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 2025
KIRKLEES COMMUNITY ASSOCIATION CONTENTS OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 Pages Trustees, Report Statement of trustees, responsibilities Report of the Independent Auditors 7-10 Consolidated Statement of Financial Activities li Consolidated Balance Sheet 12 Charity Balance Sheet 13 Consolidated Cash Flow Statement 14 Notes to the Financial Statements 15-29
KIRKLEES COMMUNITY ASSOCIATION TRUSTEES, REPORT IINCLUDING DIREcfoRS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025 The Trustees, who are also the Directors of the charity for the purposes of the Companies Act 2006. submit their report and audited consolidated accounts for the year ended 31 March 2025. The accounts have been prepared in accordance with the Companies Art 2006, the Charities SORP IFR51021 Accounting and Reporting by Charities Statement of Recommended Prartice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 102 effective l January 20191 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 (registered number 027960021 which is a registered charity Icharity Registration number 10323051 is limited by guarantee without share capital. The company is controlled by iys governing document the Memorandum and Articles of Association. ORGANISATIONAL STRucfuRE A Management Board of up to 12 Directors controls the Association including up to 6 individuals nominated by Kirklees Metropolitan Council IKMCI and up to 6 Community Directors. Board meetings are held 6 times per annum. During the year the company controlled a subsidiary company Kirklees Housing Association IKHAI as KCA nominees constituted a majority of the Directors of KHA. During the year resignations were received frorn Cllrs Eric Firth and Paul Moore. The Board wishe5 to record its sincere thank5 to Eric and Paul for their contribution. particularly Eric who had served for 15 years. In September 2025 the resignation of Tony Hood a long standing Community Director with 14 years service was received. Again the Board records it's Sincere thanks to Tony. Cllrs Tyler Hawkins and Munir Ahmed were appointed to the Board in June 2024, and Philip Lucitt was appointed in August 2025. Mike France was appointed to the Board in September 2024, he then resigned in November 2025. Staff support is provided by a combination of Rachael Renton as Projert Officer, Nicki Cartwright and Martin Bennett. The Board wishes to record ivs thanks to all three for their enthusiasm and commitment to supporting the work of KCA. A comprehensive induttion pack with specific information about KCA and more general information about the role of a Trustee in a Charitable body is provided to new Trustees. PRINCIPAL A1VITIEs The principal activities of the Group are to promote community benefit in the Kirklees area primarily through the provision of social and affordable housing.
KIRKLEES COMMUNITY ASSOCIATION TRUSTEES, REPORT ICONTINUED} (INCLUDING DIREcfoRS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025 REVIEW OF A1VITIEs The portfolio of social rent and affordable homes continues to be in high demand due to the level of housing need in the district. The improvement in capacity has allowed more work to take place on reviewing and updating policie5 and a55et data with particular regard to recent and planned future legislation relating to both social and general landlords. This includes reviewing the 5pecific5 of the working arrangement5 betweerb KCA and KMC. The Board is particularly pleased to note that the five S106 properties acquired by KHA in 2022123 were fully let during the year under review. PLANS AND KEY OBJEcfivES FOR THE FUTURE The Board intend5 to continue to seek and create opportunitie5 Wlth the key objective being to create the flexibility to take advantage of any potential asset acquisitions or disposals on appropriate term5. The primary criteria for assessing such opportunities will be the contribution that an intervention can make in active 5UPPOrt of Kirklees Council's housing policies. The key priorities therefore are= continuing to identify partnership working opportunities with a particular focus on specialist provider5 of accommodation for vulnerable groups where there is a shortage of 5Ultable provision in Kirklees maintaining the financial and other resource capaaty of KCA to respond on a pragmatic basis to opportunities that arise maintaining the existing stock to a high standard. We continue to populate the Asset Management System recently acquired with relevant data about the properties to improve the basis of OLbr decision making on stock investment. PUBLIC BENEFIT The Board refers to the general guidance provided by the Charity Commission in making decisions on ivs aims arbd objectives and specific projects. Working for the benefit of the resident5 of Kirklees. particularly those with higher leve15 of need. The provision of good quality affordable housing to families and individua15 is a direct public benefit which helps to alleviate poverty and social exclusion. Allocations to the propertie5 are mainly via the Council's Choice Based letting system which asse55es housing need. Most rents are set with reference to the Local Housing Allowance rates for Kirklees. KCA also invests to support the wider community infrastructure as evidenced by the contribution made to the new MUGA facility at Fieldhead school which will also benefit residents of the KCA properties on the estate. FUNDRAISING The KCA Group does not carry out fundraising activity.
KIRKLEES COMMUNITY ASSOCIATION TRUSTEES, REPORT ICONTINUED} (INCLUDING DIREcfoRS' REPORT) FOR THE YEAR ENDED 31 MARCH 2025 FINANCIAL REVIEW During the year the principal source of income continued to be from rental income from the let properties. The Group surplus for the year ending 31 March 2025 was £629k12024 deficit £326kl. The principal reason for the surplus was a positive result from the annual revaluation of fixed assets an increase of £498k as compared with a reduction last year of £387k. There was one disposal and one acquisition in the year. The rent increases agreed as from April 2024 resulting in an operating surplus of £131k as compared with £33k for the previous year. At 31 March 2025 the Group had fixed assets of £18.279m12024 £17.879ml due to the upward movement in the valuation of the property Portfolio. Long term debt remained static. Cash at bank was £368k as compared with £204k in 2024. RISK MANAGEMENT The Board regularly reviews and evaluates risk particularly in the light of new legislation relating to the rented housing sector. The Board is aware of the impact of both general cost of living issues and welfare reform have on our tenants ability to pay rent. Statistics on rent collection levels and arrears are presented to each Board meeting. During 2024125 a new Asset Management package was purchased to improve the data that KCA holds about it's properties with a view to targeting investment to continue to provide good quality homes which meet all current and planned future legislative requirements. Investment needs are now being addressed more promptly due to additional capacity and the acquisition of an asset management IT system to replace the existing manual records over time. In terms of welfare reform and the general economic constraints which impact on many of our tenants, KCA seeks to maintain close links with the local support agencies including the local authority. The Council continues to provide a rental guarantee in respett of the Fieldhead properties which mitigates KCA risk. Adeqvate provision is made in the KCA budget for rent arrears and voids to further mitigate risk. The Board keeps a close eye on the progress of new legislation impacting on landlords in respect of both the form of tenancies which can be offered and the condition and ongoing maintainence of the properties provided. As part of the Management Agreement with the Council a 24 hour repairs notification Servi is provided to KCA tenants. Our current and future investment strategies are attuned to the legislative requirements that we are subject to. KCA'S aim is to provide good quality accomodation for it's tenants and it takes this very seriously as a non profit making charity whose objective is to benefit the residents of Kirklees. The Board 15 pleased to note the gradual reduction in interest rates over the last 12-18 months which are now nearing a level at which further investment on acquisitions or the refinance of existing loan arrangements 15 becoming an option to consider. RESERVES POLICY The trustees aim to build up and retain liquid reserves equal to the Sinking Fund provision for the propertv assets. At the year end the Group is holding unrestricted reserves of £11,472,02412024 £10,763,821). This includes the designated Sinking Fund of £239.81912024 £239.8191 and a revaluation reseNe of £2,995,07712024 £2,533,873). The Trustees intend to Use any surpluses generated to fund any future acquisitions. planned maintenance and to provide a contingency to mitigate risk.
KIRKLEES COMMUNITY ASSOCIATION TRUSTEES, REPORT ICONTINUED) (INCLUDING DIRECTORS. REPORT) FOR THE YEAR ENDED 31 MARCH 2025 FUNDS Designated funds are unrestrirted funds which are determined by a specific need to set aside funds to cover future costs. The designated fund is a Sinking Fund set aside to cover planned replacement work within the property assets. Endowment funds represent income received for the purchase of properties where there is an obligation on the charity to hold those assets for use in fulfilling ivs charitable objectives. If the properties are sold or no longer used as social housing this funding is Potentially repayable. DIRECTORS The Directors of the company during the year were- P. W. Rock Ichairl D. M. Firth R. C. Iredale P. Johnson N. Pinnock-Hamilton P. D. McBride E. Firth (resigned 27 June 20241 P. P. Moore (resigned 19 August 20241 A. Hood (resigned 18 September 20251 T. C. Hawkins (appointed 17 June 20241 M. Ahmed (appointed 27 June 20241 M. France lappointed 16 September 2024, resigned 30 November 20251 P. Lucitt was appointed as a Director after 31 March 2025 but prior to the date of this report on 12 August 2025. Kirklees Metropolitan Council nominate"Council members"."Appointed company members" are appointed by a majority of members. The Directors are not required to retire by rotation. REFERENCE AND ADMINISTRATIVE DAlls REGISTERED OFFICE 20 Moorland Rise Meltham Holmfirth HD9 SNA PRINCIPAL OFFICE I, Floor Civic Centre 3 High Street Huddersfield HDI 2TG
KIRKLEES COMMUNITY ASSOCIATION TRUSTEES, REPORT {CONTINUED} (INCLUDING DIRECTORS, REPORT) FOR THE YEAR ENDED 31 MARCH 2025 COMPANY SECRETARY Paul Kemp AUDITOR DJH Audit Limited Chartered Accountants and Statutory Auditors The Glades Festival Wav Festival Park Stoke-on-Trent St3ffordshire STI 5SQ BANKERS Co-operative Bank plc Leeds Corporate Centre 14 King Street Leeds LSI 2HL SOLICITORS Ramsdens Solicitors LLP Oakley House l Hungerford Rd Huddersfield HD3 3AL AUDITORS The aLJditors, DIH Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. STATEMENT OF DISCLOSURE TO AUDITOR In so far as the TrLJStees are aware= al there is no relevant audit information of which the charitable company s auditors are unaware, and bl the Tru5tee5 have taken all the steps that they ought to have taken to make thern5elves aware of any relevant audit information and to establish that the auditors are aware of such information. Thi5 report h35 been prepared in aiiordance with the special provi510ns of the Companie5 Act 2006 relating to small companies. Approved by order of the Board of Tru5tee5 on 2210112026 and signed on it's behalf by.. M r P W Rock- Chair of the Board of Tru5tee5
KIRKLEES COMMUNITY ASSOCIATION STATEMENT OF TRUSTEES. RESPONSIBIUTIES FOR THE YEAR ENDED 31 MARCH 2025 The trustees, who are also the directors of Kirklees Community Association for the purpose of company law. are responsible for preparing the Tru5tees' Report and the financial statements in accordance with applicable law arbd United Kingdom Accounting Standaids (United Kingdom Generally Accepted Accounting Practicel. 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 statement5- prepare the account5 on the going concern basis unle55 it 15 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.
Auditor's responsibilities for the
audit of the financial statements
KIRKLEES COMMUNITY ASSOCIATION REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KIRKLEES COMMUNITY ASSOCIATION The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The trustees are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, eXpt to the extent otherwise explicitly stated in our report. we do not express any form of assurance conclusion thereon. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Opinions on other matters prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of 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. 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 companws 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.
KIRKLEES COMMUNITY ASSOCIATION REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF KIRKLEES COMMUNITY ASSOCIATION Responsibilities of trustees As explained more fully in the Statement of Trustees. Responsibilities. the trustees. who are a150 the directors of the charitable company for the purpose of company law. are responsible for the preparation of the financial statement5 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 statement5. the tru5tee5 are responsible for a5se55ing 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 unle5S 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. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statement5 a5 a whole are free from material misstatement, whether due to fraud or error. and to Issue an auditor'5 report that include5 our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISA5 IUKI 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 useis taken on the basis of these financial statements. Irregularities. including fraud. are instances of non-cornpliance with law5 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 irregularitie5. 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 non- compliance 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 management,. Enquiring of management whether there was any known, suspected or alleged fraud: Evaluating management's incentives and opportunities for fraudulent manipulation of the financial statements including the risk of override of controls: and - The engagement partner ensuring that the engagement team collectively had the appropriate competence. capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
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 Act120111 and relevant tax legislation. Auali proceoures penormea Dy tne engagement ieam Inciuaeo Dut were not Iimiteo 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 noncompliance. 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 is available on the Financial Reporting Council's website at.. https://www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report. Use of our report This report is made solely to the 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 company's members those matters we are required to state to them in an auditor's 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 company and the company's members as a body, for our audit work, for this report. or for the opinions we have formed. Craig Mclntyre (Senior Statutory Auditor) For and on behalf of 2310112026 Date:................................................. DJH Audit Limited Accountants The Glades Festival way Festival Park Statutory Auditor Stoke-on-Trent Staffordshire STI 5SQ io
KIRKLEES COMMUNITY ASSOCIATION CONSOLIDATED STATEMENT OF FINANCIAL AcfiviTIES INCLUDING INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2025 Unrestricted funds 2025 Endowment funds 2025 Totsl Total 2025 2024 Notes Income and endowments from: Donations and legacies Incoming resource5 from charitable activities Income from investments Other income Total income 178,9541 178,9541 163,5521 917.747 917.747 757,170 259,715 52.107 1.229,569 259,715 52,107 1.150,615 241,094 39,529 974,241 178,9541 Expenditure on: Charitable activities Net Ilossesl/gains on investments Net Ideficitl/surplus 1.019,463 40,IM)I 250,107 1,019,463 40,001 171,153 940,924 1313,7681 1280,4511 178.954} Other recognised gains/{105sesl: Gains/llossesl on revaluation of fixed assets Net movement in funds 458,096 708.203 458,096 629.249 145,4161 1325,8671 178.954} Reconciliation of funds: Brought fonvard Total funds carried forward 10,763,821 11,472,024 4,21J4,625 4,125,671 14,968,446 15,597,695 15,294,313 14,968,446 li
KIRKLEES COMMUNITY ASSOCIATION {COMPANY NUMBER 02796002) CONSOLIDATED BALANCE SHEET AS AT 31 MARCH 2025 2025 2024 Notes Fixed assets Tangible assets Investment property 12 13,360,376 4,919,001 18,279,377 13,000,010 4,879,001 17,1179,UII 12 Current assets Debtors Cash at bankand in hand 13 221,950 367,703 58Y,653 116,813 204,035 320,841 Creditors Amount5 falling due within one year 14 1933,2731 1567,3091 Net current assets/lliabilitiesl Total assets less current liabilities 1343,6201 17,935,757 1246,4611 17,632,550 Creditors Amounts falling due after more than one year 15 12,338,062) 12,664,104) Net assets 15,597,695 14,968,446 Funds Endowment f unds 17 4.125,671 4,204,625 Unrestricted funds.. Designated funds Gener31 unrestricted fLJnds 18 239,819 8.237.128 2.995,077 239,819 7,990,129 2,533,873 18 Revaluation reserve 18 11,472,024 15.597,695 10,763,821 14,968,446 These financial statements have been prepared in accordance with the provisions applicable to charitable companie5 subject to the small companies regime. 2210112026 The financial 5taternents were approved by the tru5tee5 on Mr P Rock Chair of the Board of Trustees 12
KIRKLEES COMMUNITY ASSOCIATION {COMPANY NUMBER 02796002) CHARITY BALANCE SHEET AS AT 31 MARCH 2025 2025 2024 Notes Fixed assets Tangible assets Investment property 12 12,544,376 4,041,001 Ib,5115,377 12, 185,010 3,967,001 16,152,Ull 12 Current assets Debtor5 falling due within one year Debtor5 falling due after one year Cash at bankand in hand 13 13 445.308 889,139 352,326 1.686.773 370,814 796,895 201,Y87 L.369,696 Creditors Amounts falling due within one year 14 1921,1681 1554,9911 Net current assetsllliabilitiesl Total assets less current liabilities 765,605 17,350,982 814,705 16,966,716 Creditors Amount5 falling due after more than one year 15 12,338.0621 12,664,104) Net assets 15,012,920 14,302,612 Funds Endowment funds 17 3.679. 171 3.758,125 Unrestricted funds.. Designated fund5 General unrestricted funds 18 239,819 8,136.816 2.957, 114 239,819 7,806,235 2,498,433 18 Revaluation reserve 18 11,333,74Y 15,012,920 IU,544,4117 14,302,612 119,5021 Company's Ilossll5urplu5 for the financial year 710,308 These financial 5taternents have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime. The financial 5taternents were approved by the tru5tee5 on 2210112026 Mr P Rock Chair of the Board of Trustees 13
KIRKLEES COMMUNITY ASSOCIATION CONSOLIDATED CASHFLOW STATEMENT AS AT 31 MARCH 2025 2025 2024 Notes Cash flows from operating artivities: Net cash provided by (used inl operating activities 21 111,852 371,737 Cash flows from investing activities: Purchase of tangible fixed assets Proceed5 on disposal of tangible fixed assets Net cash provided by (used in) investing activities 1158,8661 166.000 131,1461 136,000 7,134 104,854 Cash flows from financing activities: Repayments of borrowing Interest paid Net cash provided by (used in) financing activitie5 1165.4171 1198,5761 1258.8301 1215,6831 1363,9931 1474,5131 Change in cash and cash equivalents in the reFrtIng period 1245,0071 2,078 Cash and cash equivalents at the beginning of the reporting period Cash and cash equivalents at the end of the reporting period 204,035 201,957 140,9721 204,035 Relating to: Cash atbankand in hand Bank overdrafts included within creditors due in less than one year 367,703 1408,6751 204,035 140.9721 204.035 14
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2025 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 account5 in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland IFRS 1021 (effective l January 20191, 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 ha5 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 2025. Intra-group sale5 and profits are eliminated fully on con501idation. The entity ha5 taken exemption from presenting its unconsolidated Statement of Financial Activities under section 408 of Companies Act 2006. 1.4 Charitable funds Unrestricted fund5 are available for use at the discretion of the trustee5 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 service5. 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 incorne 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. 15
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Capital grants are recognised when receivable and not deferred over the life of the asset on which expended. Grants receivable 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 rate5 calculated to write off the cost or valuation less estimated residual value of each a55et over it5 expected useful life, as follows: Social housing, Housing for social benefit- 1.75Yo on costlvaluation 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 incomellexpenditure) 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 Activitie5 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 reseNe can never fall below zero overall or on a property by property basis. At each reporting end date. the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss lif any). 1.8 Investment properties Investment properties are included in the balance sheet initially at cost and subsequently at their fair value. No depreciation is provided on the investment properties. 16
Basic financial assets
Basic financial liabilities
Derecognition of financial liabilities
Categorisation of housing properties
Valuation of investment property and freehold property
Useful economic lives of tangible fixed assets
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Other income 2025 2024 Other income 52,107 52,107 39,529 39,529 Charitable artivities costs 2025 2024 Administration and governance costs Professional fees Bank fees Insurance Bank loan interest payable Repairs to property Property expenditure Housing management fees Bad debts Net Igainl/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 149,313 69,108 9,934 44,502 176,768 99,062 145,076 72,824 12,8201 125,668 59,391 9,857 38,158 190,264 50,588 139,905 72,139 22,769 136,0001 27,398 169,047 2,451 24,022 45,267 940,924 156,597 6,981 21,808 70,310 1.019.463 Governance costs includes payments to the auditors of £25,980 {2024-£20,41JOI for audit fees and £Nil12024- £44,371) for non-audit fees. Trustees None of the trustees lor any persons connected with them) received any remuneration during the year. Trustees had expenses of £Nil reimbursed to them during the year12024- £Nill. Employees There were no employees in either the current or previous year. Surpluslldeficitl 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 Artivities and the Income and Expenditure Account of the parent charity is not presented as part of these financial statements. The parent charity's profit for the financial year, not including gains on revaluation of fixed assets, was £251,62712024-£24,4721. The notes form part of these financial statements 19
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 10 Comparatives for the consolidated statement of financial activitie5 Unrestricted Endowment fvnd5 funds Total Notes Income and endowments from: Donations and legacies Incoming resources from charitable activities Income from investments Other income Total income 12.2041 757,170 241.094 39,529 1.035.589 161,3481 163,5521 757,170 241,094 39,529 974,241 161,3481 Expenditure on: Charitable activities Net Ilossesl/gains on investments Net {deficitl/surplus 940.924 1313.7681 1219.1031 940,924 1313,7681 1280,4511 161,3481 Other recognised gains11105ses1: Gains/llossesl on revaluation of fixed assets Net movement in funds 145.4161 1264.5191 145,4161 1325,8671 161,3481 Reconciliation of funds: Brought forward Total funds carried forward 11.028.340 10,763,821 4.265,973 4,204,625 15,294,313 14,968,446 11 Subsidiary company Kirklees Housing Association IKHAI 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 were trustees of Kirklees Community Association. KHA is a registered non-profit-making Housing Association, with registered number IP031705. Its registered office is 1st Floor, Civic Centre 3, High Street, Huddersfield HDI 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. 2025 2024 Turnover Other operating income Administrative expenses ILossl/gain on revaluation of investment property Loss on revaluation of fixed assets Interest payable IL055llsurplus for the year 100,706 288 199.3071 134,0001 2,522 151,2701 181.0611 66,122 183,0911 116,0001 11,4421 139,9541 174,3651 2025 2024 Gross assets Total liabilities Net assets 1,799,258 1,734,852 11.214.477) 11,069,011) 584,781 665,841 Share capital Total reseNes 584,774 584.781 665,834 665.841 The notes form part of these financial statements 20
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 12 Fixed Assets Group Investment Properties Social Housing Housing for Social Benefit Fixtures. Fittings & Equipment Totsl Cost or valuation At l April 2024 Additions Disposals lrnpairment Revaluation At 31 March 2025 4.879.001 6,619,(MJO 158.866 1100,0001 6,381.010 675 17,879,686 158,866 iioo,0001 134,0001 375,500 675 18,280,052 134.0001 74,000 4,919,001 31,51X) 6,709,366 270,000 6,651,010 Depreciation At l April 2024 Charge for the year Eliminated on revaluation At 31 March 2025 675 675 156,597 1156,5971 675 74,872 174.8721 81,725 181.7251 675 Carrying amount At 31 March 2025 At 31 March 2024 4.919,001 4.879,001 6.709,366 6.619,000 6.651.010 6,381,010 18,279,377 17,879,011 Companv Investment Social Housing Housing for Social Benefit Fixtures, Fittings & Equipment Properties Totsl Cost or valuation At l April 2024 Additions Disposals Impairment Revaluation At 31 March 2025 3.967,1)01 5,804,CN)O 158,866 {100,cNJ)I 6,381,010 675 16,152,686 158,866 iioo,0001 74,000 4.041.001 30,500 5.893.366 270,000 6.651.010 374,500 16,586,052 675 Depreciation At l April 2024 Charge for the year Eliminated on revaluation At 31 March 2025 675 675 155,074 1155,0741 675 73,349 173,3491 81,725 181.7251 675 Carrying amount At 31 March 2025 At 31 March 2024 4,041,001 3,967,001 5,893,366 5,804,000 6,651,010 6,381,010 16,585,377 16,152,011 The notes form part of these financial statements 21
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 The valuations were carried out by Bramleys on 31st March 2025. Bramleys are independent valuers. 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 IIVSI. 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 reflerts the nature of the tenancy and the rental income produced. Investrnent properties were valued on a market value basis. or EUV-SH IExisting Use for Social Housing) if occupied by a sitting tenant. Social Housing and Housing for Social Benefit were valued on EUV-SH IExisting 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'5 requirement. This definition of value is therefore on the ba515 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= Group Company 2025 2024 2025 2024 Investment properties 3,306,701 3.306,701 2,779,938 2,779,938 Social housing 7,407,254 7,348,389 6,484,534 6,425,669 Housing for social benefit 4,180,957 4,180,957 4,180,957 4,180,957 Fixed assets with a total carrying amount of £14,185,50012024- £13,963,0Tr)I 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 £810.00012024- £766.5001 relates to shared ownership properties. The carrying amount is 50% ot the propertie5' total value. coriesponding to the company's ownership percentage. The value of land not depreciated was £3.365.CM)012024- £3.351.0361 The notes form part of these financial statements 22
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 13 Debtors Group Company 2025 2024 2025 2024 Amounts falling due within one year: Other debtors Amounts owed by subsidiary undertakings Trade debtors Prepayments and accrued income 15.996 191,235 40,836 213,237 445,308 178,976 23,371 168,467 370,814 31,748 115,331 163,075 17,464 99,349 116,813 2025 2024 2025 2024 Amounts falling due after more than one year: Other debtors Amourbts owed by subsidiary undertakings 58.875 889.139 796,895 Total debtors 221.950 116.813 1.334.447 1,167.709 The company ha5 previously provided a loan to Kirklee5 Housing Association Limited in the sums of £431.095, £50.300. £245.000 and £IOO.000. In the period a new loan of £102.244 was provided. The loan5 are for a term of twenty five years and interest is charged at 5% per annurn. The total amount outstanding at the year end was £899,13912024.. £796.8951. As security the company holds a legal charge over la to le, 28a and 28b Branwell Avenue. Batley. I Scarr Green Close. Meltham. and Valley Gardens. Paddock West Yorkshire. The loan5 are repayable by 30 June 2029. 30 September 2037. 24 September 2039 and 11 March 2047. 14 Creditors: amounts falling due within one year Group Company 2025 2024 2025 2024 Bank loans and overdraft (see note 161 Trade creditors Other creditors Accruals and deferred income 722,243 153.571 456,(XY) 31.566 722,243 149.338 456,000 27,910 57.459 933,273 79.743 567,309 49,587 921,168 71,081 554,991 Included within creditors above is deferred income as follows.. Group Company 2025 2024 2025 2024 Deferred income 19,259 19,259 19,259 19,259 Deferred income has arisen due to rentsl income being paid in advance. All of the deferred income in the prior year was released in the current year. 15 Creditors: amounts falling due after more than one year Group Company 2025 2024 2025 2024 Bank loans and overdraft (see note 161 2,338,062 2,664,104 2,338,062 2,664.104 The notes form part of these financial statements 23
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 16 Loans and overdrafts Group and companv The following secured debts are included within creditors: 2025 2024 Bank loans and overdraft 3,060,305 3,120,104 Amounts included above which fall due after five years: Payable by instalment5 1.856.351 2,006.905 The Co-operative Bank holds a first legal charge over the propertie5 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 repayment5 are variable over the term of the loan. Interest is charged at 1.875% above SONIA, 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. 17 Endowrnent 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 housin& this fund is repayable. Group Balance at l April 2024 Transfers between funds Balance at 31 March 2025 Incoming resources Resources expended Endowment fund 4,204,625 178,9541 4,125,671 Balance at l April 2024 Transfers between fvnds Balance at 31 March 2025 Companv Incoming resources Resources expended Endowment fund 3.758,125 178,9541 3,679,171 The notes form part of these financial statements 24
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Comparatives for endowment funds.. Group Balan at l April 2023 Incoming re50urce5 Transfers between funds Balance at 31 March 2024 Resour$ expended 4,265.973 161.3481 4,204,625 Balance at l April 2023 Incoming resources Transfers between funds Balance at 31 March 2024 Resources Company expended 3.819.473 161.3481 3,758,125 18 Unrestrirted funds Group Balance at l April 2024 Net Transfers between funds Balance at 31 March 2025 movement in fund Designated fund General unrestricted fund Revaluation reseNe 239,819 7,990,129 2,533,873 10.763.821 239,819 8,237,128 2,995,077 11,472,024 246,999 461,204 708.203 Net movement in funds. included in the above, are as follows: Resources expended Net gains on Gains on revaluation of fixed assets Net Incoming resources movement investrnents in funds Designated fund General unrestricted fund Revaluation reserve 1.229,569 11,019,463) 40,001 13,1081 461.204 458,096 246,999 461,204 708,203 1,229,569 11,019,463) 40,001 Comparatives for movement in unrestricted funds.. Balance at l April 2023 Net Transfers between funds Balance at 31 March 2024 movement in fijnd Designated fund General unrestricted fund Revaluation reserve 158,812 8,290,239 2,579,289 11,028,340 145.2671 126,274 1173,8361 1126,2741 145.4161 1264,5191 239,819 7,990,129 2,533,873 10,763,821 The notes form part of these financial statements 25
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Comparative net movement in funds. included in the above, are as follows- Incoming resources Resources expended Net1055es Losses on revaluation of fixed assets Net movement in funds on investments Designated fund General unrestricted fund Revaluation reseNe 145,2671 {895,6571 145,2671 1173,8361 145,4161 1264.5191 1,035.589 1313,7681 145,4161 145,4161 1.035.589 1940.9241 1313.7681 Companv Balance at l April 2024 Net Transfers between fund5 Balance at 31 March 2025 movement in fund Designated fund General unrestricted fund Revaluation reserve 239,819 7.806.235 2,498,433 10,544.487 239,819 8,136,816 2,957,114 11,333,749 330.581 458,681 789,262 Net movement in funds. included in the above. are as follows= Net gains on Gains on revaluation of fixed assets Net Incoming resources Resources expended movement investments in funds Designated fund General unrestricted fund Revaluation reserve 1.210.101 {950.4131 74.001 13,1081 458,681 455,573 330,581 458,681 789,262 1,210,101 1950,4131 74,001 Comparatives for movement in unrestricted funds Balance at l April 2023 Net Transfers between funds Balance at 31 March 2024 movement in fund Designated fund General unrestricted fund Revaluation reserve 158,812 7,801,422 2,542,407 10,502,641 145.2671 131,087 143.9741 41,846 126,274 1126,2741 239,819 7,806,235 2,498,433 10,544,487 The notes form part of these financial statements 26
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 Comparatives for net movement in funds. included in the above. are as foll0v.. losses on revaluation of fixed assets Incoming resources Net losses Net movement in funds Resources expended on investments Designated fund General unrestricted fund Revaluation reserve 145,2671 1835,6911 145,2671 131,087 143,9741 41,846 1.032,546 165,7681 143,9741 143,9741 1,032,546 1880,9581 165,7681 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 reseNe represents the excesses arising from the revaluation of the freehold properties over the original cost less accumulated depreciation. 19 Analysis of net assets between funds Group Unrestricted Endowment fvnd5 fvnds Total Fund balances at 31 March 2025 are represented by.. Tangible assets Investment property Current assetsllliabilitiesl Long term liabilities 9.234.705 4,919,001 1343.6201 12,338,062) 11,472,024 4,125,671 13,360,376 4,919,001 1343,6201 12,338,062) 4,125,671 15,597,695 Company Unrestricted Endowment funds funds Total Fund balances at 31 March 2025 are represented by.. Tangible assets Investment property Current assetsllliabilitiesl Long term liabilities 8,865,205 4,041,001 765,605 12,338,062) 11,333,749 3,679,171 12,544,376 4,041,001 765,605 12,338,062) 15,012,920 3,679,171 The notes form part of these financial statements 27
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 20 Related party transactions Group Kirklees Metropolitan Council IKMCI is related to the group. KMC managed the company and group's properties under a management contratt. KMC also provided maintenance and other miscellaneous services. KMC guarantees the company's rent income on the Fieldhead properties to a level of 97.5%. For the current year this represents approximately 30% of total income for the group. 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. Kirklees Stadium Development Lirnited IKSDLI 15 related a5 It provides key rnanagement personnel services to the group. Transactions with the directors are disclosed in note 7. £ during 2025 69.330 103,963 72.001 17,232 £ during 2024 68.925 106,559 35.954 16,140 Balance at 31.03.25 17.559 18,573 18.090 Balance at 31.03.24 16,900 13,046 KMC - Property rnanagernent KMC - Housing maintenance KMC- Admin and governance support KSDL- Admin and governance sUPPOrt 857 Companv The company provides financial and administrative 5UPPOrt to Kirklees Housing Association IKHAI. the company's subsidiary company. During the year the company also provided day to day financial a5515tance as in previous years. The cornpany is owed further loans from KHA in respect of capital purchases. Finally, the company rented a property to KHA, which it then rented out to a third party. £ during 2025 12,C(10 £ during 2024 Balance at 31.03.25 12,000 Balance at 31.03.24 2,000 KHA- Financial and administrative support KHA- Day to day financial assistance - Costs paid Costs reimbursed Total outstanding KHA- Loans Interest receivable Loan balance KHA- Property rental received 12,168 9,908 2,857 2,607 2,412 181,236 178,976 51,270 39,954 105,185 899,139 1,712 74,915 796,895 1,495 18,256 21.125 The notes form part of these financial statements 28
KIRKLEES COMMUNITY ASSOCIATION NOTES TO THE FINANCIAL STATEMENTS (CONTINUED) FOR THE YEAR ENDED 31 MARCH 2025 21 Reconciliation of net income/(expenditurel to net cash flow from operating artivities Group 2025 2024 Net income for the reporting period las per the statement of financial activities} Adjustments for.. Net lossesllgainsl on investments Fixed asset impairments and related depreciation movements Depreciation Interest payable on bank loans and overdraft Gain on disposal of tangible fixed assets Ilncreaselldecrease in debtors Increase/ldecreasel in creditors Net cash provided by (used inl operating activities 171,153 1280,4511 140,0011 313,768 27,398 169,047 214,286 136,0001 15,1071 131,2041 371,737 156,597 198,576 166,0001 1105,1371 1203,3361 111,852 22 Analysis of changes in net debt At start of year Other non- cash changes At end of year Group Cashflow5 Net cash: Cash 204.035 204,035 163,668 163,668 367,703 367,703 Debt: Bank overdraft Loans falling due within one year Loans falling due after one year {303,0571 1152,9431 12,664,104) 13,120,104) 1105,6181 152,943 12,474 59,799 1408,6751 1313,5681 12,338,062) 13,060,305) 1313,5681 313,568 12,916,069) 223,467 12,692,602) The notes form part of these financial statements 29