and the capital cost of pensions.

(ii) Contingencies

Contingent liabilities arise as a result of past events when;

(a) it is not probable that there will be an outflow of resources or the amount cannot be reliably measured

at the reporting date or

(b) the existence will be confirmed by the occurrence or non-occurrence of uncertain future events not

wholly within the Group’s control.

Contingent liabilities are not recognised but are disclosed in the financial statements unless the probability of

an outflow of resources is remote.

Contingent assets are not recognised but are disclosed in the financial statements when an inflow of economic

benefits is probable.

Financial instruments

The Group has chosen to adopt sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial liabilities

Basic financial liabilities, including trade creditors and other payables and borrowings, are recognised on the

balance sheet when the Group becomes a party to the contractual provisions of a financial instrument and are

initially measured at fair value and are carried at their amortised cost. Short term trade and other payables

within one year are measured at the transaction price.


___________________________________________________________________________


30



(ii) Financial assets

Basic financial assets, including trade debtors and other receivables, cash and bank balances, are initially

recognised at transaction price, unless the arrangement constitutes a financing transaction, where the

transaction is measured at the present value of the future receipts discounted at a market rate of interest. Short

term debtors receivable within one year are recorded at transaction price less any impairment.

Impairment of trade debtors

Trade debtors are stated after provisions for impairment of specific debtor accounts. A provision is established

to reflect potential loss of income after debt management procedures have been exhausted. Any increase in

losses arising from the impairment of trade debtors are recognised in the consolidated and company profit and

loss account within operating costs.

Operating leased assets

Leases that do not transfer all the risks and rewards of ownership are classified as operating leases.

Rentals payable under operating leases are charged to the consolidated and company profit and loss account

on a straight line basis over the term of the lease.

Reserves

The use of the Company’s reserves is regulated by the management agreement with the Council. The Company

may request the Council to consider proposals to use reserves and surpluses during the financial planning

process. Such proposals will be reflected in the Council’s medium term financial strategy and operational

budgets for the year(s) in question. The Company’s reserves can only be used as agreed by the Council.

Related party transactions

The Group discloses transactions with related parties to explain the effect of such transactions on the

consolidated financial statements. Separate disclosure for transactions with the Council is given in note 23.

4. Key accounting estimates and assumptions

The Group makes estimates and assumptions concerning the future. Estimates and assumptions are continually

evaluated and are based on historical experience and other factors, including expectations of future events that

are believed to be reasonable under the circumstances.

The key accounting estimates and assumptions that have a significant risk of causing a material adjustment to

the carrying amount of assets and liabilities within the next financial year are;

(i) Restructuring provisions

The Group makes provisions for the cost of staff redundancies resulting from reorganisations of management

structures and staffing.

Restructuring provisions require management’s best estimate of the costs that will be incurred based on

legislative and contractual requirements.

Provisions for the cost of staff redundancies are made when management has made a formal decision to

eliminate certain positions and detailed plans have been communicated to the groups of employees affected.


___________________________________________________________________________


31


4. Key accounting estimates and assumptions (continued)

(ii) Disrepair provision

The Group provides for disrepair compensation claims where failure to repair tenants’ homes has been

established and any compensation and the associated legal costs can be reasonably estimated.

(iii) Defined benefit pension scheme

The Group participates in the local government pension scheme (LGPS) and has obligations to pay pension

benefits to current employees in the scheme and to former employees with deferred benefits. The cost of these

benefits and the present value of the obligation depend on a number of factors, including; life expectancy,

salary increase, asset valuation and the discount rate on corporate bonds.

Management estimates these factors in determining the net pension obligation in the balance sheet. The

assumptions reflect historical experience and current trends.

(iv) Holiday pay accrual

An accrual is made for the cost of holiday entitlements earned by employees but not taken before the year-end,

which employees can carry forward into the next financial year.

The holiday pay accrual is calculated on this basis at the wage and salary rates applicable for the annual leave

year. For part-time employees, entitlements are calculated on an hourly basis pro rata to the full time entitlement

for their post.

(v) Client funds

Client monies and the associated liabilities operated by the subsidiary are not shown on the consolidated

balance sheet. This is because the Group treats the monies as belonging to clients and not as its own funds.

Client monies are held in designated client accounts and, on that basis, the Group expects that, in the event of

the lettings and property management agency becoming insolvent, such monies would be ring-fenced and not

be available to the agency’s creditors as a whole. They are not available for offset against any other account

held with the bank. Treatment of client monies is subject to Association of Residential Lettings Agency rules.

5. Turnover

Turnover arises solely in the United Kingdom. The Group’s revenues are mainly derived from the management

fees receivable from Haringey Council under the management agreement for managing and maintaining

council homes and for assessing homeless applications and providing management and support for homeless

households in temporary accommodation on behalf of the Council. The subsidiary received income from the

Council to cover running costs. In addition, the Group generates revenue from other services including repairs

administration, decent homes administration, lettings agency fees and other charges to the Council and third

parties.


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32


5. Turnover (continued)

Group

Analysis of turnover

2016/17 2015/16

£000 £000

Management fee receivable from Haringey Council 40,669 35,739

Income from Haringey Council's capital programme 8,072 6,525

Other income from Haringey Council 10,723 8,890

Sundry income and charges 357 114

Lettings agency fees 4 1

Total turnover 59,825 51,269

6. Operating loss

Group operating loss is stated after charging:

2016/17 2015/16

Note £000 £000

E mployee cos ts 7 31,143 26,619

Depreciation 13 24 5

Impairment of trade debtors 15 1 45

R es tructuring cos ts 20 - 566

Operating leases 21 583 678

Fees payable to the Company's auditors for the audit of the

Company and the Group's consolidated financial s tatements

21 28

Fees payable to the Company's auditors for the audit of the

Company's subs idiary

5 4

Total amount payable to the Company's auditors 26 32


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33


7. Employee costs

Group employee costs comprise: 2016/17 2015/16

£000 £000

Wages and salaries 24,304 20,885

Social security costs 2,133 1,480

Other pension costs 4,706 4,254

Total employee costs 31,143 26,619

Other pension costs includes accruals for current service costs of £103K and past service costs of £187K

therefore, it is different from the current service costs of £4,603K (2015/16: £4,487k) in note 19 - Pensions.

8. Employee information

The average monthly number of employees of the Group expressed in full time equivalents during the year

was:

Permanent Agency Total Total

2016/17

Number

2016/17

Number

2016/17

Number

2015/16

Number

Haringey Repairs Service (HRS) 183 1 184 180

Property Services other than HRS 53 13 66 72

Operations 273 32 305 270

Housing Demand 84 13 97 -

Corporate Affairs 21 6 27 35

Managing Director's Service 8 7 15 32

Lettings agency 2 - 2 5

Total (full time equivalents) 624 72 696 594

On 1 May 2016, 135 employees were TUPE transferred to the Company from the Council.

Full time equivalents have been calculated on the basis that 36 working hours per week is equal to one full

time equivalent.


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34


9. Employee remuneration

The number of permanent employees, whose remuneration (excluding employers' pension and national

insurance) was £50,000 or more, fell within the following bands:

Salary bands 2016/17 2015/16

£50,000 to £54,999 16 18

£55,000 to £59,999 6 7

£60,000 to £64,999 1 3

£65,000 to £69,999 4 3

£70,000 to £74,999 1 1

£80,000 to £84,999 1 2

£90,000 to £94,999 1 -

£100,000 to £104,999 1 1

£110,000 to £114,999 - 1

£125,000 to £129,999 1 -

£130,000 to £134,999 - 1

£135,000 to £139,999 1 -

£140,000 to £144,999 - 1

Total 33 38

Staff numbers

10. Directors’ emoluments

(a) Company Board members

Directors’ emoluments for the Company are as follows:

2016/17 2015/16

£000 £000

Salary* 10 10

Board member expenses 1 1

Total directors ' remuneration 11 11

*Only the Chair receives a salary. Other Board members do not receive a salary but are entitled to

reimbursement of expenses incurred when attending board and committee meetings.

(b) Company Managing Director’s remuneration

2016/17 2015/16

£000 £000

Salary 135 142

Pension contributions 34 -

Total including pension contributions 169 142

The Managing Director is not a director of the Company for legal purposes. The remuneration of the Managing

Director is included in wages and salaries in note 7 - Employee costs.


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35


11. Interest payable and similar expenses

Group

2016/17 2015/16

Note£000 £000

Interes t expens e on Council loans - (8)

Net interes t expens e on defined benefit pens ion 19 (793) (1,162)

T otal (793) (1,170)

12. Tax on loss on ordinary activities

As the Company’s Memorandum and Articles of Association are in accordance with the HM Revenue & Customs

(HMRC) manual BIM58210, transactions between Homes for Haringey Limited and its Council member (London

Borough of Haringey) are not regarded by HMRC as amounting to trading and, as such, will not attract

corporation tax. Transactions with third parties are ‘de minimis’ and attract no tax liability. There is no deferred

tax consequence.

The subsidiary is liable for UK corporation tax on its profits at the main rate of 20%. No tax is payable as it

made a trading loss for the financial year ended 31 March 2017. Under UK tax legislation, losses can be carried

forward and used to offset future taxable income. Any potential deferred tax asset has not been recognised due

to the uncertainty of future use of tax losses.

13. Tangible assets

Group 2016/17

£000

Office equipment

Cos t

At 1 April 2016 34

At 31 March 2017 34

Accumulated depreciation

At 1 April 2016 (5)

P rovided in the year (24)

At 31 March 2017 (29)

Net book amount at 31 March 2017 5

Net book amount at 31 March 2016 29

Company

The Company has no tangible assets at 31 March 2017 (2015/16: none) and there is therefore no depreciation

charge.


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36


14. Inventories

Inventories comprise the following:

Group and Company

2016/17 2015/16

£000 £000

Raw materials and consumables 192 217

Work in progress 175 293

Total 367 510

There is no material difference between the carrying amount of the inventory and their replacement cost. Work

in progress consists of part-completed repairs at the end of the financial year.

15. Debtors

2016/17 2015/16 2016/17 2015/16

£000 £000 £000 £000

Trade debtors - Council 10,015 8,502 10,015 8,502

Trade debtors - E xternal 34 49 34 48

Amounts owed by s ubs idiary - - 76 73

T otal 10,049 8,551 10,125 8,623

Les s : Impairment los s (5) (45) (5) (45)

T rade debtors - net 10,044 8,506 10,120 8,578

Other debtors 2 18 - -

P repayments 54 76 54 71

Accrued income - Council 955 1,509 955 1,509

Accrued income - S ubs idiary - - 5 -

T otal Debtors 11,055 10,109 11,134 10,158

Group Company

Amounts owed by the Council are unsecured, interest free and are payable on demand.


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37


16. Creditors: amounts falling due within one year

2016/17 2015/16 2016/17 2015/16

£000 £000 £000 £000

Trade creditors - Council 22 34 22 34

Trade creditors - E xternal 38 106 38 96

T otal trade creditors 60 140 60 130

Accruals - Council 649 817 649 817

Accruals - E xternal 1,849 2,577 1,847 2,569

T otal accruals 2,498 3,394 2,496 3,386

Other creditors including taxation

and s ocial s ecurity 1,274 1,306 1,274 1,299

T otal Creditors 3,832 4,840 3,830 4,815

Group Company

Amounts owed to the Council are unsecured, interest free and are repayable on demand.

17. Borrowings - current

The Company’s banking is contained within the Council’s financing arrangements. Amounts owed to the

Council under this arrangement are unsecured, interest free and repayable on demand. The cash deficit of

£7,437K (2015/16: £5,325K) is represented through inter-company balances.

18. Borrowings – non current

The Council also provides unsecured loans for the running costs of the subsidiary at no interest. No new loans

were made to the Group during the financial year. The loan balance to repay as at 31 March 2017 totals

£303K (2015/16: £303K).


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38


19. Pensions

Group

The Group operates a defined benefit pension scheme for employees of Homes for Haringey Limited and a

defined contribution scheme for employees of its subsidiary. The amounts recognised in the consolidated profit

and loss account are as follows:

2016/17 2015/16

Note £000 £000

Defined benefit scheme

- Current service cost 4,601 4,483

Defined contribution scheme 2 4

Total charge in operating loss 4,603 4,487

Defined benefit scheme

- Net interest expense 12 793 1,162

Total charge 5,396 5,649

(a) Defined benefit pension scheme (LGPS)

The Company is legally obliged to participate in the Local Government Pension Scheme (the LGPS). The LGPS

is a statutory funded scheme offering secured pension arrangements for scheme members under the Local

Government Superannuation Act 1972. Since 1 April 2014, the LGPS has changed from a final salary scheme

to a career average salary scheme for benefits built up from 1 April 2014.

The Company is a scheduled body within the London Borough of Haringey Pension Fund (the fund), which is

part of the LGPS. The Company operates a salary-related defined benefit pension scheme for its employees.

Pension obligations were transferred to the Company on 1 April 2006 for employees with previous service with

the Council who were TUPE transferred to Homes for Haringey Limited. Further pension obligations were

transferred to the Company on 1 May 2016, when employees with previous service with the Council were TUPE

transferred to the Company. New employees who meet the requirements of the LGPS are automatically enrolled

in the scheme. Scheme members are able to opt out at any time if they want to.

A full formal valuation of the fund was carried out at 31 March 2016 by an independent actuary to the pension

fund. A further assessment of liabilities at 31 March 2017 has been made taking account of the requirements

of section 28 of FRS 102 (as amended). The actuary, Hymans Robertson LLP, is not an employee of the Company

or the Council.

Scheme membership

The membership statistics as at the latest formal valuation on 31 March 2016 are:

Number

Total

salaries/pensions Average age

31 March 2016 £000 31 March 2016

Active members 441 14,367 53

Deferred pensioners 229 1,039 52

Pensioners 188 1,870 63


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39


19. Pensions (continued)

Pension assets and liabilities

The assets of the scheme are in a fund independent from the Company and are administered by the Council in

accordance with the Local Government Pension Scheme Regulations 2013. Pension assets are valued at current

bid price.

The estimated proportions of fund assets held in each category are:

Asset category

Value at

31 Mar 2017

Asset

distribution

Value at

31 Mar 2016

Asset

distribution

£000 % £000 %

Equities 112,192 71% 89,403 68%

Bonds 31,603 20% 26,295 20%

Property 11,061 7% 14,462 11%

Cash 3,160 2% 1,315 1%

Total 158,016 100% 131,475 100%

The estimated proportions of total assets held in each asset category, shown above, reflect the proportion held

by the fund as a whole at 31 March 2017 and at 31 March 2016.

Liabilities are valued on an actuarial basis using the projected unit credit method, which assesses the future

liabilities discounted to their present value. In preparing the valuation of pension assets and obligations, the

actuary rolls forward the employer’s position as at the latest formal valuation (or the date of joining the fund, if

later) to 31 March 2017. The actuary has no reason to believe that the approximations used in rolling forward

the valuation to 31 March 2017 will introduce any undue distortion in the results, provided that the actual

experience of the employer and the fund has been broadly in line with their assumptions, and that the structure

of the membership is substantially unchanged from the date of the latest formal valuation.

Actuarial assumptions

(i) Financial assumptions

Financial assumptions used by the actuary are:

2016/17

% per annum

2015/16

% per annum

Pension increase rate 2.4% 2.2%

Salary increase rate 3.0% 4.2%

Discount rate 2.6% 3.5%

In accordance with FRS 102 disclosure requirements, the rates of return on assets are set equal to the discount

rate of 2.6% per annum.


___________________________________________________________________________


40



(ii) Mortality

Life expectancy is based on the fund’s Vita Curves with improvements in line with the CMI 2013 model assuming

current rates of improvement have peaked and will converge to a long term rate of 1.25% per annum. Based

on these assumptions, the average future life expectancies at age 65 are summarised below:

Mortality Males Females

Current pensioners 21.8 years 24.1 years

Future pensioners * 23.8 years 26.0 years

* Figures assume members aged 45 years as at the last formal valuation date.

(iii) Historic mortality

Life expectancies for the prior year end are based on the fund’s Vita Curves. The allowances for future life

expectancy are shown in the following table:

Year ended Prospective pensioners Pensioners

31 March 2016 CMI 2010 model assuming the current

rate of improvements have peaked

and will converge to a long term rate

of 1.25% per annum.

CMI 2010 model assuming the current

rate of improvements have peaked

and will converge to a long term rate

of 1.25% per annum.

The mortality assumptions adopted for the valuation for the year ended 31 March 2017 are the same as those

used for the latest formal funding valuation.

(iv) Commutation

An allowance is included for future retirements to elect to take 50% of the maximum additional tax-free cash up

to HM Revenue & Customs limits for pre-April 2008 service and 75% of the maximum tax-free cash for post-

April 2008 service.

Contribution rate

The employer’s annual contribution rate is determined by the fund’s actuary at the triennial actuarial valuation.

The contribution rate certified for Homes for Haringey Limited at the 2016 valuation is 24.9% for 2016/17

(2015/16: 24.4%). The Company made employer contributions of £4,496K during the year (2015/16:

£3,584K).


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41



Reconciliation of plan assets and defined benefit obligations

Changes in the fair value of fund assets, defined benefit obligation and net asset/ liability for the year ended

31 March 2017 are detailed below:

Year ended 31 March 2017 Assets Obligations Net asset

£000 £000 £000

Fair value of employer assets 131,475 - 131,475

Present value of funded liabilities - 154,000 (154,000)

Opening posit ion as at 31 March 2016 131,475 154,000 (22,525)

Service cost

Current service cost* - 4,601 (4,601)

Past service cost (including curtailments) - 187 (187)

Total service cost - 4,788 (4,788)

Net interest

Interest income on plan assets 4,646 - 4,646

Interest cost on defined benefit obligation - 5,439 (5,439)

Total net interest 4,646 5,439 (793)

Total defined benefit cost recognised in profit

for the year 4,646 10,227 (5,581)

Cash flows

Plan participants' contributions 1,192 1,192 -

Employer contributions 4,496 - 4,496

Benefits paid (2,943) (2,943) -

Expected closing posit ion 138,866 162,476 (23,610)

Remeasurements

Changes in demographic assumptions - (2,271) 2,271

Changes in financial assumptions - 24,618 (24,618)

Other experience - (27,134) 27,134

Return on assets excluding amounts included in net

interest

19,150 - 19,150

Total remeasurements recognised in Other

Comprehensive Income (OCI) 19,150 (4,787) 23,937

Fair value of employer assets 158,016 - 158,016

Present value of funded liabilities - 157,689 (157,689)

Closing posit ion as at 31 March 2017 158,016 157,689 327

*The current service cost includes an allowance for administrative expenses of 0.5% of payroll.

The estimated present value of funded liabilities as at 31 March 2017 comprises of approximately £86,179K

in respect of active members, £27,016K for deferred members and £44,494K for pensioner members.


___________________________________________________________________________


42



The remeasurments recognised in Other Comprehensive Income (OCI) in the main relate to:

A £19.2m increase in the value of assets attributable to the scheme, resulting from the devaluation of

Sterling following the Brexit vote;

A £24.6m increase in the assessed value of liabilities, resulting from a decline in the discount rate from

3.5% (as at March 2016) to 2.6% (as at March 2017); and

A £27.1m decrease in the assessed values of liabilities, resulting from the triennial revaluation of the

Pension Scheme providing the actuaries with updated information to make their assessment.

(b) Defined contribution scheme

The Group provides a defined contribution pension scheme for employees of its subsidiary with The People’s

Pension. The assets of the scheme are held separately from the Group in independently administered funds.

The amount recognised as an expense for the defined contribution scheme was:

2016/17 2015/16

£000 £000

Current year contributions 2 4

20. Provision for other liabilities

Group and Company

The Group and Company had the following provisions during the year:

Restructuring

provision

Disrepair

provision

Legal

provision

Total

£000 £000 £000 £000

At 1 April 2016 566 - - 566

Charged to the profit and loss account - 272 58 330

Utilised during the year (566) - - (566)

At 31 March 2017 - 272 58 330

(i) Restructuring provision

Restructuring provisions are recognised when management has made a decision to eliminate certain positions

and a detailed formal plan has been communicated to the employees affected.

Restructuring provisions include redundancy pay, payment in lieu of notice and the capital cost of pensions. The

provisions were utilised during this financial year.


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43


20. Provision for other liabilities (continued)

(ii) Disrepair provision

Provision for disrepair compensation claims is made where failure to repair tenants’ homes has been established

and any compensation and the associated legal costs can be reasonably estimated. The provision is expected

to be utilised within one year following the reporting date.

The Company has other disrepair cases under consideration. Any potential liabilities arising from these cases

are yet to be determined and no provision has been made for them.

(iii) Legal provision

The provision is for on-going legal matters and it is expected to be utilised within one year following the reporting

date.

21. Operating leases

Group

Operating lease payments payable within one year of the balance sheet date were in respect of leases expiring:

2016/17 2015/16

£000 £000

Motor vehicles 583 678

Total 583 678

Within 2 to 5 years

22. Capital and reserves

Group

The Group’s reserves comprise the following amounts:

R etained

earnings

(ex cluding

pens ions )

P ens ion

res erve

Total

res erves

2016/17

Total

reserves

2015/16

£000 £000 £000 £000

At beginning of year 3,502 (26,382) (22,880) (35,470)

Loss for the financial year (1,200) - (1,200) (2,817)

Actuarial gains recognised on the

pens ion scheme

- 23,937 23,937 15,415

At end of year 2,302 (2,445) (143) (22,872)


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44


22. Capital and Reserves (continued)

Company

The Company is limited by guarantee and has no share capital.

The Company’s reserves comprise the following amounts:

R etained

earnings

(ex cluding

pens ions )

P ens ion

res erve

Total

res erves

2016/17

Total

reserves

2015/16

£000 £000 £000 £000

At beginning of year 3,819 (26,382) (22,563) (35,470)

Loss for the financial year (1,143) - (1,143) (2,508)

Actuarial gains recognised on the

pens ion scheme

- 23,937 23,937 15,415

At end of year 2,676 (2,445) 231 (22,563)

23. Related party transactions

Homes for Haringey Limited is wholly owned by Haringey London Borough Council, its parent entity. The

Company manages and maintains Council properties under the terms of a management agreement with the

Council. The Company also assesses homeless applications, provides housing advice and support to homeless

households in temporary accommodation and manages private sector lettings on behalf of the Council.

There are three Councillors nominated by the Council on the Board during the financial year ended 31 March

2017. In addition, four Board members are tenants or leaseholders of the Council. The tenants have a standard

tenancy agreement and are required to fulfil the same obligations and receive the same benefits as other tenants.

During the year the Group received income of £59,464,677 (2015/16: £51,154,421) from the Council. This

includes management fee income of £40,669,217 (2015/16: £35,738,520).

The Company’s bank balance is held within the balance controlled by the Council (note 17). The Group owed

the Council £671K at 31 March 2017 (2015/16: £851K) in respect of services provided by the Council (note

16). The Council owed the Group £10,970K at 31 March 2017 (2015/16: £10,011K) in respect of fees and

works provided to the Council (note 15).


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45


23. Related party transactions (continued)

The Council provides services to the Company under contracted service level agreements. Major payments

made for services provided by the Council were:

2016/17 2015/16

£000 £000

Anti-social behaviour 33 33

Communications 47 47

Corporate finance 1,473 434

Customer services 1,605 1,241

Human resources 778 101

Information technology 2,425 1,910

Legal services 1,011 895

Procurement 72 143

Property services 688 609

Total 8,132 5,413

Major payments to Haringey Council

Save as disclosed elsewhere in these financial statements, there are no further related party transactions

requiring disclosure under FRS 102.

24. Controlling party

The Company is wholly owned by Haringey London Borough Council. Accordingly, the Council is the

Company’s parent entity and the Group’s ultimate controlling party.

The Company is limited by guarantee with no share capital. The liability of the Council is limited to £1 (2015/16:

£1) in the event of winding up.

The consolidated financial statements of Homes for Haringey Limited are included within the group financial

statements of the Council. The Council’s financial statements are available through its website at

www.haringey.gov.uk or through the Council’s Corporate Finance department at River Park House, 225 High

Road, London N22 8HQ.

25. Subsidiary undertaking

The Company has a wholly owned subsidiary delivering a not-for-profit private lettings and property

management agency. The subsidiary, Homes for Haringey Residential Community Interest Company, trading as

Move 51 Degrees North, is a private company limited by shares and is incorporated in England. Its registered

number is 09543450 and registered office at 48 Station Road, London N22 7TY.


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46


26. Haringey Repairs Service (HRS)

Haringey Repairs Service (HRS) is the Company’s in-house repairs service. HRS undertakes the repairs contract

for Haringey Council. The contract started on 1 April 2008. Its trading profits feed into efficiency targets set for

the Company by the Council.

The trading account of HRS is reflected below:

£000 £000

Trading income 16,130 19,291

Operating cos ts :

E mployees 9,261 9,421

P remises 7 42

Transport 1,174 1,238

S upplies & services 2,011 2,743

Contractors 2,466 4,254

Overheads 709 704

Total operating cos ts 15,628 18,402

Operating s urplus 502 889

Net interes t expense on defined benefit pens ion (265) (462)

Trading s urplus for the year 237 427

27. Notes to the statement of cash flows

2016/17 2015/16

£000 £000

L os s for the financial year (1,200) (2,825)

Interes t payable and s imilar expens es 793 1,170

Operating los s (407) (1,655)

Defined benefit pens ion accrual 292 909

Depreciation of tangible as s ets 24 5

Decreas e / (Increas e) in inventories 143 (121)

(Increas e) in debtors (946) (1,644)

(Decreas e) in creditors (1,016) (898)

(Decreas e)/ increas e in provis ions (236) 566

Cas h flow us ed in operating activ it ies (2,146) (2,838)

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