2023-03-31-accounts

CHARITY REGISTRATION NO. 1032305 COMPANY REGISTRATION NO. 02796002 (England and Wales)

KIRKLEES COMMUNITY ASSOCIATION

TRUSTEES’ REPORT AND AUDITED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

KIRKLEES COMMUNITY ASSOCIATION CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

	Pages
Trustees’ Report	1 – 4
Statement of trustees’ responsibilities	5
Report of the Independent Auditors	6 – 8
Consolidated Statement of Financial Activities	9
Consolidated Balance Sheet	10
Charity Balance Sheet	11
Consolidated Cash Flow Statement	12
Notes to the Financial Statements	13 – 30

KIRKLEES COMMUNITY ASSOCIATION TRUSTEES REPORT (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also directors of the charity for the purposes of the Companies Act 2006, have pleasure in submitting their report and audited accounts for the year ended 31 March 2023.

The accounts have been prepared in accordance with the Companies Act 2006, the Charities SORP (FRS102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’ and Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’. The company is a Public Benefit Entity as defined by FRS 102.

Company Status

The company, which is a registered charity (Charity Registration No. 1032305), is limited by guarantee without share capital. The company is controlled by its governing document, the Memorandum and Articles of Association.

Organisational Structure

A Management Board comprising of up to 12 Directors controls the Association, which includes Councillors of Kirklees Metropolitan Council (KMC), members of the private sector, and members of the voluntary sector. Board meetings are held on a regular basis, and sub-committees are convened to deal with specific issues as and when required.

The company controls its subsidiary company, Kirklees Housing Association Limited (KHA), with four of the trustees making up the majority of the board of KHA.

Paulette Johnson joined the Board as an independent Director in December 2022. In June 2023 Kirklees Council advised of the resignation of Cllr Carole Pattison and the appointment of Cllr Paul Moore as Council appointed Director.

Staff resources continued to be an issue since the resignation of the previous KCA Project Officer in March 2022. The Board fully appreciate the continued support provided to the organisation by the dedicated and enthusiastic work of Nicki Cartwright and Mike France and in particular their co-operation in taking on additional workload.

The Board is delighted to acknowledge the appointment, in conjunction with the Council, of a new KCA Project Officer (Rachael Renton) in July 2023. It is anticipated that Rachael will be full time on KCA activity from autumn 2023.

With regard to induction and training of trustees a comprehensive induction pack containing specific Kirklees Community Association information and more general Charity Commission information has been prepared for all new trustees. Trustees receive training through information briefings as part of board meetings.

Principal Activities

The principal objectives of the group are to promote a range of community facilities including housing, educational, recreational, cultural and general community benefits in the Kirklees area.

Review of Activities

The group has continued throughout the year to provide low-cost and affordable rented accommodation for individuals and families through its portfolio of social housing and housing for social benefit developments around Kirklees. These include Holmfirth, Paddock, Gomersal, Golcar, Milnsbridge, Ravensthorpe, Chickenley, Mirfield and Birstall. The group also has a smaller property investment portfolio where it rents property out to third parties on a market rent basis.

The staffing situation has impacted on the ability of the Board to both review existing policies and develop new initiatives which has been a source of frustration to the Board.

Discussions remain in progress with Kirklees Council over the working arrangements between the two parties and the future activities of KCA. The joint appointment of a new KCA Project Officer is seen as a very positive step in developing future working relations.

Plans and key objectives for the future

The board will continue to seek and create opportunities and the key objective is to be in a position to use its flexibility to take up opportunities as they arise and to demonstrate that they are actively supporting the council in achieving their housing policies. The key priorities for the future are:

• Identifying partnership opportunities;

• Providing housing to specialist vulnerable groups;

1

KIRKLEES COMMUNITY ASSOCIATION

TRUSTEES REPORT (CONTINUED) (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 MARCH 2023

• Maintaining KCA’s ability to respond swiftly to new opportunities;

• Maintaining the existing stock to a high standard.

Public benefit

We have referred to the guidance contained in the Charity Commission’s general guidance on public benefit when reviewing our aims and objectives.

Working for the public benefit of Kirklees underpins the reason for KCA. Projects are broadly aimed at enhancing the quality of life for people, particularly those in need.

The provision of affordable housing to individuals and families in need of housing is a direct public benefit. KCA housing assets of around 200 units provide good quality, affordable housing which would otherwise not be available and helps tackle social exclusion and poverty. Allocations to the properties are based on need primarily using the local authority Choice Based Letting system. Rents are set to be around the Local Housing Allowance levels or are regulated by the Homes and Communities Agency to make sure that they are affordable to those in need.

The wider regeneration work that KCA is undertaking, particularly in the Fieldhead area, is of public benefit by enhancing the physical environment and life chances of the residents of the area.

Fundraising

The group does not carry out fundraising activities.

Financial review

During the year the principal source of income continued to be from the provision of housing, with this income remaining steady year on year. The main variances in net income this year compared with the prior year are the impact of the revaluation of fixed assets, overall gain of £329,873 this year (2022 – overall gain £383,304) and the increase in property repairs and sinking fund property repairs of £351,144 (2022 - £163,991). In the current year the group has repaid grant income of £53,824 (2022 – NIL) and in the prior year recognised £130,681 in relation to the release of a retention. After recognising other revaluation losses of £182,662 (2022 – Gains of £24,496) which are reported as funds movements, the group had a surplus for the year ended 31 March 2023 of £78,892 (2022 - £813,345). The group at 31 March 2023 had fixed assets of £18,503,494 (2022 - £18,046,743) with the increase arising from the purchase and improvement of new and existing investment properties and the revaluation of the housing properties in the year. Repayments have been made against the bank loans in the year with these reducing in total by £142,195. The group had cash at bank of £201,957 (2022 - £569,310) and an overdraft of £346,660 (2022 - £398,432).

Risk Management

The Board undertakes regular risk evaluation. Investment projects are moving more slowly than anticipated due to a lack of project management resource available, the risk of falling behind with required investment is being kept in mind.

The other main risks to KCA as identified by the trustees are the impact welfare reform has on tenants and therefore their rental payments and general financial considerations due to the current volatility of the UK economy and the pressure of huge rises in other living costs on our tenant’s financial position. The welfare impacts are mitigated by links with the local authority and their underwriting of rents, as well as referral processes to support agencies to support tenants with financial issues. There is a standing item for finance updates and decisions at the KCA monthly board meetings.

Health and safety failings and building failures are a risk from a landlord’s point of view. Such risks are mitigated through the use of a management agreement with Kirklees Homes & Neighbourhoods who provide day to day management via a 24 hour helpline to tenants with building concerns. Landlord and building insurance is also in place and is reviewed regularly. The Association is aware of the issues that the increased regulation of registered social landlords responsibilities brings and this issue is kept under review by the Board. The Board takes account of national issues around the provision of rented housing such as fire safety and mould remediation and addresses these issues through targeted investment where required.

Current significant increases in interest rates are a financial risk and the Board considers the balanced long term risk of interest rate movements versus the costs of using fixed rates where appropriate. They continue to consider such risks on an ongoing basis.

2

KIRKLEES COMMUNITY ASSOCIATION

TRUSTEES REPORT (CONTINUED) (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 MARCH 2023

Reserves Policy

The trustees aim to build up and retain liquid reserves equivalent to the sinking fund provision for the properties. Liquid reserves, after fixed assets, loans and overdraft, are £169,754 (2022 - £741,579).

At the year end the group is holding unrestricted reserves of £11,028,340 (2022 - £10,871,210). This includes the designated sinking fund of £158,812 (2022 - £333,317) and a revaluation reserve of £2,579,289 (2022 - £2,761,951).

The trustees intend to use any surpluses to contribute to the funding of future schemes and developments, particularly the planned maintenance, and to protect the Trust against identified risks.

Funds

Designated funds are unrestricted funds which are determined by a specific need to set aside funds to fund future costs within the charity. The designated fund is a sinking fund set aside to cover any necessary sizeable/capital repairs expected on an ageing portfolio.

Endowment funds represent income received for the purchase of housing properties where there is an obligation on the charity to hold these assets for use in fulfilling the charity’s objectives. If the properties are sold or no longer used as social housing, this fund is repayable.

Directors

The Directors of the company during the year were:

E Firth D M Firth A Hood R C Iredale G Morrison N Pinnock-Hamilton P W Rock (Chair) C Pattison (resigned after the year end) A L Palfreeman (resigned 8 June 2022) P D McBride (appointed 12 May 2022) P Johnson (appointed 1 December 2022)

P P Moore was appointed as director after 31 March 2023 but prior to the date of this report, appointed 16 June 2023.

Kirklees Metropolitan Council nominate “Council members”. “Local company members” are elected through elections conducted by the Kirklees Voluntary Sector Forum. “Appointed company members” are appointed by a majority of members. The Directors are not subject to retirement by rotation.

Reference and administrative details

Registered Office PO Box 1720 Kirklees Council Kirklees Community Association c/o Kirklees Council, Huddersfield HD1 9EL Company Secretary Paul Kemp Auditor DJH Mitten Clarke Audit Limited Chartered Accountants and Statutory Auditors Bates Mill Colne Road Huddersfield HD1 3AG Bankers Co-operative Bank plc Leeds Corporate Centre 14 King Street Leeds LS1 2HL

3

KIRKLEES COMMUNITY ASSOCIATION

TRUSTEES REPORT (CONTINUED) (INCLUDING DIRECTORS’ REPORT) FOR THE YEAR ENDED 31 MARCH 2023

Auditors

The auditors, DJH Mitten Clarke Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

Statement of disclosure to auditor

In so far as the trustees are aware:

a) there is no relevant audit information of which the charitable company’s auditors are unaware, and

b) the trustees have taken all the steps that they ought to have taken to make themselves aware of any relevant audit information and to establish that the auditors are aware of that information.

This report has been prepared in accordance with the special provisions of the Companies Act 2006 relating to small companies.

20/12/2023

Approved by order of the board of trustees on …………………………………. and signed on its behalf by:

…………………………………… Mr A Hood - Trustee

4

KIRKLEES COMMUNITY ASSOCIATION

STATEMENT OF TRUSTEES RESPONSIBILITIES FOR THE YEAR ENDED 31 MARCH 2023

The trustees, who are also the directors of Kirklees Community Association for the purpose of company law, are responsible for preparing the Trustees' Report and the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).

Company law requires the trustees to prepare accounts for each financial year. Under company law the trustees must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the charitable company and the group, and of the incoming resources and application of resources, including the income and expenditure, of the group and parent charitable company for that period. In preparing those financial statements, the trustees are required to:

• select suitable accounting policies and then apply them consistently;

• observe the methods and principles in the Charities SORP;

• make judgements and estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

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

5

KIRKLEES COMMUNITY ASSOCIATION

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KIRKLEES COMMUNITY ASSOCIATION

Opinion

We have audited the financial statements of Kirklees Community Association (the 'charitable group') for the year ended 31 March 2023 which comprise the Consolidated Statement of Financial Activities, the Consolidated and Charity Balance Sheets, the Consolidated Cashflow Statement and notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards Ireland (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

In our opinion, the financial statements:

• give a true and fair view of the state of the group’s and the parent charitable company's affairs as at 31 March 2023 and of the group’s incoming resources and application of resources, including its income and expenditure, for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We are independent of the charitable group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The trustees are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our Report of the Independent Auditors thereon.

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

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

Opinions on other matters prescribed by the Companies Act 2006

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

• the information given in the trustees' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the trustees' report has been prepared in accordance with applicable legal requirements.

6

KIRKLEES COMMUNITY ASSOCIATION

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KIRKLEES COMMUNITY ASSOCIATION

Matters on which we are required to report by exception

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

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

• adequate accounting records have not been kept by the parent charitable company, or returns adequate for our audit have not been received from branches not visited by us; or

• the parent charitable company’s financial statements are not in agreement with the accounting records and returns; or

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

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

• the trustees were not entitled to take advantage of the small companies exemptions from the requirement to prepare a Strategic Report or in preparing the trustees’ report.

Responsibilities of trustees

As explained more fully in the Statement of Trustees' Responsibilities, the trustees, who are also the directors of the charitable company for the purpose of company law, are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the trustees determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Our responsibilities for the audit of the financial statements

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

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

As part of designing our audit, we determined materiality and assessed the risk of material misstatement in the financial statements, whether due to fraud or error, and then designed and performed audit procedures responsive to those risks. In particular, we looked at where the directors made subjective judgements such as making assumptions on significant accounting estimates.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, our planning procedures included gaining an understanding of the entity and its environment including the entity's legal and regulatory framework, any fraud indicators and internal control system via both discussions amongst the engagement team and with the directors. We also evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements including the risk of override of controls.

7

KIRKLEES COMMUNITY ASSOCIATION

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KIRKLEES COMMUNITY ASSOCIATION

Based on our understanding of the company and its industry, the key laws and regulations we considered included the UK Companies Act, Charities Act (2011) and relevant tax legislation.

Audit procedures performed by the engagement team included but were not limited to:

• Evaluating and testing of the operating effectiveness of management's controls designed to prevent and detect irregularities;

• Discussing with the directors the policies and procedures in place regarding identifying and complying with laws and regulations and whether they were aware of any instances of non-compliance;

• Reviewing relevant meeting minutes;

• Identifying and testing journal entries;

• Designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing; and - Reviewing and testing the accounting estimates to minimise potential bias.

The primary responsibility for the prevention and detection of irregularities including fraud rests with both those charged with governance and management. There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements the less likely we would become aware of such non-compliance. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, intentional misrepresentations or collusion.

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

Use of our report

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

ee_. Karen Borowski FCA (Senior Statutory Auditor) for and on behalf of DJH Mitten Clarke Audit Limited Chartered Accountants and Statutory Auditors

Bates Mill Colne Road Huddersfield HD1 3AG 20/12/2023 Date: …………………………………………….

8

KIRKLEES COMMUNITY ASSOCIATION

CONSOLIDATED STATEMENT OF FINANCIAL ACTIVITIES INCLUDING INCOME AND EXPENDTURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2023

Notes Income and endowments from: Donations and legacies 3 Incoming resources from charitable activities 4 Income from investments Other income 5 Total income Expenditure on: Charitable activities 6 Net gains on investments Net income Other recognised gains/(losses): (Losses)/gains on revaluation of fixed assets Transfers between funds Net movement in funds Reconciliation of funds: Brought forward Total funds carried forward	Unrestricted funds 2023 £ - 732,628 239,142 34,933 1,006,703 1,106,703 415,378 315,378 (182,662) 24,414 157,130 10,871,210 11,028,340	Endowment funds 2023 £ (53,824) - - - (53,824) - - (53,824) - (24,414) (78,238) 4,344,211 4,265,973	Total 2023 £ (53,824) 732,628 239,142 34,933 952,879 1,106,703 415,378 261,554 (182,662) - 78,892 15,215,421 15,294,313	Total 2022 £ - 730,830 205,833 165,466
				1,102,129 572,084 258,804
				788,849 24,496 -
				813,345 14,402,076 15,215,421

The notes form part of these financial statements

9

KIRKLEES COMMUNITY ASSOCIATION (COMPANY NUMBER 02796002) CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2023

		2023	2023	2022	2022
	Notes	£	£	£	£
Fixed assets
Tangible assets	12		13,321,993		14,140,243
Investment property	12		5,181,501		3,906,500
			18,503,494		18,046,743
Current assets
Debtors	13	111,706		293,788
Cash at bank and in hand		201,957		569,310
		313,663		863,098
Creditors
Amounts falling due within one year	14	(618,118)		(687,454)
Net current assets/(liabilities)			(304,455)		175,644
Total assets less current liabilities			18,199,039		18,222,387
Creditors
Amounts falling due after more than one year	15		2,904,726		3,006,966
Net assets			15,294,313		15,215,421
Funds
Endowment funds	17		4,265,973		4,344,211
Unrestricted funds
Designated funds	18	158,812		333,317
General unrestricted funds	18	8,290,239		7,775,942
Revaluation reserve	18	2,579,289		2,761,951
			11,028,340		10,871,210
			15,294,313		15,215,421

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

20/12/2023

The financial statements were approved by the trustees on …………………………………………...

…………………………………… Mr A Hood Trustee

The notes form part of these financial statements

10

KIRKLEES COMMUNITY ASSOCIATION (COMPANY NUMBER 02796002) CHARITY BALANCE SHEET AS AT 31 MARCH 2023

		2023	2023	2022	2022
	Notes	£	£	£	£
Fixed assets
Tangible assets	12		12,486,493		13,302,743
Investment property	12		4,021,501		3,606,500
			16,507,994		16,909,243
Current assets
Debtors falling due within one year	13	349,747		248,304
Debtors falling due after one year	13	796,895		696,895
Cash at bank and in hand		179,020		463,899
		1,325,662		1,409,098
Creditors
Amounts falling due within one year	14	(606,816)		(675,205)
Net current assets/(liabilities)			718,846		733,893
Total assets less current liabilities			17,226,840		17,643,136
Creditors
Amounts falling due after more than one year	15		2,904,726		3,006,966
Net assets			14,322,114,		14,636,170
Income funds
Endowment funds	17		3,819,473		3,897,711
Unrestricted funds
Designated funds	18	158,812		333,317
General unrestricted funds	18	7,801,422		7,682,073
Revaluation reserve	18	2,542,407		2,723,069
			10,502,641		10,738,459
			14,322,114		14,636,170
Company’s (loss)/surplus for the financial year			(314,056)		596,909

These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.

20/12/2023

The financial statements were approved by the trustees on ………………………………………………. ry

………………………………………..

Mr A Hood

Trustee

The notes form part of these financial statements

11

KIRKLEES COMMUNITY ASSOCIATION

CONSOLIDATED CASHFLOW STATEMENT FOR THE YEAR ENDED 31 MARCH 2023

Notes Cash flows from operating activities: Net cash provided by (used in) operating activities 22 Cash flows from Investing activities: Purchase of tangible fixed assets Proceeds on disposal of tangible fixed assets Net cash provided by (used in) investing activities Cash flows from financing activities: New loan and overdraft in year Repayments of borrowing Interest paid Net cash provided by (used in) financing activities Change in cash and cash equivalents in the reporting period Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period Relating to: Cash at bank and in hand	2023 £ £ 459,360 (599,892) 116,000 (483,892) - (193,967) (148,854) (342,821) (367,353) 569,310 201,957 201,957	2023 £ £ 459,360 (599,892) 116,000 (483,892) - (193,967) (148,854) (342,821) (367,353) 569,310 201,957 201,957	2022 £ £ 71,601 (628,680) - (628,680) 898,432 (147,286) (108,225) 642,921 85,842 483,468 569,310 569,310	2022 £ £ 71,601 (628,680) - (628,680) 898,432 (147,286) (108,225) 642,921 85,842 483,468 569,310 569,310
	- (193,967) (148,854)
		(367,353) 569,310		85,842 483,468
		201,957		569,310
		201,957		569,310

12

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting Policies

1.1 Accounting convention

The financial statements have been prepared in accordance with the company's governing document, the Companies Act 2006, the Charities SORP (FRS102) ‘Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)’ and Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’. The company is a public benefit entity as defined by FRS 102.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties at fair value. The principal accounting policies adopted are set out below.

1.2 Going concern

The trustees have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the trustees continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3 Basis of consolidation

The Consolidated Statement of Financial Activities, Consolidated Balance Sheet and Consolidated Cash Flow Statement include the financial statements of the company and its subsidiary undertaking made up to 31 March 2023. Intra-group sales and profits are eliminated fully on consolidation. The entity has taken exemption from presenting its unconsolidated Statement of Financial Activities under section 408 of Companies Act 2006.

1.4 Charitable funds

Unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives unless the funds have been designated for other purposes.

Designated funds are unrestricted funds which are determined by specific need to set aside funds to fund future costs within the charity.

The revaluation reserve represents the excesses arising from the revaluation of the freehold properties over the original cost.

Restricted funds are subject to specific conditions by donors as to how they may be used. The purposes and uses of the restricted funds are set out in the notes to the financial statements.

Endowment funds relate to government grants received for the acquisition of housing properties where there are ongoing restrictions as to the use of those properties.

1.5 Incoming resources

All income is generated from the rendering of services. Income is recognised when the company is legally entitled to it after any performance conditions have been met, the amounts can be measured reliably, and it is probable that income will be received.

Donated assets and services are included at the market value, or where unavailable, the value to the company where this can be quantified.

Grants, including revenue Government grants, are included in the Statement of Financial Activities on a receivable basis. The balance of income received for specific purposes but not expended during the year is shown in the relevant funds on the balance sheet. Where income is received in advance of entitlement of receipt its recognition is deferred and included in creditors as deferred income. Where entitlement occurs before income is received, the income is accrued.

Capital grants are recognised when receivable and not deferred over the life of the asset on which expended.

13

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting Policies (continued)

Grants receivable where there is no specific service provision are included within donations and legacies. Grants receivable which are capital in nature or are of a general nature are included within donations and legacies.

1.6 Resources expended

Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis.

1.7 Tangible fixed assets

Tangible fixed assets other than freehold land are stated at cost or valuation less depreciation and any impairment losses. Assets in the course of construction are stated at cost to date. The depreciation charge for the period is recognised in the Statement of Financial Activities as a cost through the relevant fund. Depreciation is provided at rates calculated to write off the cost or valuation less estimated residual value of each asset over its expected useful life, as follows:

Social housing, Housing for social benefit 1.75% on cost/valuation excluding cost/valuation attributed to land Fixtures, fittings & equipment 33.33% on cost

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in net income/(expenditure) for the year.

Freehold properties acquired are either social housing or housing for social benefit. Freehold properties are included on the balance sheet at their equivalent use value. If a property’s carrying amount is increased as a result of a revaluation, the increase is recognised in the Statement of Financial Activities as an increase to the relevant fund and accumulated in closing funds. The “relevant fund” means the fund in which the property sits, or the revaluation reserve, according to the following policy: Increases in value are added to the revaluation reserve unless they relate to the reversal of a previously recognised revaluation loss which went through another fund. Similarly, reductions in value are recognised in the revaluation reserve to the extent that they relate to an amount previously recognised in the revaluation reserve; otherwise they will be recognised in the relevant other fund. Hence the revaluation reserve can never fall below zero overall or on a property by property basis.

Previously no depreciation was charged on Social housing and Housing for social benefit, as the properties are revalued annually and the depreciation amounts therefore have no impact of total funds at each period end. The amounts estimated were immaterial until the current accounting period when the cumulative impact on the split of funds between the Revaluation reserve and the General unrestricted fund reached a material level. Therefore depreciation has been implemented for the current and future period. Due to the immaterial amounts assessed as affecting earlier periods, it is considered impractical and of no value to the users of the accounts to make adjustments to those periods.

1.8 Investment properties

Investment properties are included in the balance sheet initially at cost and subsequently at their market value. No depreciation is provided on the investment properties.

Although this accounting policy is in accordance with FRS 102, it is a departure from the general requirement of the Companies Act 2006 for all tangible assets to be depreciated. In the opinion of the trustees, compliance with FRS 102 is necessary for the financial statements to give a true and fair view. Depreciation is only one of the many factors reflected in the annual valuation and the amount of this which might otherwise have been charged cannot be separately identified or quantified. There is an annual revaluation of the investment properties.

1.9 Cash and cash equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

14

KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

1 Accounting Policies (continued)

1.10 Financial instruments

The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs less any impairment.

Basic financial liabilities

Basic short term financial liabilities, which include creditors, are recognised at transaction price. Debt instruments are measured initially at transaction price, net of transaction costs, and are measured subsequently at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of operations from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

1.11 Company information

Kirklees Community Association is a private company limited by guarantee incorporated in England and Wales. The registered office is PO Box 1720, Kirklees Council Kirklees Community Association, c/o Kirklees Council, Huddersfield,HD1 9EL. The company's registered number is 02796002.

2 Critical accounting estimates and judgements

In the application of the company's accounting policies, the trustees are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised. The nature of the estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. The carrying amount of the estimates and assumptions at the year end are disclosed in the relevant note to the accounts.

Categorisation of housing properties

Properties that are held to earn commercial rentals or for capital appreciation, or both, are categorised as investment properties. Properties rented to provide social housing are classed as social housing. Other properties rented as low-cost accommodation are classed as housing for social benefit.

Valuation of investment property and freehold property

Investment property is included on the balance sheet at fair value. The trustees estimate this based on annual professional valuations prepared on a market value basis, which they consider to be equivalent to fair value.

15

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

2 Critical accounting estimates and judgements (continued)

Freehold properties acquired are either social housing or housing for social benefit. Freehold properties are included on the balance sheet at fair value. The trustees estimate fair value based on annual professional valuations prepared on an equivalent use value for social housing basis, which the trustees consider to be equivalent to fair value.

Useful economic lives of tangible fixed assets

The annual depreciation charge for tangible fixed assets other than freehold land and investment properties is sensitive to changes in the estimated useful economic lives and residual values of the assets, which are reassessed annually. They are amended where necessary to reflect current estimates, based on economic utilisation, physical condition of the assets, future investments, and the mix of components making up the assets.

3 Donations and legacies

2023 2022 £ £ Grant repaid to Homes England 53,824 - Incoming resources from charitable activities 2023 2022 £ £ Provision of housing 732,628 730,830 2023 2022 £ £ Retention released - 130,681 Other income 34,933 34,785 34,933 165,466

4 Incoming resources from charitable activities

5 Other income

16

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

6 Charitable activities costs

Administration fees Professional fees Bank fees Insurance Bank loan interest payable Repairs to property Property expenditure Housing management fees Net (gain)/loss on disposal of tangible fixed assets Fixed asset impairments and related depreciation movements Depreciation Miscellaneous expenses Bank overdraft interest Sinking fund repairs to property Share of governance costs	2023 £ 50,102 60,606 11,883 31,341 129,962 170,247 90,203 73,188 (4,000) 85,504 169,833 7,941 16,114 180,897 1,073,821 32,882 1,106,703	2022 £ 92,809 77,386 10,036 29,399 99,455 103,360 104,775 76,584 - (124,500) - 7,747 9,621 60,631
		547,303 24,781 572,084

Governance costs includes payments to the auditors of £18,180 (2022 - £14,875) for audit fees and £39,402 (2022 - £41,775) for non-audit fees.

7 Trustees

None of the trustees (or any persons connected with them) received any remuneration during the year. One trustee had expenses of £557 reimbursed to them during the year (2022 – £58).

8 Employees

There were no employees in either the current or previous year.

9 Surplus/(deficit) of parent charity

As permitted by Section 408 of the Companies Act 2006 and the concession in paragraph 397 of the Charities SORP, a Statement of Financial Activities and the Income and Expenditure Account of the parent charity is not presented as part of these financial statements. The parent charity’s loss for the financial year, not including gains on revaluation of fixed assets, was £133,394 (2022 – surplus £572,413).

17

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

10 Comparatives for the consolidated statement of financial activities

Income and endowments from: Incoming resources from charitable activities Income from investments Other Income Total income Expenditure on: Charitable activities Net gains on investments Net income Other recognised gains/(losses): Gains on revaluation of fixed assets Net movement in funds Reconciliation of funds: Brought forward Total funds carried forward	Unrestricted funds £ 730,830 205,833 165,466	Restricted funds £ - - -	Endowment funds £ - - -	Total £ 730,830 205,833 165,466
	1,102,129 572,084 258,804	- - -	- - -	1,102,129 572,084 258,804
	788,849 24,496	- -	- -	788,849 24,496
	813,345 10,057,865 10,871,210	- - -	- 4,344,211 4,344,211	813,345 14,402,076 15,215,421

18

KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

11 Subsidiary company

Kirklees Housing Association (KHA) is deemed to be a subsidiary of the company by virtue of Kirklees Community Association controlling KHA. At the year end four out of seven members of KHA are trustees of Kirklees Community Association. KHA is a registered non-profit-making Housing Association, with registered number IP031705. Its registered office is 1[st] Floor, Civic Centre 3, High Street, Huddersfield HD1 2TG. KHA disapplied the requirement to have an audit of its financial statements in accordance with the Co-operative and Community Benefit Societies Act 2014.

A summary of its results, which are incorporated in the consolidated financial statements, is shown below:

Turnover Administrative expenses Other operating income Gain on revaluation of investment property Loss on revaluation of fixed assets Interest payable Surplus for the year Gross assets Total liabilities Net assets Share capital Total reserves	2023 £ 62,041 (54,121) - 426,803 (2,000) (39,775) 392,948 2023 £ 2,023,585 (1,051,379) 972,206 7 972,199 972,206	2022 £ 51,935 (36,247) 17,500 206,434 - (23,186)
		216,436
		2022 £ 1,490,291 (911,033)
		579,258
		7 579,251 579,258

19

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

12 Fixed assets Group Cost or valuation At 1 April 2022 Reclassification Additions Disposals Impairment Revaluation At 31 March 2023 Depreciation At 1 April 2022 Charge for the year Eliminated on revaluation At 31 March 2023 Carrying amount At 31 March 2023 At 31 March 2022 Company Cost or valuation At 1 April 2022 Reclassification Additions Disposals Impairment Revaluation At 31 March 2023 Depreciation At 1 April 2022 Charge for the year Eliminated on revaluation At 31 March 2023 Carrying amount At 31 March 2023 At 31 March 2022	Investment Properties Social Housing £ £ 3,906,500 7,022,000 334,000 - 525,623 9,309 - (112,000) - (109,809) 415,378 (2,000) 5,181,501 6,807,500 - - - 79,802 - (79,802) - - 5,181,501 6,807,500 3,906,500 7,022,000 Investment Properties Social Housing £ £ 3,606,500 6,184,500 334,000 - 92,426 5,723 - (112,000) - (106,223) (11,425) - 4,021,501 5,972,000 - - - 79,802 - (79,802) - - 4,021,501 5,972,000 3,606,500 6,184,500	Housing for Social Benefit £ 7,118,243 (334,000) 56,440 - (68,596) (257,594) 6,514,493 - 90,031 (90,031) - 6,514,493 7,118,243 Housing for Social Benefit £ 7,118,243 (334,000) 56,440 - (68,596) (257,594) 6,514,493 - 90,031 (90,031) - 6,514,493 7,118,243	Fixtures, Fittings & Equipment £ 675 - - - - - 675 675 - - 675 - - Fixtures, Fittings & Equipment £ 675 - - - - - 675 675 - - 675 - -	Total £ 18,047,418 - 591,372 (112,000) (178,405) 155,784
				18,504,169
				675 169,833 (169,833)
				675
				18,503,494 18,046,743 Total £ 16,909,918 - 154,589 (112,000) (174,819) (269,019)
				16,508,669
				675 169,833 (169,833)
				675
				16,507,994 16,909,243

20

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

12 Fixed assets (continued)

The valuations were carried out by Bramleys. Valuations were provided on a market value basis as defined by the Royal Institution of Chartered Surveyors Valuation - Global Standards 2022. Compliance with the RICS Professional Standards and Valuation Practice Statements gives assurance also of compliance with the International Valuation Standards (IVS). The valuation has been undertaken using the comparable and investment approaches with transactions of other similar type and quality of property in the locality having been taken into consideration and an investment yield has been applied. The yield and therefore valuation reflects the nature of the tenancy and the rental income produced.

Investment properties were valued on a market value basis.

Social Housing and Housing for Social Benefit were valued on EUV-SH (Existing Use for Social Housing).

Bramleys considered the principle difference in EUV-SH basis of value is that the property will continue to be let by a body pursuant to delivery of a service for the existing use and that the vendor would only be able to dispose of the property to organisations intending to manage the housing stock in accordance with the regulatory body's requirement. This definition of value is therefore on the basis of the existing use for social housing and reflects the rental income stream.

If the revalued assets had not been revalued, they would have been carried at the following historic cost:

Investment properties Social Housing Housing for Social Benefit	Group 2023 2022 £ £ 3,295,433 2,554,794 7,545,674 7,728,167 4,246,467 4,495,074	Company 2023 2022 £ £ 2,768,670 2,461,228 6,612,375 6,798,454 4,246,467 4,495,074

Fixed assets with a total carrying amount of £14,305,000 (2022 - £14,663,500) have been pledged to secure borrowings of the company. The company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

Housing for Social Benefit with a carrying amount of £755,250 (2022 - £763,000) relates to shared ownership properties. The carrying amount is 50% of the properties’ total value, corresponding to the company’s ownership percentage.

The properties at 19-23 Dale View, Longwood were transferred to the company at nil cost, but were introduced at a market value of £375,000 in accordance with the company's accounting policy.

21

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

13 Debtors

Group 2023 2022 Amounts falling due within one year: £ £ Amounts owed by subsidiary undertakings - - Trade debtors 9,053 6,095 Prepayments and accrued income 102,653 287,693 111,706 293,788 2023 2022 £ £ Amounts falling due after more than one year: Amounts owed by subsidiary undertakings - - Total debtors 111,706 293,788	Company 2023 2022 £ £ 178,726 178,703 10,548 6,095 160,473 63,506 349,747 248,304 2023 2022 £ £ 796,895 696,895 1,146,642 945,199	Company 2023 2022 £ £ 178,726 178,703 10,548 6,095 160,473 63,506 349,747 248,304 2023 2022 £ £ 796,895 696,895 1,146,642 945,199
		248,304
		2022 £ 696,895
		945,199

The company has previously provided a loan to Kirklees Housing Association Limited in the sums of £431,095, £50,300 and £245,000 with a further £100,000 advanced in April 2022. The loans are for a term of twenty five years and interest is charged at 5% per annum. As security the company holds a legal charge over 1a to 1e, 28a and 28b Branwell Avenue, Batley, 1 Scarr Green Close, Meltham, and Valley Gardens, Paddock West Yorkshire.

14 Creditors: amounts falling due within one year

Bank loans and overdraft (see note 16) Trade creditors Other creditors Accruals and deferred income Included within creditors above is deferred Deferred income	Group 2023 2022 £ £ 474,208 565,935 40,057 66,814 - 79 103,853 54,626 618,118 687,454 income as follows: Group 2023 2022 £ £ 5,778 5,369	Company 2023 2022 £ £ 474,208 565,935 37,461 66,814 - 79 95,147 42,377 606,816 675,205 Company 2023 2022 £ £ 5,778 5,369

Deferred income has arisen due to rental income being paid in advance. All of the deferred income in the prior year was released in the current year.

22

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

15 Creditors: amounts falling due after more than one year

		Group		Company	Company
		2023	2022	2023	2022
		£	£	£	£
Bank loans and overdraft (see note	16)	2,904,726	3,006,966	2,904,726	3,006,966

16 Loans and overdrafts

Group and company

The following secured debts are included within creditors:

Bank loans and overdraft Amounts included above which fall due after five years: Payable by instalments	2023 2022 £ £ 3,378,934 3,572,901 2,355,527 2,288,965

The Co-operative Bank holds a first legal charge over the properties at Heron Close, Ravensthorpe, Fieldhead, Birstall and Oxford Road, Gomersal.

The Fieldhead property loans are repayable up to twenty years. All loans are repayable on an annual basis, and capital repayments are variable over the term of the loan. Interest is charged at 1.875% above Libor, which is specific to the Fieldhead loan agreement.

The Unity Trust Bank hold a first legal charge over 13 properties located throughout Kirklees.

The Unity Trust Bank loan is repayable over 10 years. The loan is repayable on an annuity basis, and capital repayments are varied over the term of the loan. Interest is charged at 1.75% above the bank's own base rate.

Handelsbanken hold a first legal charge over 19 properties at Huddersfield Road and Market Street, Holmfirth.

23

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

17 Endowment funds

Endowment funds represent income received for the purchase of housing properties where there is an obligation on the charity to hold these assets for use in fulfilling the charity’s objectives. If the properties are sold or no longer used as social housing, this fund is repayable.

During the year repayment of a grant has been made in respect of a property that has been sold. The repayment amount agreed was less than the amount held in the endowment fund therefore the remaining balance of £24,414 has been transferred to general unrestricted funds.

Endowment fund Company Endowment fund	Movement in funds Balance at 1 April 2022 Incoming resources Resources expended Transfers between funds Balance at 31 March 2023 £ £ £ £ £ 4,344,211 - (53,824) (24,414) 4,265,973 Movement in funds Balance at 1 April 2022 Incoming resources Resources expended Transfers between funds Balance at 31 March 2023 £ £ £ £ £ 3,897,711 - (53,824) (24,414) 3,819,473

Comparatives for endowment funds:

Group
			Movement in funds
	Balance at 1	Incoming	Resources	Transfers	Balance at 31
	April 2021	resources	expended	between funds	March 2022
	£	£	£	£	£
Endowment fund	4,344,211	-	-	-	4,344,211
Company			Movement in funds
	Balance at 1	Incoming	Resources	Transfers	Balance at 31
	April 2021	resources	expended	between funds	March 2022
	£	£	£	£	£
Endowment fund	3,897,711	-	-	-	3,897,711

24

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Unrestricted funds

Group
	Balance at 1	Net	Transfers	Balance at
	April 2022	movement	between	31 March
		in fund	funds	2023
	£	£	£	£
Designated fund	333,317	(180,897)	6,392	158,812
General unrestricted fund	7,775,942	496,275	18,022	8,290,239
Revaluation reserve	2,761,951	(182,662)	-	2,579,289
	10,871,210	132,716	24,414	11,028,340

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

Incoming resources Resources expended Net gains on investments Gains/ (losses) on revaluation of fixed assets £ £ £ £ Designated fund - (180,897) - - General unrestricted fund 1,006,703 (925,806) 415,378 - Revaluation reserve - - - (182,662) 1,006,703 (1,106,703) 415,378 (182,662) Comparatives for movement in unrestricted funds: Balance at 1 April 2021 Prior year adjustment Net movement in fund Transfers between funds £ £ £ £ Designated fund 393,672 - (60,631) 276 General unrestricted fund 6,926,738 849,480 (276) Revaluation reserve 2,737,455 24,496 - 10,057,865 - 813,345 -		Net movement in funds £ (180,897) 496,275 (182,662)
		132,716
		Balance at 31 March 2022 £ 333,317 7,775,942 2,761,951
		10,871,210

25

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Unrestricted funds (continued)

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

Designated fund General unrestricted fund Revaluation reserve	Incoming resources £ - 1,102,129 - 1,102,129	Resources expended £ (60,631) (511,453) - (572,084)	Net gains/ (losses) on investments £ - 258,804 - 258,804	Gains/ (losses) on revaluation of fixed assets £ - - 24,496 24,496	Net movement in funds £ (60,631) 849,480 24,496
					813,345

Company

Designated fund General unrestricted fund Revaluation reserve Net movement in funds, included Designated fund General unrestricted fund Revaluation reserve	Balance at 1 April 2022 Net movement in fund Transfers between funds Balance at 31 March 2023 £ £ £ £ 333,317 (180,897) 6,392 158,812 7,682,073 101,327 18,022 7,801,422 2,723,069 (180,662) - 2,542,407 10,738,459 (260,232) 24,414 10,502,641 in the above, are as follows: Incoming resources Resources expended Net gains/ (losses) on investments Gains/ (losses) on revaluation of fixed assets Net movement in funds £ £ £ £ £ - (180,897) - - (180,897) 1,004,377 (891,625) (11,425) - 101,327 - - - (180,662) (180,662) 1,004,377 (1,072,522) (11,425) (180,662) (260,232)	Balance at 31 March 2023 £ 158,812 7,801,422 2,542,407	Balance at 31 March 2023 £ 158,812 7,801,422 2,542,407
			10,502,641
			Net movement in funds £ (180,897) 101,327 (180,662)
	1,004,377		(260,232)

26

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

18 Unrestricted funds (continued)

Comparatives for movement in unrestricted funds

Designated fund General unrestricted fund Revaluation reserve	Balance at 1 April 2021 £ 393,672 7,049,306 2,698,573 10,141,551	Net movement in fund £ (60,631) 633,043 24,496 596,908	Transfers between funds £ 276 (276) - -	Balance at 31 March 2022 £ 333,317 7,682,073 2,723,069
				10,738,459

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

	Incoming	Resources	Net gains/	Gains/	Net
	resources	expended	(losses) on	(losses) on	movement
			investments	revaluation	in funds
				of fixed
				assets
	£	£	£	£	£
Designated fund	-	(60,631)	-	-	(60,631)
General unrestricted fund	1,085,617	(504,943)	52,370	-	633,044
Revaluation reserve	-	-	-	24,496	24,496
	1,085,617	(565,574)	52,370	24,496	596,909

The designated funds of the charity have been set aside out of unrestricted funds by the trustees in order to build a sinking fund. A transfer into the sinking fund to cover maintenance and refurbishment of the properties held is made annually based on 1% of the revalued cost of the properties.

General unrestricted funds are available for use at the discretion of the trustees in furtherance of their charitable objectives.

The revaluation reserve represents the excesses arising from the revaluation of the freehold properties over the original cost less accumulated depreciation.

27

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

19 Analysis of net assets between funds

Group Unrestricted funds £ Fund balances at 31 March 2023 are represented by: Tangible assets 9,056,020 Investment property 5,181,501 Current assets/(liabilities) (304,455) Long term liabilities (2,904,726) 11,028,340 Company Unrestricted funds £ Fund balances at 31 March 2023 are represented by: Tangible assets 8,667,020 Investment property 4,021,501 Current assets/(liabilities) 718,846 Long term liabilities (2,904,726) 10,502,641	Endowment funds £ 4,265,973 - - - 4,265,973 Endowment funds £ 3,819,473 - - - 3,819,473	Total £ 13,321,993 5,181,501 (304,455) (2,904,726)
		15,294,313
		Total £ 12,486,493 4,021,501 718,846 (2,904,726)
		14,322,114

20 Leasing agreements

At 31 March 2023 the subsidiary company has minimum payments under non-cancellable operating leases falling due within one year of £8,970 (2022 - £8,970). The lease is in respect of a property it rents from Kirklees Community Association.

21 Related party transactions Group

Kirklees Metropolitan Council (KMC) is related to the group. KMC managed the company and group's properties under a management contract. Services provided amounted to £70,739 (2022- £74,136), of which £17,710 (2022- £17,532) was outstanding at the year end. KMC also provided maintenance and other miscellaneous services amounting to £161,977 (2022 - £104,696) of which £57,948 (2022 - £6,799) was outstanding at the year end.

KMC guarantees the company's rent income at the following levels: Fieldhead properties 97.5% and all other properties 100%. KMC provides to the Homes and Communities Agency a performing guarantee that KCA will discharge and perform the grant conditions attached to any of the Social Housing Grant that may be awarded for the redevelopment of the Fieldhead estate. At the year end this guarantee covers the remaining grant included in the endowment fund.

28

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

21 Related party transactions (continued) Group

Kirklees Stadium Development Limited is related as it provides key management personnel services to the group. Administrative services provided to the company amounted to £14,209 of which £1,326 was outstanding at the year end. In the prior year KMC provided these administrative services to the company which amounted to £58,091 of which £11,129 was outstanding at the 2022 year end.

Transactions with the directors are disclosed in note 7.

Company

The company provides financial and administrative support to Kirklees Housing Association, the company’s subsidiary company. Services provided amounted to £2,000 in the year (2022 - £2,000) of which £Nil (2022 - £Nil) was outstanding at the year end. Kirklees Housing Association owed a loan of £796,895 (2022 - £696,895) to the company at year end. Loan interest of £39,775 (2022 - £23,186) was charged during the year and £62,961 (2022 - £23,186) was outstanding at the year end. During the year the company also provided day to day financial assistance and paid £345 (2022- £173,355) of costs on behalf of Kirklees Housing Association and was reimbursed £322 (2022 - £11,000). At the balance sheet date £178,726 (2022 - £178,703) was outstanding in respect of this day to day loan account.

The company rented a property to Kirklees Housing Association, which it then rented out to a third party. Rent received in the year amounted to £17,940 (2022 - £10,237), of which £1,495 (2022 - £1,495) was outstanding at the balance sheet date.

22 Reconciliation of net income/(expenditure) to net cash flow from operating activities

Net income for the reporting period (as per the statement of financial activities) Adjustments for: Net (gains) on investments Fixed asset impairments and related depreciation movements Depreciation Interest paid on bank loans and overdraft (Gain)/loss on disposal of tangible fixed assets (Increase)/decrease in debtors lncrease/(decrease) in creditors Net cash provided by (used in) operating activities

Group 2023 2022 £ £ 261,554 788,849 (415,378) (258,804) 85,504 (124,500) 169,833 - 146,076 109,076 (4,000) - 182,082 (242,362) 33,689 (200,658) 459,360 71,601

29

KIRKLEES COMMUNITY ASSOCIATION

NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2023

23 Analysis of changes in net debt

Group Net cash: Cash Debt: Bank overdraft Loans falling due within one year Loans falling due after one year	At start of year £ 569,310 569,310 (398,432) (167,503) (3,006,966) (3,572,901) (3,003,591)	Cashflows £ (367,353)	Other non- cash changes £ - - - (127,548) 127,548 - -	At end of year £ 201,957
		(367,353)		201,957
		51,772 167,503 (25,308)		(346,660) (127,548) (2,904,726)
		193,967		(3,378,934)
		(173,386)		(3,176,977)

30