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 ServI￿S 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 fa￿d 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 Su￿eY 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 re￿Iving 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 redU￿d 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 attendan￿S 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 ServI￿S 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 re￿1ve 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 resoUr￿S 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 reSoUr￿S 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 balan￿S 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 balan￿d 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 ResOur￿s. 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 prO￿sS 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 con￿rn 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 con￿rn 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