Registration number.. IP000406 North Belfast Housing Association Limited Annual Report and Financial Statements for the Year Ended 31 March 2023
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Contents Board of Management and Advisers Report of the Board of Management 2to12 Independent Auditols Report 13to16 Statement of Comprehensive Income 17 Statement of Financial Position 18 Statement of Changes in Reserves 19 Statement of Cash Flows 20 Notes to Statement of Cash Flows 21to22 Notes to the Financial Statements 23to49
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Board of Management and Advisers Management Board Mrs Ursula Mayers Mr Tom MeNyn Mr Brian Reid Ms Jane Shaw Mr Bob Hopkin Mr Andrew McFadine Mrs Brenda Morgan Mr Paul Henry Mrs Dervla Keamey Ms Nicola Barber Ms Victoria Dunn Mr Patrick O'Hanlon Mr Stephen Garvin Mr Donal Conway Chief executive Registered office Gate Lodge 8 Flax Street Belfast BT14 7EQ Solicitors Edwards & Co 28 Hill Street Belfast BT12LA Bankers Allied Irish Bank 35 University Rd Belfast BT7 1ND Danske Bank Donegall Square West Belfast BT16JS Ulster Bank Donegall Square East Belfast BT15UB Auditors RBCA Limited Linenhall Exchange 26 Linenhall Street Belfast BT2 8BG Company number IP000406 Status Registered under the Co-operative and Community Benefit Societies Act (Northem Ireland) 1969 - No. IP 406 Registered Charity with the Charity Commission for Northern Ireland Charity Registration No.: NIC100038 Registered with the Dfc (Nl) - Number 55 Registered with Inland Revenue Charity No. - N000274 Page 1
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Report of the Board of Management for the Year Ended 31 March 2023 The Board of Management present their report and the audited financial statements for the year ended 31 March 2023 of North Belfast Housing Association Limited (the "Association"). This report is also known as the Trustees, report for Charity law purposes. Status The Association is an Industrial and Provident Society and is registered with the Department for Communities {"DfC") providing housing accommodation for those in need. It has charitable status with HM Revenue and the Association was registered as a charity on the 18 March 2014 with the Charity Commission for Northern Ireland, registration No. NIC 100038. Principal Activities The Association provides general needs accommodation, purpose-built accommodation for the elderly and supporting housing solutions for those in need, including those with addictions, family issues and young homeless people. . The objects of the association are to carry on for the benefit of the community:The business of providing housing, accommodation, assistan to help house people and associated facilitates and amenities for the prevention or relief of poverty or those in need by reason of youth, age, ill health, disability, financial hardship or other disadvantage,. and Any other charitable object that can be carried out by an industrial and provident society registered as a housing association by Dfc. As a registered Charity, The Association is legally required to comply with the reporting requirements set out in the Charities Act and to prepare accounts in accordance with legal guidance set out in law. The Association is regulated by the Dfc and supports the Seven Principles of Public Life. Strategic Imperatives Our vision and mission detailed in our Strategic Plan 2022-2025 are outlined as follows.. Vision Statement Everyone has an affordable, sustainable home in a supportive community that enables them to lead their best lives. Mission Statement To provide a pla to call home and an outstanding Servi to those in need. A home where people.. feel they belong- feel safe., feel financially secure., . feel supported" and . feel part of the fabric of the community. Supporting our Vision and Mission we have established a set of Values to Influen and infom how we work together and provide a high quality service as a landlord. Our values are.. Integrity Building relationships of trust by being respectful, caring and honest with others,. Page 2
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Report of the Board of Management for the Year Ended 31 March 2023 Empowerment- Listening to other people. maximising their ability to find solutions and make decisions that help them live their best lives- Excellence - Everyone is entitled to expect ServIS of the highest quality that are responsive to their needs- Collaboration - Working together with others in a supportive way to achieve the best outcome., Fairness - Everyone is of equal worth and entitled to be treated fairly and included. Diversity is something to be recognised and celebrated., and Sustainability - Being concerned with the environment and with the future of those we serve. Board of Management The Association is governed by a 13 member voluntary Board of Management. The board set the strategic objectives for the association and receive regular reports on the association's progress and perforrnan. The Board of Management are the directors of the company and are the trustees of the charity- The Board of Management, who served the Association during the year, and up to the date of signing the financial statements, were.. Mrs Ursula Mayers (Chair) Mr Tom Mervyn (VI Chair} Mr Brian Reid {Secretary) Ms Jane Shaw (Treasurer) Ms Janine Fullerton (Resigned 1610212023) Mr William Chambré (Resigned 1610212023) Mr John Simpson (Resigned 1610212023) Mr Bob Hopkin Mr Andrew McFadine Mrs Brenda Morgan Mrs Nicola Barber (Appointed 2310512023) Ms Victoria Dunn (Appointed 2310512023) Ms Dervla Kearney (Appointed 2310512023) Mr Paul Henry (Appointed 2310512023) Mr Patrick O'Hanlon {Appointed 2310512023) Mr Stephen Garvin (Appointed 410712023) The members of the Board of Management hold a fully paid share of £1 each in the Association and no financial benefit is derived from such membership. Executive officers of the Association hold no interest in the Association's share capital and although not holding legal status of directors they act as executives within the authority delegated by the Committee. Page 3
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Report of the Board of Management for the Year Ended 31 March 2023 Perfonnance for the year ended 31 March 2023 During the year the number of homes in ownership increased to 1,108 from 1,091 at the end of the prior year representing a 1.50/0 increase in stock size for the Association. Turnover increased by 2.7 % from £7,557,643 in 2021122 to £7,763,903 in 2022123. This increase is as a result of new homes added to the Association's stock during the year. An average annual inflationary rent increase of 3 % on much of our existing stock also helped to boost tumover. During the past year the association fad a number of significant challenges in the delivery of Maintenan projects. This resulted in a number of planned schemes being delayed. The association made progress in the latter part of the year by completing a number of procurements that will spread repair and investment workfiows across a number of capable contractors. £1,933,151 of purchase orders were issued close to the year end in relation to maintenance projects. Costs relating to these purchase orders have not been included in these financial statements. The Board of Management do not believe a constructive obligats'on have been created for these purchase orders as at 31 March 2023. Expenditure on component replacements last year was £381,258 and a further £40,000 was expended on adaptations. Operating costs of £5,219,674 represent 69°/o of turnover (2022.. 68 % ). The Association generated an operating surplus for the year of £2,011,243. The Board has a set number of key perf0mlan indicators monitoring the operations of the Association on regular basis. Performance Indicator Actual 22123 Target 22123
85% Emergency repairs carried out within 24 hours Urgent repairs carried out within 4 days Routine repairs carried out within 28 days Operating margin Net margin Gearing ratio Interest cover ratio 80% 78° 80% 34% 40° 28% 8.96 13.58 7.15 Net debt per unit Voids as a % of Stock £5,351 1.010 £5,367 1.61 % Page 4
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Report of the Board of Management for the Year Ended 31 March 2023 Tenant Views All tenants were issued with the annual tenant satisfaction SueY in March 2023. A total of 98 returns were received representing a return rate of 9 %. NB Housing's latest annual tenant satisfaction survey results showed percentage of tenants satisfied= 1. NB Housing Overall servi - 70°k" 2. Rent represents good value - 740 3. Accommodation - 76 %, 4. Area ILocation 76 %, and 5. Services represent value - 700A. The results showed a small positive increase across 3 areas and a fall in 2. The association is committed to listening to this feedback and has developed an action plan with the aim of making improvements across a range of service. Staff Development NB Housing was accredited Investors in People status in 2015116 and continues to focus on leading staff to achieve their potential and contribution to the success of the Association. This effort was further acknowledged by reIving the Investors in People Gold Award in 2019. The association has developed an IIP working group to review and develop workstreams to make employment with NB Housing both rewarding and attractive. Remote working was forced upon the association with the pandemic but the association has seen that remote working did bring benefits and a new Agile Working arrangement has been formulised and available to staff whose duties can be shared between home and the workplace. Staff absen had redUd during the year from 8.910 in 2022 to 5.760/0 in 2023. Recruitment difficulties remained during the year causing delays in replacing and filling some posts. The association also employed our first apprentice during the year. The Association continues to invest in staff development and training with an investment of 840 training hours with 271 attendanS at a cost of £12,080. Page 5
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Report of the Board of Management for the Year Ended 31 March 2023 Value for Money NB Housing is committed to providing ServIS and managing its assets in ways that achieve Value for Money (Vfm). Value for Money is: "Making the most efficient use of our assets and resources to deliver high quality and innovative seThices that successfully meet customer needs and expectations at lowest possible cost" For NB Housing, Value for Money is about becoming a modern and efficient business, improving our service quality and providing social housing for those in need. NB Housing take a comprehensive approach to self-assessment and use performance inft)rmation to drive business decisions, and develop our improvement plans. The information also highlights trends in expenditure and focuses our team's approach to Vfm. This report includes a self-assessment demonstrating the association is achieving value for money in meeting business aims. The association completes standard benchmarking with Housemark, who collate performance data across UK social landlords. This information enables the association to compare performance and share knowledge where best value is achieved. The information provided in this report is taken from a number of sources, financial information is taken from our Annual Audited Accounts, while other information has been collated from internal Key Performance Indicator reports and Tenant Feedback. In order to deliver value for money the association analyses a number of business processes, ensuring budget decisions are made that support business plan objectives, ensuring effective procurement is undertaken to source seNices. Page 6
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Report of the Board of Management for the Year Ended 31 March 2023 Expected perfomiance in the year ending 31 March 2024 The Association plans to enhance investment on repairs and Maintenan as a result of the challenges experienced during the reporting year and post pandemic. Overall budget for repairs and maintenance including revenue and capital programmes is estimated to be in the region of £3m. The works will include response repairs. compliance checks. cyclical Maintenan and well as major improvements. The association also wishes to continue to build to our stock and will develop a minimum of 50 units. Corporate Governance In the opinion of the Board, the Association is in compliance with the Best Practi issued by the National Housing Federation Code of G0Veman and with the Dfc Regulatory Standards. Corporate Strategy The strategic plan 2022 - 2025 is divided into seven business aims= Aims Customer Engagement and Wellbeing Aim.. To promote the wellbeing and participation of customers in decisions that affect them. Customer Service Aim.. To ensure that customers re1ve the highest possible level of service to meet their needs. Building for the Future Aim.. To develop new housing for those in need and maintain the high quality of our existing stock. Communication Aim.. To effectively promote the organisation and communicate with all stakeholders. Finance Aim.. Ensure NB Housing has the financial resoUrS it needs to achieve its aims and priorities and these are effectively and efficiently managed. Our People Aim.. Ensure NB Housing has the staff it needs to achieve its aims and priorities and they are effectively managed and supported to leam and develop. Premises, physical and digital resources Aim.. Ensure NB Housing has the premises and other physical reSoUrS it needs to achieve its aims and priorities and these are effects'vely and efficiently managed. Governance Aim.. Ensure that the governan of NB Housing complies with the requirements of the law, relevant regulators, and best practice. Annual Business Plan 2022 - 2023 Our annual business plan is designed to support the delivery of our strategic aims. The business plan contained a total of 83 objectives of which we achieved 73, partially achieved 3 and did not achieve 7. Page 7
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Report of the Board of Management for the Year Ended 31 March 2023 Going Concern After making enquiries, the Board of Management have a reasonable expectation that the Association has adequate resources to continue in operational existen for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Treasury Management Policy The Association's aim is to maintain loan balanS at a level to support development while keeping loan interest charges to a minimum. This is achieved without comprising the Association's ability to meet its financial obligations at they fall due. Risk Management Responsibility for the identification of risk is cleady defined and operates through a rolling risk assessment process. A register of strategic risks is maintained and reviewed each quarter by the Board. The risk register includes potential risks from the list below-. Economic & Supply impact., . Windsor Framework and non-functioning executive; Inflation and cost pressures., Supplier cost pressures, inflation. energy, rna1ntenan and development costs., Loss of Board members" . Tenant Engagement., Potential pressure on association's ability to raise revenue, financial performance and fraud,. Cyber security and crime" Development challenges to growth" Poor service delivery., Net Zero target,. and Staff welfare. Measures are in place to control these risks and the implementation of further mitigating actions is regulady monitored by the Board. Page 8
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Report of the Board of Management for the Year Ended 31 March 2023 Financial Risk Management The Association's operations expose it to a variety of financial risks that include the effects of changes in credit risk, price risk and interest rate risk. The Association has in pla a risk management program that seeks to limit the adverse effects on the financial performance of the Association by regular review of activity levels against changing market conditions and adjustment to cashflow projections accordingly. The Association liaises with lenders on an ongoing basis to keep up to date with other products in the marketplace. Interest rate risk Exposure to fluctuating interest rates is managed by the composition of a baland portft)lio between fixed rate and variable rate loans. Liquidity risk The Association maintains a mixture of long-term and short-term loan finance that is designed to ensure there is sufficient fijnds to achieve business objectives and to facilitate planned growth. A managed cashflow predicts need and also ensures that the Association operates within it banking covenant Commitments. The Association has a rolling private finan facility available to fund ongoing developing plans over the next number of years. Working Capital and cashflow management is strictly controlled with moneys drawn from the existing facility as required. Regulation The Association's principal regulator is the Dfc. Their regulatory judgement for the year 2021122 gave the Association the highest rating of Level 1 assessing the 3 standards.. Governance, Finance and Consumer. The Association is subject to regulation by the Charity Commission for Northern Ireland as it is a registered charity and the Northem Ireland Housing Executive (NIHE) in its role in administration of Supporting People funding. Environmental matters The Association recognises its corporate responsibility to carry out its operations and development program whilst minimising environmental impacts. The Board's continued aim is to comply with all applicable environmental legislation, prevent pollution and redu waste wherever possible. Page 9
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Report of the Board of Management for the Year Ended 31 March 2023 Internal Financial Control The Board of Management meets regularly throughout the year with specific responsibilities for housing management, development and propety management, finance, audit, risk and human resources. The Board of Management have delegated authority to the following subcommittee" Housing., Development and Propety Management., . Audit, Risk & Human ResOurs. and Finance. Each subcommittee operates within defined Terms of Referen. Subcommittee meetings are held quarterly and receive perf0rrnan reports and take necessary decisions within the delegated authority of the main Board of Management. Finance Committee The Finance Committee monitors financial reporting and accounting policies, along with the adequacy of the Association's internal finance control. Operationally, budgets are developed prior to financial year end are monitored by the Finance Committee quarterty. These are measured against actual performance with the budget review prOsS to account for any material fluctuations from plan. Short and medium term cashflows are completed to ensure the Association has sufficiency in working capital to carry forward its operational and development commitments. Forecasting is used to project long term to assess the impact of future stock investment strategy. The Board of Management is also responsible for the Association's systems of internal financial control and along with senior management is responsible for establishing and operating detailed control and reporting procedures. The system of intemal financial control can provide only reasonable but not absolute, assurance against misstatement and loss. The Committee has reviewed the effectiveness of the Association's system of internal financial control for the year and the reviews are ongoing. This included a detailed review of the business risks facing the Association and of the existing intemal financial control procedures. The key elements of the control system in operation are.. The Committee maintains responsibility for overall strategy, approval of all propety transactions and other major capital expenditure projects. There is an organisation structure with clearfy defined lines of responsibility and delegation of authority. Detailed budgets are prepared covering the Association's businesses which are reviewed and approved by the Committee. Actual results are compared against budget and appropriate action identified and initiated. Page 10
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Report of the Board of Management for the Year Ended 31 March 2023 The Audit, Risk & Human Resour Committee review matters relating to intemal control and receives reports from the Dfc monitoring visits. intemal auditors and from senior management on a regular basis to enable it to make an assessment of the effectiveness of the Association's internal control system. Statement of the Board's responsibilities in respect of the financial statements The Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and Registered Housing Association legislation require the members of the Board of Management to prepare the financial statements for each financial year which give a true and fair view of the state of the Association's affairs and of its surplus or deficit for that period. In preparing these statements the Board is required to= select suitable accounting policies and apply them consistently- make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements., and prepare the financial statements on the going conrn basis unless it is inappropriate to presume that the Association will continue to operate. The members of the Board of Management are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association and to enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and the Registered Housing Associations {Accounting Requirements) Order (Northern Ireland) 1963. They have general responsibility for the taking of reasonable steps to safeguard the assets of the Association and to prevent and detect fraud and other irregularities. Events after the Balance Sheet date The Association has no post balan sheet date events to disclose. Charitable donations Donations totalling £1,200 (2022: £5,814) were made by the Association during the year. No donations for political purposes were made during the year (2022= £nil). Financial sustainability The Association has a robust framework of longer tenn financial planning in place. The Board regulady considers the longer tenn financial plan which covers a 30 year period. Statement of disclosure of information to auditors So far as each of the members of the Board of Management at the date of approval of these financial statements is aware" there is no relevant audit information of which the Association's auditors are unaware, and that each Board member has taken all the steps that ought to have have been taken as a Board member in order to be aware of any relevant audit information and to establish that the Association's auditors are aware of that information. Page11
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Report of the Board of Management for the Year Ended 31 March 2023 Independent Auditors The auditors, RBCA Limited, have indicated their willingness to continue in office, and a resolution proposing their reappointment will be proposed at the Annual General Meeting. Approved and authorised by the Board on 28 September 2023 and signed on its behalf by.. Mrs Ursula Mayers Director Page 12
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Independent Auditor's Report to the Members of North Belfast Housing Association Limited Opinion We have audited the financial statements of North Belfast Housing Association Limited for the year ended 31 March 2023, which comprise the Statement of Comprehensive Income, Statement of Financial Position, Statement of Changes in Reserves, Statement of Cashflows and Notes to the Financial Statements including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice) and the Statement of Recommended Practice for Social Housing Providers issued by the National Housing Federation. In our opinion the financial statements.. give a true and fair view of the state of the company's affairs as at 31 March 2023 and of its surplus for the year then ended- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice- and have been prepared in accordance with the requirements of the requirements of the Co-operative and Community Benefits Societies Act (Northern Ireland) 1969 (formerly the Industrial and Provident Societies Act (Northern Ireland) 1969), the Charities Act (Northern Ireland) 2008, The Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 and the Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993. Basis of Opinion We conducted our audit in accordan wrth Intemational 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 company in accordan 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. Emphasis of matter We draw attention to the Report of the Board of Management, performance section, which refers to Maintenan contractor purchase orders. We draw attention to note 28 of the financial statements. which describes an uncertainty relating to an amount due to a supplier. Our opinion is not modified in respect of either of these. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAS (UK) require us to report to you where.. Page 13
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Independent Auditor's Report to the Members of North Belfast Housing Association Limited the Board of Management's use of the going conrn basis of accounting in the preparation of the financial statements is not appropriate,. or the Board of Management have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Association's ability to continue to adopt the going concern basis of accounting for a period of at least e1ve months from the date when the financial statements are authorised for issue. Other inforniation The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. Our opinion on the financial statements does not cover the other infomation and, except to the extent otherwise explicitly stated in our report, we do not express any fom of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other infomiation is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other infomiation. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Responsibilities of the Board of Management As explained more fully in the Board of Management responsibilities statement the Board of Management are is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such intemal control as the Board of Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Management is responsible for assessing the Association's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concem basis of accounting, unless the Board of Management either intend to cease operations. or have no realistic altemative but to do so. Auditorfs responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditorfs report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to Influen the economic decisions of users taken on the basis of these financial statements. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identified areas of laws and regulations that could reasonably be expected have a material effect on the financial statements from our sector experiences through discussion the Board of Management and other management (as required by auditing standards). We had regard to laws and regulations in areas that directly affect the financial statements including financial reporting and taxation legislation. We considered the extent of Complian with those laws and regulations as apart of our procedures on the related financial statement items. Page 14
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Independent Auditor's Report to the Members of North Belfast Housing Association Limited With the exception of any known or possible non-compliance, and as required by auditing standards, our work in respect was limited to enquiry of the Board of Management. We communicated applicable laws and regulations throughout our audit team and remained alert to any indications of non-compliance throughout the audit. We addressed the risk of fraud through management override of controls, by testing the appropriateness of journal entries and other adjustments- assessing whether the judgements made in making accounting estimates are indicative of a potential bias., and evaluating the business rationale of any significant transactions that are unusual or outside the nom)al course of business. Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. A further description of our responsibilities is available on the Financial Reporting Council's website at.. www.frc.org. uklauditorsresponsibilities. This description forms part of our auditorfs report. other required reporting Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 exception reporting Under the Co-operative and Community Benefit societs.es Act (Northern Ireland) 1969, we are required to report to you if. in our opinion- A satisfactory system of control over transactions has not been maintained., or We have not received all the infomiation and explanations we require for our audit,. or Proper accounting records have not been kept by the association., or The financial statements are not in agreement with the accounting records. We have no exceptions to report arising from this responsibility- Charities (Accounts and Reports) Regulations (Northem Ireland) 2015 exception reporting Under the Charities {Accounts and Reports) Regulations {Northem Ireland) 2015 we are required to report to you if, in our opinion.. Sufficient accounting records have not been kept" or The financial statements are not in agreement with the accounting records,. or We have not received all the infomiation and explanations we require for our audit. We have no exceptions to report arising from this responsibility. Page 15
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Independent Auditor's Report to the Members of North Belfast Housing Association Limited Use of our report This report is made solely to the Board of Management, in accordance with Article 38 of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (formerly the Industrial and Provident Societies Act (Northern Ireland) 1969). Our audit work has been undertaken so that we might state to the Board of Management those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Board of Management and the Association as a body, for our audit work, for this report, or for the opinions we have formed. Ross Boyd (Senior Statutory Auditor) For and on behalf of RBCA Limited, Statutory Auditor Linenhall Exchange 26 Linenhall Street Belfast BT2 8BG 28 September 2023 Page 16
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Statement of Comprehensive Income for the Year Ended 31 March 2023 2023 2022 Note Turnover Operating costs 7,763,903 (5,219,674) 7,557,643 (5,135,940) Operating surplus for the year Interest received Interest payable Other finan (costs)lincome 2,544,229 40,232 (248,218} (325,000 2,421,703 3,923 (315,216) 377,000 10 12 Surplus for the financial year Remeasurement gain on defined benefit pension schemes 26 2,011,243 2,071,000 1,733,410 612,000 Total comprehensive income for the year 4,082,243 2,345,410 The notes on pages 23 to 49 fomi an integral part of these financial statements. Page 17
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 (Registration number: IP000406) Statement of Financial Position as at 31 March 2023 2023 2022 Note Fixed assets Other tangible assets Housing properties Investments 15 13 16 853,380 84,403,147 250 883,577 79,381,893 250 85,256,777 80,265,720 Current assets Debtors Investments Cash at bank and in hand 18 17 1,016,942 1,706,620 671,001 1,253,755 2,147,976 617,198 3,394,563 4,018,929 Creditors.. Amounts falling due within one year 19 (3,584,080) (3,529,655) Net current (liabilities)lassets (189,517} 489,274 Totsl assets less current liabilities 85,067,260 80,754,994 Creditors.. Amounts falling due after more than one year 20 (57,436,175) (55,460,152) Pension surplusl{liability) 26 58,638 (1,687,362) Net assets 27,689,723 23,607,480 Capital and reserves Called up share capital Revenue reserve 16 27,689,707 16 23,607,464 Total funds 27,689,723 23,607,480 Approved and authorised by the Board on 28 September 2023 and signed on its behalf by.. Mrs Ursula Mayers Director Mr unan Tr<eia Director r Anarew Mcpanine Director The notes on pages 23 to 49 fomi an integral part of these financial statements. Page 18
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Statement of Changes in Reserves for the year ended 31 March 2023 Restricted Unrestricted reserve fund 2023 Balance at 1 April 2022 Surplusl{deficit) from statement of comprehensive income 23,607,464 23,607,464 (116,267) 4,196,510 4,082,243 Transfer from unrestricted fund to restricted reserve. 116,267 (116,267) Balance at 31 March 2023 27.689,707 27,689.707 The notes on pages 23 to 49 fomi an integral part of these financial statements. Page 19
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Statement of Cash Flows for the Year Ended 31 March 2023 2023 2022 Note Cash flow from operating activities Cash flow from Investing activities Purchase of housing properties Purchase of other fixed assets 2,835,680 3,334,687 (6.649,800) (11,872) 146,587 4,031,389 40,232 (3,338,194) (14,543) 456,920 2,159,591 3,923 Proceeds from sale of tangible fixed assets Grants received Interest received Net cash flow from investing activities (2,463,359) (732,303) Cash inflow from financing activities Repayments of borrowings Interest paid (506,253} (253,621) (765,415) (315,216) Net cash flow from financing activities {759.874) (1,080,631) Net change in cash and cash equivalents Cash and cash equivalents at the beginning of the year (387,553) 2,765,174 1,521,753 1,243,421 Cash and cash equivalents at end of the year 2,377,621 2,765,174 The notes on pages 23 to 49 fomi an integral part of these financial statements. Page 20
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to Statement of Cash Flows for the Year Ended 31 March 2023 2023 2022 Note A - Cash flow from operating activities Surplus for the year Depreciation Amortisation of grant Loss on sale of fixed assets 2,544,229 1,556,347 (1,062,969) 7,471 2,375,974 1,740,916 (1,069,928) Support reserve transfer Movements.. 44,585 Rental debtors (11,442) (69.064) (128,892) 11,478 143,438 88,224 Other debtors Creditors less than one year 2,835,680 3,334,687 The notes on pages 23 to 49 fomi an integral part of these financial statements. Page 21
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to Statement of Cash Flows for the Year Ended 31 March 2023 At 1 April 2022 Cash flow Other At 31 March Changes 2023 Note B - Analysis of net debt Cash in hand and at bank 617,198 2,147,976 53,803 (441,356) 671,001 1,706,620 Investment Cash and cash equivalents 2,765.174 (387,553) 2,377,621 Debt due within one year Debt due after more than one year (506,341) (5,906,575) (43,434) 549,688 (549,775) {5,356,8871 {3.647,742) 118.701 13.529.041) 2023 2022 Note C - Reconciliation of net cash flow to movement in net debt Decrease in cash and cash equivalents in the year Repayments of loans (387,553) 1,521,753 506,253 765,415 Movement in net debt in the financial year Net debt at 1 April 118,701 2,287,168 (3,647,742) (5,934,910) Net debt at 31 March (3,529,041) (3,647,742) The notes on pages 23 to 49 fomi an integral part of these financial statements. Page 22
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 1 General infomiation The association's principal activity during the financial year was providing high quality, affordable homes for rent throughout Northern Ireland. The association is registered under the Co-operative and Community Benefit Societies Act (Northem Ireland) 1969 and incorporated in the UK. The address of its registered office is= Gate Lodge 8 Flax Street Belfast BT14 7EQ The presentational currency is £ sterling and the level of rounding is £1. 2 Accounting policies Summary of significant accounting policies and key accounting estimates The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated. ststement of compliance These financial statements of North Belfast Housing Association Limited have been prepared on the going concern basis in compliance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland" ("FRS 102") under the historical cost convention, and in accordance with the applicable accounting standards in the United Kingdom and Statement of Recommended Practi for Accounting by Registered Social Landlords. The principal accounting policies, which have been applied consistently throughout the year, are set out below. The presentation of the financial statements complies with the Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993. Basis of preparation These financial statements are prepared on a going concern basis, under the historical cost convention. The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the association accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 3. Going concern After making appropriate enquires, the Board of Management has a reasonable expectation that the Association has adequate resources to continue in operational existen for the foreseeable future. For this reason, it continues to adopt the going cOnM basis in the financial statements. Page 23
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 Revenue recognition Revenue is measured at the fair value of the consideration received or re1vable and represents the amount receivable for goods supplied or sep4ices rendered, net of returns, discounts and rebates allowed by the association and value added taxes. The association bases its estimates of returns on historical results, taking into consideration the type of customer. the type of transaction and the specifics of each arrangement. Where the consideration receivable in cash and cash equivalents is deferred and the arrangement constitutes a financing transaction, the fair value of the consideration is measured at the present value of all future receipts using the imputed rate of interest. The association recognises revenue when (al the significant risks and rewards of ownership have been transferred to the buyer., {b) the association retains no continuing involvement or control over the goods,. (c) the amount of revenue can be measured reliably,. {d) it is probable that future economic benefits will flow through the association and (el when the specific criteria relating to each of the associations, sales channels have been met, as described below and in note 4. Net rental income Income includes rent and service charge income arising from the provision of housing accommodation and the amortisation of Housing Association Grant. Income is recognised in the period to which it relates. Page 24
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 Employee benefits The association provides a range of benefits to employees. induding paid holiday arrangements and defined benefit pension plans. il Short term benefits Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is reived. ii) Multiemployer pension plan Retirement benefits to employees of the Association are provided by the Northern Ireland Local Government OffirS Superannuation Committee (NILGOSC) defined benefit scheme which is extemally funded. The assets of the NILGOSC scheme are held separately from those of the Association. The Association has adopted FRS 102 section 28 "Employee benefits" in these financial statements. Pension scheme assets are measured using market value. Pension scheme liabilities are measured using the projected unit method and discounted at the current rate of return on a high quality corporate bond of equivalent term to the the liability. The increase in the present value of the liabilities of the Association's defined benefit pension scheme arising from employee Se1 in the year is charged to operating surplus. The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit obligation and the fair value of the plan assets. This cost is recognised in the Statement of Comprehensive Income as "Other finan costs." Housing Association Grant and other grants Housing Association Grant and other grants reiVed as a contribution towards the capital costs of housing properties of the Association were set against the capital cost of these properties in the prior years. Housing Association Grant is disclosed as "Creditors.. amounts falling due after more than one yearf, rather than set against the capital cost and are amortised to the Statement of Comprehensive Income as per the turnover policy. Housing Association Grant received against revenue expenditure is credited to revenue in the period in which the related expenditure is charged. Such grants, although treated as a grant for accounting purposes, may be repayable under certain circumstances, primarily following the sale. Page 25
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 Depreciation and impaimient Housing properties Housing properties are split between land, structure and major components which require periodic replacement. Replacement or refurbishment of such major components is capitalised and depreciated over the estimated useful life which has been set taking into account professional guidance and the association's asset management strategy. In determining the remaining useful lives for the housing stock, the association has taken account of views provided by both internal and external professional sources. Land is not subject to depreciation. Depreciation is charged so as to write down the cost or valuation of the freehold housing properties and major components on a straight-line basis over their expected useful economic lives. Major components are treated as separable assets and depreciated over their expected useful economic lives or the lives of the structure to which they relate, if shorter, over the following periods.. Asset class Depreciation method and rate Structure 100 years Kitchen 15 years Bathroom 25 years Heating boiler 15 years Heating system 25 years Windows and doors 25 years Electrics 30 years Lift 30 years Roof 30 years Housing assets are depreciated in the month of acquisition, or in the case of a larger project, from the month of completion. Where there is eviden of impaimient, the fixed assets are written down to the recoverable amount and any write down would be charged to the operating surplus. Other fixed assets Depreciation of other fixed assets is charged over the estimated useful economic lives of the assets. Office premises- 2 % straight line Office furniture and equipment . 20 % reducing balan Computer equipment_ 20 % straight line Subsequent additions and major components Subsequent costs, including major inspections. are included in the assets carrying amount or recognised as a separate asset, as appropriate, onty when it is probable that economic benefits associated with the item will flow to the association and the cost can be measured reliably. The carrying amount of any replad component is de-recognised. Repairs, Maintenan and minor inspection costs are expensed as incurred. Page 26
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 Derecognition Tangible assets are de-recognised on disposal or when no future economic benefits are expected. On disposal the difference between the net disposal proceeds and the carrying amount is recognised in the Statement of Comprehensive Income. Investments Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Cash and cash equivalents Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value. Impaimient of non-financial assets At each Statement of financial position date non-financial assets are not carried at fair value are assessed to determine whether there is an indication that the asset (or asset's cash generating unit) may be impaired. If there is such an indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying amount of the asset (or asset's cash generating unit). The recoverable amount of the asset (or assefs cash generating unit) is the higher of the fair value less costs to sell and value in use. Value in use is defined as the present value of the future cash flows before interest and tax obtainable as a result of the asset's (or asset's cash generating unit) continued use. These cash flows discontinued using a pre-tax discount rate that represents the current market risk-free rate and the risks inherent in the assets. If the recoverable amount of the asset (or asseys cash generating unit) is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the Statement of Comprehensive Income and Retained Eamings, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in the Statement of Comprehensive Income and Retained Eamings. If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent that the revised carrying amount does not exceed the carrying amount that would have been determined (net of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impairment loss is recognised in the Statement of Comprehensive Income and Retained Eamings. i) Provisions Provisions are recognised when the company has an obligation at the reporting date as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation. Page 27
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 ill Contingencies Contingent liabilities, arising as a result of past events, are not recognised when (i) it is not probable that there will be an oufflow of resources or that the amount cannot be reliably measured at the reporting date or (li) when the existence will be confirmed by the occurrence of uncertain future events not wholly within the Association's control. Contingent liabilities are disclosed in the financial statements unless the probability of an ouffiow of resources is remote. Financial instruments The association has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments. i) Financial assets Basic financial assets, including trade and other re1VableS and cash and bank balances initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future reiptS discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method. At the end of each reporting period financial assets at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in Statement of Comprehensive Income and Retained Earnings. If there is a decrease in the impaimient loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in Statement of Comprehensive Income and Retained Earnings. Financial assets are de-recognised when (a) the contractual rights to the cash flows from the asset to expire or are settled, (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or, (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third paty without imposing additional restrictions. Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value. which is nomially the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in the Statement of Comprehensive Income and Retained Earnings, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment. Page 28
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 ill Financial liabilities Basic financial liabilities. including trade and other payables. bank loans and loans from fellow association companies. are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate of method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw4own occur. The extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity ServIS and amortised over the period of the facility to which it relates. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Disposal proceeds fund The net surpluses, after loan repayments, that arise from the sale of propety to tenants under the voluntary purchase grant arrangements instituted by the Department for Communities can be used by the Association to fund works on property that would not be eligible for housing association grant or in certain circUmstans, attract loan finan. If the surpluses are not used within two years of their reIpt they may be payable in part or in full to the Department of Communities. Tenant services fund The surplusldeficit generated in this fund is transferred to a reserve. held within creditors. Revenue reserves The Association's policy is to retain a level of revenue reserves which reflects its needs at the current time and in the foreseeable future. The reserves required are sufficient to meet committed running costs for a period equivalent to nine months budgeted future expenditure. The Board of Management reviews the adequacy of the revenue reserves level on an annual basis. Restricted fund Under the terms of the Supporting People Funding Agreement Supporting People funding must be identified as a Restricted Fund. Income and expenditure relating to Supporting People Funding must be denoted as restricted. Supporting People reserves, if applicable, are held separately and denoted as Restricted Funds. Any deficit is offset against the general reserve. Share capital Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources reiVed or re1Vable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Page 29
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 3 Critical accounting judgements and estimation uncertainty Estimates and judgements made in the prOsS of preparing the association financial statements are continually evaluated and are based on histoncal expenses and other factors, including expectations of future events that believed to be reasonable under the circumstances. (al Critical judgement in applying the entity's accounting policies There are no critical judgements in applying the entitys accounting policies. (b) Critical accounting estimates and assumptions The Board of Management makes estimates and assumptions conceming the future in the process of preparing the association financial statements. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. (i) Useful economic lives of housing properties The annual depreciation on housing properties is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reviewed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and the physical condition of the assets. (li) Defined benefit pension scheme The Association has an obligation to pay pension benefits to certain employees. The cost of these benefits and the present value of the obligation depend on a number of factors, including., life expectancy, salary increases, asset valuations and the discount rate on corporate bonds. Management estimates these factors in determining the net pension obligation in the balance sheet. The assumptions reflect historical experience and current trends. (iii) Accruals Accrued expenditure includes amounts relating to certain purchase orders issued by the Association. Actual amounts subsequently invoiced by suppliers may vary from amounts accrued due to subsequent work variations and other unforeseen circumstances. Purchase orders are accrued by the Association when it considers that a constructive obligation has been created and are valued with reference to agreed contractual rates and reflecting historical experien and current trends. (iv) Bad debt provisions Recoverability of trade debtors is part of the association's credit control process to regularly monitor the recoverability of trade debtors, and make adequate provisions for any doubtful amounts. Bad debt provisions are calculated both on a specific and general basis, using all information available to the association at the time. There are no other critical accounting estimates and assumptions. Page 30
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 4 Analysis of turnover Turnover and results relate to the association's main activities which are carried out in the United Kingdom. Turnover represents rental and service charge income and residential charges for housing with care, net of voids. It also includes amortisation of grants received from the Northem Ireland Housing Executive. 5 Operating costs 2023 2022 Social housing activities Non-social housing activities 5,049,980 169,694 4,849,543 286,397 5,219,674 5,135,940 6 Operating surplus 2023 2022 This is stated after chargingl(crediting): Staff costs (Note 7) Wages and salaries Depreciation Housing properties Other tangible fixed assets Amortisation of grants Auditors, remuneration 1,600,116 1.408,432 1,514,278 42,069 (1,062,969) 1,509,779 38,453 (1,069,928) Audit services 6,378 6,522 Page 31
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 7 Employee infonnation 2023 2022 Staff costs Gross salaries 1,274,112 115,004 211,000 1,110,264 102,507 195,661 Employels NIC Other pension costs 1,600,116 1,408,432 2023 2022 Number Number Average monthly number of persons employed during the year: 39 48 8 Directors. emoluments The aggregate remuneration of key management personnel of the Association during the year was.. 2023 2022 Aggregate emoluments (including pension contributions) Emoluments payable to the highest paid director (excluding pension contributions} 257,798 239,193 86,761 81,000 The number of key management to whom emoluments (exduding pensions) were paid during the year falls within each of the following bands- 2023 2022 Salary Band No. No. £80,000 - £90,000 £70,000 - £80,000 £60,000 - £70,000 £50,000 - £60,000 Page 32
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 Members of the Board of Management serve in a voluntary capacity and none {2022.' none) were in reIpt of emoluments during the year. The Board and Committee members were reimbursed for expenses totalling £Nil (2022.. £Nil} during the year. 9 Disposal proceeds fund 2023 2022 Opening balan Surplusl{deficit) on disposal Recycled HAG 915,806 88,111 (717,131) 458,886 456,920 Closing balance 286,786 915,806 10 Interest receivable and similar income 2023 2022 Interest receivable 40,232 3,923 Page 33
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 11 Interest payable and similar expenses 2023 2022 Loans repayable within 5 years Loans repayable wholly or partly in more than 5 years 44,112 204,106 42,825 272,391 248.218 315,216 12 Other finance costs 2023 2022 Defined benefit pension scheme net interest cost 325,000 377,000 Page 34
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 13 Tangible fixed assets - housing properties and housing association grants 2023 2022 Housing Properties Cost At 1 April Additions 98,218,416 6,669,695 (347,144) 95,659,195 3,338,194 (778,973) Disposals Transfers At 31 March 104.540,967 98,218,416 Accumulated depreciation At 1 April Charge for the year Disposals 18,836,523 1,514,278 (212,981) 17,648,508 1,509,779 (321,764) At 31 March 23 20,137,820 18,836,523 Net book value At 31 March 84,403.147 79,381,893 Page 35
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 14 Housing Association Grants 2023 2022 Housing Association Grants Cost At 1 April 2022 Additions 65,679,206 3,969,386 (234,783) 64,056,000 2,159,591 (536,385) Disposals At 31 March 69,413,809 65,679,206 Accumulated amortisation At 1 April 2022 Charge for the year Disposals 15,485,272 1,062,969 (166,567) 14,687,204 1,069,928 (271,860) At 31 March 16,381,674 15,485,272 Net book value At 31 March 53,032,135 50,193,934 Page 36
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 15 Other tangible assets Motor Vehicles Office Office Furniture Premises and Fittings Total Cost At 1 April 2022 Additions 6.038 1,193,874 287,872 1,487,784 11,872 11,872 At 31 March 2023 6,038 1,193,874 299,744 1,499,656 Accumulated depreciation At 1 April 2022 Charge for the year 1,102 1,209 362,266 21,830 240,839 19,030 604,207 42,069 At 31 March 2023 2,311 384.096 259,869 646,276 Net book value At 31 March 2023 3,727 809,778 39,875 853,380 At 31 March 2022 4.936 831,608 47,033 883,577 Page 37
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 16 Fixed Asset Investments Investments Cost and net book value At 1 April 2022 and 31 March 2023 250 17 Current Asset Investments 2023 2022 Deposit bank accounts 1,706,620 2,147,976 18 Debtors 2023 2022 Rental Debtors Gross - Technical 214,945 215,620 (215,620) 203,503 244,233 (244,233) Rental Debtors Gross - Non Technical Provision for Bad Debts Net rental (including rates, Servi charges) debtors 214,945 203,503 Other Debtors 908 132 Prepayments and accrued income Housing Association Grant re1vable 126,760 674,329 58,473 991,647 1,016,942 1,253,755 Page 38
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 19 Creditors: amounts falling due within one year 2023 2022 Housing loans (Note 20) Trade creditors 549,775 85,325 73,518 1,610,524 1,040,958 23,423 1,882 198,675 506,340 72,708 86,308 1,281,599 1,055,619 26,431 106 Rent, rates and Servi charges received in advan Accruals and deferred income Housing Association Grant deferred (Note 14) Tenants services account Other creditors Disposal proceeds fund (Note 9) 500,544 3.584,080 3,529,655 20 Creditors: amounts falling due after more than one year 2023 2022 Housing loans (Note 20) Disposal proceeds fund (Note 9) Housing Association Grants deferred (Note 14) 5,356,887 88,111 51,991,177 5,906,575 415,262 49,138,315 57,436,175 55,460,152 The surplus on the disposal proceeds fund must be used within two years of the sale of the property. Page 39
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 21 Loans 2023 2022 Housing Loans Less than one year, or on demand Beeen one and two years Between Iwo and five years After more than five years 549,775 541,382 3,459,065 1,356,440 506,340 549,873 3,632,865 1,723,837 5,906,662 6,412.915 Security Housing loans are secured by specific charges on the Association's properties and are repayable at varying rates of interest in instalments. 22 Called up share capital 2023 2022 Ordinary shares of £1 each, fulty paid As at 1 April 2022 Issuedl(released) during the year Repaid 16 As at 31 March 2023 16 16 Page 40
North Belfast Housing Association Limited Annual report and Financial statements for the year ended 31 March 2023 Notes to the Financial Statements for the Year Ended 31 March 2023 23 Turnover. operating costs and operating surplus 2023 2022 Operating Operating Operating Operating Turnover Costs Surplus Surplus Social Housing Activities Non-social Housing Activities 7,470.753 4.919.531 2,551,222 2,442,656 293,150 300,143 (6,993} (20,953) 7,763,903 5,219,674 2,544,229 2,421,703 24 Housing stock Number of units owned on 31 March 2023 2022 Number Number Self-contained General needs housing Sheltered housing Supported housing 976 959 64 68 68 1,108 1,091 Page 41