Company Registratlon Number 05972159 Charity Registration Number 1120475 Almshouse Association Reglstratlon Number M1922 Regulator for Soclal Houslng Registration Number L1551 MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) FINANCIAL STATEMENTS 31 MARCH 2024
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) CONTENTS YEAR ENDED 31 MARCH 2024 Pages Referen and administrative details of the charity, its trustees and advisors Chair's report Trustees, report Statement by the board in respect of internal financial control 13 Independent auditor's report Statement of Comprehensive Income 18 Statement of Financial Position 19 Statement of Change in Reserves 20 Statement of Cash Flows 21 Notes to the financial statements 22-36
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS YEAR ENDED 31 MARCH 2024 Charity Registration Number 1120475 Company Registration Number 05972159 Almshouse Assoclatlon Reglstratlon Number M1922 Regulator for Soclal Houslng Reglstration Number L1551 Board of Dlrectorsrrrustees The Trustees who served on the Board of Trustees from 1 April 2023 to the date of approval of these financial statements are.. M Gallagher FRICS (resigned 11 September 2023) J M Toffel BA (Hons) PGCE J Wheeldon Bsc FCIH J Williams FCA N Cornmell RPery F Shaughnessy Prnsldont M McLeod BA (Hons) PGCE ADVDIP (Law) ADVDIP {Education} Chalr J M Toffel BA {Hons) PGCE Vlce Chalnnen M Gallagher FRICS (resigned 11 September 2023) N Commell (appointed 11 September 2023) Company Secretary J M Toffel BA (Hons) PGCE Senlor Officers Mrs T Nash Mr R Keeble Mrs C Cope Facilities Manager Supported Housing Manager Finance Manager
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS YEAR ENDED 31 MARCH 2024 (continued) Registered Offlce Fairfield House 33 Fambridge Road Maldon Essex CM9 6AD Bankers and Similar Instltutlons Nab'onal Westminster Bank plc 4-5 High Street Chelmsford Essex CM11FZ Santander PIC BBAM Bridle Road Bootle Merseyside GIR OAA Nationwide Building Society Housing Department Kings Park Road Moulton Park Northampton NN3 6NW Orchardbrook Crown House Crown Street Ipswich Suffolk IP13HS Aldermore Bank plc 1Jt Floor, Block B Western House Lynch Wood Peterborough PE2 6FZ Unrted Trust Bank 1 Ropemaker Street London EC2Y 9AW
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) REFERENCE AND ADMINISTRATIVE DETAILS OF THE CHARITY, ITS TRUSTEES AND ADVISORS YEAR ENDED 31 MARCH 2024 (continued) Bankers and Slmllar Instltutlons (Contlnued) Redwood Bank The Nexus Building Broadway Letchworth Garden City SG6 3TA Hampshire Trust Bank 6 E Parade Leeds LS12AD Cambridge and Counties Bank Charnwood Court 5B New Walk Leicester LE16TE Sollcltors MPP Solicitors 22 High Street Maldon Essex CM9 5PJ External Audftor Beever and Struthers Chartered Accountants and Statutory Auditors Suite 9b The Beehive Lions Drive Shadsworth Business Park Blackbum BB12QS
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) CHAIR'S REPORT YEAR ENDED 31 MARCH 2024 Durin9 the financial year 2023 24, the Board of Trustees continued to focus on maintaining the sustainability and security of Maldon Housing Association Limited IMHA) whilst seeking to improve the homes of our residents. To this end thorough investigation into the possibility of applying for a loan offered by the Almshouse Association to organisations under their aegis was undertaken. It is hoped that an application may be submitted during 2024- 25, with a view to replacing remaining windows at Deed House and all windows in Fairfield House before internal decorats'on of communal areas in the latter residence to bring this to the highest standard for our residents. On behalf of the trustees I thank Rob Keeble, the Supported Housing Manager, Tina Nash, the Facilities Manager, and Christs'ne Cope, the Finance Manager, for their full comrnilment to the residents of Maldon Housing Association Limited as they have continued to give to individuals all support required, to maintain a safe environment and to ensure prudent financial operations. The managers, assisted by the Office Manager and their own teams, have continued to collaborate in creating a calm, secure, effi'cient operation that has precluded any need to employ a CEO to oversee daily matters. Following the transfer of Suzanne Chisholm to the support team, Philippa Harrington took on the role of Office Manager, assimilating administrative processes in all areas to ensure accuracy of records and assistance in the areas of work of each manager as required. She fully embraced the ethos of Maldon Housing Association Limited and took the initiative in running a very successful raffle in conjunction with the residents, Christmas celebrations, securing the donation of valuable prizes by several local businesses in Maldon. This was much appreciated by all concerned and hopefully may be continued in future years. The Board has employed Damian Roche, a consultant from HQN Consultancy, to advise on strategic matters including changes in Health and Safety legislation, the regulatory changes in social housing and MHA'S requirements in IT provision. This has been a most successful arrangement enabling trustees to feel confident that all requirements in governance and the organisation's compliance are addressed in a timely fashion. At the end of the financial year, the employment tribunal hearing instigated by the former CEO years previously, citing grounds of disability discrimination and unfair dismissal, was conducted. Despite Maldon Housing Association's firm rebuttal of both accusations, the case was settled before judgement in order to minimize financial outlay, preventing escalation of costs in addition to a substantFal claim. A strong sense of community lies at the core of Maldon Housing Association Limited. During 2023 - 24, staff and trustees continued to work together to ensure provision of the best homes possible in a well maintained, supported environment. As my tenure as Chair of the Board of Trustees draws to a close, I would like to express my thanks and appreciation to every member of staff and each of my fellow trustees for their commitment, their time and their strong sense of responsibility towards all the residents.
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) TRUSTEES, REPORT YEAR ENDED 31 MARCH 2024 References and administrative details Reference and administrative details of the charity, its trustees and advisors are set out on pages 1- 3 as part of this report. Trustses, res onsibilities for financial re The trustees, being the Executive Committee and the directors as required by s417 of the Companies Act 2006, are pleased to present their report and the audited financial statements of Maldon Housing Association Limited for the year ending 31 March 2024. The financial statements have been prepared in accordan with Financial Reporting Standard 102, effective January 2015, as required in the UK and Republic of Ireland. The fi'nancial statements comply with the current statutory requirements and the Memorandum and Articles of Association under which Maldon Housing Association Limited was established. ortin In accordance with Company Law, the trustees are responsible for the annual preparation of financial statements, complying with applicable law and United Kingdom Generally Accepted Accounting Standards, to give a true and fair view of the affairs of the Association, showing the incoming fesources and application of resources, including income and expenditure. for the specified financial year. In preparing the requisite financial ststements, the trustees must undertake the following." Select suitable accounting policies, applying these consistently., Observe the methods and principles set in Ihe Housing SORP., Make judgements and estimates that are reasonable and prudent., State whether UK accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements,. Prepare the financial statements on the basis of the Ass(Kiation being a going concern unless it is inappropriate to presume that the Association will continue in operation. The trustees are responsible for maintaining proper accounting records that disclose with reasonable accuracy the financial position of the Association and that enable the trustees to ensure that the financial statements comply with the Companies Act 2006, the Housing and Regeneration Act 2008, the Accounts'ng Direction 2022 for Private Registered Providers of Social Housing and the provisions of the trust deed. The trustees are responsible for safeguarding the financial assets of the Association and hen for taking reasonable steps to prevent and detect fraud and other irregularities. Furthermore, the trustees are responsible for the maintenance and integrty of the Association, including any financial information given on the Association's website, if applicable.
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) TRUSTEES. REPORT YEAR ENDED 31 MARCH 2024 (continued) Structure Govemance and Mana The Board of Trustees comprises volunteers, encompassing a variety of skills, expertise and experience, ensuring wide-ranging perspectives. The composition of the Board of Trustees is reviewed regularly to ensure that a balance of essential skills is maintained. Recwitment of new trustees is undertaken in the light of identification of further skills or areas of expertise that would be an asset to the Board and the Association. ement New trustees are nominated by existing trustees or are sought through open advertisement. After meeting the Chair to discuss the work of the Association, a prospective trustee is invited to obseNe a Board meeting before signing a declaration of eligibilty and formally joining the organisation. Information given to a new trustee includes a document explaining the responsibilities of the role and the Association's expectations of its trustees. The induction process comprises a briefing on the finances of the organisation and on the Memorandum and Articles of Association together with the statutory and legal responsibilits'es, including the requirements of the Charity Commission and the Regulator of Social Housing, as well as a tour of the Association's properties. All trustees have access to training courses as appropriate opportunities arise. At the AGM the Board of Trustees elects a chair and vice chair as well as accepting the retirement of any trustee who so wishes or has completed the requisite terms of office. A trustee may see the consecutive terms of office. However, the Board has the discretion to re-appoint a trustee for a further period not exceeding one term. The chair and vice chair should hold office for a period not exceeding six years. The Association adopted the National Housing Federation Code of Governan issued in 2020. The Board recognises that there is non<ompliance for the year ended 31 March 2024 in respect of bNo specifications: The National Housing Federation Code of Governance states.. °Maximum tenure will normally be up to six consecutiv8 years (typically comprising two temls of office), but where a memb8r has served six years, and the board agrees that it is in the organisation's best interests, their tenure may be extended up to a maximum of nine years." The trustees acknowledge the importance of Board renewal. Due to the size of the organisation and on-going development of the business, the Board of Trustees wishes to retain the option to allow experienced twstees to continue in office for a further term if that is considered to be beneficial to the Associats'on. Therefore Maldon Housing Associats'on's Articles of Association, established in 1966, state.. "A retiring trustee who remains qualified may normally be re-appointed for a maximum of three consecutive tems of office. However, the trustees have the discretion to re-appoint a trustee beyond three consecutive terms of offi, for a period to be determined by the trustees, but not exceeding one further term." The National Housing Federation Code of Governance states: ' The Board has beeen five and 12 members.... Maldon Housing Association's Articles of Association, established in 1966, stste= "The trustees when complete consist of at least 7 and no more Ihan 15 individuals..
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) TRUSTEES, REPORT YEAR ENDED 31 MARCH 2024 (continued) Structure Govemance and Mana ement continued The Board of Trustees meets four times a year and holds further meetings should that be deemed beneficial in order to conduct the affairs of the Association effectively. Certain functions are delegated to specific committees that comprise two or more trustees appointed to carry out those particular functions. Each committee has agreed terms of refence which indicate clearly the extent of delegated powers., all proceedings in committee meetings are minuted and recommendations are set befo the Board for consideration and ratification. Committee chairs are elected annually immediately following the AGM, no trustee serving as chair of any one committee beyond a period of six years consecutively. A meeting of residents, chaired by and attended by trustees, is held regularly in each house in tum, enabling residents to discuss any matters that concern them. In order to carry out its prime responsibility of safeguarding the Association, a process of risk management is followed to identify, control and monitor strategic and operational risks. Key areas of risk, as set out in the current Risk Register, are specified under the headings of'governance and management, operational,, 'financial, environmental and external,, and 'compliance with law and regulation., The Finance Committee delegates to specific individuals responsibility for internal audit controls, ensuring that procedures are rigorously applied. The Board of Trustees has overall control of the charity, its property and funds. It has the authority to employ paid staff, who have responsibility for the daily operation of the Association. All trustees are volunteers., if applicable, any expenses reclaimed from the charity and any related party transactions requiring disclosure are set out in note 20 to the accounts. Ob ectives and Activities Maldon Housing Association Limited joined the Almshouse Association on 1 April 2008. The Associats'on has charitable objects and is registered with the Charity Commission. The Objecis ofthe charity are"To provide and maintain Almshouses and associated seiCeS andamenities for persons who are in need of accommodation through old age, chronic sickness, disability (whether physical or mental) or necessitous circumstanGe." Maldon Housing Association Limited has three properties in Maldon, comprising 57 flats, providing high quality supported housing accommodation for people aged 60 or over who have connections with Maldon and are able to live independently. The Association shares with Maldon District Council a 50150 right to nominate residents for 8 vacant flat., the Royal British Legion has nomination rights on those flats for which that organisation has funded bathroorn adaptations. A list of applicants seeking accommodation is maintained by the Association and updated regularly. Accommodation is offered according to the criteria specified in the Objects, "neSSIt0uS circumstances. being assessed in terms of age and health needs, isolated circumstances or current unsuitable accommodation. Vthere housing need is deemed to be equal beeen two or more applicants, preferen is given to those who are local, then by reference to length of time on the waiting list. The Association adheres to a policy of equal opportunity; equal access to accommodation by gender, ethnicity or disability is monitored regularly.
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) TRUSTEES, REPORT YEAR ENDED 31 MARCH 2024 (continued) Ob"ectives and Activities continued Maldon Housing Association Limited is committed to promoting independent living and empowering residents to maintain control of their own lives. The aim is to offer a 'home for life., Support staff are on duty betrween 08.00 and 15.00 Monday to Friday,. a welfare check is made at weekends. Outside these hours an emergency alarm system is activated. The Association works with a range of professional bodies, such as Social SeDiices and care agencies, to ensure that care is provided, according to individual needs, enabling residents to maintain independence for as long as possible. Regular team meetings are held to ensure a cohesive approach and that best practice is followed as the Association constantly seeks to evaluate and improve the quality of both the accommodation offered and seNice provided. To this end, residents are encouraged to participate in discussion. Weekly coffee momings in the communal lounge of each house afford an opportunity for residents to meet together, considering any matters pertaining to their well-being or way of life within the organisation. The Chair of the Board of Trustees is accessible to all residents by telephone (Y email, all having these contact details. The Chair responds to all communications, meeting with an individual resident if requested, and discussing any COnrn5 with appropriate staff if necessary. In accordance with the Objects and with the status of Maldon Housing Association under both the Almshouse Association and the Charity Commission, the trustees have continued to ensure that all activities are undertaken with focus on the welfare of current residents and with a view to further the charity's purpose. The trustees have had regard to the Charity Commission's guidan on public benefit in reviewing the airns and objectives of the Association and in planning future acts'vities., they have complied with their duties as set out in Section 17 of the Charities Act 2011. The Board is mindful of the need to plan for providing accommodation for future residents in accordance with the Decent Homes Standard. Work has continued to improve the Association's IT provision, trustees being aware that future residents will have expectattons of reliable access to advances in technology. On 31 March 2024, 52% of the residents of Maldon Housing Association were aged 80 or over. Clearly there is a benefit to the wider community as the supported housing service that the Association has continued to provide has enabled residents in their later years to INe in a 'home for life. rather than having recourse to increasingly pressurised NHS facilities. Achievements and Performance Trustees were delighted to receive two significant donations for Maldon Housing Association Limited during the financial year 2023 - 24. The Binder family of Maldon has been involved wrth Maldon Housing Association Limited since its inception; that interest in the organisation and the well-being of its residents remains, a substantial cheque having been given to the Association as specified in the will of a family member. On behalf of the residents, the Board thanks the family for this. Having submitted a wuest to the Rotary Club of Maldon for a donation to 8SSiSt in funding the improvement of the laundry facility at Fairfield House, trustees much appreciated the generous allocation of £5,000 to enable that project to be undertaken. Residents of Fairfield House have benefitted significantly from the renovation of the laundry room, creating a pleasant environment, together with new, energy effi'cient equipment.
MALDON HOUSING ASSOCIATION LIMITED (Company Limitsd by Guarantee) TRUSTEES, REPORT YEAR ENDED 31 MARCH 2024 (continued) Achievements and Performance continued During 2023 - 24, the Board of Trustees engaged in detailed discussion of the need for funding in order to enable concentration of reSoUrS on Fairfield House to raise the standard of the environment for residents in that propety. If the specified criteria are met, the Board may apply to the Almshouse Association for a major interest-free loan to enable replacement of the windows in Fairfield House as these have deteriorated considerably. Trustees have been concerned to increase energy efficiency through rePlarnent of the aged, ill-fitting windows and subsequently with full redecoration of the communal areas to create a warmer, more comfortable environment for residents. In response to public concern about the potential dangers of RAAC found in buildings, trustees consulted the local architect who for many years had inspected and drawn up plans for several alterations to the properties of Maldon Housing Association Limited. Insurance policies held by the Association have been checked to ensure that the buildings are properly covered. Trustees are confident that any risk to residents from RAAC is minimal. With regard to administrative systems used by Maldon Housing Association Limited, bwo major changes were made during 2023 24. Following thorough evaluation of the HR and H+S provision offered by Citation, under guidance of the Propety Committee the decision was taken not to renew the contract with Citation but to use the services of Croner, which offered more comprehensive elemenls. This will be kept under review in 2024- 25. The Board considered carefully the advantages of installing Fixflo, an IT system that would be used by all managers and their teams, linking finance, maintenance and support. Indeed several of the main contractors who work with Maldon Housing Association Limited utilize this system. The managers of Finance and Facilities strongly advocated adopting the system as it would effectively streamline prosseS of maintenance and would automatically generate invoices. Clearly there were advantages of the reduction of administrative workload and a positive move towards a paperless workplace. Furthermore the Board has a responsibility to prepare the Association for future residents. Thus, although current residents were perceived to need much help from the support team in reporting maintenance issues through Fixflo, future residents would increasingly expect to use IT systems. This would give individuals some control over work to be done in their own flats. The 8oard took the decision to install the Fixflo system. Trustees decided that Maldon Housing Association Limited should participate in the trial of the Customer Satisfaction Survey that will be a reqU1ment of all large housing associations. The support team assisted residents where asked in completing the survey comprising mandatory questions. It was most grattfying to be able to report a high level of satisfaction with current services and the environment recorded by residents of Maldon Housing Association Limited. Financial review Maldon Housing Association Limited, as part of its pwdent financial planning, maintains cash reseNes primarily to ensure that the organisation can continue to provide services to residents ft)r a period of six monlhs in the unlikely event that income is not received. In addition, the Association holds a number of financial bequests that are used to fijnd specific matters detailed in each individual bequest.
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) TRUSTEES, REPORT YEAR ENDED 31 MARCH 2024 (continued) Financial Review continued The Board of Trustees has agreed the following allocation of ring-fenced reserves: Desi nated reserves 6-month operational reserve £210,000 Miss B. J. Abberley bequest to be used in respect of SIdentS, welfare Mrs E. Mott bequest to be used for the welfare of residents in Fairfield House £6,373 £2,802 Miss J. Barwell bequest to be used for the welfare of residents in Fairfield House £1,505 Miss B. Weaver bequest to be used for the welfare of residents in Fairfield House £2,178 Miss J. Jelbart donation to be used for personal items required by a resident on emergence admission to hospital £60 Cash reserves, together with day-to-day income, are invested with a number of financial institutions under the following criteria: The investrnent level in any one institution is covered by the Financial Services Compensats'on Act. Cash is available to be drawn down to meet cash flow requirements. The investment achieves the best financial retum with a minimum level of risk. While the Board of Trustees reviews the investment policy annualty, investment performance is reviewed at both Board and Finance Commrttee meetings. The surplus for the financial year ending 31 March 2024 was £22,101 (2023.. £521. Reserves at 31 March 2024 are £1,381,860 (2023. £1,359,759). The income for the year 2023-24, totalling £595,007 {2023'. £542,614), primarily comprises rentslweekly maintenance contributions, Servi charges and the release of social housing grants. The percentage increase in income {excluding grant income) compared to the previous year is 10.0 /0. The increase in trading income is consistent with the Regulator of Social Housing requirements for weekly maintenance contribution increases and the Association's calculation of Servi Charge costs. The expenditure during 2023-24 mainly comprises costs associated with provision of the support and alarm servi, maintenance costs associated with the upkeep of the Association's properties and administrative costs. io
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) TRUSTEES, REPORT YEAR ENDED 31 MARCH 2024 (continued) Value for Mone The trustees recognise the importance of providing value for money and are committed to ensuring that this is achieved on behalf of both Sidents and the charity. They are vigilant in regular review of processes to identify and implement improvement in services. In April 2018, the Regulator of Social Housing intrOdUd seven metrics against which providers must be measured. Metrlc 2023-24 2023-24 Actual 2022-23 Actual 2023-24 Taryet Pear group median. Reinvestment % 7.70 4.9% 2a. New supply social housing 0.3% O.OO/o 0.0% 2b. New supply non-social housing units % Gearing % EBITDA MRI interest cover 0.20 0.00 0.0% 0.0% 47.1Vo -6.5% 0.40 120.6¥0 555.3% 894.6% -1241.7¥0 Headline social housing cost per unit Operating margin per unit % (social housing lettings only) Operating margin Q/ (overall) ROCE £6,550 £10,966 £10,385 £10,291 6a. 19.10 0.50 6b. 11.7Q 3.30 0.5% -15.70 2.5% 1.ovo 4.6Vo 'From 'Value for money metrics and pOrting - Annex to the Global Accounts 2023, published February 2024 (Reference tables.. Cost Factor HOP Provider). Commenta on metrics 1. Reinvestment °A: This looks at the investment in properties, both exists'ng stock and new supply, as a percentage of the value of total properties held. In 2023-24 Maldon Housing Association Limited has invested in its current stOGk. It h8s not invested in new stock and has received no grants for development of existing properties. 2. New suppty.. This records the number of new social housing units that have been acquired during the year as a proportion of total social housing units owned at the end of the period. Maldon Housing Association Limited has not acquirEd any new social or non-social housing unrts during 2023-24. li
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) TRUSTEES. REPORT YEAR ENDED 31 MARCH 2024 (continued) Value for Mone continued 3. Gearing". This assesses how much of the adjusted assets comprise debt and the degree of dependence on debt finance. The gearing for Maldon Housing Association is negative as the cash balance exceeds the debt. 4. EBITDA MRI Interest Cover: This measures the level of surplus that is generated by a registered social provider compared to interest payable, avoiding distortions arising from depreciation. Maldon Housing Association, as supportedlhousing for olderpeople housing, has higher costs than most housing associations but this is covered by increased turnover. The Association generates high sUlus8S 8g8inst interest payable. thus generating a high cover. 5. Headline social housing cost per unit.. This assesses the headline social housing cost per unit as defined by the Regulator. The social housing costper unit for Maldon Housing Associaln is hwher due to Èhe supported element. 6. Operating margin.. This demonstrates the profitability of operating assets before exceptional expenses are taken into account. As a specialist provider, Maldon Housing Association tends to have lower margins than other housing associations. All surpluses are reinvested in maintaining the A&wciation's property assets, fluctuating from one year to another depending upon timing of repairs and maintenance work. 7. Return on Capital Employed.. This CoMpaS the operating surplus to total assets less current liabilities, thus assessing the efficient investment of capitsl resources. This has increased fmm the preVu8 year. Disclosure of information to the aud5tors The trustees confirm that, as far as they are aware, there is no relevant audit infonnation of which the Association's auditor is unaware. They have taken all steps required of them as trustees in order to make themselves aware of any relevant audit information and to establish that the auditor is aware of that information. Governance and Financial Viabili The trustees confirm that Maldon Housing Association Limited has met the Regulator of Social Housing's regulatory expectations in the governance and financial viability standard. Auditors Beever and Struthers were appointed as auditors during the period under review. A resoluts'on proposing auditor appointment is put to the AGM. Registered offi. Fairfield House, 33 Fambridge Road, Maldon, Essex, CM9 6AD 12
MALDON HOUSING ASSOCIATION LIMITED (Company Limitsd by Guarantee) TRUSTEES, REPORT YEAR ENDED 31 MARCH 2024 (continued) Statement b the Board of Trustees in res ect of internal financial control The Board of Trustees is responsible for maintaining a system of intemal financial control, for safeguarding the financial assets of the Association, for taking asOnable steps for the detection of fraud and other irregularities and for ensuring the Association's efficient operation. It is acknowledged that the system in pla can provide only aSOnable and not absolute assuran against rnaterial misstatement or loss. This system is reviewed regularly by the Board. The Association applies a risk management cycle to identify, analyse, control and monrtor strategic and operakn'onal risks, including fraud. A Risk Register sets out how this will be done. Key areas of risk arè Govemance and lQlanagement l Operational l Financial; Environmental and External I complian with Law and Regulation. Intemal control audits ensure that the risk management cycle is applied. Such audits are carried out regularly, nonnally by Iwo trustees or appropriate ex-trustees, a report then being submitted to the Board, aiming to ensure adequate and effective implementation of The formal policies and procedures put in place by the Board for setb'ng clear lines of responsibility and effective financial control over the various areas of the Association's activities- The procedures for the identification, preparation and adoption of an intemal audit programme covering the Association's activities., The provision of accurate management accounts, preparation of budgets including projected balance sheets, cash flow forecasts and regular comparison of management accounts against budgets and reports on variances and the need to consider budget changes. The periodic review by the Board of the overall effectiveness of the system. The Board of Trustees is pleased to report that no significant failings or weaknesses have been found during the year under review which have resulted, or are considered likely to result, in any material loss, contingency or uncertainty. Any minor suggestions for improvement have been absorbed as part of the Association's procedures. {iv) The Trustees, Report and the Financial Statements were approved by the Board of Trustees on the and signed on its behalf by: 2nè SopFQfilR/ 2oLw- Mrs J Toffel Chair 13
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MALDON HOUSING ASSOCIATION LIMITED YEAR ENDED 31 MARCH 2024 Opinion We have audited the financial statements of Maldon Housing Association Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income (including income and expenditure account), the Statement of Financial Position, the Statement of Changes in Reserves, the Statement of Cash Flows, and the notes to the financial statements, including a summary of significant accounting policies in note 1. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 °The Financial Reporting Standard applicable in the UK and Republic of Ireland. (United Kingdom Generally Accepted Accounting practi}. In our opinion, the financial ststements.. give a true and fair view of the stste of the Company's affairs as at 31 March 2024 and of its income and expenditure for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice., and have been prepared in accordance with the requirements of the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. Basis for opln5on 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 Auditorfs responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevanl lo 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 relatSng to golng concern In auditing the financial statements, we have concluded that the Board's use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Board with respect to going concem are described in the relevant sections of this report. 14
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MALDON HOUSING ASSOCIATION LIMITED YEAR ENDED 31 MARCH 2024 (continued) Other inforniatlon The Board is responsible for the other information. The other inforrnation comprises the information included in the Chair's Report and Trustees, Report, other than the financial statements and our auditors report thereon. The Board is responsible 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 extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection wrth our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other informats-on is materially inconsistent with the financial statements or our knowledge obtsined in the course of the audit, or otheiSe 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 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. Opinlons on other matters prescrfbed by the Companle8 Act 2006 In our opinion, based on the work undertaken in the course of the audit.. the information given in the Chair's Report and Trustees, Report for the financlal year for which the financial statements are prepared is consistent with the financial statements; and the Chair's Report and Trustees, Report has been prepared in accordance with applicable legal requirements. Matters on which we are requlred to roport by exceptlon In the light of the knowledge and understsnding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Chair's Report and 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, or returns adequate for our audit have not been received from branches not visited by us" or the financial statements are not in agreement with the accounting records and returns; or certain disclosures of directors, remuneration specified by law are not made. or we have not received all the information and explanations we require for our audit- or the directors were not entitled to prepare the financial statements in accordance with the small companies, regime and take advantage of the small companies, exemptions in preparing the Chair's Report and Trustees, Report and from the requirement to prepare a strategic report. In addition, we have nothing to report in respect of the following matter where the Housing and Regeneration Act 2008 requires us to report to you if, in our opinion: a sab'sfactory system of control over transactions has not been maintained. 15
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MALDON HOUSING ASSOCIATION LIMITED YEAR ENDED 31 MARCH 2024 (continued) Responslblllties of directors As explained more fully in the Trustees, responsibilities for financial reporting set out on page 5, the Board is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board determines is ne$sary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial ststements, the Board is responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board esther intends to liquidate the Company or to cease operations, or has no realistic altemative but to do so. Audltor'6 responslbllltles for the audlt of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individualty or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.ukJauditorsresponsibilities. This description forms part of our auditor's report. Extent to whlch the audtt was considered capable of detectlng Ilregularitles, Includlng fraud We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtsining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In Identifying and addressing risks of material misststement in respect of irregularities, including fraud and non-compliance with and regulations, our procedures included the following.. We obtained an understsnding of laws, regulations and guidance that affect the Company, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Key laws, gUlationS and guidance that we identified included the Companies Act 2006, the Statement of Recommended Practice for registered housing providers: Housing SORP 2018, the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2022, tax legislation, health and safety legislation, and employment legislation. We enquired of the Board and reviewed correspondence and Board meeting minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed controls the Board have in place, where necessary, to ensure compliance. We gained an understanding of the controls that the Board have in pla to prevent and detect fraud. We enquired of the Board about any incidences of fraud that had tsken place during the accounting period. 16
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF MALDON HOUSING ASSOCIATION LIMITED (continued) YEAR ENDED 31 MARCH 2024 Extent to whl¢h the audft was considered capable of detectlng Irregularities, including fraud (contlnued) The risk of fraud and non-compliance with laws and regulations was discussed within the audit team and tests were planned and perfomied to address these risks. We identified the potential for fraud in the following areas.. laws related to the consiruction and provision of social housing recognising the regulated nature of the Company's activibes. We reviewed financial statements disclosures and supporting documentation to assess compliance with relevant laws and regulations discussed above. We enquired of the Board about actual and potential litigation and claims. We performed analytical procedures to identify any unusual or unexpected relationships that might indicate risks of material misstatement due to fraud. In addressing the risk of fraud due to management override of internal controls we tested the appropriateness of journal entries and assessed whether the judgements made in making accounts'ng estimates were indicative of a potential bias. Due to the inherent limitats'ons of an audit. there is an unavoidable risk that we may not have detected some material misstatements in the financial staternents, even though we have properly planned and perfomied our audit in accordance with auditing standards. For example, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing fraud or non- compliance with laws and regulations and cannot be expected to detect all fraud and non-compliance with laws and regulations. Usa of our report Thi8 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 stste 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. Suzanne Lomax FCA (Senlor Statutory Auditor) For and on behalf of Beever and Struthers Statutory Auditor Suite 9b The Beehive Lions Drive Shadsworth Business Park Blackburn BB12QS Date.. 27 September 2024 17
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) STATEMENT OF COMPREHENSIVE INCOME (INCLUDING INCOME AND EXPENDITURE ACCOUNT) YEAR ENDED 31 MARCH 2024 Note8 Year ended 31 March 2024 Year ended 31 March 2023 Turnover 595,007 542,614 Operatlng expendlture {575,080 (539,876) Operatlng Surplus 19,927 2,738 Other interest receivable and similar income 9,274 4,309 Interest payable and similar charges (7,100) {6,995) Surplus for the year and total comprehenslve Income 22,101 52 The financial statements on pages 18 to 36 were approved by the Board of Trustees on and were signed on its behalf by.. T. ry. T.rf Mrs J Toffel r J Willlams Chair Chair of Finance Committee The Statement of Comprehensive Income relates wholly to continuing activities and the notes on pages 22 to 36 form an integral part of these financial statements. 18
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) Company Registration Number.. 05972159 STATEMENT OF FINANCIAL POSITION AT 31 MARCH 2024 Notes Year ended 31 March 2024 Year ended 31 March 2023 Flxed assets Housing properties Other fixed assets 1,$44,790 4.026 1,496,085 5,338 1,548,816 1,501,423 Current assets Investments Debtors Cash and cash equivalents 302,917 21,310 168,862 342,274 23,695 181,997 10 493,089 547,966 Credltor8: amounts falling due within one year 11 164,414 (68,974} Net current a88Ots 428,675 478,992 Credltor8: amounts falling due after more than one year 12 (595,631 (620,656) Net assets 1,381,860 1,359,759 Capltal and resorves Income and expenditure account 1,381,860 1,359,759 Total Reserves 1,381,860 1,359,759 For the year ending 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies. Directors, responsibilities.. The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476., The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements. The charitable company however has been audited under the Charities Act 2011. The financial statements on pages 18 to 36 were approved by the Board of Trustees on 2 't,, .¥ and were signed on its behalf Mrs J Toffel - Chair Mr J Williams- Chair of Finance Committee The notes on pages 22 to 36 form an integral part of these financial statement5. 19
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) STATEMENT OF CHANGES IN RESERVES YEAR ENDED 31 MARCH 2024 Income and Expenditure Rosorve Total Balance as at 1 April 2022 1,359,707 1,359,707 Surplus from Statement of Comprehensive Income 52 52 Balance as at 31 March 2023 1,359,759 1,359,759 Surplus from Statement of Comprehensive Income 22,101 22,101 Balance as at 31 March 2024 1,381,860 1,381,860 The notes on pages 22 to 36 form an integra5 part of these financial statements. 20
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024 Year ended Year ended 31 March 2024 31 March 2023 Notes Net cash generated from operatlng actlvlties (Bee Note l) 31,526 (4,726) Cash flow from InvestSng actlvltFes Net transfer from current asset investments Payments to acquire tangible fixed assets Interest received 39.357 (77,253) 4,007 (74,108) 1,839 (33,889) {72,269) Cash flow from finan¢lng actlvlties Interest paid Repayment of borrowings 17,100) (3,672) (6,995) {3,787) 110.772) (10,782) Net change ift cash and cash equlvalonts (13,135) (87,777) Cash and cash equlvalent8 at beglnning of the year 181,997 269,774 Cash and ca8h equlvalents at end of the year 168,862 181,997 Components of cash: Cash at bank and at hand 168,862 181,997 Year ended Year ended 31 March 2024 31 March 2023 Note i: Cash flow from oporating actlvStie8 Surplus for the year Adjustments for non-cash items: Depreciation of tangible fixed assets Carrying value of housing property disposals Decrease in trade and other debtors (Decrease) in trade and other creditors 22,101 52 28,574 1,286 2,385 (4,658> 24,191 148 (10,548) Adjustmonts for investing or financlng activities: Government grants amortised in the year Interest payable Interest receivable 121,255 7,100 (4.007) (21,255) 6,995 (4,309) Net cash generated from operating activitres 31,526 (4,726) The notes on pages 22 to 36 form an integral part of these financial statements. 21
MALDON HOUSING ASSOCIATION LIMITED (Company Limitsd by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 Legal Status The Association is registered in England and Wales under the Companies Act 2006, regISted number 05972159 as a company limited by guarantee and was incorporated in England on 19 October 2006. It is also registered as a Registered Provider of Social Housing under Section 13 of the Housing Act 1974 for the purpose of receiving grants and other forms of assistance. The Associats'on registered with the Charity Commission on 7 August 2007.lts registered office is Fairfield House, 33 Fambridge Road, Maldon, Essex, CM9 6AD. 1 Prlnclpal Accountlng Pollcles (a) Bas18 of accountlng The principal accounting policies of the Association are set out in the following paragraphs. These financial statements are prepared under the historical cost convention and in accordance with applicable United Kingdom Accounting Generally Accepted Accounting Practice (UK GAAPI, FRS 102 and the Statement of Recommended Practice for registered housing providers: Housing SORP 2018. The financial statements comply with the Charities Act 2011, the Companies Act 2006, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. The financial statements are prepared on the historical cost basis of accounting except for investments which are held at fair value, and are presented in sterling £. The Association's financial ststements have been prepad in compliance with FRS 102. The Association transitioned from previous UK GAAP to FRS 102 as at 1 January 2014 and subsequently adopted the Housing SORP: 2018 update Statement of Recommended Practice for registered social housing providers as at 1 January 2019. As a public benefit entity, Maldon Housing Assoclation Limited has applied the public benefit entity 'PBE' prefixed paragraphs of FRS 102. (bj Going Concem After reviewing the entity's forecasts and projections the Trustees have a reasonable expectation that the entity has adequate resources to continue in operational existen for the foreseeable future. The entity therefore continues to adopt the going conrn basis in preparing its financial statements. 22
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) I Prlncipal Accounting Pollcle8 (contlnued> (c) Judgements and key sources of uncertainty The preparation of the financial statements qUireS management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Ststement of Financial Position date and the amounts ported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates. The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements. a) Categorisats'on of housing properties. The Association has undertaken a detailed review of the intended use of all housing properties. In determining the intended use, the Association has consKlered if the asset is held for social benefit or to earn commercial rentsls. b) Impairment. The Association has identified a cash generating unit for impairment assessment purposes at a propety scheme level. Other key sources of estlmatlon and assumptions.. a) Tangible fixed assets. Tangible fixed assets are depreciated over their useful lives tsking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. b) Fair value of Financial Instruments. Changes in the fair value of financial instruments are recognised in profit or loss for the period. (d) Turnover As the Association is registered as an Almshouse, it does not receive rent, but WMC (weekly maintenan contributions). Turnover represents weekly maintenance contributs'ons, service charges and support services and income receivable net of voids. It also includes the release of deferred Social Housing Grant income Isee 1 (e)J. Maintenance contribution income is recognised when the property is available for let, net of voids. 23
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) 1 Principal Accountlng Pollcles {contSnued) le) Soclal Housing and other Govemment grants lthere developments have been financed wholly or partly by social housing and other grants, the amount of the grant reiVed has been included as deferred income and recognised in turnover over the estimated useful life of the associated asset structure {not land), under the accruals rnodel. SHG received for items of cost written off in the Statement of Comprehensive Income Account is included as part of turnover. SHG must be recycled by the Association under certain conditions, if a property is sold, or if another levant event takes pla. In these cases, the SHG can be used for projects approved by Homes England and Greater London Authority. However, SHG may have to be repaid if certain conditions are not met. If grant is not required to ba recycled or repaid, any unamortised grant is recognised as Turnover. In certain circumstances, SHG may be repayable, and, in that event, is a subordinated unsecured repayable debt. lfj Flnance Costs Loan interest Costs are calculated using the effective interest method of the difference betsveen the loan amount at initial recognFtion and arnount of maturity of the related loan. (g) faxatlon Maldon Housing Association Limited is a charity within the meaning of the Charities Act 2011 and as such is a charity within the meaning of Part 11, Corporation Tax Act 2010. Accordingly Maldon Housing Association Limited is potentially exempt from taxats'on in respect of income or gains received within categories covered by Part 11, s.478 Corporation Tax Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992 to the extent that such Inco or gains are applied exclusively to Its charitable purposes. (h) VAT The Association is not registered for VAT. All amounts disclosed in the financial statements are inclusive of VAT. (l) Tanglble flxed assets and deprnciation Housing Pmpertlos Tangible fixed assets are stated at cost, less accumulated depreciation. Freehold housing properties are stated at cost together with incidental costs of acquisikn'on, administration costs and interest up to the date of completion. 24
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) 1 Princlpal Accounting Policles IcontSnued) Houslng Properties (continu) FehOld land is not depreciated. Depreciation is charged so as to write down the cost of freehold housing properties other than freehold land to their estimated residual value on a straight line basis over their expected useful economic lives as below.. Structure Roof Windows Bathroom Kitchen Boiler Electrical 100 years 70 years 30 years 15 years 10 years 15 years 40 yea Amunts are capitalised where required by the Statement of Recommended Practice. In doing so their useful economic lives are considered for the purposes of depreciation. Amounts capitalised are included within the fixed asset note whilst items of a revenue nature are charged to the Statsment of Financial Activities. Historically, component additions purchased by the Association have been offset against grants received for these purposes. Oth•r fixed assets offi furniture, fittings and equipment are stated at cost and depreciated over their expected economic useful lives at the following annual rates: Fumiture, fittings and equipment Computer equipment 20% straight line 25% straight line Equipment with a short life such as washing machines, televisions, fridges and cookers are accounted for on a replacement basis. U) Current asset Investments Current asset investments include cash and cash equivalents invested for periods of more than 3 months. They are recognised initially at cost and subsequently remeasured to market value at the reporting date. Any change in valuation between reporting dates is recognised in the statement of comprehensive income. Ik) Short-tem? debtors and creditors Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from Impairment are recognised in the income statement in other operating expenses. 25
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 20241continued) 1 Principal Accountlng Policies (contlnued) (l) Flnancial Instruments Financial instruments such as loans, accounts payables, accounts receivables and cash are classified either as basic or complex. All financial instruments are initially measured at their fair values at the time the transactions occur. Subsequently all basic instruments are measured at amortised cost and all complex financial instruments are measured at a fair value through the comprehensive income. Financial instruments held by the Association are classified as follows: a. Cash is held at cost. b. Financial assets such as current asset investments and receivables are classifi'ed as loans and receivables and held at amortised cost using the effective interest method c. Financial liabilities such as creditors and loans are held at amortised cost using the effective interest method. (m) Reservos The Association transitioned from preparing financial statements in accordance with the Charities SORP, to the SORP for social housing providers 2014, as at 1 April 2017. The Housing SORP 2018 has subsequently been adopted. The Housing SORP 2018 does not permit the use of designated funds, for the purpose of this SORP such designations are considered to be an inlernal matter and do not require disclosure in the primary statements. The fi'nancial statements ongoing will show one income and expenditure reserve for all activities of the Association. (n) Loans Loans are stated in the Statement of Financial Position at the amount of the net proceeds after issue, plus in¢aseS to account for any subsequent amounts amortised. (o) Apportlonment of management expenses Direct ernployee, administration and operating costs have been apportioned within the Statement of Comprehensive Income on the basis of the costs of the stsff directly engaged on the operations dealt with in these financial statements. 26
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) 1 Prlncipal Accountlng Pollcies (continued) (pj Operating lease agreements Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease. (q) Cash and cash aqulvalents Cash equivalents are recognised as such and included with other cash balances where they represent short term, highly liquid investments that are readily convertible to known amounts of cash without being subject to a significant change in value. (r) Impalm?ent of flnanclal as80ts Financial assets are assessed at each reporting date to determine whether there is any objective evidence that a financial asset or group of financial assets is impaired. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. 27
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) TURNOVER, OPERATING EXPENDITURE AND OPERATING SURPLUS 2024 Operating Operating expenditure surplus Turnover Soclal houslng Income (Note 3) 588,506 575,080 13A26 Activities other than 8oclal houslng Other Income 6,601 6.501 Total 595,007 575.080 19,927 2023 Operating Operating expenditure surplus Turnover Soclal housing income (Note 3) 542,614 539,876 2,738 Actlvlties other than 8oclal housing Other Income Total 542,614 539,876 2,738 28
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) 3 TURNOVER AND OPERATING EXPENDITURE FROM SOCIAL HOUSING LETTINGS 2024 2023 Income from soclal housing lettings Maintenance contributions Service charge income Amortised government grant 306,919 260,332 21,255 275,203 246,156 21,255 Total Income from lettings 588,506 542,614 Expendlturo on houslng SeNice costs Management costs Routine maintenance costs Planned maintenance costs Property depreciation 244.844 170,472 52,568 81,239 25,957 224,535 114,382 45,973 134,500 20,486 Total 8xpendlture on lettlngs 575,080 539,876 Oporatlng surplus 13,426 2,738 Void losses 8,481 19,703 29
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee> NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) 4 OTHER INTEREST RECEIVABLE AND SIMILAR INCOME 2024 2023 Interest on deposits 9,274 4,309 5 INTEREST PAYABLE AND SIMILAR CHARGES 2024 2023 Nationwide Building Society loan Orchardbrook loan 1,461 5,639 1,311 5,684 7,100 6.995 6 SURPLUS ON ORDINARY ACTIVITIES 2024 2023 The operating surplus is ststed after chargingl{crediting)-. Auditors remuneration (excluding VATI In their capacity as auditors In respect of other services DepClatIon of Housing Properties Depreciation of Other Fixed Assets Legal dispute- exceptional costs 7,170 1,275 25,957 2,617 47,294 6,720 1,195 20,486 3,705 3,944 30
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) 7 HOUSING PROPERTIES Total Completed Properties Cost At 1 April 2023 Additions Disposals 2,064,054 75,948 (25,565) At 31 March 2024 2,114,437 Doprttlatlon At 1 April 2023 Charge for the year Released on disposals 567,969 25,957 (24,279) At 31 March 2024 569,647 N•t Book valuo At 31 March 2024 1,544,790 At 31 March 2023 1,496,085 Works to exlsting propertles In the year Improvement works capitalised Components capitalised Amounts charged to expendrture 75,948 81,239 The carrying amount of housing properties pledged as securities is £1,075,726 {2023: £1,048.043). 31
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantse) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) 8 OTHER FIXED ASSETS Furniture, fittings Computor and equlpment equlpmont Total Cost At 1 April 2023 Addits'ons 55.746 7,602 1,305 63,348 1,305 At 31 March 2024 55.746 8,907 64,653 Depreciatlon At 1 April 2023 Charge for the year 52,848 1,567 5,162 1,050 58,010 2,617 At 31 March 2024 54,416 6,212 60,627 Net Book Value At 31 March 2024 1,331 2,695 4.026 At 31 March 2023 2,898 2,440 5,338 9 CURRENT ASSET INVESTMENTS 2024 2023 Current Asset Investments 302,917 342,274 10 DEBTORS 2024 2023 Maintenance charge arrears Other debtors and prepayments 337 20,973 2,952 20,743 21,310 23,695 All debtors are due within one year. No loans have been made or are outstanding to Board members, officials or employees. 32
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) 11 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR 2024 2023 Loans (note 12) Trade creditors Other creditors and accruals Taxation and social security Deferred capital grant (note 13) Prepaid maintenance contribution charge 4,029 3,793 27,437 7,810 21,255 90 3,931 10,154 30,736 2,182 21,255 716 64,414 68,974 12 CREDITORS: ANFOUNTS FALLING DUE AFTER MORE THAN ONE YEAR 2024 2023 Deferre(I capital grant (note 13) Loans 531,363 64,268 552,618 68,038 595,631 620,656 Total loan8 Orchardbrook Nats"onwide Building Society 51,405 16,892 52,002 19,967 68.297 71,969 Loan payments due within one year Loan payments due after more than one year '. Repayable in one to two years Repayable in fvio to five years Repayable after five years (all repayable by instslmentsl 4,029 3,931 4,103 12,909 47,256 3,995 12,438 51,605 68,297 71,969 The loan advanced by Orchardbrook to finan the develOpnt of housing land and buildings will be repayable by equal annual instalments over 60 years, the last instalment of which falls to be repaid on 31 August 2045. Interest is charged at a rate of 10.875% per annum. The Nationwide Buil(Jing Society loan was initially taken out in September 1993 in order to redeem the loans with the Housing Corporation (effectivety now Homes England) and the local authority and to finance the cost of new windows for Berridge House. The loan is for 35 years, the last instalment of which falls to be repaid on 31 August 2028. The interest rate is variable. 33
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 {continued) 13 DEFERRED CAPITAL GRANT 2024 2023 At 1 April 573,873 595,128 Released to income in the year (21,255) (21,255) At 31 March 552,618 573,873 Amount due to be released < 1 year Amount due to be released > 1 year 21,255 531,363 21,255 552,618 The total accumulated government grant 552,618 573,873 The total accumulated government grant and financial assistance received or receivable at 31 March.. 1,062,733 1,062,733 14 COMPANY LIMITED BY GUARANTEE The company does not have share capital and is limited by the guarantee of its members. If the company is dissolved while each person remains a member, orwithin e1Ve months aftemards, each member promises to pay up to £10 towards the costs of dissolution and the liabilities incurred by the company while he or she was a member. 34
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) 15a. WAGES AND SALARIES 2024 2023 Staff costs during the year Wages and salaries Social security costs Pension contributions 181.830 12,008 1,905 174,744 11,213 1.937 195,743 187,894 The average number of persons employed by the Association during the year was 12 12 The average number of persons employed by the Associab'on on a full time equivalent basis (based on 35 hour week), during the year was There were no full time equivalent staff whose remuneration exceeded £60,000 in the year {2023'. none) 15b. KEY MANAGEMENT PERSONNEL REMUNERATION 2024 2023 The aggregate emoluments paid to or receivable by non-executive Directors and former non*xecutive Directors The aggregate emoluments paid to or receivable by Key Management Personnel The aggregate compensation paid to or receivable by Key Management Personnel The emoluments paid to the highest paid Key Management Personnel excluding pension contributions The aggregate amount of Key ltslanagement Personnel or past Key Management Personnel pensions, excluding amounts payable under a properly funded pension scheme The aggregate amount of any consideration payable to or receivable by third parties for making available the ser11$ of a Director or Key hnanagement Personnel The aggregate amount of any consideration payable to Directors or Key Management Personnel for loss of office There was no Chief Executs've officer employed during the year {2023.' none) None of the Board of DirectOrsrUStees received remuneration in the year (2023: £nil). DIrectorsrUsteeS had £13 expenses reimbursed during the year (2023.. £117). 35
MALDON HOUSING ASSOCIATION LIMITED (Company Limited by Guarantee) NOTES TO THE FINANCIAL STATEMENTS YEAR ENDED 31 MARCH 2024 (continued) 16 ACCOMMODATION IN MANAGEMENT 2024 2023 Number of units of housing accommodation Supported housing and housing for older people 57 57 17 CONTROL The Association is controlled by the Board of Twstees. No one individual has overall control. 18 OPERATING LEASE COMMITMENTS At 31 March 2024, the company had no commitments held under operating leases (2023: none). 19 CAPITAL AND OTHER COMMITMENTS 2024 2023 Capital expenditure that has been contracted for but has not been provided for in the financial statements Capitsl expenditure that has been authorised by the Board but has not yet been contracted for 16N69 44,501 209,122 75,141 225,591 119,642 The Association expects these commitments to be contracted wh1n one year and will be financed with available cash funds. 20 RELATED PARTIES There were no related party transactions that required disclosure in the year to 31 March 2024 (2023: none). 21 ANALYSIS OF CHANGES IN NET DEBTI(FUNDS) 2023 Cashflows 2024 Loan borrowings 71,969 (3,672) 68,297 Total liabllities 71,969 (3,672) 68,297 Cash and cash equivalents (181,997) 13.135 (168.862) Total net debU(funds) (110.028) 9,463 1100,565) 36