Beever and Struthers ChartEred Accountants One Expre55, l George Leigh Street Manchester M4 5DL Date.. DURHAM AC,EII MINEWOIUI{S, HOMES AS.%OCIATION P.0. fftSox31 Thc Grov¢ 16R Front Strcet ChestrT le SiieeE County Durham DH33MI Tel..101911388 1111 FaL1019113&% 2838 Etnail". 1nfo(wdantha.u.vk w.ha.0llk Dear Sirs This rèpresentation letter is provided in connectSon with your audit of the financial statement5 of Durham Aged Mineworkerf5 Homes Association I'the A5sociation"I for the year ended 31 March 2024 for the purpose of expressing an opinion as to whether the financial statements give a true and fair view of the results and financial position of the in accordance with United Kingdom Accounting Standards (united Kingdom Gènerally Ac¢epted Accountillg Practice) and relevant social housing le£i51ation. We confirm, to the best of our knowledge and belief the following representations= We are responsible for the preparation of financial statements in accordènce with United Kingdom Accounting Standard5 Iunited Kingdom Generally Accepted Accounting Practicel and relevant social housing legislation. which give a true and fair view of the financial position of the Association as of 31 March 2024 and of the results of its operations and its cash flows for the year then ended and for making accurate representations to you. 2. Significant assumptions used by us in making accounting estimates, including those measured at fair value, are reasonable. We have no plans or intentions that may materially31ter the carryingvalue andwhererelevant thefair value measuremènts or classification of assets and liabilitiès reflected in the financial statements. We have disclosed all known actual or possible litigation 3nd claims whose effects should bè considered when preparing thefinancial statements and these have been disclosed in accordance with the requirements of accounting standards. Related party relationships and transactions have been appropriately accounted for and dlsc105ed in accordance with the requirements of accounting standards. All events sirTrce the balance Sheet date which reqvire disclosure or whith would materially affect the amounts in the financial statement5 have been adjusted or disclosed in the financial statements. 7. We confirm that the ffnancial statements are free of material misstatements, indudin8 omissions. All rnisstatement5 identified during the audit were corrected INVESTORS IN PEOPLE Silv8r wyIIywTrdNo. I2757 ARW5*dck1fityN 1191033.
- We confirm that, having considered our expectation5 and intentions for the next twelvÈ months. including the availability of working capital, the Association is a going concern. We confirm that the disclosures in the accounting policies are an accurate reflection of the reasons for our considèration that the financi31 statemènts should be drawn up on a going concern ba51S. All accounting record5 and relevant information have been made available to you for the purpose of your audit. We have provided toyou all other information requested andgiven unrestricted acces5 to persons within the entityfrom whom you have deemed it neCsaryt0 obtain auditevidon¢e/ request information. All otherrecords and related information including minutes of all managementand board rneetinÉs have been made available to you.
- All transaction5 undertaken by thèA550ciation have been properly reflected in theattounting records and are reflected in the financial statements.
- We acknowledge our responslbility for the design. implernentation and maintenance of controls to prevent and detect fraud. We have disclosed to you the result5 of our assessment of the risk that the financial statement5 rnay be materially misstated a5 a result of fraud.
- We have disclosed to you all information in relation to fraud oi suspected fraud that we are aware of and that affects the entity and involves management or employee5 who have significant role5 in Internal ctsntrol, or others, where fraud could have a material effect on the financial statements.
- We have disclosed to you all information in relation to allegations of fraud, or su5pectÈd fraud affecting the entitV'5 financial Statements communicated by Èmployees, former employees, analysts, regulators or others.
- We confirm that we are not aware of any possible or actual instance of non-compliance with those laws and regulations which provide a legal framework within which the Association conducts its business and which could affect the financial statements. TheAssociation has complied with all aspects of contractual agreement5 that COLtld have a material effect on the financial ststements in the eventof non<ompli3nce.
- We confirm that we have disclosed to you the identity of the Associatlon's related parties and all related party relationships and transartions relevant to the Association that we are aware of.
- TheAssociation has satlsfactorytitleto all assets, and theTe areno liens oreneumbrance5 on theassets except for those disclosed in the linancial Statements.
- There are no liabilitles, contingent liabllities or guarantees tothird parties otherthan th05edtsclosed Trn the financial statements. We confirm to the best of our knowledge and belief that the above representations are made on the basis of enquiries of manageTllent and staff with relevant knowledge and experiènce and, where appropriate, of Inspection of supporting documentation sufficient to satisfy ourselves that we can properly make each of the above representatlons to you. We acknowledge our legal responsibilities regarding disc105ure of information to you as auditors and confirm that so far as we are aware, there is no relevant audit information needed by you In connection with preparing your audit report of which you are tsnaware. Each Board member has taken all the5tepsthattheyought to have taken as a Board member in orderto makethemselves aware of any relevant auditinformation andto establish that you are aware of that information. Yours faithfully Signed on behalf of the Board by: .ISignaturèl .IP051tionl (Datel
Durham Aged Mineworkers' Homes Association
Trustees' report and accounts
31 March 2024
Durham Aged Mineworkers'Homes Associafyon TnJsteos'roport arjd accounts Yearonded 31st March 2024 Contents The Board Managgmenl Team and Advisors Report of Th& Board Stalernent of Trustees, responsibilities in respect of the Trustees, Report and the financial stslemenls Independent Auditols Report to the Trustees of Durham Aged Mineworkers, Homes AsSlation Stalernent of Comprehensive Income for the year ended 31 sl March 2024 ststemenl of Flnancial Position as al 31st March 2024 Slalernenl of Changes in Reserves for the year ended 31st March 2024 Statement of Cash Flows for the year ended 31st March 2024 Notes to the Financial Statements 14 15 19 20 21 23 Registered office.. The Grove 168 Front Street Chestor-le-street Co. Durham DH3 3YH Charity NiJmber.- 1191033 Registered Provider Number.. 5125 Company no.. 12758375
Durham Aged Mineworkers, Hom8s ASS0•tOn Trust688'report and accounts Year ended 31st March 2024 The Board Trusteès Anne Rowlands (Chairl Gillian Bramfitt Ivice Chairl Kate Abson Catherine Louise Buckton Diane Carney Mark Reid Stephen Guy Andrew Thompson Nicholas Malyan Pauline Boll INI IN} {Nl IA) IA} Resigned September 2023 INI Rèsigned April 2024 IA) Appointed September 2023 IA) Appointed September 2023 IAI&IN} I members serve on The Board. Those indicated IA} wver the Audit Committee, and INI cover the Nominations and Remunerab'on Committee.
Durham Aged Minework8rs' Hom8s Associatlon Trusl8es'report and accounts Year ended 31st MarGh 2024 Management Team and Advisors Managemgnt Team Offi¢ers Paul Mullis FCA Nicola Local FCCA Michael Wright MCIOB Andrew Thompson FCCA Chief Executlvg Finance Director Operations Director Finance Director Resigned June 2024 Appointed September 2D24 Extemal Audltor Bgever and Strulhers One Express, 1 George Lèigh Street Ancoats Manchester M4 5DL Internal Audltor TIAA - Appointed April 2023 Artillery Hous Fort Fareham Newgate Lane Fareham P014 1AH Bankers CAF Bank Limited 25 Kings Hill Avenue Kings Hill Wesl Malling Kent ME19 4JQ Co-opèrative Bank Ple Norfolk House 90 Crey Slreat Newcastle upon Tyn NE1 68Z Solicltors O'Neill Richmonds Law Fimi Limited 1-2 Lansdowne Terrace East Gosforth Newcastle upon Tyne NE3 1HL Trowers & Hamlins LLP 55 Princess Street Manchester M2 4EW
Dutham Aged Mineworkers'Homes Association Trustees'report and accounts Year ended 31sl March 2024 Report o* The Board This pOrt has been prepared in accordance wth relevant legislation including the Slalemenl of Recommended Practice for Registered Social Housing Providers. The members of the Executive Committee present their report together with audited financial ststements for the year ended 31 March 2024. Status Durham Aged MineworkeTS' Homes Asslation was estsblished in 1898. On midnight of 31 sl March 2021 the charity be¢ame a Company LimTted by Guarantee INumber 127583751 and is administered by Articles of Association, which were adopted al that date. It is a Registered Charity (Number 1191033 - formèdy Number 2226731, Registerod Housing Prowder INumb$r 5125 - formerty Number A32131 and a M8rnb8r of the Nats'onal As80cialion of Almshouses. The Board The Goveming Body of Durham Aged Mineworkers, Homes Association is known 8$ °Ihe Board.. Members of the Board have legal responsibility as Directors of the Company and Trustees of the registered charity, and their details are sel out on page 1. All Trustees of the Association pay a £1 subscription, which carries no right lo dividends or repayment of capital. The Chief Executive is not registered as a Trustee of the Charity and does not have the legal status of Director of the Company, bul manages the day-to-day operations of the organisats'on under authority delegated by the Board. Invastmant Powers The Articles of Association èmpow8r the Association to invest money not immediately required for its PLtrposes in accordance with the ststulory powers of investment available to charfcable trusts from lime lo time. Objects The Arti¢les define the objects 8S'. To provide and maintain services and facilities for aged, infirm or disabled wrsons or those in finaricial need, with parb'cular regard for the needs of the Original Bèneficiaries. For that purpose to provide and maintsin.. Social housing in the fom) of almshouses, which may be houses, bungalows, apartmet)Is or sheltered homes, for such persons who lexcept in the case of Original Beneficiaries or in other special cases to be approved by the Trustees) are primarily over the ago of 50 al the lime of appointment Leasehold accommodation specially adapted for aged, infirm or disabled persons., Gardens, common room5, workshops, garages and other ancillary facilities for the benefft of residents. To manage or provide advice or assistance in the establishment of and management of housing schemes provided or to be provided by other ¢hariti@s. In this clause 'the Original Beneficiaries. means needy, aged, infirm or disablecl persons who were fomierty employed in or about coal mines in the County of Durham as constlluted on 31st March 1974 or are, or were. the dependents of persons so employed.
Durtjam Ag Min&workers' Homes AssoGi8tion Tryst6es' port and accounts Y88r endgd 31st M8rch 2024 Report of The Board {¢ontlnued} Results for the yèar The Association h8d an operating surplus for the year of £2,253k 12023.. £2,105kl and an overall surplus for the year of £1,632k12023.' £1,266kl. Review of activitles and achi8vements We are pleased So be abla to report continuing strong résults for the Association, despite a year of high inflation and ongoing cost pressures. We are working in a challenging business environment, with intemational political events continuing to push inflation up lo very high levels. Despit@ this, we continue to COnntrate on providing the best service for our residents whilst making the best use of our resources. We face many ongoing challenges in the Durham Coalfield. We work within deprived communities with an in¢reasingly aging population. ongoing reductions in local authority spending and s8rvices, and a private Sector housing market that appears r8luctant and unsuited lo provbde appropriato and affordable housing in the increasin9 quantities needed. With this as the background, we continue with a strong focus on delivellng value for money wlhin the ongoing housing crisis in our region, focusing on th$ prsoritios and needs of our residents, and those who would like to become residents. Our Five-year Corporate Strategy sel out in 2022 detsils a strategic vision that is ambitious and facilitates a programmè of long-term deVelopent of new homes, whilst addressing the govemrnenl's carbon-reduction agenda. Overall. our main Key Performance Indicators are those measuring residents, satisfaction. This is measured objectively in compliance with the Regulator of Social Housing's TSM Standard. In keeping with pVIoLI8 surveys, tho Association scored very highly. The survey undertaken in September 2023 nole(J a slight Improvement in overall satisfaction, wth 94% of resiclenls surrfeyed reporting they were either faiY, or very satisfied with the overall service provided by the Association, compared with 930/0 in 2022. This maintained a position towards the top of the 1st quartila of Registered Providers in the country for the year, out of those organisalions undertaking the survey. Satisfaction remained high across all main areas including 97.0 /¢ who were satisfied that their home was well rnainlained and safe lo live in, 96.40/0 who were satisfied with how enquiries are dealt with and 96.1 Yo who were satisfied that the Association treated ils residents fairly and with respect and 96.6 /0 being satisfied wth the way the Association dealt with repairs and mainl•nance. An area idenb'fied to be less satisfactory than others was the grass cutbng and grounds mainten8n¢e seNice- where 29°A of respondents identified issues. This was a known problematic area with the contractor experiencing difficulb'es recruiting sufficient staff lo fulfill their obligations. Negotiations and discussions with the conlrartor took place during the year in conjunction with the Association's 'Gardening Club" {a committee of residents which assists staff in discussing grounds maintenance porformano} wth a view lo improving performance in tho 2024125 f5nancial year and beyond.
Durham Aged Mineworkers, Homes Asso¢latn Tnjstees, report and aocounts Year &nded 31st Mamh 2024 Report of Th• Board l¢ontinuedl Rgvlew of activltles and achi•vèments contlnued The majority of the Association's rents are °social rents. by definition and Comply with govemmenl policy regarding rent setting. As part of the agreed funding mechanism for new homes built between 2011 and 2016, a proportion of stock let at Target Rent are converted to Affordable Rent on re-let as calculated by the Rents Standard. We currently have 237 12023.. 2301 properties where the Maintenance Charge is now set at Affordable Rent levels. Due to the prevailing conditions of the housing market in the Durham Coalfield area, frorn time lo lime some Affordable Rents fall back below Target Rents. In this case, our maintenance charges revert lo Social Rent levels as calculated on a property-by-property basis on relel. Asset Management strategy Our existing homès continue lo be maintained lo a high standard, consistent with the neecls of our residents who are primarily eldeAy, reb'red, and many of whom have additional vulnerabilities. An annual planned maintenance programmè is undertaken lo ensure that all our propèrties continue to exceed the decent homes standard and meet the evolving expe¢tslions of our residents. However. having bgen in existence for 125 years it is the cas8 that a numbgr of our hornes are now older and from time to time may become UnSLJilable to the needs and aspirations of our residents or changing legislation or standards. We, therefo, operate an active Asset Management Strategy and continually review all our stock for Condition and desirability. Homes that are considered lo have become of low social value or require excessive expenditure lo maintain lo our high standards are deemed redundant. and after consultation with residents. will be sold lo third parties al market value in compliance with the Charities Act 2022 as and when va¢anci8s arise in them. The financial capitsl released this way is recycled into our developmant programme for new homes. The sale of 3 bungalows were completed in 2023124. Govemanca Ragulatory Requiremants The Associab'on's govemance arrangements comply wth governance good practi and regulatory standards. Thè Association Complies with the Regulator of Social Housing's IRSHI Regulatory Framework 2nd Standards and complies with the RSH'S Govornance and Flnancial Viability Code of Practicè.
Durham Aged Mineworkers, Homes Associaln Trustees. report and 8Gcounts Year gnded 31st Mgrch 2024 Rèport of the The Board {continu•d) Thè Board The Association has 8doptèd the National Housing Federation NHF Code of Goveman¢e 2020. Compliancè th the Code is evidencèd by an annyal assessment carried out by the Board. The Board has a wealth of experience of the comrnunily il serves, professional skills and a high degree of enthusiasm and commitment. TrLtslees ars appointed on the basis of qualifications and skills deemed by the Board to be needed by the Association, and are Subject to re-election after terms of 3 years, with a maximum period of service of 6 years, with the possibility of further years of seNice in the case of exceptional business need lo a maximum of 9 years in total. Audlt and Rlsk Commlttee An Audit and Risk Committee is in place and adws6s The Board on extemal financial reporting, intemal audit and risk. Internal and extemal audit matters are fftported lo the committee and the auditors are invited lo allend relevant meetings where audit mallers are discussed. Additionally, Committee MeberS are given the opportunity lo m891 with internal and fyxlernal auditors wthout paid staff being present. Identlfl¢atlon and evaluatlon ol kèy risks The Association completes regular risk appraisals_ rhe risk appraisals are based on a matrix system to highlight those areas where the Association is most at risk. This enables the Association to ensure that those risks are mitigated as far as possible. The appraisajs and assessments of key strategic risks are reviewed periodically throu9houl the year. Management responsibility has been cleady defined for the identification, evaluation and control of significant risks. There is a formal and ongoing process of management review in each area of the Association's activities. This process is Coknordinated through a regular reporting framework by the Audit and Risk Committee. Thè Exe¢ulive Management Team regularly considers reports on significant risks facing the Association and the Chief Executive is responsible for reporting lo Thè Board any significant changes affecting kay risks as they are identrfied.
Durham Aged Mineworkers. Homes AsSocialn Trustges, report and aGcounts Yesr ended 3fst March 2024 Rgport of Tho Board Icontinuedl HeaEth and Safety at Work The Association tskes tts responsibilities for Health and Safety towards employees, contractors and the public seriously and monitors performance and risk accordingly. During the year ended 31st March 2024 there were no workplace injuries or losl-time evanls 12023.. nill. Sickness absence decreased in the year with 0.86% of working days being lost due lo sickness absence per employee. The Association continues lo offer flexible working arrangeinents, which has been shown lo reduce short-tetm absenS. The Association aims to maintain this excellent re¢ord and continues lo invest in training and regular external rewew of polics, procedures, and practices a¢cordingly. Risk management The RSH has reportgd that the Association me8ts the requirements sel out in the Governan and Financial Viability Standard. The Board is responsible for idenlifwng th8 risks faced by the Association and for delgrmining the appropriate action lo manage those risks. The Asso¢ialion has adopted a formal Risk Management Strategy, which involves carrying out an annual risk appraisal exercise based upon a proce$$ of control and risk self assessment. During the year, the Association considered its most serious risk lo be cyber security. Criminals are going lo ever increasing lengths in their attempts to gain acc8SS to computèr systems. The Association updatod its computer servers in 2021122 to improve the security of its data. In April 2023 we obtained the Cyber Security Essentials PILJS accr¢dilation-, a third party verification that our computer systems are secure. This was retained in 2024. We continue lo do all we can lo reduce this risk going forwaid. The AsSOCtalion continues lo be exposed lo uncertainty and risk due lo the political instsbility in Europe. Using local contractors and not developing property for sale helps to manage our exposure to risk. However, there are still many unknowns around the longer term impacts, especially around infialion, ¢osts and availability of materials for our contractors. We continue lo monitor this risk and work closely with our conlra¢lors to respond quickly to any changes in the external environment. We believe we are adequately mitigating against this risk. Other risks in the Association's matrix are relatively longstanding and have identifigd and long established mitigations in place. The main risks identified in the matrix have t>een used as the basis for signrfinI stress lesling of the Annual Financial Plan and the ongoing business model, which testing indicates that the model is very robust and proposed specific mrf(igations will provide for the ongoing financial viability of the Association nder most foreseeable adverse scenarios.
Dutham Aged Mineworkers, Homes Associatn Trustees, pOrt and accounts Year ended 31st March 2024 Report of The Board Icontinu¢d) Intemal control The Board has overall responsibility for establishing and maintaining the whole system of internal eonlrol and for r8viewing its effectiveness. Thè Board recognises that no system of internal control can provide absolute assurance or eliminate all risk. The system of internal control is designed lo manage risk and lo provide reasonable assurance that kèy business objectives and expected outcomes will be achieved. In meeting its responsibilities, The Board has adopted a risk-basgd approach to internal controls, which are embedded within the normal management and governan process. This approach includes the regular evaluation of the nature and extent of risks to which the Association is exposed to. The Board reviewed and updal8d the Association's inlemal Standing Orders and Financial Regulations which document intemal controls. during tho year. The process adopted by The Board in reviewing the effectiveness of the system of internal control. together with some of the key elements of the control frameworf< includes.. Monitorlng and cOeCtIve actlon A process of control self-assessment and regular management reporting on Control issues provides hierarchical assurance to successive levels of management and lo The Board. This includes a rigorous procedure for ensuring that corrective action is taken in relation to any significant control issues, particularfy those with a material impact on the financial statements. Control envlronment and controlprocedures The B08rd retai$ responsibility for a defined range of issues covering strategic, owrational. financial and Compliance issues including treasury strategy and new investment projects. The Board has adopted the National Housins Federation's recommended Code of Conduct. This sets out the Association's policies with rogard to the quality, integrity and ethics of its employees. 11 is supported by a framework of policios and procedures with which employees musl comply. These cover issues such as delegated aLJthority, segregation of duties, accounting, treasury manageinent. riealth and safety, data and asset prole¢tlon, and fraud prevention and detection. Inft+rmatlon and flnanclal reporting systoms Financial reporting proCedUS in¢lude datsiled budgets for the year ahead and forecasts for subsequent years. These are reviewed and approved by The Board. The Board also regularly reviews key perfomance indiogtors to assess progress towards the achievement of key business objectives, targets and outcomes. The inlemal ¢onlrol framework and th8 risk management process are subject to regular review by Internal Audit who are responsible for providing independent assurance lo The Board via the Audit and Risk Committee. The Audit and Risk Committee considers internal control and risk al each of its meetings during the year. The Board, has conducted its annual rèview of the effectiveness of thè system of internal control and has taken account of any changes needed to maintsin the effectiveness of the risk managament and control process. The Board confirms Ihal there is an ongolng process for identtyng, evaluating and managing significant risks faced by the Association. This process has been in place throughout the year under review, up to the date of the annual report, and is regulady rewewed by The Board.
Durham Aged Mineworkers. Homes Associaln Tru$lees'r8POrt and 8Gcounts Yearended 31st M8rch 2024 Report of The Board l¢ontinuod) Consumor Standards The Board asserts that the Association is working towards Complian wth the new Consumer Standards which came into effect in April 2024. The Association has ¢ompleled a self-assessmenl against the new Consumer Stsndards and believes we are lar9ely in complian¢e. The Associab'on has an action plan to address aroa8 where we believe we are not yet achieving them, prograss against whi¢h is routinely roported lo the Board Subsidlary Charitios= The Association manages four subsidT2ry almshouse charities, which were link6d with Durham Aged Mineworkers Homes Association INO. 11910331 via a special resolution datéd 8 October 2021. These charities are 8ccounled for as Reslricled Reserves within the Association's overall reserves, share commo Trustees, and whose details are sgt out on page 46. The activib'es of the subsidiary 21mshouse charities during the year have been as follows.. Brandon Colliery Aged Workers, Homes Association The Association was founded in 1930 and is a Registered Housing Association (No. 37681. Its object is to providè residence for aged persons in need in Brandon and own the property, being the land and buildings known as Brandon Aged Miners, Homes, acquired on 15 July 1930. The twelve one-bedroom, single-storey lerra¢ed homes were all fully occupied throughout the year with average weekly maintenance contribution charges of £75_4012023.. £70.24) Cockfield Aged Miners, Homes Thè Charity was founded In 1900 to provlde homes for retired or infimi mineworkers In the Parish of Cockfield. It is an unincorporated almshouse charity. A sl¢xk condition Survgy was carried out in 2001, which revealed a programme of works qUired to bathrooms and kitchens, roDfs and electrics. Whilst the charity had sufficient funds lo meet ongoing obligations for day-t day repairs, there was a shortfall of available reseNes to fund the longer term program1ng of the works idenlrfied in the survey. In May 2010 il was resolved lo dispose of properties as they became vacant, and stalulory consuyiation look place in JLine 2010. Al 31st Marfjh 2024, all 7 homes have been sold. The proceeds of sale have been ringfenced pending a suitable development site being identified within Cockfield for the provision of new homes. . Homes for Aged Mineworkers and other Workmen al Wingale Colliery The Charily was founded in 1913 and was fomalised by a trust deed dated 31 Juty 1936 to provide homes for aged mineworkers and other workmen formfjdy employed al Wingalo Colliery. 11 is an unincorporated almshouse charity. The charity's sole remaining properly fell vacant in 2005 and following extensive efforts, no suitable applicants were found from the benefi¢iary class. The propety was disposed of in March 2006 and the surplus g8neratgd on the sale will be utilised to provide modern homes in the benéficiary area when an appropriate sile is identrfied. William Russfyll Bequest The Association look over the management of the William Russell Bequest almshouse charity in 2017. bringing the bungalows into thè Durharn Aged Mineworkers, Homes Association group of linked ¢harili&s. The 7 >bedrOoM. single-slorey bungalows were all fully occupied throughout the year with average weekly maintenan¢8 contribLttion charges of £85.5512023-. £79.06)
Dutham Aged Minewothers, Homes AssoGiètion Trustees'report and 8ccounls Year ended 31st March 2024 Report of The Board {eontinued} Golng Conc•rn The Association's business activlties, together th the factors likely to affect ils future development, performance and position are set out in the report of The Board on pages 3 to 13. The Association meets its day to day working capital requirements through the current account, which is cash positive al the year end. The Association meets il development programme requirements through a combination of grant and debt funding. Note 20 to the ac¢ounls highlights the Current level of debt and repayment terms. The current economic conditions create a degree of uncertainty over the longer term availability of grant and bank finance. The Assockalion's forècasts and projections show that the Association should be able lo continue to operate within the level of its current facilities arTd no matters have been drnwn lo its attention lo suggest that future funding may not be forthcoming in acceptable temis. After making enquiries, The Board has a reasonable expectation that the Association has adequate resources to ¢ontinue in operational existence for the foieseeable futijre. Accordingly. they continue to adopt the going concem basis in preparing these financial statements. Value for Money Statement Th8 Association, as a Registered Charity is committed lo boing an effective and efficient social business achieving high levels of Value for Money ("VfM'I in all its activities. A new Vfm Strategy was approved in February 2023. The strategy recognises that Vfm has been a fundamental ethos of the AssociatFon for a long time. The Ststemenl identified 4 objectives for Vfm for the Association over the following 3 years_. Maintain and improve resident satisfaGtion within budgetary restraints Review the effi¢iency of key processes Maintain high performan¢e in key, recognised Vfm indices Ralionalising our stock This report wll ¢over our progress in these areas, as well as giving a general picturg of Vfm within the Association. In pursuing its eharitable objectives, the Asso¢i81ion does not fund any significant social activities other than maintaining existing homes, and building new ones. Consequenuy all expenditure is dir8Cted al one Of Other of tha$e activities. The Association's Annual Financial Plan, which forms the basis of the Association's Corporate Plan, is updated every year. This is the primary way in which capital resources are allated between these competing priorities. The Board havts operated the following underfyng priorities within the business plan for many years". Maintaining financial viability.. Providing cost-effective services lo residents., Fund investment in existing stock to maintsin a standard appropriate lo the aspirations of the residents and in excess of the Decent Homes Standard., Providing an on-going dèvelopment programme lo addrgss the undersupply of affordable and appropriately designed homes for older people in the region. io
Durham Aged Mineworkers, Homes Association Trust6es'report 8nd accounts Year 8nded 31st March 2024 Report ot The Board {continu•d} Going Concem Report of The Board Icoritinuedl Whilst there is competition beeen these prioritlgs, and there is often a nead lo compromise, this does not apply lo maintaining financial viability. The lalesl upd8le lo the Association's Annual Financial Plan which looks at the potential financial performance of the Association over the next 30 years, was approved by The Board in May 2024 and delivers both an ongoing surplus and a sustainablè developrnent programme. This demonstrates a strong position and meets the expe¢tstions of external stskeholders and funders. Operating Conditions have proved challenging over the last 4 y88rs wtth Covid, Brexit, high inflation and scarcity of resources all impacting on costs. As a result maintenance Costs par unil anLI operating Costs as a percènlaga of turnover have subslanlially increased. Repairs requ8Sted by residents continue lo be a priority, and the Association has sought lo maintain standtrds and service levels despite the increases in unil Costs experienced. This continues to be a challenge, howev&r effictencies have been identified across the organisalion, and il remains our expectation lo continue lo meet long term planned maintenanc@ programmes such that targets for excgeding the decent homos stsndard and achieving EPC-C and long temi decarbonisalion goals will be achieved. Datt}daY maintenance costs again increased signrficanlly in 2023124. The Association employs local ¢ontractors and, in line wath society as a whole, has found shortag¢s of materials leading to in¢reas8d costs. Our overall repairs cost increased by 80/0 12023.. 170/01. We continue lo tender all significant contracts for seNices and look to achieve the best value for money possible in this challenging environmént. li
Dutham Aged mineworke, Homes Asswlalion rmstges, report and aGcounts Ye8rended 31st fvlerch 2024 Rèport of The Board (continu) Repairs requested by residents continue lo be an absolute priority however. and the Association has sought to maintain stsndards and service levels despite the increases in unit ¢osts experienced. This continues to be challenge although very recently CPI dats across the UK economy has started to return lo historic norms and pressure has e8sed a little. Contractual efficiencies have been identified across the organisalion, and il remains our expe¢tation that we will continue lo meet our long term plann@d maintenanco prDgramme such that targets for exceeding th¢ enI homes standard and a¢hieving EPC-C and other long term decarbonisalion goals will be achieved. The arrears of maintenance charges continue lo be low compared lo our peers and we continue lo be proaelive in working with our residents lo keep our arrears al a low level by working with tham clos8ly where problems are identified al an earfy stage. No new homes were built during the year due to ongoing planning delays to a pipeline scheme. however, the Association remains committèd lo the planned development which is still expected to go ahead and lo the development of new homes over tha medium lo long term. The Association is also actively exploring alternative options for viable new developmènt schemes in the short to medium term. Looking forward lo 2024125 we continue lo fa the challenge of inflation on our costs. We have allowed for expectations within our budget and anti¢ipat8 real term savings across other budget areas. The RSH requires us lo report our performance against 7 specific metrics which are as follows 2023124 2022123 2022123 2021122 Metric Outturn Sector Quartile Outtum Outtum 1. Reinvestment % 1.520/0 1.570/. 4.689/0 2a. Mew Supply DelTvered Social Housingy 2b. New Supply Delivered Non Social Housing Y. 3. Gearing Earnings Before Interest, Tax, Depreciation, Amortisation, Major Repairs Included IEBITDA MRI) 5. Headline Social Housing Cost per Unit 6a. Operating Margin - Social Housing / 6b. Operating Margin- All % 0.00 /0 nla o.ooo 1.27Y. O.OOO/o nla O.OOQ/¢ 347Q 262% 424% £3.516 £3.287 £3,122 22.310/0 22.84% 25.91 Q/0 25.501 7. Relum on Capital Employed IROCEI 2.56°1• 2.3401. 2.74Q 12
Durt)8m Ag&d Mineworkers, Homes Association Trustees'report and accounts Year endgd 31st March 2024 Report of The Board leontinu•dl We havé benchmarked our results against 22 near-peers in the North of England using the lalesl annualised data available from Housemark at the lime of preparing this report.. the 2022123 financial year. In 2022123 we continued to perform well for most measurements. Reinvestrn&nt remains relatively low due to low relative planned maintenance spend per unil. Howevor, our properties continue lo be well maintained, with our ongoing, externally validated stock condition survey and low level of resident complaints underscoring the goocl ¢ondFtion in which our stock is maintained. As well as the RSH metrics we subscribe to a Pulse report wth Housemark. Thls report demonstrates that we perform well against our peers with high satisfaction levels with the overall service we provide. Looking forward lo 2024125 we wll work to reduce costs WheVer possible within the difficult high inflation environment that we find ourselves in, whilst ensuring we continue lo provide the high level of Servi that our re$ents have come lo expe¢l. Alongside all Registered Providers we are anticipating the rèquirement for significant investmènt in our stock in order lo comply with forth¢oming regulations on EPC standards and the government's long term tsrgel of achievinu net zero carbon èmisions. We have Èstablished priorities for investment and have begun work accordingly. The priority for the Association remains maximising the opportunity for affordable wamilh for our residents wthin the changing energy 8nvironmenl ahead. Resld•nt Satl$faction Tha results of the latest customer satisfaction survey. condu¢ted in July 2023, provide a picture of ongoing continuous improvement in all areas since 2010. Given the Dngoing high level of a¢hievemenl in the survey results and in benchmarking against our peers, the Association Is sèeking lo maintain its high levels of salisfaclion. The satisfaction of our residents and applicants, continues lo the main priority of the Association and continuous effort is focused on ensuring that perfomiance in this area does not detèriorate. The Associallon complies with the 2023 Tenant Satisfaction Measure Standard and reports surveys of residents perspectives 8ccordingly. Our fLtII results for 2023124 are publishod on our website and can be downloaded from there "Annual Raport to Résidents 2023124.. Provisional benchmarking has been undertaken with Housemark, in advan of the Regulator of Soaal Housing's review of the sector data and our results indicat& that we are in the lop quartile of perfomance for all measures collected. This should come as no surprise as the Core No.1 within our Corporate Strategy is lo 'Put the residents al the heart of everything we do and provide an appropriate and high quality and continually improving service.. The Board pays tribute lo our staff. residents, representatives. scrutiny panel and gardening club members, as w811 as all Trustees who have relentlessly focused on this primary objective for very many years. 13
Dutham Aged Mineworkers'Homes Association Trustees'report and accounts Year ended 31st March 2024 Statement of Trustees, responsibilities in ra$pect of the Trustees, R•port and the flnancial Statements Under charity law, the Trustees are responsible for pparing the Trustees, Report and the financial statements in aordanCe wf(h applicable law and regulations. The financial ststements are required by law to give a irue and fair view of the slate of affairs of the Assouation and of the surplus or deficit for that period. In Prepartng these financial stalemenls, The Board is required to.. select suitable ac¢ounting policiès and then apply Ihern consislenlly,. make judgements and 8slimales that are reasonable and prudent.. slate whether the recommendations of the Statement of Rewmmended Practi have beon followed, subject lo any maleTial departures disclosed and explained in the financial statements., stste whether the financial statements comply with the tnjsl deed, subject lo any material departures disclosed and explained in th& finan¢ial slalemenis,. and ppare the financial statements on the going concem basis unless it is inappropriate to presume that the Association wll eontinue in business. The Trustees are responsible for keeping proper accounting records, suffi¢ienl to disclose al any lime, with reasonable a¢curacy, the finallcial position of the Association at that time and enable Tho Board to ensure that its financial statements comply with the Charities Act 2011, the Housing and Regeneration Act 2008 and the Accounting Direction for Private Registered Providers of Social Housing 2022. The Board has general responsibility for taking such steps as are reasonably open lo them lo safeguard the assets of the Association and to prevent and delecl fraud and other irregularities. Tha Board is responsible for the maintenance and integrity of the corporate and finan¢i81 information includod on the Association's website. Legislation in Ihe UK governing the preparation and dissemin81ion of finanGial statements may differ from legislation in otherjurisdictions. Dlsclo$ure of Information to auditor The Trustees who hgld office al the date of approval of this report confirm that, so far as they are each aware, there is no relevant audit information of which the Association's auditor is unaware., and each member has tsken all the steps that helshe ought lo have taken as a member lo make himselflherself aware of any relevant audit information and to establish that the Association's auditor is aware of that infomialion. Audllor A resolution lo reappoint Beever and Strulhers as auditor was proposed at the Annual Ganeral Meeting. Signed on behalf of the Trustees.. Chair Anne Ro%3ndS 14
Durham Aged Mineworkers' Homes Association Trustees' report and accounts Year ended 31st March 2024
INDEPENDENT AUDITOR'S REPORT TO THE TRUSTEES OF DURHAM AGED MINEWORKERS' HOMES ASSOCIATION
Opinion
We have audited the financial statements of Durham Aged Mineworkers' Homes Association (the 'Association') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Reserves, the Statement of Cash Flows and the notes to the financial statements. 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 Practice).
In our opinion, the financial statements:
• give a true and fair view of the state of the Association's affairs, including related housing activities, as at 31 March 2024 and of its incoming resources and application of resources, for the year 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 Charities Act 2011, the Housing and Regeneration Act 2008, the Accounting Direction for Private Registered Providers of Social Housing 2022 and the Housing SORP 2018: Statement of Recommended Practice for Registered Social Housing Providers.
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 ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the trustees' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Association's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the trustees with respect to going concern are described in the relevant sections of this report.
15
Durham Aged Mineworkers. Homes Assoualion Trustees'report and accounts Year endod 31st March 2024 Other Infomiation The other infomialion comprises the informab'on included in the trustees, report. other than the financial statèments and our audrtor's report Iheroon. The Iruslees are responsible for the other information contained within the trustees, pOrt. Our opinion on the financial slalemenls does not cover the other information and, except to the extent otherwis& explicitly slated in our report, we do not express any fotm of assurance conclusion the0. If wo identify such material inconsistenciés or apparent material misstat8ments, we are required to determine whglher this gives rise to a matefial misstatement in the financial statements themselves. If, based on the work we have pèrformed, we Conclude that there is a material misslatemenl of this other information, we are required lo report that fact. We have nothing lo report in this regard. Matters on which we are required to report by exceptlon We have nothing to report in respect of the following matters in relation to which the Charities (Accounts and Reports) Regulations 2008 require us to report to you if, in our opinion.. in light of the knowledge and understanding of the Association and its environment obtained in the course of the audit, we have not identified material misstatements in the Iruslees, report,. or proper accounting records have not been kept., or the financial slalements arg not in agreement wrfch the accounting records,. or we have Trot received all the information and explanations we require for our audit. Under the Housing and Regeneration Act 2008, w8 are required lo r8POrt to you if, in our opinion= proper accounting records of its transactions 8nd its assets and liabiltttes in relation lo its housing activities have not been kept., and a satisfactory system of control of those records. its cash holdings and its receipts and remittan$ in relation lo those activities has not been maintained. Rosponslbllities of trustèes As explained more fully in the Statement of Trustees, Responsibilities sel out on page 14. th9 Iruslees are responsible for the preparation of the finan¢ial statements and for being satisfied that they give a true and fair view, for such inlemal control as the trustees determines is n&ssary to enable the pieparalion of financial stslements that are frè8 from material misststement, wh6ther duo to fraud or arror. In preparing Ihg financial stalemenls, the Iruslees are responsible for assessing the Association's ability to continue as a going concern, disclosing, as applicable, matters related to going ¢oncem and (Jsing the going concem basis of accounting unless the trustees either intends to liquidate the Association lo cease operations, or has no realistic alternative but to do so. Audltorfs responslbllities for the audlt of the financial statoments We have beèn appointed as audltor under section 144 of the Chariti Act 2011 and report in accordance the Act and relevant regulations madè or having effect thergunder, 16
Durt)am Aged Mineworters'Homes Association Trustees'report and accounts Year gndgd 31st March 2024 Our objectives are to obtain reasonable assurance about whether thfr financial slalemonls as a whole are free from material misslalement, whether dug lo fraud or error, and lo issue an auditor's report that includes our opinion. Reasonable assuran is a high level of assuran, bul is not a guarantee that an audrf( conducted in accordance with ISAS IUKI will always delect a material misslalemenl when it exists. Misslatemenls can arise from fraud or error and are considèred m81erial if, individually or in the aggrègate. thgy could reasonably b¢ oxpectgd lo influenc8 the economic decisions of L*sers taken on the basis of these financial ststements. Auditoffs re$pon$ibilities for the audit of the flnaneial Statements A further description of our rtrsponsibililies for the audit of the financial statements is located on the Financial Reporting Council's web-site at www.frc.org.uk12udilorsresponsibilities. This description forms part of our auditor's report. Extent to whl¢h the audit was ¢onsldered capabl8 of det8¢ting irregularities, in¢luding fraud Irregularities, includlng fraud, are instances of non-compliance with laws and regulations. Wo design procedures in line with our responsibilities, outlined above, to delect material misstatements in respect of iegularl11e$, including fraud. The extent to which our procedures are capable of dglecting irreguladties, including fraud is detsiled below We obtained an understsnding of laws, regulations and guidan that affect the Association, focusing on those that had a direct effect on the financial statements or that had a fundamental effect on its operations. Kay laws, regulations and guidance that we idèntified included the Charities Act 2011, the Statement of Recommended Practice for registered housing providers.. Housing SORP 2018, the Housing and Reg8neration Act 2008, the Accounting DiTrclion for Private Registered Providers of Social Housing 2022, tax legislation. health and safety legislation. and employment legislation We enquired of the Iruslees, and reviewed correspondence and board meeting Minutes for evidence of non-compliance with relevant laws and regulations. We also reviewed eonlrols the Iruslees, have in place, where necessary, lo ensure complian¢e. Wg gained an undersianding of the Controls that the trusteas, have in placè to prevent and detect fr8Lrd. We enquired of the Iruslegs about any incidences of fr8u(J that had taken plac@ during the accounting period. Thè risk of fra4Jd 8n¢J non-¢ompliance with laws and regulations was discussed wthin the 8udit team and tests were planned and performed to address these risks. We identified the potential for fraud in the following areas: laws related to the construction and provision of social housing recognising the regulated nature of the Association's activities. We revi6wed financial slalements disclosures and supporting documentstion lo assess compliance with relevant laws and regulations discussed above. We onquir8d of the Irust8es about actual and potential litigation and claims. 17
Durham Aged Minewothers, Homes Assooiation Trustses'report and accounts Ygar ended 31st March 2024 We performed analytical proCedUS lo identify any unusual or unexpected relationships th8t might indicate risks of material misstslement due to fraud. In 8ddressing the risk of fraud due lo management override of internal controls we lest8d the appropriateness of joumal entries ancl assessed whether the judgements made in making accounting estimates were indicative Df a potential bias. Use of our report This report is made solely to the Association's trustees, as 3 body, in accordance with Part 4 of the Charikn'es {Accounls and Reports) Regulations 2008. Our audrt work has been undertaken so that we might stale to the trustees those matters we are require(1 to slate 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 oth6r than the AssoGiation and the AssoGialion's trustees as a body, for our audit work, for this report, or for the opinions we have formed. Richard Graham ACA Isenior Ststutory Audilorl For and on behalf of B8ever and Strulhers Slalulory Auditor One Express 1 Sl George Leigh Street Ancoats Manchester M4 5DL Dale.. 25.09.24 18
Dutham Ag&d Minewort(ers' F4omes AsSociatn Trustees'r8POrt and 8Gcounts Yègr ended 31st MorGh 2024 Statement of Comprehenslve Income for the year ènded 318t Mar¢h 2024 2024 2023 Total £'ooo Total £'ooo Note Turnover 8,791 Operating Expondlture Release of Disposal Proceeds Fund ProfiVILossl on Disposal of Fixed Assets {7,234) 16.7781 47 92 Operatlng Sury)lus 2.253 2.10$ Iriteresl Receivable 260 77 Interest and Financing Costs (881) {916) Surplu5 for the year 1.632 1,266 Actuarial GainllLoss} in Respect of Pension Schemes Movement in Fair Value of Investments {400} {721 14 42 1331 Total Comprehensive Income for the Year 1.274 1.161 The financial stat8menls were approved and authorised for issue by the Board on 19 September 2024 and signed on its behalf by.. Chalr Anne Rowlands Chair of Audit Commlttse Alark Rold The As$oclations' r•$utts rèlate whollyto eontlnuing •ctr¥ltl•s and the not•$ on pages 23 to 48 forni an Intègral part of these linanclal statements. 19
Durham Agsd mineworke, Homes Association Truste&s' report and accourpls Y6ar end6d 37st March 2024 Statemont of Finan¢ial Position as at 31st March 2024 31 March 2024 £'ooo 31 Mar¢h 2023 £'Doo Flxed Assets Tangible Fixed Ass8ts Investments 12,13 14 77,978 1,285 79,263 78,625 1,220 79,845 Current Assets Trade and Other Debtors Cash and Cash Equivalents 15 445 9,637 10,082 271 8,820 9,091 Cr¢ditors'. Amounts Falllng Due Withln One Year 16 13,990} {3,234} Not Current Assots Total Assets loss Curront Liabllities 6.092 8S.355 5.857 8S,702 Credltors.. Amounts Falling due After More than ono Year 17 (55,3111 {57.0221 Provisions for Llabllltles Pension Liability 22 11,2531 11,1631 Total Net Assgts 28,791 27,517 Reserves Income and Expenditure Reserve Other Reserves Total Reserv•s 24,681 4,110 28,791 23,406 4,111 27,517 25 The financial statements were approved and aulhorised for issue by the Board on 19 Soptember 2024 and signed on its behalf by-. Chalr Anne Rowlands Chair of Audit Committeo Alark Reld The notès on pages 23 to 48 fomi an rntegral part of these financlal slatements 20
Durham Ag8d Minewothers, Homes Assouation Trustees, r8POrt and a¢counts Year ended 31st March 2024 Statement of Changes in Resèrvas for the yèar onded 31st March 2024 Income and Expendtture Reserve £'ooo Note Restricted Designated Reserve Reserve £'ooo £'ooo Total £'ooo Balances as at 1 April 2022 Surplus for the Y&ar Release of Disposal Proceeds Fund ActU8rial loss on pèrTrsion liability Movement in Fair Value of Investments Transfer of Designated Expenditure from Designated Reserve Transfer of Reslricled Expenditure from Unreslrict¢d Reserve alance at 31 March 2023 22,185 1,268 1,452 2,719 26,356 1,266 22 14 {721 1331 172} 1331 75 1751 15 1.467 23,406 27,S17 Surplus for the Year Release of Disposal Proceeds Fund Actuarial loss on pension liability Movement in Fair Valug of Investments Tr8nsf8r of Designated Expenditure from Designated Reserve Transfer of Restricted Expenditure from Unrestricted Reserve Balance at 31 March 2024 1,632 1,632 22 14 14001 42 14001 42 {1) 24,681 1,465 2,645 28.791 The notes on pages 23 to 48 form an integral part of the$e finan¢lal stslements 21
Durham Aged Mineworkers' Homes Association Trustees' report and accounts Year ended 31st March 2024
Statement of Cash Flows for the year ended 31st March 2024
| Statement of Cash Flows for the year ended 31st March 2024 | |
|---|---|
| Net Cash Generated From Operating Activities (see notei) Cash Flow From Investing Activities Purchase of Tangible Fixed Assets Proceeds From Sale of Tangible Fixed Assets Grants Received Interest Received Cash Flow From Financing Activities Interest Paid New Secured Loans Other net cashflow Repayments of Borrowings Net Change in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of the Year Cash and Cash Equivalents at End of the Year Note i Surplus for the year Adjustments for non-cash items: Depreciation of tangible fixed assets Amortisation of grants Decrease/(increase) in trade and other debtors lncrease/(decrease) in trade and other creditors Pension costs less contributions payable Profit (Loss) on disposal of tangible fixed assets Release of winter reserve Adjustments for investing or financing activities: Interest payable Interest received Net cash generated from operating activities |
2024 2023 £'000 £'000 3,367 3,122 (1,199) (1,421) 173 458 238 68 (788) (895) (816) (893) 8,000 (144) 2,436 {802) {5,090) |
(1,762) 4,453 817 6,680 8,820 2,140 9,637 8,820 2024 2023 £'000 £'000 1,632 1,266 2,003 1,970 (450) (451) (72) (2) 45 (61) (366) (347) (47) (92) 881 916 {260) ~~{~~77~~)~~ |
|
3,367 3,122 |
The notes on pages 23 to 48 form an integral part of these financial statements
22
Durham Aged Mineworkers' Homes Association Trustees' report and accounts Year ended 31st March 2024
Notes to the Financial Statements
1. Legal status
At the Balance Sheet date Durham Aged Mineworkers' Homes Association was an Incorporated Registered Charity (No. 1191033), a Registered Social Housing Provider (No. 5125) and a Member of the National Association of Almshouses. As set out in the Board Report, Durham Aged Mineworkers' Homes Association became an Incorporated Registered Charity at midnight on 31st March 2021. Durham Aged Mineworkers' Homes Association's principal activity is to provide social housing.
2. Principal accounting policies Basis of accounting
The financial statements of the Association are prepared in accordance with UK Generally Accepted Accounting Practice (UK GMP), including Financial Reporting Standard 102 (FRS102) and the Statement of Recommended Practice (SORP): accounting for Registered Housing Providers 2018 and comply with the Accounting Direction for Private Registered Providers of Social Housing 2022. Accounting policies have been applied consistently throughout the year. The financial statements are prepared on a going concern basis, under the historical cost convention.
While the Association is an Incorporated Charity and a member of the National Association of Almshouses, the Association is also a Private Registered Provider of Social Housing. Therefore the financial statements have been prepared in compliance with the Housing SORP 2018 to enable consistency, ease and transparency in our reporting to the housing regulator.
The accounts include the results and net assets of William Russell Bequest, Brandon Colliery Aged Workers' Homes Association, Cockfield Aged Miners' Homes and Homes for Aged Mineworkers & Other Workmen at Wingate Colliery, which are all entities controlled by Durham Aged Mineworkers' Homes Association. These bodies are all linked to Durham Aged Mineworkers' Homes Association via a linking direction from the Charity Commission. This means that the Association is only required to prepare single entity accounts that consolidate the results of all the linked bodies, rather than preparing separate accounts for Durham Aged Mineworkers' Homes Association and separate consolidated financial statements.
Going Concern
The Association's financial statements have been prepared on a going concern basis which assumes an ability to continue operating for the forseeable future. No significant concerns have been noted in the business plan updated for 2024/25 and therefore we consider it appropriate to continue to prepare the financial statements on a going concern basis. The Associations' business activities, its current financial position and the factors likely to affect its future development, performance and position are set out in the Report of the Board. There is expected to be an additional cost of materials going forward due to high inflation and for the first time in the 2024/25 plan we have included costs of EPC works to bring our properties up to EPC level C. The Business Plan model has assumed that repair costs will rise above inflation by 0.50% in 2024/25 followed by 0.5% for the following three year period. All costs have been fully stress tested without detriment to going concern in May 2024.
23
Durham Aged Mineworkers, Homes Ass(allOn TnJslees' report and accounts Yearended 31st March 2024 2. Prlncipal a¢¢ounting poliel¢8 Icont5nuedl Significant judgements and estimates The preparatlon of the financial ststements requires management to make judgements, eslimales and assumptions that affact the amounts rèported for assets ancl liabilthties as at the statement of finanGial posttion date and the amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could drffer from those estimates. The following judgements lapart from th¢)se involving eslimatesl have had the most signifi¢anl effect on amounts recognised in the financial statements. Development expenditure The Association ¢apitalises development expenditure in accordance with the 8¢eounting policy described on pages 26 and 27. Initial capilalisalion of costs is based on management's judgement that the developrllent scheme is confirmed. usually when Board approval has taken place including access lo the appropriate funding. Useful Ilves of depreclabls assats Management reviews its estimate of the useful lives of depreciable assets 8t each reporting date based on the expected ulilily of the assets. Uncertainties in these eslimales relats to technological obsolescence that may change the utility of certain software and IT equipment and changes to decent homes standards which may require more frequent replacement of key components. Defined benefit obllgation The cost of defined pension plans are delemiined using actuarial valustions. The actuarial valuation involves making assumptions about discount Tates, future salary incrÈ8ses, mortality rates and future pènsion increases. Due lo the complexity of the valuation, the underlying assumptions and long term nature of these plans, such eslimat&s are subject to signifivant uncertainty. Management ulilise the SHPS pension actuary exparts to help detèrmine the appropriate assumplbons and calculatnS to apply. Imp8lm?ont The Association consideTS whether indicators of impairment exist in relation lo tangible assets. Indicators considered include extemal sources of information su¢h as market value, market interest rates and returns on investment. actual or proposeil changes the technological, economic or legal environment, obsolescence or damage to the asset, operational changes or inlernèl reporting which indicates that the asset is performing worse than expected. The Asstsuation also considers expected future performance of the asset. Annually housing properties are assessed for impairment indicators. Where indicators are identified an assessment for impairment is undertaken comparing the carrwng amount of the asset lo ils recoverablè amount. Where the carrying amount of an asset is deem8d to ex¢eed ils recoverable amount, the assèt is written down to its recoverable amount. The resulting impairment loss is recognised as operating expenditure. 24
Duth8m Ag6d Mineworkers, Homes Assouation Trustees, report and accounts Year ended 31st Msrch 2024 2. Princlpal accounting policies Icgntlnuedl Turnover Turnover comprises rental and semce charge income rec8ivable for the year, and amortised capital grants. Rental income is r8wgnised from the point when propertiès under development reach Practical completion or otherwise be¢ome available for letting, nel of any voids. Taxation Durham Agod Mingworkers, Homes Association is considered lo pass the tests sel out In Paragraph 1 Schedul8 6 of the Finance Act 2010 and therefore m@els the definition of a charitabl8 company for UK corporation lax purposes. Accordingly, the charity is potonlially oxempt from tsxakn'on in resp&ct of income or capital gains reiVed within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or section 2S6 of the Taxation of Chargeable Gains Act 1992, to the gxtent that such income or gains are applied exclusively lo charitsble purposes. Interest payablo Interest is capilalised on borrowings to finance the development of qu?lty'ng assets to the extent that il accrues in respect of the period of development if il represents.. a} Interest on borrowngs specifically financin9 the development after deduction of related grants received in advance., or bl A fair amount of interest on borrowngs of the Association as a whole after the deduction of social housing grant received in advanca lo the extent that they can be deemed to be financing the development programme. All othèr interest payable is charged lo the Slalement of Comprehensive Income in the year. Finan¢lal Instruments The Association have assessed financial instnjments héld as basic in accordance with FRS 102, and as such are aoUnted for under the amortised histori¢ cost model, except for the investments held which are measured at fair value. The carrying value of financial instwments at 31 March 2024 was £9,637k. Cash and ¢ash 8quival8nts Cash and cash equivalents comprise cash al bank and in hand as well as short lemi deposlts wlh a maturity dale of the months or less. Debtors Debtors with no slated interest rale and receivable or payable wlhin one year are recorded al transaction price, less any impairment. Credltors CreL*itors with no slated interest rate and receivable or payable within one year are recorded at transaction price. less any impairmènt. 25
Durham Aged Mineworkers'Homes Association Trustees, r8POrt and accounts Year end8d 37st March 2024 2. Principal Accounting policies {¢ontinu¢d) Loans All loans held by the Association are classified as basic financial instruments in accordance wth FRS102. They arè held al transaction prs¢e plus transactions costs initi311y, and subsequenuy al amortised cost usir*g the effective interest rale method. Loan inlarèsl costs are calculated using the effective interest method of the difference between the loan arnounl al initial recognition and amount at matLJrity of the related loan. Employ09 Benefits Short-lerm employee benefts and contributions to defined contribution plans are recognised as an expense in the period in which they are incurred. Penslons The Association participates in an induslry-wide multi.employer pension scheme offéring a number of defined benefit schemes as well as a defined contribution scheme,. the Social Housing Pension Scheme ISHPSI. The Schemo is Administrated by The Pensions Trust ITPTI who also a¢t as the Scheme actuary who provide an estimate of the Assoeiation's Sha of the s¢heme assets and liabilities. The estimate is based on a number of critical underlwng assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may signrficanlly impect the liability and the annual defined benefit expenses. The assumptions used and th& accounting entries underpinning the pgn¥ion liability ostimate can be viewed in note 22. Housing propertles HoLJsing properties are properties held for the provision of social housing or to olhenNise provide so¢ial benefit. Housing properties are principally properties available for rent and are staled at cost less accumulated depreciation and impairmént losses. Cost includas the cost of acquiring land and buildings, Llev6lopment costs and interest charges incurred during the development period. Works to existing proporties which replace a component that has been treated separately for depreciation purposes, along wth those works that result in an increase in net rental income over the lives of the properties. thereby enhancing the economic benefits of the assets, are eapitalisgd as improvem8nts. Land that has been donated lo the Association is added to cost at the fair value of the land at the time of the donation. Land is not depreciatèd. The Association has adopted a d8-minimis level of £5,000, ¥vhich means that all expenditure relating to Houslng Properties below this value is expensed direcdy lo th& Statement of Comprehensive Income rather than being capitslised. In addition, the Association has also adopted the poliGy of treating all expenditure relating to Disabled Adaplalions as revenue expenditure as they are deemed not lo add any value lo a propety. Soclal Houslng Grant Where developments have been financed wholly or partly by social housing and other grants, the amount of the grant recelved has been included as deferred inwme and recognised in Turnover over the estimated useful life of the associated asset structure, under the accruals modtsl. Grant received for items of cost written off in the Statement of Comprehensive Income Account is included as part of lumover. Grant must be recycled by th& Association undér rtaiN conditions, if a proparty is sold, or if another relevant event takes place. In these cases, the grant can be used for projects approved by Homes England. However, grant may have to be repaid if certain eondilions 8re not et. 26
Duth&m Ag&d Mineworkers, Homes Association Trustees'report and accotjnts Year ended 31st Maroh 2024 2. Principal Ac¢ountlng pollcies {contlnued} Recycling of Capltal Grant Where grant is recycled, as described above, the grant is crgdiled lo a fund which appears as a creditor unb'l used to fund the acquisition of new properties, where recycled grant is known lo be repayable it is shown as a creditor due within one year. Depreclation of housing properties Freehold prop6rbes, other than properties under construction, are d8precialed so as lo write down Roof Healing systems 40 years Electrics 30 years Windows and external doors 30 years Lift 25 years Bathroom 20 years 20 years Kitchen Gas Boiler 15 years Freehold land is not depreciated. 10 years Housing properties in the course of conslructton a slated at cost and not depreciated. 27
Dutham Aged Mingwothers'Homos Association Trustees. report and accounts Yfyar ended 31st March 2024 2. Princlpal Accounting policios (¢ontinuod} Oth•r fixed assets and depr¢¢iation Other tsngible fixed assets are depreciated over their useful lives taking into account residual values, whe appropriate. The a¢lual 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, produ¢t life cycles and maintenance programmes are taken into account. The carrying value of tangible fixed assets al 31st March 2024 was £77,g78k. Depreciation is charg$d on a straight-line basis over th8 expected economic useful lives of the assets at the followng annu81 rates.. Freehold offi¢e Equipment, furniture and fixtures 2 /0 per annum straight line method Computer equipment 100/0 P6r annum straight line method 33.30/0 per annum straight line method Leases The rental payable under operating leases is charged lo the Statement of Compreh8nsive Income on a straighl. line basis over the term of the lease. Res•rves The Association establishes rèstricted reseryes for specific purposes where their use is subject to exlemal slrictions. The Association has also created designated reserves as follows.. (i) Planned msinlen8nce and improven7enls A designated reserve has been created in order to meet future expenditure upon planned maintenance 8nd improvements in accordance with the Asso¢ialion's rolling 5 year Planned maintenan Programme, which is revised annually as part of the financial planning process. The reserve has been establishèd lo thé extent that it is considered that expenditure will need to be met from the Association's own reserves. All other expenditure upon improvements major repairs will be mel by a combination of borrowing and Social Housing Grant. {ii) Winter roserve A wnler reserve has been created lo meet excess ¢osl8 incurred in the ovenl of severe winter weather. The current reserve is £60,000 and would be released in the event of significant winter storms. Holiday Ac¢ruals A liability is recognised lo the extent of any usused holiday pay entitlement whi¢h has ac¢Tued al the reporting date and carried forward to future periods. This is measured at the undiscounled salary cost of the future holiday entitlemenl so accruod al the reporting date. 28
Durham Aged Mineworkers' Homes Association Trustees' report and accounts Year ended 31st March 2024
3. Particulars of Turnover, Cost of Sales, Operating Costs and Operating Surplus
| 2024 | |||
|---|---|---|---|
| Operating | Operating | ||
| Turnover | Expenditure | Surplus | |
| £'000 | £'000 | £'000 | |
| Social Housing Lettings | |||
| Housing Accommodation (Continuing Operation) | 9,383 | (7,189) | 2,194 |
| Total Social Housing lettings | 9,383 | (7,189) | 2,194 |
| Other Social Housing Activities | |||
| Garages and Allotments (Continuing Operation) | 1 | 1 | |
| Management Services (Continuing Operation) | 34 | (45) | (11) |
| Lease of Residential Home (Continuing | |||
| Operation) | 22 | 22 | |
| 57 | **(45) ** | 12 | |
| 9,440 | **(7,234) ** | 2,206 | |
| Profit/(Loss) on disposal of fixed assets | 47 | ||
| Operating Surplus | 2,253 | ||
| 2023 | |||
| Operating | Operating | ||
| Turnover | Expenditure | Surplus | |
| £'000 | £'000 | £'000 | |
| Social Housing Lettings | |||
| Housing Accommodation (Continuing Operation) | 8,736 | (6,738) | 1,998 |
| Total Social Housing lettings | 8,736 | (6,738) | 1,998 |
| Other Social Housing Activities | |||
| Garages and Allotments (Continuing Operation) | 2 | 2 | |
| Management Services (Continuing Operation) | 32 | (40) | (8) |
| Lease of Residential Home (Continuing | |||
| Operation) | 21 | 21 | |
| 55 | (40) | 15 | |
| 8,791 | (6,778) | 2,013 | |
| Release of disposal proceeds fund | |||
| Profit/(Loss) on disposal of fixed assets | 92 | ||
| Operating Surplus | 2,105 |
29
Durham Aged Mineworkers. Homes Asso¢iation Trustees. report and accounts Year gnded 31st March 2024 4. Partlculars of Income and Expendlture from Social Housing Lbttings 2024 2023 Houslng Accommodation £'ooo Housing Accommodation £'ooo Rent Receivable Nel of Identifiable Service Charges and void losses Service Charge Income Amortised Govemmenl Grants Other Grants 8,612 321 436 14 8,024 261 437 14 Turnover From So¢lal Houslng Lottings 9,383 8,736 Services Management Routine Maintenance Planned Maintenance Bad Debts Water Rates Impairment of Housing Properties Depreciation of Housing Properties Lease Costs Other Costs 12761 11,167) 13,4811 (19} 1151 {2931 12411 11,0351 13.1371 1951 1241 1277} 11,9301 18) {1,922) 171 Operating Expanditure on Soclal Housing Lottings Qperating Surplus on Social Houslng Lettings Vold Losses (7,1891 {6,738 2.194 11511 1,998 {155) 30
Durl)am Aged MNneworkers' HomgsAssociation Tmstees, r&port and accouftt8 Year ended 31st M8rch 2024 5. Accommodation in Managem•nt and Development At the end tsf the year, accommodation in management for each class of accommodab'on was as foll¢)ws.' 2023 No. of Propertles Addltlons 2024 No. of Prop8rtles D15posals Other Social Housing General Housing.. Social Rent - Affordable Rent Shared Own8rship Units Leasehold Schem6s lor the Elderfy Total Owned 1,551 230 (31 171 t.541 237 16 1.800 16 1.797 131 Accornrno(Jation Nlanaggd for Others Total Managod 44 Total Owned and Managed 1,844 1,841 Accommodation In Development at the Yèar En(1 6. Operatlng SurplLFS The operating surplus is ariived at after charging.. 2024 É'ooo 2023 £'ooo Depreciation of Housing Properties INote 121 Depreciation of Other Tangible Fixed Assets INote 131 1,930 1,922 73 48 Fees Payable to the Association's Auditors for the Audit of the Financial Statement5 Fees Payable to the Association's Auditors for Other Services Fee5 Payable for Internal Audr( Total Audit S¢TvIc•s 31 23 42 31
Dutham Aged Mineworkers, Hom8s Associgtlon Trustees'report and accounts Year ended 31st March 2024 7. Profft {Loss} on Dlsposal of Fixod Assets - Housing Prop•rties 2024 £'ooo 2023 £'ooo Housing properties Disposal Proceeds Carrying Value of Fixed Asse15 Profil (Lossl on disposal 80 33 47 417 325 92 Capital Grant Recycle¢J INote 191 30 134 All values above rglale lo Continuing Operations. 8. Interest Receivable 2024 £'ooo 2023 £'ooo Bank Interest Receivable and Similar Income 260 260 77 77 AJI values above relate to Continuing Opèrations. 9. Interest and Financlng Costs 2024 £'ooo 2023 £'ooo Defined Benafit Pension Charge Loans and Bank Overdrafts 1561 825 {881 {421 874 {9161 Interest Payable Capitalised on Housing Properties Under Constructlon 881 916) All values above relate to Continuing Operations. 32
Durham Aged Mineworkers, Homes Association Tnjslees, report and accounts Year gnded 31st March 2024 10. Employoes 10 a. Employee numbers The average monthly number of employees èxpressed as full time equivalents 1calcul8led based on a standard working week 0135 hours) was-. 2024 2023 Office Based Staff Resident Managers and Care Staff 25 24 28 27 10 b. Ernploy•e costs 2024 £'ooo 2023 £'oDo Wages and Salaries Social Security Costs Other Pension Costs 1,006 96 347 1,449 860 85 318 1,263 Annual payments lo 28 Residènts Representatives lotalling £7.6k are included within waggs and salaries. 10 ¢. Terminatlon benefits During the year, the Association terminated the employment of 1 member of staff12022123.. None). The table b&low sets out the total costs of temiinalion benefits. Other agr•ed d•parturos 2024 2023 £'ooo £'ooo Temiinalion Benefits All termination benefits agreed in 2023124 lone- £3k were paid in full during the year12022123'. None). 33
Durham Ag6d Min9WOrters' Homes Associab'on Trustees, report 8nd accounts Y8ar endgd 31&t March 2024 11, Koy Managem•nt Personn81 11 a. Key Management Personnel costs The aggregate remuneration for key management personnel charged in the yoar is.. 2024 £'ooo 2023 £'ooo Basic Salary Benefits in Kind Pension Contributions 240 215 89 333 85 303 11 b. Key Management Personnel salary bandlngs over £60,000 The full time equivalent number of staff who received emoluments-. £50,000 to £60,000 £60.000 to £70,000 £70,001 to £80,000 £80,001 to £90,000 £90,00110 £100,000 2024 2023 The emoluments of the highest paid director, excluding nSIOn Contributions, We £97,18412022123.' £92,407). 11 c. Emoluments paid to Non Executlve Dlrectoys Emoluments paid to nOn-eXeclve dirèctors of the AssociaOn amounted to NIL12022123'. NIL). 11 d. Chief Executlve's Pansion Thg Chief Executlve is an ordinary member of the pension scheme. No enhancgd or special tgrms apply to the Chigf Executive's pension and he has no individual pension arrangement lo which the A&gocialion makes a contribution. 34
Durham Aged Mineworkers' Homes Association Trustees' report and accounts Year ended 31st March 2024
12. Fixed assets - housing properties
12 a. Housing properties
| 12 a. Housing properties | |
|---|---|
| Cost At 1 April 2023 Additions Reclassifications Works to existing properties Disposals At 31 March 2024 Depreciation At 1 April 2023 Depreciation charged in year Released on disposal At 31 March 2024 Net book value At 31 March 2024 At 31 March 2023 |
Social housing properties held for letting Housing properties for letting under construction Completed shared ownership housing properties Total housing properties £'000 £'000 £'000 £'000 103,083 39 180 103,302 141 141 - 1,183 1,183 (465) (465) |
| 103,801 180 180 104,161 |
|
| 24,971 - 29 25,000 1,930 -0.13538 1,930 (347) (347) |
|
| 26,554 - 29 26,583 |
|
| 77,247 180 151 77,578 |
|
| 78,112 39 151 78,302 |
12 b. Expenditure on works to existing properties
| 2024 | 2023 | |
|---|---|---|
| £'000 | £'000 | |
| Improvement works capitalised | 1,183 | 1,230 |
| Amounts charged to income and | ||
| expenditure | 19 | 95 |
| 1,202 | 1,325 | |
| 12 c. Social housing assistance | ||
| 2024 | 2023 | |
| £'000 | £'000 | |
| Total accumulated social | ||
| housing grant received or | ||
| receivable at 31 March | 45,006 | 44,964 |
| Recognised in the Statement of | ||
| Comprehensive Income | (8,617) | (8,175) |
| Held as deferred income | 36,388 | 36,789 |
35
Durh&mAged Minebvofrers' Hom8sAssoclabon Trusf89s'report accounts Ye8rended31&tMar¢h 2024 12. Fixéd 4ssets- houslng proportlas lcontintsedl 12 d. Flnanco costs 2024 £'ooo 2023 £'ooo Aggregate amount of finance wsls irTrcluded in the c¢¥1 of houslng pri)pertles 20 12 0. Hou81n9 propertits book vzlue n¢t of d8proclatlon 31 March 2024 £'ooo 74.27e 3,302 77,S78 31 M8r¢h 2023 £'ooo 75.000 3.302 78.302 Freehold land and buildin9S Long1ga$ohold land and buildlros 12 f. Impairment The knoGkib"on has parformed an irllpaim)ènl r8Vi8w. lin8 ¥kilh thè accounting polrtyde18id in note 2. FO1n the reviewno impoirmant Irlea1013 have been Id&ntifie(J12023.. NILI. 13. Tanglble fixod assets- oth8r Computer8 and office equlpment £'ooo Fumlturo, flxtLEres and tting5 £'ooo Freehold ffices £'ooo Total rooo Cost At Y April 2023 Additions tMsposa15 At 31 March 2024 492 396 136 108 996 150 492 532 123 1,146 Dprecl8tlon At 1 Aprll 2023 Charged in the year Raleased on disp08al At 31 March 2024 251 350 58 72 673 73 261 40B 7B 746 Net baok value At 31 Plareh 2024 231 124 45 400 A* 31 March 2023 241 46 36 323 14. Flxed A8Strt Inv8Stinents 31 March 2024 31 Makn 2023 £'ooo £'ooo Valuatlon Additions Movefflenl arising on rev81uation Al 31 March 1,220 23 42 1,285 829 424 133 1,220 31 March 2024 £'ooo 31 M8rch 2023 £woo Listefl Inv8slments 1,220 36
Durham Aged Min6workers' Homes Associatlon rruste8s' report and a¢count8 Year ended 31st MarGh 2024 15. Debtors 31 March 2024 £'ooo 31 March 2023 £'ooo Due wlthln one year Rent and service charges receivable Less provision for bad and doubthjl debts Nel rental debtors 187 76 111 123 50 73 Other debtors PrepayTnents and accrued income 13 321 445 194 271 Due aft*r moro than one year PrepayTnents and accrued income 16. Creditors.. amounts falling due withln on8 year 31 March 2024 £'ooo 31 March 2023 £'ooo Debt (Note 201 THFC bond premium creditor {Note 21} Trade creditors Rent and service charges receNed in advance Recycled capital grant fund (Note 191 Deferred grant income (Note 18} Other creditors Accruals and deferred income 1,396 144 102 39 979 442 79 809 834 139 111 51 1,053 451 91 504 3,990 3.234 17. Creditors.. amounts falling due after more than one y•ar 31 March 2024 £'ooo 31 March 2023 £'ooo Debt (Note 201 THFC bond premium Creditor (Note 21) Recycled capital grant fund (Note 191 Unallocaled capital grant. Deferred grant income (Note 181 16,143 17,507 2,669 2,713 249 161 304 304 35,946 36,337 55,311 57,022 'There is an agreement in place wlh Homes England in respect of unallocated grant in rospect of previoulsy sold properties. The total value of this grant is currently £303.9k. 37
Durhan7 Aged Mineworkers, Hom8s Association Trustees, report and accounts Year ended 31st March 2024 18. Deferred grant in¢omo 31 March 31 March 2024 2023 £'ooo £'ooo Al 1 April Grsnl received in the year Disposals in the year Released lo income in the year At 31 March 36,788 74 (321 442 36.388 37,470 12311 451 36,788 31 March 31 March 2024 2023 £'ooo £'ooo Amounts lo be released wlhin one year {Nole 16} Amounts lo be release(S in more than one year {Nole 17} 442 35,946 36.388 451 36,337 36,788 19. Recycled ¢apltal grant fund 31 March 31 March 2024 2023 £'ooo £'ooo At 1 April Adjustment to Balance as per Homes England Grants recycled Interest accrued Grant withdrawn Al 31 March 1,214 1,199 11451 30 59 74 1.229 26 1,214 Amount of grant due for ¥epaym¢nt 38
Durh8m Aged Mineworkars, Homes Association Trustees, port ènd accounts Year ended 37st March 2024 20. Debt analysis 20 a. Borrowings 31 March 31 March 2024 2023 £'ooo £'ooo Dua within one year Banks loans (Note 161 1,396 1.396 834 834 Due after more than one year Bank loans (Note 171 16,143 16,143 17,507 17,507 Total loans 17,539 18,341 20 b. Securrty Loans are secured by fad charges on individual properties. 20 c. Temis of repayment and Int0r•$t ratas Housing Loans 8re secured by sp&¢ific charges on the Association's housing properties. Approximately 81 /912022123 '. 81 /0} of all loans are on a fixed lem basis with rates of interest varying from 1.8% 10 13.60A. All loans are repayable by instalments. 31 March 31 March 2024 2023 £'ooo £'ooo 1,396 834 778 1,433 2.396 2,486 12,968 13,588 17.539 18,341 Within one year or on demand One year or more but lfjss than two years Two years or more but less than five years Five years or more 39
Dutham Ag8d Minewothers, Homes AssoGiatlon Tmst8es'r8port and acGounts Year ended 31st March 2024 21 a Bond PremSum During 2022123 bond funding was agreed wth The Housing Finance Corporation. Additional cash receipts in excess of the £8m bond was reIved, repsentIng the differen¢e between the nominal inlerest rate, 5.20%, and the effective rale of 2.836°h. This is held on the SOFP and released as credit lo loan interest over the term of the loan. 31 March 31 March 2024 2023 2,956 3,040 Total Bond Premium Recognised in the Statement of Comprehensive Income Held as deferred 5nt•rest 143 2.813 2,956 Due wtthin one year Due after mor& than one yaar 144 2,669 2,813 2,812 2,956 21 b Bond Issue Costs The Association was subject to bond issue costs of £107.4k. This is held on the SOFP and released as a debil lo bank Charges over the term of the loan. 31 March 31 Mar¢h 2024 2023 1104} 1107) Total Bond Issue Costs Recognised in the Statement of Comprehensive Income Held as deferred Interést 99 104 Due withln one year Due aft•r mor• than one yoar 15) 94 99} 15) 99 104 40
Durham Aged Min8workers' Homes Associatn Twslees, report and acGounts Year &nd8d 3fsl MarGh 2024 22. Ponslons The Association participates in the Social Housing Pension Sch8mè ISHPSI. which is a mulli-employer scheme that provides benefits lo some 500 non-associaled employers. The scheme is a defined benefit scheme in the UK. In prèvious periods il was not possibla for the A5SOCiation to obtsin sufficient information to enable it to accounl for the scheme as a defined benefit scheme and therefore il was accounted for as a defined contribution scheme. However. from 2018119 the s¢heme now provides sufficient information to en8ble it to be accountod for as a defined benefit schemg. The scheme is subject to the funding legislation outlined in the P8nsions Act 2004 which came into force on 30 December 2005. This, together with documents issued by the Pensions Regulator and Technical Actusryal Stsndards issued by the Financial Reporting Council. set out the framtrwork for funding defined benefit occupational pension schemes in the UK. The s¢heme is classified as a 'lasl-man standing arrangemgnt,. Therefore, the Association is potentially liable for other participating employers, obligations if those employers are unable to meet their share of the scherne d8ficit following withdrawal frorn the scheme. Participating employers are legally required lo meet their share of the scherne deficit on an annuity purchase basis on withdrawal Irom the scheme. Where the scheme is in deficit and where the association has agreed lo a deficit funding arrangemont, the association previously reeognised a liability for this obligation. Tho amount recognised was the net present value of the deficit reduction contributions payable under the agreement that relates lo the deficit. The present value was calculated using the discount rale detailed in these disclosures. We have bgen nottfied by the Trustee of the Scheme that it has performed a review of the changes made to the Scheme's ben@fils over the years and the result is that there is uncertainty surrounding some of Ihfyse changes. The Trustee has been advised lo seek clarification from the Court on these items. This process is ongoing and thè matter is unlikely to be resolv¢d before the end of 2024 at the eadiest. 11 is recognised that this Could potentially impact the value of Scheme liabilities, bul until Court directions are rgceived, il Is not possible lo calculate the full impact of this issue, particularly on an individual employer basis, with any accuracy at this liffle. No adjustmant has been madg In thes8 financtal statements in respect of this potential issue. The Board has, however, ¢onsidèred our likely level of exposure and the legal costs involved in attempting lo mitigate this risk and concluded that incurring legal costs to mitigate this risk may not be proportionate lo the likely level of exposure although this remains under review. The romaining disclosures in note 22 relate lo the Defined Benefit Pension eslimales provided by the actuary for the period 2023124 41
DurtFam Aged Min8workers' Homes Association Trustees'report and accounts Year ended 31$1 A18rch 2024 22. Pensions IntInued) Prgsent values of defln•d benefit obligation, falr value of assot$ and defined benèflt liabllity 31 March 2024 31 March 2023 £'ooo £'ooo Fair value of plan assets Present value of defined benefit obligation Definod beneftt Illabilityl to be recognlsed 5,230 6,483 1.253 5,110 6,273 1,163 Reconciliatlon of opening and closing balances of the defined b¢nefit obligation 31 March 2024 £'ooo 31 March 2023 £'ooo Defined bènefit obligation al 1 April Current service cost Expenses Interest expense Contributions by plan partlClP8nts Actuarial losses Igainsl due lo scheme gxperien¢e Actuarial losses19ainsl due to changes in demographic assumptions Actuarial losses (gains) due lo changes in financial assumptions Benefits paid and expenses Defined benefit obligatlon at 31 March 6,273 114 10,028 180 303 268 112 (667} 175} 115) {2,492} 1.037 6,273 241 6,483 Reconclliatlon of opening and closing balances of the falr value of plan assets 31 March 2024 £'ooo 5,110 255 31 March 2023 £'ooo 8,632 234 Fair valije of plan assets at 1 April 2023 Interest income Experience on plan assets (excluding amounts incltJ¢Jed in interest incomel_ Ilossllgain contbUtionS by the employer Contributions by plan participants Benefits paid and expensès Fair value of plan assets at 31 March 2024 {3741 480 13,2881 549 241 5.230 1,037 5,110 The actual return on the plan assets (including any changes in share of assets) over the period from 31 March 2023 10 31 March 2024 was £119.00012022123.. £3,034,0001- 42
DurtTram Aged Minewothen%'Hom6s Association Trust8os'r&port 8nd accounts Year ènded 31st March 2024 22. Pensions Icontlnuedl Defined beneflt costs In tho Statement of Comprehensiv• Income ISOCII 31 March 2024 31 March 2023 £'ooo £'ooo 114 180 Current service cost Expenses Net interast expense Defined beneflt costs recognised in the SOCI 48 170 34 222 Dafined ben•flt costs recognised in Other Comprehensive Income 31 March 2024 31 March 2023 £'ooo £'ooo Experience on plan assets (excluding amounts included in nel interest cost) -1105sl/gain {3741 {3,268} ExpeAen* gains ar)d losses arising on the plan liabilities- gainlllossl Effects of changes in the demographic assumptions underfwng the present value of the defined benefit obligation- gainllloss} Effects of changes in the financial assumptions underfwng the present value of the defined benefit obligation - gainlllossl Total amount recogni$ad in other comprehensive income - gainllloss) {1121 667 75 15 2,492 400 94 Assets 31 Mareh 2024 31 March 2023 £'ooo £'ooo 521 95 204 55 155 193 Global Equity Absolute Return Distressed OpportUneS Crgdil Relative Value ternative Risk Pr6mia Fund of Hedge Funos Emerging Markets Debt Risk Sharing InSUran-Llnked S8curlti6s Property Infrastructure Privat8 Debt Opportunisti¢ Illiquid Credlt High Yi8ld Opportunistic Credit Cash Corp(>rate Bond Funcl Liquid Credit Long Leas8 Property Secured In¢otne Liability Driven Investment Cuff&ncy Hedging Net Cuent Assèts Total assgts 171 166 68 306 27 210 529 27 376 129 220 206 204 227 219 18 103 37 154 235 2.354 10 156 2,129 121 5,230 5.110 43
Dud7am Ag6d Mineworf(ers' Homes Association Trustees, report and accounts Year endsd 31st Mar¢h 2024 22. Penslons {eontlnu$dl None of the fair values of the assets shown on the previous page includ8 any direct investments in the employer's own financial instruments or any propety occupied by. or other assets used by, the employer. Key Assumptions 31 March 2024 31 March 2023 % pgrannum % pgr xnnum Discount Rale Inflation IRPII Inflation {CPII Salary Growth 4.90% 3.15V. 2.78 /0 3.78° 4.87% 3.19Q 2.75° 3.75° The mortality assumptions adopted at 31 March 2024 imply the following life expectancies.. 31 March 2024 31 March 2023 Lifo pectanCY Lifo expectsncy at aga 65 at ago 65 Iyears) (Years) Male retiring al 31 March Female retiring at 31 March Male retiring 20 years Female retiring in 20 years 20.5 23.0 21.8 24.9 21.0 23.4 22.2 24.9 23. Share Capltsl The Association is limited by guarantee and therèfore has no share capltal. Each momb&r agrees to ¢ontribute £1 in the event of the Association winding up. Subscriptions cary no right to dividends or repaymant of capitsl. Members are entitled to vole al th@ Association's Annual Gèneral Meeting. 31 March 2024 No 31 March 2023 Number of members At 1 April 2023 Joining during the year Leaving during the year At 31 March 2024
Durham Aged Mineworkers, Homgs Associ8tion Trustees, port and &Gcounts Year &nded 31st Alarch 2024 Financial Commitments 24a. Capttal commitments 31 March 31 March 2024 2023 £'ooo £'ooo Capital expenditure Expendrfiure conlracleLf for but not provided in the accounts 24b. Operatlng Leases The future minimum lease payments which the Association is committed to make under operating leases in respect of office equipment are as follows.. 31 March 31 Mah 2024 2023 £'ooo £'ooo thin 1 year Two lo five years Over 5 yea 14 19 45
Durtjam Aged Mineworf(ers' Homes Assoclatlorp Trustees'r8POrt and accounts Y6ar ended 31st March 2024 25. Related partiès The 8ccounls include the results and net assets of William Russell Bequest, Brandon Colliery Aged Workers, Homgs Association, Cockfield Aged Miners, Homes, and Homes for Aged Mineworkers & Other Workmen al Wingate Colliery, entities controlled by Durham Aged Mineworkers, Homes Association. The income and expenditure accounts and balance sheet for the Association have not baen separately presented, as they are not materially different from the consolidated information presented. Restrl¢ted Reserves Willlam Brandon Cockfiold Wingate Russell £'ooo £'ooo £'ooo Oth¢rs Total £'ooo £'ooo £'ooo Al 31 March 2023 Surplus I Idef¢itl for the year Revaluation of Inveslrnents At 31 March 2024 608 {41 409 257 61 132 1,467 13) 604 410 258 61 132 Restiicttrd Reserves relate to funds whose use by the Association is restricted by charltable trust dd. The restricted reserves are allocated between William Russell B&quest, who is a linked charity with the Association under a Uniting Direction of October 2017 and three managecl Amshouse Charities linked wllh the Association under a Unib'ng Direction of November 2005, being.. Brandon Colliery Aged Workers, Homes Association I'Brandon"I Cockfield Aged Miners, Homes I'cockfield") Homes for Aged Mineworkers and other Workmen at Wingate Colliery (Wingale") In addition the Association manages funds transferred into its possession by the following subsidiary charities.. PrOed8 of sale of Trust property, comprised in a conveyance of 9th April 1959., Memorial Cottages, Scheme Df 27 September 1955., Proceeds of sale of Nurses Home in connection with Wheadey Hill Nursing Associ21ion. conveyanc81953,' dated 6 Dectrmber 1928 and resolution of subscribers dated 25 November., General Endowment Fund, Scheme of 14 August 1962.. Particular Endowment Fund, Scheme of 14 August 1962., Dr David Wilson Memorial Raading Room, Declaration of Trust date¢J l August 1928,. and John Arthur W8lbank's Will provad 26 April 1946 and Scheme of 16 October 1968. Related Party Transactions Andrew Thompson was previously an employee of Kaon Homes and resigned 8$ a Board Member of DAMHA in April 2024. He was appointed as DAMHA Finance Director in September 2024 Durham Aged Mineworkers Homes Association works with Karbon Homes on ivs new homes development programme. Karbon Homes help to identify suitable (Jevelopmenl schemes. liase with Homes England on it's beha and manage the devfjlopmenl programmes once underway. In 2023124 Durham Aged Mineworkers Homes Association paid invoices tolalling £122,369 to Karbon Homes for praparatory work on new schemes and retentions due on previoLJsly completed schemes. Andrew Thompson was not involved in the awardlng of contracts to Karbon Homes. 46
DurtFam Aged Mineworkers'Homes Association Trusfees'raport and account$ Year ended 31st March 2024 26. Financial assets and liabilities 26 a. Categories of financial assets and financlal liabllities 31 March 2024 31 March 2023 £'ooo £'ooo Financlal assets - loans and receivables.. Investments Trade and other dobtors Cash and Cash equivalents 1,285 124 9,637 11.046 1,220 77 8,820 10,117 Flnancial liabillties - Amortlsed ¢ost- Trade and othèr creditors Loans 181 17,539 17.720 202 18,341 18.543 26 b. Financial as$ets Other than short-lerm debtors, financial asseis held are eqLJity inslrum@nls in other énlilies. cash deposits placed on money markets at call, seven-day and monthly rates and cash at bank. Th&y are sterling denominated and the interest rate profile at 31 March was.. 31 March 2024 31 March 2023 £'ooo £'ooD 9,637 8,820 9,637 8,820 The financial assets on which no interest is eamed comprise trade investments that have no fixed malurily. The remaining finanoal assets are floating rate attracb'ng interest at rates that vary Wilh bank rates. Floating rate on money market deposits 26 c. Flnancial liabillties gxcludlng trade creditors- intsrest rate risk proflle The Association's financial liabilities are sl$rting denominated. The interest rate profile of the Association's financial liabilities at 31 March 2024 was.. 31 March 2024 31 March 2023 £'ooo £'ooo 14,160 14,85Q The fixed rate finan¢ial liabilities have a weighted averag& interest ra16 of 4.58¥.12023-. 3.15 /ol and the wsighted average period for which it is fixed is 8 years12023.' 9 years}. The debt maluFity profile is shown in note 20. Fixgd rale 47
Durham Aged niinewothers'Homes Assoclation Trust88s' report and accounts Yoar ended 31st March 2024 27. Post balance sheot evonts The Association has no post balanc8 sheet events to dgclare. 28. Vltlmate parent undertakings and ¢ontrolling party Durham Aggd Mineworkers, Homes Assoclation is a registered charity and a registered provider of social housing in the UK. Th8 following linked ¢harilies ar8 Included in the Durham Ag8d Mineworkers, Homes Association financial 8tstements'. Brandon Colliery Aged Workers, Homes Association {°Brandon'l Cockfield Aged Miners. Homes I"Cockfield'} Hornos for Aged Mineworkers and other Workmen al Wingale Colliery {'Wingate°I William Russell Bequest 48
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DURHAM AGED MINEWORKER’S HOMES ASSOCIATION
DRAFT MANAGEMENT LETTER
Draft Management Letter 2024
Year ending 31 March 2024
CONTENTS
| Introduction | 1 |
|---|---|
| Key Audit Issues | 2 – 5 |
| Independence | 6 |
| Qualitative Aspects of Accounting Practices and Financial Reporting | 7 |
| Management Representation Letter | 8 |
| Audit Opinion | 8 |
| Audit Adjustments | 9 |
| Accounting and Internal Control Systems | 10 |
Draft Management Letter 2024
INTRODUCTION
Our audit of the financial statements of Durham Aged Mineworker’s Homes Association (“the Association”), Brandon Colliery Aged Workers’ Homes Association and William Russell Bequest is complete. The purpose of this letter is to bring to your attention the findings from our audit. We appreciate that you will already be aware of the majority of the matters contained in this letter.
In order to comply with the provisions of the International Standard on Auditing (ISA) 260 – ‘Communication of Audit Matters with those Charged with Governance’ by which we report to management on the findings of our audit, with particular reference to:
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views about the qualitative aspects of the Association’s accounting policies and financial reporting;
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adjusted and unadjusted misstatements, apart from those which fall below the threshold for reporting to the Audit and Risk Committee as they are clearly trivial;
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matters specifically required by other International Auditing Standards to be communicated to those charged with governance (such as fraud and error);
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• expected modifications to the auditor’s report;
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material weaknesses in the accounting and internal control systems; and
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any other relevant and material matters relating to the audit.
We also take this opportunity to comment on the Association’s performance for the year and to confirm our professional integrity, objectivity and independence.
We see effective communication with the Audit and Risk Committee as being a key part of our audit, and it is important that there is effective two way communication. We welcome any feedback or questions regarding the conduct of the audit process.
This report is not intended to cover every matter which came to our attention during the audit. We do not accept any responsibility for any reliance placed on it by third parties. Our procedures are designed to support our audit opinion and cannot be relied upon to identify any weakness in systems or controls which may exist.
We would like to take this opportunity to formally record our appreciation for the assistance and co-operation provided to us by the Finance Team who assisted us during the course of our audit.
Beever and Struthers
Date: 25 September 2024
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Draft Management Letter 2024
KEY AUDIT ISSUES
The following table summarises the key audit issues we identified as requiring specific consideration and the audit procedures we undertook in relation to them.
Audit Issue per Audit Plan Overview
Audit Procedures and Results
Housing Properties-Asset Management
Asset Management is of significance in terms of planning future works to ensure that tenant homes are adequately maintained.
The 31 December 2023 management accounts reflect £995k of costs capitalised to housing properties in the year to date.
The audit risks include:
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maintenance spend is not adequately planned, budgeted and monitored;
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additions, including expenditure on replaced components, are not authorised or are not recorded correctly;
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additions to housing properties are not complete;
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• the carrying amount of housing properties at the year-end is impaired;
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components which have been replaced are not removed from the carrying value;
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the depreciation charge is incorrectly calculated; and grant is not recognised correctly and amortised on an appropriate basis.
This is an area we discussed at the audit planning meeting, and the challenge of allocating grant across properties where there is little historic information available to the Association.
The Association spent £141k on additions to housing properties and £1,183k on the replacement of components. The depreciation charge for the year was £1,928k.
As part of the audit work we have:
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Tested the approval and recording of development expenditure, including the capitalisation of development overheads and interest on loans;
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Tested a sample of additions, including expenditure on replaced components, to ensure they are recorded correctly;
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Reviewed the useful economic lives of components to ensure they accord with best practice in the sector;
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Agreed the movements in the housing properties note and the closing balances to the housing properties register;
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Considered whether there is any evidence of impairment;
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Performed a proof in total test on the depreciation charge in the year;
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Tested a sample of properties from the property database to land registry deeds;
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Tested a sample of grant additions in the year to ensure they are recorded correctly; and
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Checked that accruals have been made for development expenditure incurred up to 31 March 2024 but not invoiced.
No issues relating to housing properties and development were identified during the audit.
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Draft Management Letter 2024
KEY AUDIT ISSUES
Audit Issue per Audit Plan Overview
Audit Procedures and Results
Assessment of Fraud Risk
ISA 240 “The Auditor’s responsibility to consider fraud” requires us to consider the risk of fraud and the impact that this has on our audit approach. There is a presumed significant risk of fraud in two areas:
Our audit is designed to provide reasonable assurance that the accounts are free from material misstatement whether caused by fraud or error. In particular, we reviewed revenue recognition and management control override.
Revenue Recognition
Material misstatements due to fraudulent reporting often result from an overstatement of revenues, for example through premature revenue recognition or recording fictitious revenues. The auditor therefore presumes that there are risks of fraud in revenue recognition and considers which types of revenue may give rise to fraud risks.
The main income stream for the Association is rental income. The processing of rent charges is highly automated and rent changes are restricted. We therefore have initially assessed the risk of fraud in the recognition of rental income as low and expect to rebut the assumption that this area is a significant risk. Recognition of income from other sources is less automated and is judged to be a significant risk.
Management Override
Under ISA 240 there is a presumed risk of management override of the system of internal controls.
Material misstatements can arise from management overriding the controls which are in place or by manipulating the results to achieve targets and the expectations of the stakeholders.
As part of the audit planning:
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We met management to discuss fraud related risks and the risk of material misstatement in the financial statements;
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We reviewed the work of internal audit; and
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We reviewed the anti-fraud policies.
During the audit fieldwork, we performed sample testing on income from rents and service charges and other material sources of income. We also performed analytical review on the material income streams and tested the cut off on the rent debit.
Our audit did not highlight any errors in relation to revenue recognition.
As part of our year-end audit work we sample tested journals using data analytics to identify those journals exhibiting high risk characteristics. The sample of journals was agreed to supporting documentation and appeared reasonable.
Our review of key estimates and judgements in the financial statements indicated that they had been made on a reasonable basis and showed no evidence of management bias.
Treasury Management
At 31 March 2023, the Association had drawn loans amounting to £18.3m. Loans are held with a variety of lenders, including Yorkshire Bank, CAF Bank and the Royal Bank of Scotland.
We will review covenant reporting by management throughout the audit. At our audit planning meeting we noted no reported issues on compliance with loan covenants.
During our audit procedures we will corroborate key variances to budget to ensure they are not the result of any control weaknesses.
As part of the audit work we have:
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Obtained all current loan agreements and covenant definitions across the Association;
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Reviewed the Association’s Treasury Management Policy;
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Agreed the loans held to external loan confirmation from the funders;
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Tested the detailed calculations for loan covenant compliance prepared by management at the year-end.
We identified an over-amortisation on the old bond premiums of £11,969 which was subsequently corrected in the financial statements. There were no other issues identified in our work.
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Draft Management Letter 2024
KEY AUDIT ISSUES
Audit Issue per Audit Plan Overview
Audit Procedures and Results
Key Judgements and Estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at the year-end and the amounts reported for revenues and expenses during the year.
ISA 540 “Auditing Accounting Estimates and Related Disclosures” also places additional emphasis on scepticism in the audit process, with its importance increasing when accounting estimates are subject to a greater degree of estimation uncertainty or are affected to a greater degree by complexity, subjectivity, or other inherent risk factors.
During the audit, we identified all accounting estimates that were included in the financial statements and reviewed the calculations behind these estimates.
The accounting estimates that were identified were:
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Useful lives of depreciable assets (housing properties);
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• Useful lives of depreciable assets (other fixed assets). • Bad debt provision;
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Impairment review;
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Repair accruals;
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Valuation of the SHPS deficit;
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Going concern; and
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Grant amortisation.
After completing audit testing and reviewing the calculations used, no issues were identified regarding the accounting estimates.
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Draft Management Letter 2024
KEY AUDIT ISSUES
Audit Issue per Audit Plan Overview
Audit Procedures and Results
Pensions
The Association participates in the Social Housing Pension Scheme (SHPS). The assets of the scheme are held in separate trustee-administered funds.
At 31 March 2023 the fair value of the employer assets was lower than the present value of the liabilities by £1.1m.
The present value of the defined benefit obligation increased from £6,273k at 31 March 2023 to £6,483k at 31 March 2024. The fair value of plan assets increased from £5,110k to £5,230k, resulting in an overall increase in the liability of £90k with the provision recognised in the Statement of Financial Position being £1,253k.
As part of the audit work we:
The actuary of the scheme will value the pension liability for Section 28 of FRS 102 purposes, and this will be included in the financial statements at 31 March 2024.
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Review the central methodology, including key assumptions, of the calculation of the SHPS actuarial valuation;
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Review the central assurance methodology regarding SHPS;
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Review the information provided by the Association to TPT Retirement Solutions to ensure completeness and accuracy;
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Agree the SHPS pension disclosures to information provided by TPT Retirement Solutions; and
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Agree the SHPS adjustments to the financial statements.
The work is complete with no issues to note.
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Draft Management Letter 2024
INDEPENDENCE
Ethics and Independence
In the UK and Ireland, auditors are subject to the ethical requirements of the Financial Reporting Council’s 2019 Revised Ethical Standards for Auditors.
International Standard on Auditing (UK and Ireland) 260 Communication with those Charged with Governance and good practice require us to confirm the following to those charged with governance:
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We confirm that we are independent.
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We confirm that we are unaware of any relationships which may bear on our objectivity and independence.
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We have provided details below of any non-audit services provided to Cobalt Housing and the fees charged in relation to non-audit services.
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We confirm that we comply with the requirements of the Financial Reporting Council’s Ethical standards in relation to the supply of non-audit services by an audit firm.
The Audit and Risk Committee should take an active role in considering whether the external auditor’s independence might be impaired by the provision of non-audit services.
Non-Audit Services
We have not provided any non-audit services to the Association during 2023/24.
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Draft Management Letter 2024
QUALITATIVE ASPECTS OF ACCOUNTING PRACTICES AND FINANCIAL REPORTING
Accounting Policies
FRS102 requires that entities should review their accounting policies regularly to ensure that they are appropriate to its particular circumstances for the purposes of giving a true and fair view. The Audit and Risk Committee plays a key role in this process.
We have reviewed the Association’s accounting policies and key judgement areas as stated in the financial statements in detail and confirm that we judge them to be appropriate to provide relevant, reliable, comparable and understandable information.
Accounting Estimates
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities at year-end and the amounts reported for revenues and expenses during the year. Given its nature, this area is a key audit focus.
Key accounting estimates in the financial statements include:
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capitalisation of property development costs;
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categorisation of housing properties;
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useful lives of depreciation assets (housing properties and other fixed assets);
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valuation of the pension funds;
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impairment provisions; and
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level of bad debt provision against tenant arrears.
We confirm that these estimates have been made appropriately in line with our knowledge of the Association and the industry and are disclosed satisfactorily in the financial statements.
Financial Statement Disclosures
We confirm that we judge the disclosures throughout the financial statements to be neutral, consistent and provide sufficient clarity to the user.
Significant Matters Arising from the Audit
There were no significant matters arising from the audit that were discussed, or subject to correspondence with management.
Significant Difficulties Encountered During the Audit
There were no significant difficulties encountered during the audit.
Timing of Transactions
Our audit work confirmed that material transactions were recorded in the correct accounting periods. Accruals and prepayments were made for material items.
Going Concern
The financial statements have been prepared on a going concern basis. We have evaluated your assessment of the Association’s ability to continue as a going concern and the disclosure made in the Board report and we confirm that this assumption is appropriate.
Strategic Report and Member Board Reports
We reviewed other information in the narrative reporting sections of the financial statements. We confirmed that there is no material inconsistency between it and the financial statements
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Draft Management Letter 2024
MANAGEMENT REPRESENTATION LETTER AND AUDIT OPINION
Management Representation Letter
In accordance with ISA 580, we obtain written representation from management that they acknowledge their responsibility for preparing the accounts and have made all information available to us.
Audit Opinion
We provided an unqualified audit opinion on the financial statements for the Association, Brandon Colliery Aged Workers’ Homes Association and William Russell Bequest for the year ended 31 March 2024.
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Draft Management Letter 2024
AUDIT ADJUSTMENTS
Materiality
Our audit work is based upon an assessment of materiality to ensure there is no material misstatement contained in the financial statements. In assessing materiality we take into account both the materiality of the class to which the balance belongs and the overall impact of the balance on the income and expenditure account and balance sheet.
ISA 260 requires us to report to management on all uncorrected misstatements identified during the audit, and to include in this report how we have calculated materiality, and any misstatements identified during the audit which have been corrected.
Materiality may be revised throughout the course of the audit, where we become aware of information during the audit that would have resulted in a different determination of materiality at the outset.
We are not required to report on corrected or uncorrected misstatements we believe are clearly trivial.
Our assessment of materiality was based on the first draft accounts received prior to the audit and calculated using a benchmark at 2% of turnover. There were no adjustments identified during the audit which impacted our initial assessment of the benchmark.
Triviality is the value above which we report errors to you. A summary of the final assessment of materiality is as follows:
| Materiality | Triviality | |
|---|---|---|
| £’000 | £’000 | |
| Durham Aged Mineworker’s Homes | 188 | 9 |
| Association |
Corrected Misstatements
We identified the following misstatements that were corrected:
- An over-amortisation on old bond premiums of £11,969
Disclosure points
A minor disclosure matter regarding operating leases has been brought to management's attention for consideration in the financial statements. Management is currently reviewing these leases for inclusion in the financial statements.
Uncorrected Misstatements
There were no uncorrected misstatements identified as a result of our audit work in the financial statements that are not of a trivial nature to the results of the Association
9
Draft Management Letter 2024
ACCOUNTING AND INTERNAL CONTROL SYSTEMS
ISA 265 requires that we report to those charged with governance any significant deficiencies in internal control that we identify in the course of our audit work. Significant deficiencies are those deficiencies that we have identified during the audit and concluded are of sufficient importance to merit being communicated to those charged with governance.
Audit Findings
The audit considered internal controls relevant to the preparation of the financial statements, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of internal control.
2024 Audit Findings Letter
There are no recommendations to make.
2023 Audit Findings Letter There were no recommendations for 2023 audit.
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Draft Management Letter 2024
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One Express,
1 George Leigh Street
Manchester M4 5DL
e: manchester@beeverstruthers.co.uk
www.beeverstruthers.co.uk
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