Lyng Community Association Annual report and flnancial statements for the year ended 31 March 2025 Company registered number.. 3977954 Charity registered number.. 1089147 Regulator of Soclal Houslng number.. L4420
Lyng Community Association Information Information Strategi¢ Report 12 Board Report 1&15 Independent Auditor's Report 16-19 Statement of Comprehensive Income 20 Statement of Flnancial Position 21 Statemont of Chang89 in Raserves 22 statement of Cash Flows 23 Not88 to tho Flnanclal Statements 24-37
Lyng Community Association Information BOARD OF MANAGEMENT E W Bodenham (Chalrl J Edwards H Patrick N Hickson N Bhatoe SKTour J Fenton A Sikdar COMPANY SECRETARY A Nash REGISTERED OFFICE 3 Frank Fisher Way West Bromwich B70 7AW REGULATOR OF SOCIAL HOUSING REGISTRATION NUMBER L4420 COMPANY REGISTRATION NUMBER 3977g54 REGISTERED CHARITY NUMBER 1089147 AUDITOR Forvis Mazars LLP First Floor Two Chamberlain Square Birmingham B3 3AX BANKERS Barclays Corporate PO Box 3333 One Snowhill Snow Hill Queensway Birmingham B3 2WN
Lyng Community Association Strategic Report The Board present their slrategic report on the affairs of the Association, together with the financial statements and auditors, report, for the year ended 31 March 2025, status The organisation 18 a public benefit entity and registered as a charity, a company Ilmltod by guarantee and as a Registered Provider with the Regulator of Social Housing. The Associalion is governed by a voluntary Board of Managem8nt that sats the organisation's Business Strategy, operating policies and procedures. The Association is a member of the National Housing Federation and participates in the national smaller housing providers. benchmarking network, facilitated by Acuity in partnership with Housemark. This allows the Association to benchmark its performance against housing provlders of a simllar size. Background and development hlstory Lyng Community Association was established in 2000 as a registered Charity to benefit the community in the Lyng estate within the metropolitan borough of Sandwell in the West Midlands. The densely developed 1960's Lyng estate had become crime ridden and suffered from regular incidents of anti-social behaviour. In the mid 1990's disaffected residents joined together to form an action group and durlng the following few years sought to influence the politicians in Iheir desire to improve the estate. As a result, some 1,000 homes were demolished including a number of tower blocks. This created the opportunity to develop a new estate which would be a place where people wanted to live. Sandwell MBC commltted to provlde significant grant lo support the construction of 200 homes for rent by the Lyng Communlly Associatlon, supplemented by home ownership products to be developed by private sector partners. To achieve the objectives the first part of the estate was constructed in 2004 providlng 47 family homes, followed by a further 39 homes in 2006. These 86 homes have been owned and managed throughout by the Lyng Community Association. There followed a 4-year delay whilst an alternative procurement route was sought, in order to prcvide the Lyng Community Association with the balance of the commitment of 114 homes for rent and for a private sector partner to develop the rest of the cleared estate to provide approximately 250 homes for sale. Finally in 2010 a contract was signed between Sandwell MBC, Lyng Communlty Association and B8rratt, a natlonsl housebuilder, to complete the development of the estate. During the period to March 2014, 104 homes had been constructed for rent and are now managed by the Lyng Community Associalion. The final 10 homes were completed in 2016, and this completed Ihe obligations entered into with and by Ihe Lyng Community Association. Business Objectives and Strategy The Association has bullt on the slrong foundations of the revitalised Lyng estate and developed new community focussed services for the local community. The Association has successfully undertaken Ihe role of Managing Agent via a tendered contract to manage the shared areas aGross the owner-occupied parts of the estate for Lyng. Management Company since 2017. All of the Association's properties meet the minimum Energy Performance Certificate rating of °C° and almost 40 % of our properties benefit from solar panels that help reduce energy costs for tenants. The Association delivers a variety of community development activities including community trips, adult education, advice services, Children's clubs and a Youth Club. We are regularly making applicalions for external funding for some of our communily projects after previously successfully bidding for Children in Need grant funding for our Youth Club. These services are an important element supporting the Association's role as a key player in the local community beyond its role as a social landlord and we are committed to identrfying and procurlng additional premises so we can develop additional servlces and enhance our offer to the community.
Lyng Community Association strategic Report The Association continues to aspire to develop new properties and is constantly looking to Identrfy other sites in the Lyng area where more homes could bo developed. However, recent history has shown that there Is signrficani competition for any sites that become available and the Association has experienced situations where prices achieved at auction were near to double the valuations obtained before biddlng started. A significant factor is that the Lyng area is in an excellent location being close to the M5 and M6, with a nearby main line station with dlrect services to London. Furthermore within 5 minutes there is a frequent direct tram seNice to the centre of Birmingham making the area a very desirable place to live and io develop new homes. These faclors combined mean there is considerable competition for the very limited number of sites that become available. Flnancial review The surplus for the year of £520,766 (2024: £428,618) shows 8 modest increase compared to last year. However the surpluses for this year 2024125 and the previous year 2023124 are both significantly higher when compared lo previous years before 2020. Turnover showed an increase as rents increased by 7.7 % in lin8 wilh th8 guidance issued by the Regulator of Social Housing, The Regulator had previously indicated that renls could be increased by the Consumer Price I ndex increase over 12 months to the previous September plus 1 Oh The Association's Service Charges always have to reflect the cost of providing additional servlces and for 2024125 the Assoclatlon reviewed each seNice and was ab18 to ensure the costs remained reasonable with a similar level of increase of 70/0. The free reserves at March 2025 of £4,871,968 (2024.. £4,351.202) continue to provide a solid platform for the Association to wealher any difficulties that may arise from any possible fulure financial challenges and allow the development of new homes in the Assoclation's operating area should suitable sites become available. The Association's bank loan requires annual repayments of £208,333 for the remaining term of 14 years through to 2039. The Association has 86 units secured against its loan with Barclays leaving scope for securing additional borrowing to fund future development activities if requlr8d. Stress testing is undertaken in conjunction with the Board to demonstrate Ihe financial resilience of the business taking into account the varying operating Ghallenges that may arise including the possibility of recurrence of pandemic conditions at some future date. The possibility of future restrictions on reril increases such as a repeat of the situation between 2016 and 2020 where rogulation dictated that rents be reduced in real terms by around 15¢/10 are of partl¢ular concern and are a key risk in every stress testing exercise. Prlnclpal risks The principal risk of the original developmentwas mltlgated by significant public subsidy into the estate and the Association has continued lo benefit significantly from this funding model through subsequent years. As a housing management company ther8 are a number of risks which are managed by well documented and rehearsed policies and practices. Th8 following comments are relevant here: Rent losses due to voids remain low at 0.11°/0 of annual rent role and there is always strong demand for good quality housing irrespective of the wider challenges to landlords. By continuing to maintain
Lyng Community Assoclation Strategic Report its established high standards the Association has been able to nurture high demand for the Association's homes and sees very low losses of rent through gaps in tenancies as tenancy turnover remains low with just 5 vacancies arising during Ihe year - a tenancy turnover rate of 2.5°h. The position regardlng rent arrears has improved over a number of years and the performance Is now similar to similar sized landlords in our peer group. However, arrears always remain an ongoing challenge, with Housing Benefit and Universal Credit payments always being made in arrears and delays in receiving payments impacting on the total arrears oulstanding. However, the Association has always looked to work closely with tenants to try to reduce rent arrears over time and at Ihe end of March 2025 current tenant arrear8 reduced to 2.74¥0 of the rent roll. The housing stock is relatiV61y new and Is malntained to a high standard with planned programmes replacing key components that have reached the end of their useful lives such as boilers and kitchens in the original phase1 of the development. The first phase of the kitchen replacemenl programme started in March 2024 and continued through 2024125. This was the first time Ihat the Association had needed to invest substantial funds into renewing components in it's properties and the programme was delivered on time and to the expected budget with a high level of satisfaction for the Association's tenants. With regard to reactive maintenance the Association h8s one directly employed multi-trade maintenance operative with specialist skills being procured from external contractors when required. The Association remains alert to the prospect of future pandemics becoming a signrficanl threat to the Association and its future viability and thls risk is consldered more fully in the section titled 'Going Concern" below. The 4 sessional staff who work on community projects including the Youth Club projecl previously funded by a Children In Need grant remain in post as the Association continues to fund the various projects itself. All sessional staff are employed on Fixed Term Contracts and their continued employment is linked to the availability of funding from the Association. The availsbility of charitable grant funding remains limited, particularly for an organisation with substantial reserves. Risks associated with governance remaln limited but the Association remains acutely aware of the expectations contained in the National Housing Federation Code cf Governance that older Board members should move on to allow a more diverse membership on the Board. Efforts to meet this expectalion continued in 2024-25 and Iwo new Independent Board members joined the Board in 2024. The Association's rules provide for 500/D of Board places to be reserved for tenants and other local residents and the Association has clear objectives of engaging with residents across the estate as 2 whole and encouraging greater involvement including at Board level. Whilst this remains a priority of the Board the number of resident applications to join the Board has been extremely limited over the years. The Association's Communily Development activities are designed lo enhance the relationship between residents and the Association and we remain committed and hopeful that this in turn will help stimulate interest in joining the Board. The Association remains alert to other emerging risks connected to continuing social welfare reforms and fhe threat of a recession or other financial crisis due to wider World Ihreats but the Association is confident that it can maintain a strong income management performance. Any significant loss of income in the short term can be mitigated by the strong financial position of the Association. Governance The Associallon's Board meets 6 times a year and these meetings are held in person with an option lo join remotely, The Boaré strategy away day offers the Board a Chan to carefully consider and shape the Association's future strategy,
Lyng Community Association Strategic Report The Associalion's Board is committed to ensuring the Lyng estate remains a vibrant and thrlvlng communily shaped around the needs and aspirations of local residents. The Associ21ion Is fully committed to offering regular and continuing opportunilies for residents to b& part of the governing aangeMents, whether Informally as a resident forum member looking al operational matters and advising on improvements or lo progress further in a more formal role as a Board member. The current focus 18 to attract interested residents, whether drawn from the Association's tenant base or from homeowners living on the estate lo play a role in the governance of the Association. During 2024125 two members of the Board were Association residents filling a third of the 6 resident Board member places with a further 6 independent Board members, Value for Money The Association is committed to achieving Value for Money (VFM) for its tenants and stakeholders and has adopted a slrategy that sets cut Glear objectives on how VFM will be delivered. The Board recognises that achieving our VFM targets demonstrates to our stakeholders the Association's commitment to economy, efficSen¢y and effectiveness in everything that we do. Our overarching objectives are to'_ optimise the use of our assets - homes. ensure we mainlain efficienl and effective services that offer excellent value for money to our tenants and other stakeholders. ensure that our tenants are enabled to fully understand the Assoclatlon's costs and how th@y compare )Mth our peer group and make sound judgements on the Association's performance invest our surpluses in enhancing our properties by improving the safety and envlronmental sustainability of our homes and developing new social hou8ing for the benefit of our community. maintaining our financial strength in order to maintain our viablS1ty and independence. Our strategy links to our Business Plan ensuring that Value for Money is embedded throughout the business and sets out measurable targets thal are linked to the Association's alms and purpose. The Association aims to provide opportunities for tenants to help shape its services and monilor the delivery and effectiveness of those services. The Board monitors performance agalnst our Value for Money targets and objectives throughout the Board meeting cycle and we use comparable data from our peer group to benchmark our performance. The housing benchmark data that we use is shown in the column titled SPBM" below. The data is from similar sized housing associations in th6 West Midlands and is provided through HousemarldAcuity Benchmarking service which offers the most in depth and robustly validated data in the housing sector. Our targets for 2024125 included-. 1. The Association will seek to ensure that its rent collection achieves 100.20/0 (upper quartile performance on Housemark Benchmarking) This target was achieved with a rent coll&ction figure of ICW.4% in 2024/25. 2. The Association will seek to ensure that its occupancy rate is at least 99.50/c* (upper quartile performance) This target was aGhieved with r8nt loss restricted to O. I f % equal to an occupancy rate of 99.890A, mainly due to very low turnover of tenancies during th8 year.
Lyng Community Association Strategic Report 3. The Assoclatlon will seek to ensure its overall satisfaction rate is at least 960/0 (upper quarllle SPBM Peer Group) A last fvii tenant survey was Garried out in Jun8/July 2023 in GomplianGe with the Regulatorfs specrfied survey format. The Overall Satisfa¢tion Rate was 780/0 which represented a significant reduction in satisfaction levels. Whilst the Association remains abov8 the m49dian level within Its peer groups the result demonstrated a need to foGUS on key areas of dissatisfactlon. The AssoGiatlon will Garry out a new satisfaction survey in July 2025. 4. The Association will seek to ensure that its Headlin6 Social Housing Cost per unit is at £4.150 or less. (the Housemark Median) This target was aGhieved with a headline cost of £4, 148 although we appr8Giate, we h8Vg to continue improving our performance in this are8 of our work. 5. Th& Association will seek to ensure It delivers new homes at a rate equal to that of the Upper Quartile of the SPBM group 2.5 % - with an acceptance that delivery may be consolidated into one scheme every 3 years rather than annually in order lo reflect the limitations of having to work within a small area of operation with limited land purchase opportunlties. This target is still in progrgss. The Association has made offers for properties but not been able to match the bids and fi'nanGial str8ngth of other bidders 6. The Association will seek to facilitate stability wlthln the local community by seeking to keep tenancy turnover under 70/0 primarily by reducing tenancy failures due to breach of tenancy through support and drawing in additional services for tenants to enable them to manage their tenancy effectively. The additional value will be achieved through lower void losses and void period cheGks. This target was achieved with a tenanGy tumover of 2.5% in 2024/25 7. The Association will seek to reduce expenditure on dealing with litter, fly tipping and vandalisml damage to ils properties by using ils community development programme to facilitate activities that divert potential offenders into more productive actlvities. This t8rget has always be8n diffiGult to quantify but in terms of expenditure the Association spends almost zero on attending to vandalism or graffitl 8nd experienc@s very few problems. Asset Management Indlcators Propertles compliant with the Decont Homes Standard - 100% Propertles rated at C In Energy Performance C•rllflcates- IOO/o Yo of dwellings with a valld gas certificate- 99.syo (legal action being tsken to secure aGGess for gas saf8ty checks in each case) 0/0 of fire safety checks complete - 100• N.B. The Association does not have any Iltts, nor asbestos In any of It's bulldings nor any wator storage units.
Lyng Community Association Strategic Report Tenant Satisfactlon Measures In 2023 the Association carried out a Tenant Satisfaction Survey carried out by an independent market research company in the format required by the Regulator of Socia1 Housing. The Association has adopted an Action Plan to improve performance in all areas of dissatisfaction. The next Tenant Satisfaclion Survey is due two years after the last one so will be conducted in JUSY 2025 Tenant Satlsfactlon Measure 2023 SPBM Overall Satlsfaction 78% 73Y. Satisfaction that tho Association listens to tenant's Vi8ws and acts upon them. 66¥. 60% Satisfaction that the Associatlon keeps tenants infomied about things that matter to them. 77% 71Y Agreement that the Association treats tenants fairly and with r88pect. 770A 76% Satisfaction that the Association keeps communal areas clean and well maintained. 74% 660 Satisfaction that the Association makes a positive contribution to neighbourhoods. 77° 670 Satisfactlon wlth the Association's approach to handllng antlrfocial behaviour. 58° 58Yo Anti-social behaviour cases relatlve to the size of the Assoclatlon {per 1,000 homes). Antl•social behavlour cases that Involve hate incidents (per 1,000 homes).
Lyng Community Association Strategic Report Complaints The Association recelved 2 complaints in 2024125 and all were resolved at Stage 1 within the target timescales. A full report on complaints and service improvement will appear in the Annual Report to Tenanls and full details on compliance with the Housing Ombudsman Complaint Handling Code appear on the Association's website. 2024125 SPBM Satisfadion with the AssoGiation's approach to managing complaints 620 540h Number of Stage 1 Complaints (per 1,000 units) 10 17 Number of Stage 2 complalnts (per 1,000 unlts) nla Stage 1 Complaints responded to within the Complaint Handling Code timescales 830 stage 2 Complaints responded to within the Complalnt Handling Code tlmescales nla 62.50Yo
Lyng Community Association Strategic Report How Value for Money Is Impacting on th8 Association's Financial Performance. By reviewing our expenditure, improving performance and seeking better value in our procurement the Association has enhanced its overall financial position by continuing to generate surpluses that can be ear marked for developing new hom8s in the near future. Our Annual Report to tenants allows comparison with other similar sized social landlords on key indl¢ators and performance against our Value for Money targets. Any areas that require improvement are clearly identified with plans to improve performance and targets that will demonstrate our commitm6nt to matchlng the Upper Quartile performance of comparabl8 providers. The Association continues to use the Regulator's Value for Money rnetrics to further demonstrate how the Association is constantly challenging its performance. Regulation Metrics The regulator uses a scorecard for reporting certain financial and non-financial inforniation. The Association's position at 31 March 2025 and comparisons with the previous years is as follows.. 2025 2024 2023 ABPM 2024 Medlan Reinvestment 4.04 % 1.00% 0,03Q/o 2.7% New Supply Gearing (as at) EBITDA MRI 11 .930/0 13.41Q/o 18.11D/. 17.30/0 557.24Vo Cost per unit Operating margin Return on capltal employed £4,148 37.48% £3.978 35.740A £3,661 36.91 % £6,447 3,93° 3.560/0 3.49¥0 Commentary on our Performance R&lnvestment -This metric demonstrates how much the Association is investing in developing new properties and investing in improving existing homes. As the majority of Ihe Associalion's stock is less than 20 years old the re-investment in our homes was limited until 2024125 when our original properties from 2004 were given new kitchens and this was the start of a period of regular reinvestment expenditure. New Supply - the Association did not build any new homes during 2024125 but remains commilted to delivering new homes over a rolllng 3-ye8r period subject to sites being available In our area of operation and me8ting our viability tests. Gearlng this metric is intended to show the level of debt (usually loans used to pay for developing property) compared to the value of the Association's stock. Our gearing ratio 11.93D/o r&flects the Association reducing its debt each year and improving its financial position. Th6 national average figure for gearing r8corded for all housing associations that benchmarked their figures in 2024 was 17.3. EBITDA MRI- Earnings Before Interest, Tax, Depreciation, Amortisation- Major Repairs Included This metric seeks to measure the level of surplus that a registered provider generates compared to Interest Payable and this result of 694.370/0 shows the Association in a strong position.
Lyng Community Association Strategic Report Cost per Unlt this metric measures the Association's management costs and reflects increased maintenance and community development costs during 2024125 as expendlture on both activities increased. Overall, our cost per unit remains lower than similar sized associations. In comparison with larger housing associations defined as those with over 1,000 units the Association's performance of £4,148 is still better than the median of £5,046 for 2024. Comparing to only small associations the average cost per unit is £6,447 so Lyng's performance Is signrficanlly better than the many of it's peergroup. However, we recognise the need to lookfor any possible improvement in our perfomianc8 in future years. Operatlng Margin- this metric measures the profitability of operating assets before exceptional expenses are taken into aGcount. Increasing margins are one way to improve the flnancial efficiency of a business. In 2024125 the Association maintained a similar performance to the year before 8t 37.48 /0. Retum on Capital Employed This metric Gompares the operating surplus to totsl assets less current liabilities and is a common measure in the commercial sector to assess the efficient investment of capital resources. The figure of 3.930/0 compares Posltively against other benchmark associations. Approved by the Board and signed on its behalf by: Chair Dale 12
Lyng Community Association Board Report Statement of Board m8mbers' responsibilities The Board are responsible for preparing the Annual Report and the flnancial statements in aordanCe wtth applicable law and regulations. Housing Association legislation requlres the Board to prepare finanolal statements for each financial year. Under that legislation the Board have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under Housing Association legislation the Board must not approve the financial statgments unle8S they are satisfied that they give a true and fair view of the state of affairs of the Association and of the surplus or deficit of the Association for that period. In preparing these financial statements, the Board are required to: select suitable accounting policies and then apply them consistently. make judgement5 and accounting 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 fin8nclal statements. and prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Association wll continue in business. The Board is responsible for keeping adequate accounting records that are sufficient to show and explain the Association'5 transactions and disclose with reasonable accuracy at any time Ihe financial position of the Assoclation and enable them to ensure that the financial statements comply with lh8 Companies Act 2006 and Housing Association legislation namely, the Housing and Regeneration Act 2008 and the Accountlng Direction for Private Registered Providers of Social Housing 2022. They are al80 responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and deteclion of fraud and other irregularities. The Board are responsible for the maintenance and integrity of the corporate and financial information included on the Associatlon's website. Legislation In the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. Disclosure of inforniation to the auditor Each of the Board members at the date of approval of this reporl has confirmed that.. As far as the Board members are aware, there is no relevant audit Information of which tha Association's auditor is unaware" and The Board members have taken a11 the steps that they ought to have faken as Board members in order to make themselves aware of any relevant audit information and to establish that the Association'8 auditor is aware of that information, Internal Controls The Association is small and relies on appropriate internal controls which are evidenced routinely. There Is a process for updating control policies and processes. Independent support is provided to review matters of internal control. Including the annual external audit, however as a small Association the controls are maintained appropriately for the size and nature of the business. Financial risk management objectlves and policles The Association's activities expose it to a number of financial risks including credit risk, cash flow risk and liquidity risk. The Associallon does not use derivative financial instruments for speculative purposes. 13
Lyng Community Association Board Report Cash flow rlsk The Assoclation's activities expose tt primarlly to the financial risks of changes in Interest rates. Interest bearing liabilities are based on a mix of fixed and variable elements. 80 % of the Barclays bank loan debt is at a fixed rate for the next 3 years with the remainlng 20 % at a variable rate with this proportion reducing as repayments of £208,333 are made each year, Credit risk The Associatlon's principal flnancial assets are bank balances and cash. rent arrears and other receivables, and investments. The Association's credit risk is primarily attributable to its rent arrears. The amounts presented in the Statement of Financial Position are net of allowances for bad debts. The credit risk on Ilquid funds is limited because the counlerparlies are banks with high credit-ratings assigned by international credit-ratlng agencies. The Association has no significant concentration of credit risk. with exposure spread over a number of counterparties and tenants. Liquidity risk In order to maintain liquidity to ensLAre that sufficient funds are available for ongoing operations and future developrnenls, the Association has drawn down all available long-term debt finance. Further details regarding liquidity risk can b8 found in the statement of aGcounting policies in the financial statements. Going Concorn The period 2020 to 2022 demonstrated that the Association wes able to maintain its income and services in the unusual and challenging environment caused by the Covid 19 pandemic and the Association is confident that its structure and operyating model is robust and able to respond lo any similar crisis. With regard to the challenges affecting the Association's operational activities: rent arrears were reduced in 2024125 to 2.74 % despito th8 Cost of Living crisis that put pressure on household budgets within the Association's client group. tenancy terminations remained very limited throughout 2024125 at 2.5 % of all tenancles which suggests a very high demand for good quality well managed housing in the local area and the Association remains committed to ensuring tenants stay with the Association as their landlord for as long as possible, repairs expenditure remained at a simllar level as the previous year 2024125. The Association still undertakes most works using an in-house repair operative and uses a Schedule of Rate5 Contract for its gas and electrical works which are procured with another local housing association. The Association's componènt replacement programme involved significant expenditure from April 2024 onwards but the Association has made suitable financial provision and has the appropriate level of expertise to manage these projects. With regard lo other potential challenges to the Association's finances and its abllity to continue to OP8r8te the Association has taken account of the folSowing: The Association has furlher increased its substsntial cash reseNes and operates well within its banking covenants, a position which improves significantly year on year particularly from 2019120 as previously high interest fixes were replaced with a substantially lower fixed rate. 14
Lyng Community Association Board Report The Board are aware from stress lesting exercises the potential impact of adverse changes in the Association's operating environment and how these can be mitigated. The Board consider the Association's kay indicators at every Board meeting and are acutely aware of how the Association's development aspirations will impact on the assessment of risk. The most significant risks include the possibility of the Government and Regulator returning to a period of rent inGreases that were less than the rate of inflation similar lo the period 2016- 2020 where the Association saw a significant decrease in its income whilst costs continued to rise and the conflict in Ukraine sparking economic uncertainty. The Board are aware of the sector analysis of the value of social housing stock and completed a revaluation of the stock in the summer of 2024. The Association continues to look to Use its slrong financial position to fund new developments in or around Ihe Lyng estate area but none are scheduled for the immediate future and the Board are fully aware of the risks that would need to be considered before authorising any new development project. The Board has a long established routine of meeling every clher month in person and continue to monitor key indicators to ensure the Association remains on track to meet its financial and operational targets, Therefore the Executive Team and Board are confldent that the Assoclatlon has the capacity and r.esources fo continue to operate as a going concern well into the future. Code of Governance The Board has previously adopted the National Housing Federation's "Code of Govemance,. Promoting board excellence for housing associations (2015 edition>'. A recent self-assessment of compliance was completed and the Association is able lo confirm its compliance with the Code wilh the exception of board members service. The Association has adopted a plan to replace longer serving Board members with new members whilst ensuring there is sufficient knowledge and experience to maintain an excellent standard of governance. The Board has committed to progressing towards adopting the 2020 version and will look to move forward with this process in the near future. Compllance with the Regulator of Soclal Houslng Governance and Flnanclal Vlablllty Standard The Board confirms that the Associatlon is fully compliant with the requirements of the Regulator's Governance and Financial Vlability Slandard. The Regulator of Soclal Housing applies a de-minimus level of 1000 units below which regulation is a light touch and compliance gradings are not applied. This applies to the Association. Approved by the Board and signed on its behalf by.. Chair Date 15
Lyng Community Association Independent auditor's report to the members of Lyng Community Association Opinion We have audited the financlal statements of Lyng Communty Association {the 'Asso¢iatlon') for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income. Ihe Statement of Financlal Position, the Statement of Changes in Reserves, the Statement of Cash Flows and notes lo the financial statements, including a summary of significant accountlng policles. Tha financial reporting framework thaf has been applied in their preparatlon is applicable law and United Kingdom Accounting Standards, including FRS 102 "The Financial Fleporting Standard applicable in the UK and Republic of Ireland" (Unlted Klngdom Generally Accepted Accounting Practice). In our opinion, the financial statements: give 8 true and fair view of the state of the Assoclation's affairs as at 31 March 2025 and of its surplus for the year then ended- have been properly prepared ln accordance with United Kingdom GeneralSy Accepted Accounting Practice,, and hav8 beon prepared in accordance wilh the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private RegIsted Providers of Soclal Houslng 2022. 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 "Auditor's responsibilities for the audit of the financial statements" section of our report. We are independent of the Association in accordance with the elhical requirements that are r81evant 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 relatlng to goSng concern In auditlng the financial slatemenls, we have concluded that the Board's use of the going concern basis of accounting in the preparation of the fi'nancial statements is appropriate. Based on the work we have performed, we have not identrfied any material uncerlainlies relatlng to events or conditions that, individually or collectively, may cast signrficant doubt on the Association's ability to continue as a going concern for a period of at least twelve months from when the financial statements are 8uthori88d for issue. Our responsibilities and the responsibilities of the Board with respect to going concem are describ8d in the relevant sections of this report. 16
Lyng Community Association Independent auditor's report to the members of Lyng Community Association Other Infomiation Th8 Other information comprises the Information included in the Annual Report and Financial Statements, other than the financial statements and our auditor's report thereon. The Board are responslble for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extenl otherwise explicitly stat6d in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read tha. other information and, in doing so. consider whether the other information is materially inconsistent with the f nancial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materlally 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 th@ 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. Opinlons on other matters pre5Gribed by the Companles Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in lh8 Strategic Report and the Board Report for the financial year for which the financial stalements are prepared is consistent with the financial staternenls,. and the Strategic Report and the Board Report have been prepared in accordance with applicable legal requirements. Matters on which we are roquired to report by exceptlon In light of the knowledge and understanding of the Association and its environment obtained in the course of the audit. we have not identrfied material misststements in the Strategic report or the Board Report. We have nothing to report in respect of the following matters in relation to which the Compsnies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not vis6ted by us., or Ihe financlal statements are not in agreement with the accounting records and returns-, or certain disclosures of directors. remuneration specified by law ar@ not made., or we have not received all the information and explanations we require for our audit. Responsibilities of the Board 17
Lyng Community Association Independent auditor's report to the members of Lyng Community Association As explained more fully in the Statement of the Board's Responsibilities set out on page 13, the Board 8re responsible for the preparation of the financial stalemenls and for being satisfied that they give a Irue and fair view, and for such Internal control as the Board determine is necessary lo enable the preparation of financial statements that are free from mat&rial misstatement, whether due to fraud or error. In preparing the financial statements, the Board are responsible for assessing the Association's ability to continue as a going concern, éisclosing, as applicable, matters relat&d to going concern and using the going concern basis of accounting unless the Board 6ilher intend to liquidate the Association or to cease operations, or have no realistic alternative but fo do so. Auditor's responsibilities for tho audit of tho financial statements Our objectives are to obtain reasonable assurance aboul whether Ihe financial statements as a whole ar8 free from material misslatement, wh8th8r due to fraud or error, and to Issu8 an auditor's report that indudes our opinion. Reasonable assurance is a high level of assuranc8 but is not a guarantee that an audit conducted in accordance wlth ISAS (UK) will always detect a material misstatemenl when it exists. Misstalemenfs can arise from fraud or error and are considered material rf, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statemgnts. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We deslgn procedures in line with our responsibilities, outlined above, to detect material misstatements in respecl of irregulariti88, including fraud. Based on our understanding of the Association and its industry. we considered that non-compliance with the following laws and regulations might have a material effect on the financial slalements.. employment regulation, health and safety regulation, antl-money laundering regulatlon, non-compliance with implementation of government support sch8mes. To help us identify inslances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respecf to non-compliance, our procedures included, bul were not limited to,, Inquiring of management and. where appropriate, those charged with governance, as to whether the Association is In compliance with laws and regulalions. and discussing their pollcles and procedures regarding compliance wrth laws and r6gulations' Inspecting correspondenc6, if any, with relevant licensing or regulatory authorities-, Communicating identified laws and regulalions to the engagement team and remaining alert to any indications of non-compliance throughout our audit,, and Considering the risk of acts by the Association which were contrary to applicable laws and regulations, including fraud. 18
Lyng Community Association Independent auditor's report to the members of Lyng Community Association We also consldered those laws and regulations that have a direct effect on the prep8r8tion of the financial stafemenls, such as tax legislation, pension legislation, the Companios Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for private registered providers of social housing 2022. In addition, we evaluated the Board's and management's incentives and opportunities for fraudulent manlpulatlon of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financlal performance, management bias through judgements and assumptions in slgnrflcanl accounting estimates, revenue recognition (which we pinpointed to the cut-off assertion, and significant one-off or unusual transactions, Our audit procedures in relation to fraud included but were not Ilmlted to.. Making enquiries of the Board and management on whether they had knowledge of any actual, suspected or alleged fraud., Gaining an understanding of Ihe internal controls established to mitigate risks related to fraud,, Discussing amongst the engagement team th8 risks of fraud", and Addr88sing the risks of fraud through management override of controls by performing journal entry testlng, There are inherent limitations in the audit procedures described above and the primary responsibillty for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, a8 these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. A further description of our responsibilities for the audlt of the financial sfalements is located on Ihe Financial Reporting Council's website at www.frc.or .uklauditorsres nsibilities. This description forms part of our auditor's report. Use of the audit rèport This report is made solely to the Association's members as a body in accordance with Chapter 3 of Part 16 of the Companies Acl 2006 and Chapter 4 of Part 2 of the Housing and Regeneralion Act 2008. Our audit work has been undertaken so that we might state lo the Association's members those matters we are required lo stale lo 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 Association and the Association's members as a body for our auéit work, for Ihis report, or for the opinions we have formed. David Hoose (Senior Ststutory Auditor) for and on behalf of Forvis Mazars LLP Chartered Accountants and Statutory Auditor First Floor, Two Chamberlain Square Birmingham B3 3AX Date 19
Lyng Community Association Statement of Comprehensive Income For the year ended 31 March 2025 Note 2025 2024 Turnover 3 1,338,381 1.248,776 Operatlng expendlture 3 (829,544) {795,652) Operating surplus 508,837 453,124 Interest receivable 124,479 98.379 Interest and finance cosl5 4 (112,550) (122,885) Surplus for the year 520,766 428,618 Other comprehensive income Total comprehenslve income for the year 520,766 428,618 The Association's income and expenses all relate to continuing operations. The noles on page5 25 to 37 form an integral parl of these financial slatements. 20
Lyng Community Association statement of Financlal Position At 31 March 2025 Company registered number.. 3977954 2025 2024 Note Flxed assets Housing properties Other properly, plant and equipment 9,322,476 9,163,361 10 9,322,476 9,163,361 Curr8nt assets Debtors Cash and short-lerm investments Investments 11 58,849 69,602 1,830,663 1,921,149 2,090,044 1,986,619 3,979,556 3,977,370 Croditor8: Amounts falllng due wlthln one year 12 (344,131) (427,675) Net current assets 3,635,425 3,549,6g5 Total assets less currant liabilltles 12,957,901 12,713.056 Cr8ditors: Amounts falling due after more than one y8ar 13 (8,085,934) (8,361,854) Net assets 4,871,967 4,351,202 Capital and reserves Revenue reserve 4,871,967 4.351,202 Total reserves 4,871,967 4,351,202 The financial statements of Lyng Community Association were approved by the Board of Management on 8th July 2025 and slgned on its behalf by: E W Bodenham - Board Member A Nash- Secretary 21
Lyng Community Association Statement of Changes in Reserves For the year ended 31 March 2025 Revenue reserve Total At 1 April 2023 3,922.584 3,922,584 Surplus for the year 428,618 428,618 At 31 March 2024 4,351,202 4,351,202 Surplus for the year 520,766 520,766 At 31 March 2025 4,871,968 4,871,968 22
Lyng Community Association Statement of Cash Flows For the year ended 31 March 2025 2025 2024 Note Net cash generatad from operating activitles 16 584,237 663,447 Cash flows from Invasting activities Purchase of property, plant and equipment Interesl received Decrease l {incre8se) in investments (376,784) 191,287) 124,479 98,379 (103,425) 196,500) Net cash flows from investlng actlvities (355,730) (89,408) Cash flows from flnancing activitles Interest paid Amortisation of loan issue costs Repaymenls of borrowings (112,550) (122,885) 1,890 1,890 (208,333) (208,333) Net cash flows from flnancing activities (318,993) (329,3281 Net increase l (decrease) in cash and cash equivalents (90,486} 244,711 Cash and cash equivalents at beginning of year 16 1.921,149 1,676,438 Cash and cash equivalents at 8nd of year 16 1.830,663 1,921,149 Note: The Association has invested surplus funds in a Notice account since July 2021 (previously treasury deposits). The amount invested at 31 March 2025 is £2,090,044 (2024: £1,986,619), all of which has access dates in excess of three months. 23
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 Accounting policies The principal accounting policies are summarised below. They have all been applled consistently throughout the year and to the preceding year. General Information and basis of accounting The financial ststements have been prepared underthe hlstorical cosl convention, modified to include certain items at fair value, In accordance wlth Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council and comply with the Statement of Recommended Practice for regislered social housing providers 2018 (SORP), the Housing and Regeneratlon Act 2008 and the Accounting Direction for private registered providers of soclal housing 2019. Lyng Gommunity Association is a public benefit entity, as defined in FRS 102 and applies the relevant paragraph5 prefixed 'PBE' in FT<S 102. Property, plant and equlpment- housing properties Housing propert18s are stat8d at historic cost less depr8Giation less accumulated depreciation and accumulated impairment losses. Cost includes the cost of acquiring land and buildings. directly attributable development costs and borrowing costs directly aitributable lo the construction of new housing properties during the development. Capitalisalion ceases wh8n substantially all the activities that are necessary to get the asset ready for use are cornplete, Depreciation is charged so as to write down the ngt book value of housing properties to their estimaled residual value, on a straight-line basis, over their useful economic lives. Freehold land is not depreciated. New build 100 years Ma or com onenls Major components of housing properties, which have significantly different patterns of consumption of economic benefits, are treated as separate assets and depreciated over their expected useful economic lives at the follow5ng annual rates.. Structur8 100 years 60 years 30 years 20 years 25 years 30 years 30 years 15 years Properties held on long leases are depreciated over their estimated useful economlc lives or the lease duration if shorter. Roofs Doors and windows Kitchens Bathroorns Heating systems Rewiring Boilèrs rovements Where there are improvements to housing properties that are expected to provide incremental future benefils, Ihese are capitalised and added to the carrying arnount of the property. Any works to housing properties which do not replaco a compon8nt or result in an inGremental future benefit are charged as expenditure in surplus or deficit in the Statement of Comprehensive InMe. Leaseholders Where the rlghts and obligations for improving a housing property reside with the leaseholder or tenant, any works to improve such properties incurred by the Association are recharged lo the leaseholder and 24
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 recognlsed in surplus or deficit in the Statement of Comprehensive Income along with the corresponding income from the leaseholder or tenant. Non-houslng property, plant and equlpment Non-housing property, plant and equipment is stated at historic cost less accumulated depreciation and any provision for Impairment. Depreciatlon is provided on all non-housing property, plant and equipment, other Ihan investment properties and freehold land, at rates calculated to write off Ihe cost or valuation, less estimated residual value, of each asset on a straight-llne basis over its expected useful life, as follows.. Office equipment 4 years Computer hardware 7 ye8rs Impalrment of social housing prop8rties Properties held fer their social benefit are not held solely for the cash inflows they generate and are held for their service potential. An assessrnent is made at each reporting date as to whether an indicator of impaimient exists. If such an indicator exists, an impairment assessment is carried out and an 8Stimate of the recoverable amount of the asset is made. Where the carrying amount of the asset exceeds its recoverable amount, an impairment loss is r8cognised in surplus or deficit in the Statement of Comprehensive Income. The recoverable amounl of an asset is the higher of its value in use and fair value less costs to sell. Where assets are held for their service potential, value in use is determined by the present value of th8 asset's remainlng service potential plus tho net amount expected to be received from its disposal. Depreciat8d replacement cost is taken as a suitable measurement model. An impairmenl loss is reversed rf the reasons for the impairment loss have Geased to apply and is included in surplus or deficlt in Ihe Statement of Comprehensive Income. Social Housing Grant and other Government grants Where grants are received from government agencies such as Homes England, local aulhorities, devolved government agencies, health authorities and the European Commission which meet the definition of governmenl grants they are recognised when Ihere is reasonable assurance that the conditions attached to them will be complied with and that the grant will b8 received. Government grants are recognised using the accrual model and are classified either as a grant relating to revenu8 or a grant relating to assets. Grants relating lo revenue are recognised in income on a systematic basis over the period in which related costs for which the grant is intended to compens8te are recognised. Where a grant is receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support with no future related costs, it is recognised as revenue In the period in which il becomes receivable. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. Grants received for housing properties are recognised in income over the expected useful life of th8 housing property structure. Where a grant is received specifically for components of a housing property, the grant is recognised in income over the expecled useful1rfe of the component, Recycling of grants Where there is a requirement to either repay or recycle a grant received for an asset thaf has been disposed a provision is included in the Statement of Financial Posilion to recognise this obligation as a liability. When approval is received from the funding body to use the grant for a specrflc development, the amount previously recognised as a provision for the recycling of the grant is reclassified as a creditor in Ihe Statement of Financial Position. No such disposal has taken place. 25
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 Propertles for outrlght sale Properties developed for outright sale and land held for sale are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes materials, direct 18bour and an atlrlbutable proportion ofoverheads based on normal levels of aotivily. The Associalion has not developed any propertles for outright sale to date. Interast payabla Borrowlng costs are interest and other costs incurred in connection with the borrowing of funds. Borrowing costs are calculated using the effective interest rate, which is the rate that exactly discounts estimated future cash payments or receipts through the expected 5ife of a financial instrument and is determined on the basis of the carrying dmount of the financial liability at initial recognition. Under the effective interesl method, the amortised cost of a fiH8nGial liability is the present value of future cash payments discounted at the effective interest rate and the interest expense in a period equals the carrying amount of the financial liability at the beginning of a period multiplied by the effective interest rate for the perfod. Taxation The Association is a Reglstered Charity and is therefore not subject to Corporatlon Tax on its surplus arising from charitable activities. Pensions The Association CoMmend centributions to the Social Housing P8nsion Defined Contribution scheme from April 2017 in accordance with auto enrolmenl leolslation. As a DC scheme there are no long term liabilities which the Association needs to recognise. Turnover Turnover represents rent and service charges receivable (net of rent and service charge losses from voids) and disposal proceeds of current assets such as properties developed for outright sale or shared ownership first tranche sales at completion together with revenue grants from local authorities and the Homes and Communities Agency and charitable fees and donations. Service charge income is recognised when expenditure is incurred as this is considered to be the point at whlch the service has been performed and the revenue recognition criteria met. Supported houslng and other managlng agents Where the Association has ownership of a supported housing or other scheme but also has an agreempnt with a third party to manage the scheme (includlng Supporting People funded schemes or services), where there has been a substantial transfer of the risks and benefits attached lo the scheme lo the third party, any scheme revenue and expenditure Is excluded from these financial statements. Investments Investments that are publicly traded or whose fair value can be measured reliably are measured at falr value with changes in fair value recogni8ed in surplus or deficit in the Statement of Comprehensive In¢ome. Other investments are measured at amortised cost less impairment. Financlal Instruments Financial assets and financial liabilities are recognised when the Association becomes a p8rty to the contractual provisions of the instrument. 26
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 Financlal assets carrlod at amortised cost Financial assets carried al amortised cost comprise rent arrears, trade and other receivables and cash and cash equivalenls. Financial assets are Initially recognised at fair value plus directly attrlbutable transaction costs. After initial recognitiDn, they are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial. If there is objective evidence that there is an impairmenl loss, the amount of the loss is measured as the difference between the asset's carrying amount and the present value of estimated future cash flows discounted at the financlal asset's original effective interest rate. The carrying amount of the asset 18 reduced accordingly. A financial asset is derecognised when the contractual rights to the cash flows expiro, or when the financial asset and all substantial risks and reward are transferred. If an arrangement constitutes a financing transaction. the financial asset is measured at the present value of the future payments discounted at a market rat8 of interest for a similar debt instrument. Financial Iiabllltles carried at amortlsed cost These financial liabilities include trade and other payables and interest-bearing loans and borrowlngs. Non-current debt instruments which meet the nessary conditions in FRS 102, are initially recognised at fair value adjusted for any directly attributable transactlon cost and subsequently measured at amortised cosl using the effective interest method, with interest-related charges recognised as an expense in finance costs in the Statement of Comprehensive Income. Discounting is omltted where the effect of discounting is immaterial. A financial liability is derecognIs only when Ihe contractual obligation is extinguished, that is, when the obligation is discharged, cancelled or expires. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and demand deposits, together with other short term. highly liquid investments that are readily convertible into known amounts of cash and are subj6Ct to an insignificant risk of changes in value. Slgnrficant management judg8m@nts and key sources of estlmatlon uncertalnty The preparation of the financial statements requires management to make judgements, eslimales and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstanc8S, the results of which form the basis of making the judgements about carrying values of assets and liabilities that are not readily apparentfrom other sources. Actual results may differ from these estimates. Estimates and underlying assLJmptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected. 27
Lyng Community Association Notes to the financial statement5 For the year ended 31 March 2025 Slgnlfi¢ant managam8nt judgements The following are management judgemenls in applying the accounting policies of the Association that have the mosl signrficant effect on the amounts recognlsed in the financial statements Impairment of social housing properties The Association has io make an assessment as to whether an indicator of Impairment exists. In making the judgement, management Considered the detailed criteria set out in the SORP. The carrying value of the housing developed is the lower of cosls and realisable value, i.e. al cost. Depreciation of Housing Pmp8rties The additions for component replacements are depreciated In accordance with previous practicè, Rent arrears 1000/0 of former tenant arars, 100 % of current tenant arrears where collection is deem@d unlikely, and 20°/0 of all other current tenant arrears are provided as a possible bad debt. Estimation uncertalnty The Association makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal Ihe related actual results. The estimates and assumption8 that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are reported to the Board regularly through formal stress-testing. 3. Particulars of turnover, operating costs and operating surplus 2025 Operating Operating costs surplus Turnover Social housing lettlngs (notè 3A) 1,326,942 829,544 497,398 Other social housing actlvltles 11,439 11,439 Total 1,338,381 829,544 508,837 2024 Operaling costs Operating surplus Turnover Social housing leltings (not& 3A) 1,237,868 795,652 442,216 other soci81 housing activities 10,908 10.908 Tolal 1,248,776 795.652 453,124 28
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 3A. Partlculars of Income and Expenditure from 8oclal houslng lettings General Needs Housing 2025 Total 2024 Total Income Rent5 receivable Service charge income Amortised govemment grant 1,203,976 1,203,976 1,118,550 53,489 53,489 49,841 69,477 69,477 69,477 Tumover from soclal housing lettings 1,326,942 1,326,942 1,237,868 Expandlture S8rvice charge costs S8rvice charge sinking fund Management Routine maintenance Planned maintenance Bad debts Disposal costs Depreciation of housing properties 31,863 31,863 42,728 431,113 104,125 41,952 2,822 431,113 104,125 41,952 2,822 398,151 93,500 55,308 3,228 159 202,578 217,669 217,669 Operating costs 829,544 829,544 795,652 Op8rating surplus social housing16ttings 497,398 497,398 442,216 Void losses 1,265 1,265 3,187 Interest and flnance cost8 2025 2024 Bank loans 8nd overdrafts 112,550 122,885 112,550 122,885 29
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 Interest receivablo 2025 2024 8ank interest receivable 124,479 98,379 124,479 98,379 Surplus for the year Surplus for the year is stated after charging= 2025 2024 Depreciation of property, plant and equipment Government grants Audit fees.. 217,669 69,477 202,578 69,477 Statutory audit (excludlng VAT) 16,000 11,000 Staff Gosts 2025 2024 Wages and salaries Social security costs Pensions 200,894 10,059 4,797 188,771 8,509 4,3g2 215,750 201,672 The avarage full time equivalent number of employees was: 4.6, with a further 1,62 employees working on community development projects, (2024.. 4.6 plus 1.84) 2025 Number 2024 Number Staff - absolute numbers 11 The basis of the calculation of the full time equivalents was 6 office-based staff working variable part time hours equating to 161 hours per week out of a possible 210. 30
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 Directors, remuneratlon and transa¢tions No directors, remuneration was paid in the year. Non-executive directors are not remunerated. Tangible fixed assets- housing proportlos Completed properties Total Cost At 1 Aprll 2024 Additions Disposals 12,368,158 12,368,158 376,814 376,814 194,437) 194,437) At 31 March 2025 12,650,535 12,650,535 Depreclatlon At 1 April 2024 Charge for the year Ellmlnated on di5posal8 3,204,797 3,204,797 217,6gg 217,699 (94,437) (94,437} At 31 March 2025 3,328,059 3,328,059 Net book value At 31 March 2025 9,322,476 9,322,476 At 31 March 2024 9,163,361 9.163,361 Freehold land and buildlngs with a carrying amount of £6million12024.' £6million) have been pledged to secure borrowings of the Association. The Association is not allowed to pledge these assets as security for other borrowings or to sell them lo another enllly. 31
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 10. Property, plant and equlpm6nt - othor Fixtures and rittings Total Cost Al 1 April 2024 Additions Disposals 34,699 34,6g9 At 31 March 2025 34,699 34,699 Depreciation At 1 April 2024 Charge for the year Disposals 34,699 34,699 At 31 March 2025 34,699 34,699 Net book value At 31 March 2025 At 31 March 2024 11. Debtors 2025 2024 Amounts fallin9 due within one year: Rent arrears Rental income deferred Provision for bad debts Prepayments and accrued income 58,117 (20,691) (17,712) (15,748) 39,135 39,881 45,469 58,849 69,602 32
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 12. Creditors- amounts falllng due wlthln ono year 2025 2024 Bank loans and overdrafts {see note 13) Rents received in advance Trade creditors and after date Invoices Accruals Government grants 208,333 16,132 17,922 32,267 69,477 208,333 17,976 90,657 41,232 69,477 344,131 427,675 13. Credltors - amounts falllng due after more than one y8ar 2025 2024 Other creditors Loans Government grants 2,734,914 2,941,357 5,351,020 5,420,497 ,085,934 8.361,854 The Icans are secured on 86 freehold housing properties. Interest is payable at 2.268WD on the fixed element of the loan and SONIA +2.1 Yo on the balance. The total accumulated amount of capital grant received or receivable at the balance sheet date is £6,947,748 (2024: £6,947,748), 33
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 13. Creditors- amounts falling due after more than one year (contlnued} 2025 2024 Deferred Income - Government grants At 1 April 2024 Amortisalion to Statement of Comprehensive Income 5,489,974 5,559,451 (69,477) (e9,477) At 31 March 2025 5,420,497 5,489,974 Due within one year 69,477 69,477 Due after one year 5,351,020 5,420,4g7 Borrowings are repayable as follows.. 2025 2024 Bank Loans Between one and two years Between and five years After five years 208,333 208,333 833,333 833,333 1,927,085 2,135,418 2,968,751 3,177,084 Less transaction costs on issue {25.504) (27,394) 2,943.247 3,149,690 Less amounts due on demand or within one year {208,333) (208,333) 2,734,914 2,941,357 14. Retirement beneflt schemes Dof Ined contribution Schemes The Association joined a Defined Contribution scheme administered by TPT Retirement Solutions from 1 April 2017 in accordance with auto 8nrolment legislation. There is no long-term financial commitmenl associated with the scheme. 34
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 15. Financlal Instruments The carrying values of the Association's financial assets and liabllitles are summarised by Category below: 2025 2024 Flnanclal assots Measured at undiscounted amount receivable Rent arrears and other debtors (see note 111 Cash 37,426 45,469 3,920,707 3,907,768 3,958,133 3,953,237 Flnanclal liabllltles Measured at unéiscounted amount payable Bank loans (see note 131 Ti'ade and other creditors {see note 12) Rents received in advance {see note 12) 2,734,914 2,941,357 50,189 131,889 16,132 17,976 2,801,235 3,091,222 The Association's income, expense, gains and losses in respect of financial instrLJmenls are summarised below.. 2025 2024 Intere8t income and expense Total interest income for financial assets at undiscounled ainount receivable Total interest expense for flnancial liabilities at undiscounted amount payable 124479 98,379 (112,550) (122.885) 35
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 16. Net cash generated f rom op¢ratlng actlvltles 2025 2024 Surplus for the year 520.766 428,618 Adjustment for non-cash Items.. Depreciation of propety, plant and equipment Loss on disposal of assets (Increase)Idecrease In debtors (Decrease)lincrease In creditors 217,669 202,578 159 3,455 73,608 10,753 {83,545) Adjustments for investlng or financing activities.. Government grants utilised in the year Inferest payable Interest recelved (69,477) (69.477) 112,550 122,885 (124,479) {98,379) Net cash generated from operating actlvltles 584,237 663,447 Cash and cash equivalents Cash at bank and in hand Cash equivalents Included in current assets 1,830,663 1,921.149 Net cash generated from operatlng a¢tivitios 1,830,663 1.921,149 17. Financial commitments 2025 2024 Capital commitments are as follows.. Contracted for but not provided for 332,371 332,371 18. Housing Stock 2025 Units 2024 Units Owned and managed Housing accommodation at affordable rent 200 200 200 200 36
Lyng Community Association Notes to the financial statements For the year ended 31 March 2025 Operatlng leases At 31 March total fulure minimum lease payments under non-cancellable operating leas8s are as follows,. 2025 2024 Photocopier <1 year < 2-5 years
5 years 942 1,884 1,884 2.826 20. Related party transactions The Board includes I0 members who are also tenants of the Association. These members are subject to the same terms and conditions as all t8nants in slmilar properties. At the year-end the total rent and service charge paid by Housing Benefit. including afler date adjusted payments, for these Board members totalled £Nil (2024.. £Nil). During the year r8nt and service charge received was £12,969 for 2 Resident Board members (2024.. £10,966- for 2 Resident Board members). The General Managerfs employment costs are charged to the Association by his company 'Flexistore {Cardiff) Limited, The total cost incurred during the period and charged to the Statement of Comprehensive Income totalled £71,106 (2024: £62,993). At the year*nd £10,870 {2024: £Nil} was included in trade creditors. The Chair's husband is employed by the Association and is paid at a normal commercial rate. The overall management of the shared areas of those parl8 of the estate built by Barratt from 2010 2016 is undertaken by the Lyng Management Company (LMC), an independent company. The Chair of the Association is a dlrector of that Company representing Lyng Community Association. Management responsibility for those shared areas was transferred to Lyng Management Company from September 2017. Lyng Community Association was appointed as managing agent after an open tender exercise conducted by LMC The Association charges an administration charge of £9,988 per annum to administer the management activity. During the year 2024125 this charge was18vied on the Management Company and a further £5,972 was accrued to 31 March 2025. The total income of £11,439 (2024.. £10,908) is shown as Other Social Housing Activities in the Income and Expenditure account. 37