CHOICE HOUSING IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 Registered under the Co-operative and Community Benefit Societies Act (Northern Ireland} 1969: IP000408 Registered Housing Association: R56 Registered Charity: NIC100095
CHOICE HOUSING IRELAND LIMITED Annual Report and Finandal Statsments For the Year Ended 31 March 2024 CONTENTS Page Directory Statement of Board of Management's Responsibilities in Respect of the Report of the Board of Management, the Strategic Report and the Financial Statemts Report of the Board of Management and the Strategic Report Board of Management's Statement of Internal Financial Controls Independent Auditor's Report to Choi¢¢ Housing Ireland Limited Group and Parent Income and Expenditure Accounts Group and Parent ststem¢nts of Other Comprehensive Income Group and Parent Balance Sheets Consolidat¢d Statement of Changes in Equity Parent Statement of Changes in Equity Consolidated Cash Flow Statement 21 22 26 28 29 30 31 32 Notes forming part of the Financial Statements 33
CHOICE HOUSING IRELAND LIMITED Annual Report and Financial Statements For the Year Ended 31 March 2024 DIRECTORY (Who served during the year) BOARD OF MANGEMENT (DIRECTORS) Mr J Higgins (Chair) Mr C McAreavey (Vic¢ Chair) Mr R Hawe Ms J Donald Mrs M Donnelly Mrs H Harrison Ms S Wylie Mr P Leonard Ms C Scales Mrs C Young Mr M McKinsty Mr D Ton¢r COMPANY SECRETARY Mr L Jackson GROUPSENIOR MANAGEMENT TEAM Mr M McDonnell Mr M Rafferty Mr J Anderson Mrs C Ervine Mr L Jackson Mr W Farrelly (Group Chief Executive) (Group Director of Finance & Resources) (Group Director of D¢velopment) (Group Director of Tenant & Client Services) (Group Director of Corporate Services) (Group Director of Assct Services) REGISTERED OFFICE Lcslie Morrell House, 3741 May Strc¢L Belfast BTI 4DN BANKERS AIB 31-35 High Street, Belfast BTI 2AL EIB 98-100 Boulevard Konrad Adenauer, Luxembourg Barclays Bank Donegall Square North, Belfast BTI SLU Ulster Bank Donegall Square East, Belfast BTI SUB Bank of Ireland Donegall Square South, Belfast B TI 5LR Housing Finance Corp 107 Cannon Street, London EC4N SAF Danske Bank Donegall Square West, Belfast BTI 6JS Nationwide Kings Park Road, Northampton. NN3 6NW EXTERNAL AUDITORS Sumer Auditco NI Limite(L 4th Floor Glendinning House. 6 Murray Street, Belfast, BTI 6DN INTERNAL AUDITORS TIAA, Artillery House, Fort Fareham, Newgate Lane, Fareham. P014 IAH SOLICITORS EDG Legal, 40 Linenhall Strcet. Belfast BT2 8BA
CHOICE HOUSING IRELAND LIMITED Annual Report and Financial Statements For the Year Ended 31 Marth 2024 DIRECTORY (CODtinued) At the date of signing thesc accouT]ts the following individuals were serving on the various subsidiary boards and committees within the Group: Choiee Services Oreland) Lfnjfited Maple And May IHome5) Ltd. P Leonard (Chair) H Harrison (Vice Chair) G Millar R Mcconnell R Hawe J Roden Maple And May Ltd. D Toner (Chair) TRea T Nelson M Adrain M Gillespie S Lynch P Leonard (Chair) H Harrison (Vice Chair) G Millar R Mcconnell R Haw¢ J Roden L Jackson (S¢cretsry) TeDant & Cllent Servl£e8 Committee C Young (Chair) Ms J Donald (Vice Chair) K Bailey P Convery C Gibson R Murray R Hamill L Jackson (Secretary) DevelopmeDt & Assets Commlttee L Jackson (Secretary) Flnanee Commlttee P Leonard (Chair) H Harrison (Vice Chair) R Hawe R Mcconnell J Roden G Millar J Higgin5 (Chair) D MacAt¢er (Vice Chair) M McKinsty S Elliott E Hartin L Jackson (Secretary) Nomlnatlons & GoverDaDce Commlttee C McAreavey (Chair) J Higgins (Vice Chair) M Donnelly L Jackson (Secretary) L Jackson (Secretary) Alldll & Risk Committee C Scales (Chair) M Donnelly (Vice Chair) G Walsh B Rooney D Tate l O'Doherty M M¢Donnell (CEO) L Jackson (Secretary) L Jackson (Secrctsry)
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanaal Statements For the Year Ended 31 March 2024 STATEMENT OF BOARD OF MANAGEMENT?S RESPONSIBILITIES IN RESPECT OF THE REPORT OF THE BOARD OF IViANAGEMENT, THE STRATEGIC REPORT AND THE FINANCIAL STATEMENTS The Board of Management are restK)nsible for preparing the Report of the Board of Management, the Strat¢gic Report and the financial statements in accordance with applicable law and regulations. Cowop¢rative and Community Benefit Societies law requires the Board of Manag¢ment to prepa financial statements for each financial year. Under thosc regulations th¢ Board have elected to prepare the financial statements in accordance with UK Arcounting Standards, FRS 102 The Financial Reporting Standard applicable in the UK and Republic ofJreland. Undcr Co-operative and Community Benefit Societies law the Board of Management must not approve the financial stal¢ments unless they are satisfied that they give a true and fair view of the state of affairs of th¢ Group and Parent and of the income and cxpenditure of th¢ Group and Parent for that year. In preparing these flnancial statements, the Board of Management are requir¢d to: select suitable accounting p)licies and then apply them consistently. make judgements and estimates that are reasonable and prudent; state whether applicable UK Accounting Standards and the Statement of Recommended Pra¢tic¢ have been follow, subject to any material departures disclosed and explained in the financial statements. assess the Group and Parent's ability to continue as a going concern, disclosing, as applicable. matters relat¢d to going conccrn. and use the going concern basis of accounting unless they ¢ither intend to liquidate the Group or Parent or to ce&s¢ operations or have no realistic alternative but to do so. The Board of Managcment are responsibl¢ for keeping adequate accounting rccords that are sufficient to show and explain the Group and Parent's transactions and disclose with reasonabl¢ accuracy at any time the financial position of the Group and Parent and enable them to ensure that the financial statements comply with the requirements of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, Article 19 of the Housing (Northern Ireland) Order 1992, Registered Housing Associations {AOUnting Requirements) Order (Northern Ireland) 1993, the Charities Act (Northern Ireland) 2008 and Regulation 9 of the Charities (Accounts and Reports) Regulations (Northern Iland) 2015. Th¢y are responsible for such internal controls as they deterniine are necessary to enable the preparation of financial statements that ar¢ free from material misstatement, whether due to fraud or error. and hav¢ general responsibility for taking such steps as are re&sonably open to th¢m to safeguard the assets of the Group and to prevent and detect fraud and oth¢r irregularities. The Board of Management are responsible for the maintenanc¢ and integrity of the corporate and financial inforniation included on the Group's websit¢. Legislation in the UK governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions. On behalf of the board Joe ireclor Ciaran McAr¢avey, Director 21 August 2024
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Statements For the Year Ended 31 Marth 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT The Board of Management present their report and the audited financial statements of Choice Housing Ireland Limited (the "Association" or "Parent") and its subsidiaries (together the "Group") for the year ended 31 March 2024. Principal Activity Th¢ Association is a public benefit entity administered by a Board of Management and is involved in the development and management of affordablc rented accommodation. The Association is registered under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (No. IP000408) and is a Registered Housing Association (R56), providing housing in Northern Ireland for people in need. The Association is a registered charity under the Charities Act (Nl) 2008 (Charity No. NICI 00095). The Group provides low-cost accommodation through its r¢gistered housing association: Choice Housing Ireland Limited ("CHI" or "thc Parent"). Additionally, its subsidiaries provide the following services: Maple And May Ltd ("M&M") provides accommodation in the private rented sector, Maple And May (Homes) Ltd ("MMH") provides affordable home ownership. Choice Services (Ireland) Limited ("CSL") provides maintenanc¢ services to the Group and to a joint venture Comhar Facilities Management Limited. Board of Management, Shareholders and Officers The members of the Board of Management and the officers of the Association listed on page 2. The Board of Management 15 a voluntary Committee who have responsibility for the strategic direction, general policy and management of the Group. The day-to-day management of operations is delegated to the Group Chief Executive and the Senior Management Team. Ea¢h memb¢r of the Board of Management other than members co-opted during the year holds one share of £1 in the Association. Our Vision, Mission and Ambition The Group's strategy to 2027, sets a clear vision for the organisation to make a real and l&sting difference to the live5 of our tenants and their communities. Our Mission is 'to enrich the lives of our tenants and communities through the provision of great homcs and services., Our Vision to 2027 15 'to excel in everything that we do in the eyes of our customcrs, partners and staff., Our Ambition 15 'to ¢mpower our staff and partners to make a positive and sustainable difference by: increasing the supply of high quality and affordable homes. ensuring acces5 to excellent SUPPOrt services. enabling our communities to flourish; and making best use of our collective talent and rcsources.
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Ststements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) Business Plan 2024125 A summary of Group 'Headlines' for the 2024125 business planning period, encompasses: To ensure that the tenant is at the centre of everything that we do. To maintain ambitious ncw build targets, leading on shared and mixed tenure housing: To progress the journey towards decarbonisation, balancing investment with affordability for tenants; To enhance our digital customcr, staff capabilities and data intelligenc< reporting. To further develop our Cmployer brand and offering in a competitive labour market; To successfully complete our objectives for the VHE and Killaire programmes; To ensure long-terni funding is in place to support our strdtegic goals: To ag¢ and progress plans for a combined HQ offi¢¢' and To grow our subsidiaries synergistically to support the priorities of Choice Housing. Provlding Great Homes To ensure a development programme which delivers target completions, slarts and pipeline. To launch the new Choice design guide to reflect development priorities and standards: To successfully complete the pilot mixed tenure schemes with any lessons learned. To remove delivery 'barriers' on a number of legacy dcvelopment projects. To attract a new housebuilder to the social sector through a 'Design and Build. partnership; To SUre another 'HousiDg for All, scheme designation for a new SHDP project: To maintain 'zero tolerance, on matters relating to tenant and staff h¢alth & safety; To incre&8e the average EPC rating across our homes. completc retrofit pilots and progress a 'landmark' new build scheme with sector-leading sustainability credentials. To complete a 'scope 3, lifecycle emissions footprint; To meet the required investment in and cov¢rage of our plann¢d maintenance programme. To impmve quality of stock data and reporting to inforn] a n¢w Asset Management Strategy; To complete the planned refurbishment of the fornier VHE portfolio. and To complete the defects replacement programme at Killairc Wood. Supportlng Communitia to Thrlve To deliver our Community D¢velopmenL Tenant Engagement and Good Rclations plans and achieve cxternal 'Tenant Participation, accreditation; To Complete the re-housing of tenants from Donegall Street. To secure 'Peace Plus, consortium funding and deliver associated thematic initiatives; To improve economic resili¢nce and wcll-b¢ing of our con]munilies through targeted investment and developm¢nt initiatives. To ensure tenants rec¢ive a more flexible and accessible response repairs service; To enable Choice Services to generate ¢fficiencies and innovation in our PMP. To wntinue to improve our housing managem¢nt services around allocations, anti-social behaviour, chang¢ of tenancy, income r¢¢overy, waste managemenL etc" To support tenancy sustainment through in-house services and external partn¢rships: To use customer and staff feedback to drive continuous improvement in our services. To review our sheltered and 5UPPOrted housing priorities and partn¢rship working" To promote the benefits to society of our work at Choi¢¢ Group; and To agre¢ and implement a new Group communitiOnS Strategy.
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnan¢ial Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEIIIENT AND THE STIL4TEGIC REPORT (continued) Business Plan 2024125 (continued) Empowering ourpeople To implement improvement actions arising from the external review of Killaire. To agree and implement a new Group ICT Strategy with potential replacement of systems; To expand the digital offering for customers, partners and mobile working for staff. To continu¢ to simplify the customer journey and expand our communication channels" To undertake annual survey of staff and implement improvement actions arising. To implement r¢eommendations arising from the current review of our Reward strategy. To expand the Choice apprenticeship programme as a means of building our 'tslent pipeline To refresh our employer branding to enhance recruitment and retention. To mak¢ better use of data to improve decision-making through Power Bl reFM)rting' To ensure funding in place to meet medium-terni liquidity and development aspirations. To develop the next Value for Money Strategy with a focus on affordability through efyiciency and service transforniation (including review of FM in communal schemes). To implement improv¢ments in our procurement and contract management protocols. with a greater focus on social value. and To review rent policy for existing tenants across our portfolio. Detailed business plans for each subsidiary have been approved by their Board and Group Board. A summary of key imperatives for 2024125 for each subsidiary is as follows: Choice Services To fill current trade vacancies to ensur¢ appropriate staff resources ar¢ available. To recruit a commercial Quantity Surveyor and Supervisor to support delivery of Choice PMP; To enhance management systems. processes and interface between Active H & Connect. To focus on value for money in response repairs service delivery to Choice Housing. To support Choice Housing on sustainability, technology and community investment. To work with Choice Housing colleagues to generate further efficiencies, improved processes, effective reporting and strong financial management. and To achieve the target profits which can be used to support the Group's objectives. Maple & May To agr¢¢ and implement the new 3-year strategy. To complete and allocate current pipeline of mixed tenure pilot schemes. To proactivcly transition the portfolio to reflect stratcgic goals. including targeted disposals. To support the emcrgcnce of new affordable housing products. To d¢liv¢r rther eificiencies in day-to-day op¢rdtions' and To achieve the target profits which can be used to support the Group's objectiv¢s. Maple & May (Homes) To agree and implem¢nt the new 3-year strategy. To complete Sale of Phase l affordable houses at Rosses Gate" To complete sale of Phase I and progress Phase 2 at Hillsborough Road, Dromara. To resolve outstanding issu¢s at Park Av¢nue Heights. and To achieve the target profits which can be used to support the Group's obj¢ctive5.
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanual Ststements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) Operational performance during the year This section describes the operational perfornwlce of the Parent during the year. Targets are set for key p¢rfom]ance indicatOTS and they are used in the managing of performance, and in 5¢tting the strategies for continuous improv¢ment. Key perforn]anc¢ indicators are also used by the D¢partment for Communities to assess the perfonnan¢¢ of each association against its peer group and the sector in total. Response maintenance service Th¢ table below shows the Parent's perfonnancc in completing works orders within target timescales: Works order Priorlty er leled within lar el 2024 2023 Emergency (24 hrs) 93Yo 94Yo Urgent (4 days) 95Yo Routine (20 days) 950 940 Overall works order perforniance at 94,50/0 has exceeded the 2023124 Business Plan target of 90.00/0 and is marginally highcr than the 2022123 out-turn (which was 93.20/0). Planned maintenvdnce programme In 202312024, £14.6 million was spent by the Parent on the planned maintenancc programme (capital exp¢nditure) (202212023: £6.8 million). The most significant projects completed were in r¢lation to the M¢tropole which was a sheltcred scheme replacing bathrooms, kitch¢ns, windows and doors and upgrading heating plus a number of general nceds schemes having replacement kitchens. There was also revenue planned and Cyclical maintenance ¢xpendilurc of £3.2 million (2022123 £2.4 million). Arrear8 The Parent has a specialist income recovery team which focuses on arrears management and perforniance and in particular the area of past tenant arrears. Whilst the timing and effect of Welfare R¢fomTr are still unknown, th¢ income recovery t¢am continue to d¢dicate their time to the collection of rents. The table below shows the arrears balances of the Parent after deduction of ¢xpected benefits, and the percentage of rentsl income. The l¢vel of the arrears has increased due to the wider impact of the cost-of-living crisis. 2024 2023 £?000 £'ooo Current tenant arrears of Parent (after dcduction of expected benefits) £2,469 (4.7% £573 £1,826 {4.00/0} £616 Past tenant arrears (I.IO/o) Ll,042 (5.7°/o) (1.3%) £2.442 (5.30/0) Tot81 arrears at year end
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanclal Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) Voids The proactive management of voids is regarded as a key issue. A specialist allocations team aims to improve perforn]ance in this area. Includ¢d within its tenns of rcfcr¢nc¢ is: Arrangements for offers of accommodation: Marketing. External liaison with agencies. Financial incentives. Strategic approach including voids toolkiL and Voids audits by housing managers. Rent loss through voids by the Parent in the financial year w&$ £1,278k representing 1.90/0 of gross rent receivable (202212023: £1,428k and 2.20/0). Overall voids have reduced by 79 when compared to the same period last year. Housing and Maintenance voids in particular have seen a large reduction. This is as a result of void works being completed in properties quicker, with waiting tenants moving in as soon as void works are complete. A summary of the voids at the year-end are set out in the table below: Mar-24 Mar-23 Housing voids units Maintenance voids units 84 121 79 107 Unlettable voids units 64 61 VHE voids units 75 92 Total 302 381 New developments The numbers of homes and bed spaces of the Parent in new schemes are shown below: 2024 2023 Units completrd Units started 231 315 243 433 There was cxpenditure of £52.Om (2022123: £53.Om) by the Association during the year on new dcv¢lopments. At 31 March 2024 there were 22 schemes on site comprising 1,148 units including, 146 units at Minorca Drive, Carrickfergus. 252 units at Rosses Gate and 90 units at Hillsborough Old Roa<L Lisburn. The Association completed 231 units including 90 units at the Park Avenu¢ Hotel site, BelfasL 49 units at Old Eglish Phase I, Dungannon & 23 units at Lisburn Road, Belfast.
CHOICE HOUSING IRELAND LIMITED Annual Report and Financial Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) Staff One of the k¢y perfomiance indicators in relation to staff management is the percentagc of working days lost through sickness abscnrc. In 2023124 the Parent's sickness abscncc ratc was 3.50/0 (2022123: Complaints A total of 51 forn]al complaints were regisfrred by tenants of the Parent during the year. Compared to 54 for the previous year. A breakdown of complaints is analysed as follows: 2024 2023 MaintenancelR¢pairs Anti-social Behaviour 30 Allocations Damp/mould Staff Rent & Arrears H¢ating charges Other Total 5] 54 45 of the complaints werc satisfactorily resolved at the first stage of the Parent's procedure. 6 of the complaints receiv¢d progressed to the second stage (2022123: 5). Choice Services Centre Choice Services Centre is a specialist in-house contact centre tasked with providing a responsive and accessible service to tenants. The following table shows its perfonnance levels: 2024 2023 Total calls r¢c¢iv¢d 103,320 118,517 Resolved at first contact T&sks resolved by officer grade staff Advisor quality assessment 920/0 NIA io
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanaal Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) Streamlined Energy and Carbon Report (SECR) Details of the Parent's energy consumption and emissions for the period l April 2023 to 31 March 2024 have been reported in the SECR and published on th¢ Choice website. The required FRSI 02 extracts from this report are s¢t out below. Methodology- Carbon Emission Factors used in calculations are the 'Government conversion factor5 for company reporting of greenhouse gas emissions, Annual factors for 2023 published on 2810612023 have been used in the calculations of carbon emissions for the SECR report. In line with the scope of the SECR report. the data from the sources listed above were categorised into Scope I, Scope 2 and Scope 3 emissions. All data was received from the Choice Encrgy team in May and Junc 2024. In 2023124 Choice continued to progress actions to deliver on their Sustainability & Energy Strategy (2022-2025). New homes have ¢ontinued to be developed to high standards and Choice have commenced plans to develop a18ndmark new housing development to enhanced energy> environmental and biodiversity standards. Targets have been set to improve EPC data, by increasing the average energy efficiency rating of their housing stock, and to tsrget properties with a Band E-G EPC rating. Retrofitting of homes has continucd, including measures such as insulation improvements, heating upgrades and lighting replac¢ments. Choice hav¢ a target to invest £250,000 over three y¢ars on innovativ¢ technologies, which has included trialling of Temote monitoring technologies for thelr solar PV portfolio, the trial of remote heating controls, and softwarc to support energy r¢trofits and management of energy supply contracts. Prevlous R•portlwYur UK•nd Offshore Gas: 14,948,408 kwh LPG: 152,312 k HeatiTh8 011: 1017,384 kwh Cornpany- ownedvans.. I9.590 kwh Electrfdty: 5,524,434 kwh Non-comparty own•d vehicles.. 330,338 kwh. Toial: 24.782,472 kw Inlornmtlon ulfed Ener8y consumptlors used tocalculate emisslons:/kWh Imandatoryl- optiors&l to provlde separatè flAures for8aS, electrlclty, tr8Th5PQrt fuel and other •n•ry source5 Curnrtfte Y•arUKandoffshor• Natural G8s: 14,479,347kWh 8urthln8 011128 Sec 0111.. L982A07kWh Gas 011135 Sec Olll.. 9.644 kwh LPG: 32,873 kwh Comp&ny-owned Vans.. 1.87B,632 Electrfclty.. 5,305,635 kwh Non-company-ownedvehicles.. 383,264 kwh Total.. 24,on.C02kWh Emisslons from combustlon of ga5 ItC02•1 Emls510rts frorn combustlon of HeatlngOlI ItC02•1 Emissions frorn combustion otGa$ 011 tC02e (Scope 11 Em15$10ns frDrn combustion of LPG tC02e IS¢ope 11 Em15$10nsfrorn bu51ne55 travel In ¢gtnpanyowned ¥ehlcle5 tC02e15¢0pe 11 Emisslonsfrorn purth4s•d •l•¢irldtytC02e (Scop• I loratlon ba5edl Emissions Irorn bu51nes5 travel In rental cars oremployee- owned vehicleswhere comp•ny Is re5pgn51ble fDr purchaslngthefuel tC02e (Scope 31 Total Bross iC02e b45ed on above Inten51ty ratlo:tC02egross fiEure based on rnandatory lields abovele. . EI(#J.WO revenue 2,648.69tC02• 488.85tC02e 2.SItC02o 7.05tC02e L728.7tC02• 497.8 tC02e OtC02• 32.7tCOle 47420tC02e 451.6tC02e 1,098.70tC02• 1.068.3 tC02• 92.92tC02e 4.31192tC02e 0.42tC02eltenancy i.Y4tC02elener 81.6tC02e 4,Bf4J.7tC02e 0.421C02eltenanry 8.94tCOZelene SUP sup li
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) Energy and emissions report (Continued) Pr•vknuJ Reportkn8Y••r UK and hrfornmtlon Ener8y EfficientActions detailed resu ortl Yur UK and Offthry• Continued education and supportfor staff • E¥istin8 Ivari3blel ener8y procurement contracts were emtended to take advantage of reduelng wholesale prlces. with regular Invol validation In place, supported by a coThtSnued trial of a billing management system. • Investment In fabric improvemènts, lightln8 and heatin8 upgrades Upgraded he3n8 controls In a number of communal heatin8 sthemes, alon8 Wlth UP8radlng to more effldent bollers through thelr assèts programme at vaTIous schemes and Intjlvidual propertles. Choice commenced a pllot to retroflt ol a small number of propertles to a much hi8hef startdard, usin8 the prin¢Sples ol PAS2035, wlth works anticlpated to be completed In 2024125 Improvements in recent years have meant that only around 70 properties are now known to have an EPC ratln8 018and E or F Iwlth no known Band G propertiesl. An increased number of EPCS were carrled out, wlth dats now available for around 85% 01 thelr housln8 Stock. • Cholce Support Nl Energy Week in Autumn 2023, wlth dally Information provided on thelr Intranet, website and vla so¢lal medla, and trainin8 provided to a number of staff. A competition was held to encourage colleagues to 'SwStch & Save,, wSth an estlrnated savln8 01 over £60.C4XI If all staff took thls step. Choice rev15ed and relaunched thelr tenant ener8y booklet. Choice 3150 operates a large solar PV portfollo, rnanaging around 4CI) systems; offsettlng carbon emisslons and makin8 sl8nlficant energy savin8s by supplyln8 èlectridty to a number of housing schemes. Durlng this reportin8 period around 223,000 kwh of renewable electriclty was exported to the electrlc Id. 12
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanaal Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) CommuDity Investment As & social purpose organisation, Choicc has a key role to play not only in providing homes. but also in supporting communities to thrive through investing in our communities. We have a history of providing a variety of scrvices for our tenants that can broadly be understood as 'Community Investment,. This is a key way that we, as a housing association, differentiate ourselves from other landlords, and is central to how we demonstrat¢ our social purpose. We are utilising thc UK Social Value Bank ('UKSVB'), developed by HACT and Simctrica to measure the impact of our Community Investment actlvlty. In 2023-24, there wer¢ nine initiatives for which we could clearly identify the costs of delivery and subsequent impact on tenants and wider Community. In the reporting year Choic¢ Spent £975,061 on nine initiatives generating £8,685,860 of additional Social value. The estimated Gross Value Added to the Northern Ireland economy through Choice's business activity is GVA £71,877,451 sustaining an estimated 1243 jobs throughout the supply chain. Our 'Community Investment, is an essential commitment, and we deliver this in a range of support s¢rvices. Economic Resilience and Health and Well-being are the two themes under which community investment activities are considered for funding. In the y¢ar 2023-24, Choice partnered with 7 organisations to deliver £86,420 of investment. Dctails of the initiatives are listed below. Economic Resilience The Rio Ferdinand Foundation (RFF) Community Programme Our partnership with the RFF continue5 to grow and, following the succes5 of the pilot programme in South and East Belfast, we invested £59,000 to keep th¢ South & East Belfast programme running and to contribute to a new programme in Dery-Londonderry for 12 months. To date 120 young people have engaged with the new programme and there weekly sports sessions delivered in the Bogside, Cityside and Waterside areas to build community relations and health and wellbeing outcomes. Outreach programmes are engaging more young people and 'Dads and Lads, and 'Mothers and Others, cross-generational health and wellbeing projects are being delivered on a cross- Community basis. Other activities include youth leadership accredited training programmes, employability events and a young women's youth leadership programme. Choice are also partn¢rs in an International Fund For Ireland ¢ross-border initialive with the PSNI, An Garda Slochana and Oakl¢¢. The Beyond Th¢ Ball project brings young people together to build skills, share learning and earn qualifications to deliver Sla7 action and employability Outcomes. Choice do not contribute fInancially to th¢ IFI-funded programme. Choitt Housing Scholarships During the year, Choice also continued to work with Queens University and Ulster University to provide financial support to students facing financial, social or logistical barriers to furthering their Cducation through its scholarship programm¢. Over the course of the five year programme, Choice provided 30 scholarship priz¢s of £ 1,000 presented annually to students who have the ability to attend university, but who ar¢ least likely to progress to higher edatIOn and enables them to fulfil th¢ir pot¢ntial. 13
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnandal Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) Brian McKeTma Student Placement Programme (incorporating the Brian McK¢nna Prize) Brian McKenna. who passed away in February 2019, was a member of th¢ Choice teani for more than twenty years and. during his time with th¢ organisation mad¢ a huge contribution to the lives of tenants, colleagues. and the communities he worked in. As a board member of the Voice of Young People in Care (VOYPIC), Brian wa5 committed to working to improve th¢ lives and opportunities for young people both professionally and personally. In memory of Brian, the 2023-24 student placement programme offered six stud¢nts the opportunity to work for a y¢ar in the ICT, Assets, Finance and HR departments. During their time wilh Choice they receive supw)rt from a dedicated line manager who guid¢s them as they develop skills aimed at pparIng them for employment, through practical learning and real time problem solving. Students earn a living wage during the year's placement and the opportunity to win payment of their final yearfs tuition fee for submitting the winning enty in a business innovation programme. Overlapping Themes Initiatives Street Soccer Nl - Four Nations Challenge Cup Choice have supported Street Soccer NI (SSNI) on a number of occasions to attend the Homeless World Cup. SSNI provide programmes that tackle homelessness, unemployment, addiction and mental health issucs. Choice have supported SSNI for a number of years and this year the Homeless World Cup returned after a four y&ar absence. Choice funding helped towards travel costs, kit, training camp, passports, visas and more. SSNI took a men's team of eight players. All players went through five weeks of trials and trdining in the lead up to the ev¢nt. Each player was supported on a one to one b&sis to make positive changes in their lives including finding employment and accessing housing. The team finished in eighth place overall and the goalkeeper, Jonny Holland, pi¢ked up 'Best Goalkeeper of the World Cup, and has signed for Ballymoney United. He continues to volunteer with SSNI supporting vulnerable adults and homeless people and has started a new job. Health and Well-being USPCA - Community Partnership Choice partn¢red with USPCA to introduce a programme for tenants relating to animal w¢lfare, community engagement and education. The programme spanned 6 months and reached over 200 tenants through workshops and community events. A number of cases of irresponsible pet ownership and welfare concerns w¢re reported to the USPCA as a result of this engagemcnt. The CDM r¢ported that the collaboration "significantly contributed to advancing animal welfare. resw)nsible ownership, community cngagement, and promoting education." Women's Aid CoDference Sp)nsorship A small donation was made to help sponsor BelfasULisburn WA conference. The aim of the conference was to keep the matter of violence against women and girls, including domestic abuse specifically, in the publi¢ consciousness Constantly and not just following a tragic event such as the murdcr of a woman. 14
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) Financial perforniance Income Vdnd expendlture The table below provides a summary of the Group Income and Expenditure account. 2024 2023 Turnover 82.6 95.0 EBITDA, 30.1 19.9 Surplus for the year before exceptional items 14.9 18.0 Exceptional loss (16.4) Surplus for the year after exceptional items 14.9 The exceptional items in 2023 refer to the deconsolidation of the Republic of Ireland subsidiaries, Oaklee and Acom which are treated in the Group results as a disposal of their net assets as at 31 $1 March 2023. Allowing for the impact of the deconsolidation of Oaklee and Acorn, Group turnover has increas¢d by 7.00/0 reflecting an increase in units Ict and rental incre&ses of 7.1 % applied during the year. EBITDA for the Grou is calculated as follows: 2024 £000 2023 Ref Surplus for the year Depreciation through l&E Amortisation through I&E Loss on disposal of major r¢pairs T&x Interest payable Interest reccivable Adjusted EBITDA I&E Nole 6 Nole 6 Nole 6 I&E I&E I&E 14,565 17,560 (11,235) 719 375 9.219 1,143 1,467 20,671 (13.376) 1,306 130 12,370 2,641 19,927 15
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanclal Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (eontinued) The Core Perforniance and Cashflow for the Parent is sct out in the tables below. 2024 £OOOs 2023 restated £OOOs Gross Rent Operating Costs- CORE Operating Margin- CORE 51057 (26,507) 25,350 490/• 48,587 (25,905) 22,682 Planned Maintenance Programme (PMP) Capex PMP Revenue Net Int¢rest Other Net Cashflow before discretionarylnon-recurring Discretionary and Non-Recurring Items Net Cashflow after discretiona Inon-re¢urrin (14,669) (838) (6,717) (887) 2239 936 3.175 (6,789) (185) (6,361) (118) 9,229 9,229 Real Rent Per Unit Per Annum (£) Real Opcrating Costs Per Unit Per Annum (£) Real PMP Per Unit Per Annum {£) Net Interest Per Unit Per Annum {£) Avcrage Units 4,478 2,289 1,267 580 11,581 4,264 2,274 596 558 IlJ94 Asyets and liabilities The Group is in a strong financial position at the year-end. as shown by the following summary: 2024 2023 Fixcd and non-current &ssets Net current assets/(liabilities) Non-current liabilities Net assets 1,033.5 (56.1) (797.6) 179.8 968.1 {7.7) (792.7) 167.7 Total fixed assets have increased to £1,028.2m (2023: £961.4m) due to the ¢ompletion of a number of large housing schemes during the year. There w¢r¢ also 37 properties sold to tenants under the Statutory Hous¢ Sales Scheme. The Group closely monilors its liquidity position in line with its prudent treasury policy and holds suffiri¢nt cash and available banking facilities to meet all nur-tern] liabilities. At the balance sh¢¢t date. the Group had committed, but undrawn facilities of £94.Om (2023: £73.Om). Cashnows During the year th¢ business generat¢d net cash-flow from operating activities of £46.9m (2023: £33.6m) and repaid existing borrowings of £6.8m (2023: £55.3m). 16
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) Loan covenants External private finanre is raised by the Parent and the financial cov¢nants are in respert of the financial perforn)ance of th¢ Parent for all loans except EIB where the cov¢nants are in re5P¢Ct of the Group perforniance. The covenant ratios arc as follows: Ratlo compliance Int¢rest cover Interest cov¢r Interest cover (consecutive years) Intest cover (consecutive ycaTS) Gearing Gearing Requirement
1.05:1 l.10:I 1.20:1 1.20:1 <50% <600/0 Actual 3.89:1 3.46:1 3.68: 1 3.20:1 350/0 350/ Basis Parent Group Parent Group Pant Group The Parent and Group were fully compliant with these ¢ovenants during the year, as shown below: Interest cover Parent 2024 £'ooo Group 2024 £'ooo 2023 £'ooo 2023 £'ooo Adjusted EBITDA Net Inl¢r¢st Interest Cover ratio Minimum re uired 26,924 6,915 3.89 1.05 25.146 6,543 3.84 1.05 27,918 8,076 3.46 34,746 9,729 3.57 1,10 i.io Ad. usted EBITDA 15 calculated as follows: Parent 2024 £'ooo Group 2024 £'ooo 2023 £'ooo 2023 £'ooo Ref Operating Surplus Depreciation through I&E Amortisation through I&E Loss on diswsal of major repairs Ad usted EBITDA for loan covenant I&E Nole 6 Note 6 Note 6 19,916 17,524 (11,235) 719 26,924 18.458 16,766 {11,384) 1,306 2S,146 20,874 26,145 17,560 20,671 (11,235) (13,376) 719 1,306 27,918 ur oses Gearing Pv4rent 2024 Group 2024 2023 2023 Gross debt Reserves 300 307 307 314 868 35% 500/0 858 360/0 50% 870 35Q/o 60% 861 360/0 600/0 Gearing {./•) Maximum Allowed 3 Parent and Group rcs¢rves are calculated by aggregating capitsl and reserves, Housing Association Grants ('HAG'), other capital grants, pension &8setslliabilities and financial instruments measured at fair value. 17
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanclal Statements For the Year Ended 31 March 2024 REPORT OF THE BOIIRD OF MANAGEMENT AIYD THE STRATEGIC REPORT (eoDtinued) Treasury policy and capital structure The Group has a fornial detailed treasury management policy which is approved by the Board. The policy sets out investment policies, borrowing policies, liquidity policies, interest rate management policies and tre&8ury management procedures. The policy provides that no more than 500/0 of outstanding debt will be on a floating rat¢ basis. At the balance sheet date all drawn borrowings from EIB, DIE and a substantial proportion from AIB ar¢ fixed rate borrowings. 75 % of the borrowings from Barclays are hedged against interest rdte volatility. The loan and bond with THFC are on a fixed rate basis. Countearty risk is mitigated by closely monitoring credit ratings and restricting detx)sits to £1 Om. Revolving ¢redit facilities are on a floating rate basis. The Group has established and maintains stron8 relationships with a number of banks and financial institutions to facilitate future funding r¢quirements and to cnsure a balanced loan portfolio. At ihe balance sheet date, the Group had gross debt of £307m (2023: £314m), 10 % (2023: 50/0) of which is on floating rate basis and cash (including cash deposit balances) of £15m (2023: £35m). This combined with undrawn, committed facilities, will m¢¢t current developm¢nt funding requirements. The Group generatcd cash flows from operations of £46.9m (2023: £33.6m) and paid inter¢st of £9.3m (2023: £12.2m). Manydgement of risk Risk identification and 83gessment As the Group's objectives arc ¢stablished and updated, any risks that may prevent their achievement are identified and a5sess¢d in tern)s of their impact on the organisation and their likelihood of occurrence. This activity is carried out at appropriate levels throughout thc Group. Major Risks There was one "Red" residual risk which was add¢d in January 2024. The red risk rela*s to the larg¢ number of remedial rcpairs at our Killaire Wood scheme. In accordance with our risk management policyi an update on PrOgsS in relation to this risk is presented to each meeting of both the Board and the Audit & Risk Committee. Audit The Board of Management has established an Audit and Risk Committee with clearly defined ternis of reference. Thc main functions of the Audit and Risk Committcc are to control and revi¢w the external and internal audit functions, the internal control systems and monitor the perfonnanc¢ of the Association against the key business indi¢ators. The Association's internal auditors report directly to the Audit and Risk Committee on ¢ompletion of each systems review and an annual summary port is produced by thc internal auditors summarising the systems audit programme each year. The work of the external auditors also provides some internal control observations identified during the year-end audit. 18
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) Effectiveness of control mechanisms For those risks which are identified as being the most significant for any part of the Group, tbe ¢xisting control environment is assessed to establish ways in which it can be improved. Areas identified for improvement will be regularly followed up until action points are fully addressed. Wherc a view is fornied that the Group cannot exercise adequate wntrol over the relevant risk (for example due to external influences) then the relevant strategic objective will be revisited to establish whether or not it can be amended to reduce risk anit if not, whether the level of risk is acceptable. Results for the year The Group's surplus after tax and after exceptional items for the year was £14.6m (2023: £1.5m). Donations The Group and Parent made charitable donations of £88k during the year (2023: £48k). The Group and Parent made no political donations nor incurred any political expenditure during the year (2023: nil). Employee Involvement The Group ¢ontinues to regard ¢ommunication with its employees as a key aspect of its policies. Inforn?ation is given to employees about employment matters and about the financial and economic factors affecting the Group's perforniance through management channels, quarterly in-house magazines and attendanc¢ at internal seminars and training programm¢s. Employment of Disabled People The Group is committed to providing equal opportunities to employees. The employment of the disabled is included in this commitment and the recruitment, training, development and promotion of dtsabled people are based on the aptitudes and abilities of the individual. Should employees become disabled during their employmcnt, every effort will be made to continue their employment and, if necessary. appropriate training will be provided. Suppller Payment Policy The Group follows the Better Payment Practice Cod¢ for all suppliers. Th¢ four principles of the code are: to agree payment ternis at the outset and stick to them. to explain payment procedures to suppliers" to pay bills in accordance with any contract agreed with the supplier (or as requir¢d by law): and to tell suppliers without d¢lay when an invoic¢ is contested and then settle disputes quickly. Future Performance The Group's future perforn]ance and financial risks will be affected by government policy, the economic ¢nvironment, internal growth and efficiency initiatives. The Group h&8 adapted its strategy to deal with the effects of the cost of living crisis, which can be evidenced Ihrough updated business plans and stress-testing. The Board consider the Group to have strong potential future opportunities. Diselosure of Information to Auditors The Directors who held office at the date of approval of this Rep of the Board confirn that, so far as they are each aware, thei¢ is no relevant infonnation of which the Group's auditors are unaware. and each Director has taken all the st¢ps n¢cessary that he/sh¢ ought to have taken as & director to make himselftherself aware of any levant audit inforniation and to establish that the Group's auditors are aware of that inforniation. 19
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanclal Statements For the Year Ended 31 March 2024 REPORT OF THE BOARD OF MANAGEMENT AND THE STRATEGIC REPORT (continued) Audltor In July 2024, our previous external auditors, ASM (B) Ltd transferred all their external audil contracts to Sumer Auditco Nl Limited. The Board h&s agreed to a new external audit contract with Sumer Auditco NI Limited. By order of the Board ins (Chair) 21 August 2024 20
CHOICE HOUSING IRELAND LIMITED Annual Report and Finanual Statements For the Year Ended 31 March 2024 BOARD OF MANAGEMENT'S STATEMENT OF INTERNAL FINANCIAL CONTROLS The Board acknowledges that it has the ultimate responsibility for ensuring that the Group has in place a system of controls, appropriate for the various bSInesS environments in which it operates. These controls arc designed to give r¢asonable assurance about: Th¢ reliability of any financial inforn]ation that is published by? or is used within. the The maintenanc¢ of proper accounting records. and The protection of the Group's assets against their unauthorised usc or dissition. It is the Board's responsibility to establish and maintain systems of internal financial control. Such systcms can only provide rcasonable (and not absolute) assurancc against material financial misstatement or loss. The key cl¢ments of these systems include ensuring that: There are fomydl policies and procedures in plac¢ (including the documentation of key systems and rules that relat¢ to the delegation of authorities) which allow the monitoring of controls and which scek to prevent th¢ unauthorised use of the Group's ass¢ts' Experienced staff. who are suitably qualified, arc responsible for important business functions, and are subject to annual appraisal procedures set up to maintain high standards of perfonnance. Regular management a¢counts are prepared promptly which provide relevant, reliabl¢ and up-lo-date financial inforniation, and significant variances from budgets are inv¢stigated as appropriate. All significant initiatives, major commitments and investment projects are subject to fornial authorisation procedures. through r¢levant committtts that are controllcd by Board members. The Board's Audit & Risk Committec reviews reports (from management, and from both internal and external auditors) so that it may have reasonable assurance that control procedures are in place and are being followed. These revicws include a gen¢ral revi¢w of the major risks facing the Group• The Audit & Risk Committee makes regular reports to the Board. and Fornial procedures have been established for instituting action needed to correct w¢aknesses identified in the ab)ve reports. The Board is satisfi¢d that there have been no ma*rial loss¢s, contingencies or uncertainties that require disclosur¢ in the financial statements as a result of weakness in th¢ internal financial controls. By order of thc Board Ins (Chair) 21 August 2024 21
Independent auditors, report to the members of Choice Housing Ireland Limited Opinion We have audited the financial statements of Choic¢ Housing Ireland Limited ('tthe Association") and its consolidated UDd¢rtakings ('tthe Group") for the year ended 31 March 2024 which comprise: the Consolidated and Association Income and Expenditure Accounts, the Consolidated and Association Statements of Other Comprehensive Income, the Consolidated and Association Balance Sheets, the Consolidated and Association Statements of Changes in Equity and the Consolidated Cash Flow Statement and th¢ related notes, which include a description of the significant accounting w)licies. The financial reporting framework that h&s been applied in their preparation is applicable law and United Kingdom Standards including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Generally Accepted Accounting Practice) and the Housing SORP - Statement of Re¢omm¢nded Practice for Social Housing Providers. In our opinion, the Consolidated and Association financial slatements: give a true and fair view of the stat¢ of the affairs of the Group and of the Association as at 31 Mawh 2024 and of the income and expenditure of the Group and of the Association for the y¢ar then ended. have been prowly prepared in accordance with United Kingdom Generally Accepted Acwunting Practice; and have been properly prepared in accordance with the Co-operattve and Community Benefit Societies Act (Northern Ireland) 2016 (forn]erly the Industrial and Provident Societies Act (Northem Ireland) 1969), the Housing (Northern Ireland) Order 1992, th¢ Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993. the Charities Act (Northern Ireland) 21108 and Regulation 9 of the Charities (Accounts and Reports) Regulations (Northcrn Ireland) 2015. Basls for opinion We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities under ISAS (UK) are further described in the auditors, re5tx)nsibility for the audit of the financial statements section of our report. We are independent of the Group and the Association in accordance with the ethical requirements that are rclevant to our audit of the financial statem¢nts in th¢ Unit¢d Kingdom, including the Financial R¢porting Council's Ethical Standard and we have fulfilled our other ethical resFM)nsibilities in accordance with these requirem¢nts. We believ¢ that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conelusions relating to going concern In auditing the financial statements. we have concluded that the directors, use of the going concern basis of awounting in the preparation of the financial statements is appropriate. Based on the work we havc perfornied, we hav¢ not identified any material uncertainties relating to events or conditions that, individually or wllectively, may (ast significant doubt on the Group 22
INDEPENDENT AUDITOR'S REPORT TO CHOICE HOUSING IRELAND LIMITED (conlinued) or the Association's ability to continue as a going concern for a period of at least twelve months from when the financial stalcments are authorised for issue. Our responsibilities and the responsibilities of the Board of Management with respcct to going concern are described in the relevant sections of this report. Other information The other inforniation comprises the infomjation included in the Annual Report other than the financial statcments and our auditors. report thereon. The Board of Management is responsibl¢ for the other inforniation contained within the Annual Report. Our opinion on the fInancial statements does not cover the other information and, except to the extent othcrwisc cxpli¢itly stated in our r¢port, we do not cxpress any forni of assurance wnclusion thereon. Our responsibility is to read the other inforniation and, in doing so, ¢onsid¢r whether the other inforniation is materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we ar¢ required to detern]in¢ whether this gives rise to a mat¢rial misstatement in the financial statements th¢mselves. If, based on the work we have perforn]ed, we conclud¢ that there is a material misstatement of this other inforniation, we are required to report that fact. We have nothing to report in this rcgard. Matters on which we are required to report by exception In light of our knowledge and understanding of the Group and the Association obtained in the course of the audit, we have not identified material misstatements in the Report of the Board of Management and the Strategic Report. W¢ have nothing to report in respect of the following matters where thc Charities (Northern Ireland) Act 2008 and Regulation 9 of the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 rcquire us to report to you if, in our opinion: the inforniation given in the Rewrt of the Board of Management and the Strategic Report is inconsistent in any material rcspect. sufficient accounting records have not been kept" the financial statements are not in agreement with the accounting records" or we have not received all the infonnation and explanations requir¢d to complete our audit. We have nothing to report in this regard. Und¢r the Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 (fonnerly the Industrial and Provident Societies Act (Northern Ireland) 1969) are required to report to you if, in our opinion: a satisfactory system of control over trdnsactions has not b¢¢n maintained" or 23
INDEPENDENT AUDITOR'S REPORT TO CHOICE HOUSING IRELAND LIMITED (copttinued) we have not r¢¢eived all the inforniation and explanations we require for our audit. or proper accounting rccords have not been k¢pt by the Association- or the Association's financial stat¢ments are not in agreement with th¢ accounting records. We have nothing to report in this regard. Responsibilities of the Board of Management As explained more fully in the Board of Management's Statement of Responsibilities on page 4, the Board of Management is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Board of Management is also responsible for such internal control as it deterniines is necessary to enable the pparatIOn of financial statcments 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 Group's and the Association's ability to continue as a going concern, disclosing. as applicable, matters related to going concern and using the going Concern basis of accounting unless they either intend to liquidate the Group and the Association or to cease operations. or have no realistic alternativ¢ but to do so. Auditors, responsibility 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 auditors, report that includes our opinion. Re&80nable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordanc¢ wilh ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and arc considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design prOcedUS in line with our responsibilities, outliDed above, to detect material misstatements in respect of I¢gularitIeS, including fraud. The extent to which our procedurcs are capable of d¢tecting irregularities, including fraud is detailed below: We considered the opportuniti¢s and incentives that may exist within the Group and th¢ Association for fraud and identified th¢ greatest potential for fraud in the following areas: management override of controls, including relating to posting ofjournals. To address those risks we discussed the risks with client management and tested a sample of journals to confirni they were appropriat¢. A further description of our responsibilities for the audit of the financial statements is located on the Financial Rey)rting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description fornis part of our auditors, report. 24
INDEPENDENT AUDITOR'S REPORT TO CHOICE HOUSING IRELAND LIMITED (continued) Use of our report This report is made solely to the Board of Management in accordance with section 43 of the Co-operative and Community Benefit Socicties Act (Northern Ireland) 2016 (fonnerly the tndustrial and Provid¢nt Societics Act (Northern Ireland) 1969) and article 19 of The Housing (Northern Ireland) Order 1992. Our audit work has been undertaken so that we might State to the Board of Management those matters we ar¢ r¢quired to state to them in an auditors, report and for no other purpose. To the fullest extent pennitted by law. we do not accept or assume responsibility to anyone other than the Association and the Board of Manag¢menL for our audit worL for this report, or for the opinions we have forn]ed. Brian Clerkln Senfior Statutory Auditor for and on behaifof Sumer Audlteo Nl Limlted Statutory Auditors 4 Floor Glendinning House 6 Murrny Street Belfast BTI 6DN 21 August 2024 25
CHOICE HOUSING IRELAND LIMITED Annual Report and Finan¢lal Statements For the Year Ended 31 March 2024 GROUP INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 Total Continuing Discontinued Operations Operations Total Note 2024 £'ooo 2023 £'ooo 2023 £'ooo 2023 £'ooo Turnover Operating costs Operating surplus 82,568 (61,694) 20,874 76,675 (57,446) 19,229 18,328 (11,412) 6,916 95.003 (68,858) 26,145 Gain on disposal of tangible fixed &ssets Interest receivable and similar income Interest payable and similar charges Net finance creditl(charges) relating to 5119.1 pension scheme Fair value change in investment properties Transfer to disposal proceeds fund Movement in fair value of financial instruments Surplus before tax before exception41 items Exceptional Items - Loss on disposal of subsidiaries Surplus before tax after exceptional items Taxation Surplus for the year 3,285 4,186 4,186 1,143 681 1,960 2,641 (9,219) (7,930) (4,440) (12,370) 696 99 99 656 881 881 10 18 (2,694) {4,011) (4.011) 181 238 419 26.1 199 14,940 13,316 4,674 17,990 (16,393) 14.940 1,597 (375) 14,565 (130) 1.467 The current year results relate wholly to continuing operations. The notes on pages 33 to 73 forni part of these financial statements. 26
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 ASSOCIATION INCOME AND EXPENDITURE ACCOUNT FOR THE YEAR ENDED 31 MARCH 2024 PARENT 2024 £'ooo Note 2023 £'ooo Turnover Operating c05t5 Operating surplus 77,406 (57,490) 19,916 73,143 (54,685) 18,458 Gain on disposal of tangiblc fixed assets Interest receivable and similar income Interest payable and similar charg¢s Net finance creditl (charges) relating to pension scheme 3285 1082 (8,797) 696 4.186 982 (7,525) 99 5119.1 Fair value change in investment properties Impainnent of financial assets Transfer to disposal proceeds fund Movement in fair valu¢ of finan¢ial instruments Surplus before tax Taxation Surplus for the year 10 18 (2,694) (4,011) 26.1 199 14,487 12,370 14.487 12,370 Th¢ results relate wholly to continuing activities. Th¢ notes on pages 33 to 73 fonn part of these financial ststements. 27
CHOICE HOUSING IRELAND LIMITED Annual Report and Financial Ststements For the Year Ended 31 Marth 2024 STATEMENT OF OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2024 GROUP PARENT Notss 2024 2023 2024 2023 £'ooo £'ooo £'ooo £'ooo Surplus for the yevdr Oiher comprehensive income Re-mcasurement of net defined benefit liability 19.1 14465 1.467 14.487 12,370 4a47 10,138 4J47 10.J38 Net addition to restriction in recognition of pension asset 19.1 Effective w)rtion of changes in fair value of cash flow hedges Disposal of subsidiary (7357) (4,233) (7,257) (4,233) 455 8.480 455 3.089 26.1 (6,917) Total other eomprehensive In¢ome for the year (2,455) 7.468 (2,455) 8,994 Total comprehenslve income for the yeAr 12,110 8,935 12,032 21,364 The notes on pages 33 to 73 fonrl part of thesc financial statements. 28
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 BALANCE SHEET AS AT31 MARCH 2024 GROUP PARENT 2024 £'ooo Note 2024 £'ooo 2023 £'ooo 2023 £'ooo Fixed assets Tangible fix¢d &8sets- Housing Properties Other tangible fixed &8sets Invcstment properties Financial assets 986,768 5224 3&248 925,134 5,161 31,139 986519 5,207 324 924,909 5,116 324 10 13,200 943,549 1.028,240 961,434 1,IKIfi750 Nonlurrent assets Pension asset 19.1 5?24 6,668 5J24 6,668 Current assets Stock Trade and other debtors Cash investments Cash and cash equivalents 12 855 1,473 51,425 27,442 7,398 87,738 22 22 13 27,100 5,618 9.000 42.573 40,170 5.618 6J31 52,141 61,078 27,442 5,523 94,065 24.1 Creditors: amounts falling due within one ycar Net current (Ilabilitiesyassets Total assets less eurrent liabilities 14 96,751 $4,178 979,386 95.401 94,408 4226 969,807 86,594 960,439 957,688 Creditors: amounts falling due after more than onc year Net Assets 15 799,535 179,851 792.698 167.741 792,785 177.022 792,698 164 990 Capital and reseryes Share capital Cash-flow hedge reserve Revenue reserv¢ Total reserves 20 21 (1,520) 181,371 179,851 (1,975) 169,716 167,741 (1,520) 178542 177,022 (1,975) 166,965 164,990 The Group meets the definition of a Public B¢nefit Entity (PBE) as defined by FRS102. These financial statements were approv by the Board of Manag¢ment on 21 August 2024. Signed on behalf of the Board of Manag¢ment: Ciaran McAreavey vice Chair Lawrence Jackson Secretary The notes on pages 33 to 73 forni part of th¢se financial statements. Registered Housing Association number: R56 Co-operative and Community Benefit Societies Act (Northern Ireland) 1969: IP000408 29
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanclal Statements For the Year Ended 31 March 2024 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED31 MARCH 2024 Foreign Revenue Currency Reserve Translation Reserve Cash Flow Hedge Reserve Total Equity £?000 £'ooo £'ooo Balance at l April 2022 Total comprehensive Income for the year sUlUs for the year Other comprehensive incomefor theyear Foreign exchange differences on translation of foreign operations Effective portion of changes in fair value of ¢ash flow hedges Re-m¢asurement of net defin¢d benefit liability Net addition to restriction in recognition of pension asset 161,708 253 (3,155) 158,806 1,467 1,467 8,480 8,480 10,138 10,138 (4,233) (4,233) Disposal of subsidiary Total comprekensive incomefor the year 636 253 7,300 253 8.935 Balance at 31 March 2023 169 716 167 741 Balance at l April 2023 Total comprehensive inconje for the year Surplus for the year Other comprehensive in¢omefor theyear Effective portion of changes in fair value of cash flow hedges Re-measurement of net defjned benefit liability N¢t addition to restriction in recognition of pension asset 169,716 (1,975) 167,741 14,565 14.565 455 455 4.347 4,347 (7,257) (7,257) Total Comprehensive incomefor theyear 455 Balance at 31 March 2024 181 J71 1.520 179,851 The notes on pages 33 to 73 forni part of thes¢ financial statem¢nts. 30
CHOICE HOUSING IRELAND UMITED Annual Report and Flnandal Statements For the Year Ended 31 March 2024 PARENT STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED31 MARCH 2024 Revenue Reserve Cash Flow Hedge Reserve Total Equity £'ooo £9000 £?000 Balance at l April 2022 Tot81 comprehensive income for the year Surplus for the year Other comprehensive incomefor iheyear Effective portion of changes in fair value of ¢ash flow hedges Re-measurem¢nt of net defined benefit liability Net addition to restriction in recognition of pension asset Total comprehensive Incomefor the year 148,690 (5,064) 143,626 12.370 12,370 3,089 3.089 10,138 4,233 10,138 4.233 3,089 Balance at 31 March 2023 166 965 164 990 Balance at l April 2023 Total comprehensive Income for the year Surplus for the year Other comprehensive incomefor the year Effective portion of changes in fair valu¢ of cash flow hedges Re-mea5urwnent of net defined benefit liability Net addition to restriction in recognition of pension asset Total comprehensive incomefor tke year Balanee gt 31 March 2024 166,965 (1,975) 164,990 14,487 14,487 455 455 4,347 7,257 12,032 4,347 455 1,520 177 022 The notes on pages 33 to 73 fonn part of thcse financial statemcnts. 31
CHOICE HOUSING IRELAND UMITED Annual Report and Flnandal Statements For the Year Ended 31 March 2024 CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAREIYDED 31 MARCH 2024 Note 2024 £'ooo 2023 £'ooo Iyet cash from operating gctivitles 24 46.986 33,653 Cash flows from investing aetivities Acquisition of tangible fixed assets Expenditure on investment propety Cash investments withdrawn/(invested) Proceeds from sale of tangible fixed assets Proceeds from the receipt of grants Int¢rest received Net cash used fn investlng aetivities (97,110) (s,oio) 21,824 3,998 45,933 1,143 (29.222) (67,903) (1,774) (24,615) 1,659 41260 3,308 (48,065) Cash flow from tlnan¢lng 8Ctivitles Interest paid Proceeds from new loans R¢payments of borrowings Net cash generated from fingneing Aetivitles (9,315) (12,255) 75.515 55,321 7,939 (16,162) Net {deerease)lincrease In eydsh and c8sh equlvglents Cash and cash equivalents at l April Cash and eAsh equivalents at 31 March 1,602 7,398 9,000 (6,473) 13,871 The notes on pages 33 to 73 forni part of these financial statements. 32
CHOICE HOUSING IRELAND LIMITED Annual Report and Financial Statements For the Year Ended 31 March 2024 NOTES (fornilng PArt of the financlal statements) ACCOUNTING POLICIES 1.1 Legal Status Choice Housing Ireland Limited (the 'Association' or 'Parent') is established and registered under the C¢Foperative and Community Benefit Societies Act (Northern Ireland) 1969 and is domiciled in Northern Ireland. Its registration number is IP000408. It is registered with the Department for Communities ('DfC') as number R56. The registered office is located at 37-41 May St. Bclfast, County Antrim B Tl 4DN. l.2 Basis of Accounting These Group and Parent financial statements were prepared in accordance with Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Jreland ("FKS 102,) and the Housing SORP 2018: Statement of Recommended Practice for Regist¢red Social Housing Providers. These financial statements comply with the Co-operative and Community Benefit Societi¢s Act (Northern Ircland) 1969, Article 19 of the Housing (Northern Ireland) Order 1992, the Rcgistered Housing A550ciations (Accounting Requirements) Ordcr (Northern Ireland) 1993. The pr¢sentation currency of these financial statemcnts is sterling. All amounts in the financial statements have been rounded to the nearest £1,000. The accounting policies set out b¢low have, unless Otherwise stated, bc¢n applied conslSt¢ntly to material items for all periods presented in these financial statements. The Association is included in th¢ consolidated financial statements and is considered to bc a qualifying entity under FRS 102 paragraphs 1.8 to 1.12. The following excmptions available under FRS 102 in respect of certain disclosures for the Parent financial statcments have been applied: No separate parcnt company Cash Flow Statement with related notes is included; Kcy Management Personncl compensation not been included a second time. and Certain disclosures required by FRS 102.1 l Basic Financial Instruments and FRS 102.12 Other Financial Instrument Issues in respect of financial instruments not falling within thc fair value accounting rules of Pagraph 36(4) of Schedule l. Judgements made by the directors, in the application of th¢s¢ accounting policies that have significant effect on the financial statemcnts and estimates with a significant risk of material adjustment in the next year are discussed in note 1,25. 1.3 Measurement ¢onvention The financial statements are prepared on the historical Cost basis except that the following assets and liabilities are stated at their fair value: derivative financial instrum¢nts, pensions and investment property. 33
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (continlled) I ACCOUNTING POLICIES (Continued) 1.4 Basis of consolidation The consolidated financial statements include the financial statements of the Association and its subsidiary undertakings made up to 31 March 2024. A subsidiary is an entity that is controlled by the Parent undertaking. The results of subsidiary undertakings are included in the Group income and expenditure account from the dale that control commcnces until the dat¢ that control ceases. Control is cstsblished when the Association has the power to govern the operating and financial policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable. A joint venture is a contractual arrangcment undertaking in which the Group exercise joint control over the operating and financial policies of the entity. Where the joint venture is carried out through an entity, it is treated as a jointly controlled entity. The Group's share of the profits Icss losses of associat¢s and of jointly controlled entities is included in the Group income and cxpenditure account and its int¢iest in their net assets is recorded on th¢ Group balance sheet using the equity method. In the Parent undertaking finan¢ial stat¢ments. investments in subsidiaries and joint ventures are Carried at cost l¢ss impairnient. 1.5 Forelgn currency Transactions in foreign curr¢ncies are translated into the functional currency of the Group companies at the foreign exchange rate ruling at the date of the transaction. Monetary asset5 and liabilities denominated in foreign currencies at the balance sheet date are retrdnslated to the funrtional currency at the foreign exchange rate ruling at that date. Non-monetary &8sets and liabilities that are me&sur¢d in temis of historical cost in a foreign currency are translated using the exchange rate at the date of the transaction. Non-monetary assets and liabilities denominated in foreign currencies that are stated at fair value are retranslated to the functional currency at foreign Cxchange rales ruling at the dates the fair value was determined. Foreign cxchange differences arising on translation are recogniscd in income and expenditure. 1.6 Going eoneern The financial statemcnts have been ppared on a going conccrn basis which the directors consider to be appropriate for the following reasons. The Group and Association prepares a 3-year business plan which is updated and approved on an annual basis. The most recent 3-year strategy (FY24-27) was approved in April 2024 by the Board. In order to ensure delivery against these strategic goals, the Association will commit to key tsrgets for achievement by 2025. bring forward annual busin¢ss plans and budgets with detailed objectives and KPIS; fomially monitor strategic progress every six months with Board & Committee members: and report r¢gularly to our stakeholders on achievcments and intcntions. 34
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (continued) ACCOUNTING POLICIES (Continued) 1.6 Going concern (continued) The Board, after reviewing the Group and Association's budgets for 2024125 and the Group and Association's medium terni financial position &g detailed in the 2024125 business plan, is of the opinion thaL taking account of severe but plausible downsides, the Group and Association has adequate resources to continue in business for the foreseeable future. The Directors note that the Group balance sheet includes an excess of current liabilities over CUTr¢nt &8sets. They hav¢ prepared financial and cash flow projections which indicate that the Group will generate profits and positive cash flows over their forecast period to 2050 which will be sufficient to ensure that all liabilitie5 can be discharged in the ordinary course as they fall due for payment and that the Group will have adequate liquid funds availabl¢. In order to Teach this conclusion, the Board havc considered: the propety market- budget and business plan scenarios have taken account of delays in handovers, lowcr nuTnbers of property sales, reductions in sales values and potential conversion of market sale to social homes. Maintenance Costs - budget and business plan s¢enario$ have been modelled to take account of cost increas¢s and delays in maintenance expenditUT¢, With major works being phased into tUre years. Rent and seryicc charge receivable- aTrears and bad debts have been incrcascd to allow for customer difficulties in making payments and budget and business plan scenari05 to take account of potential future reductions in r¢nts; Liquidity - current availabl¢ cash together with unutilised loan facilities of £94.Om which provides Significant headroom for committed spend and other forecast cash flows that arise: The Group's ability to withstand othcr adverse scenarios such &8 higher intcrest rates and nulnber of void properties; and For the continuing delivery of its development programme the Parent is dependent on grant funding from the Department for Communities, and bank financing. The Board believe the Group and Association has sufficient funding in place and expect the Group and Association to be in compliance with its debt covenants even in severe but plausible downside scenarios. In discussions with the Group and Association's bankers about its borrowing needs, there has be¢n nothing to suggest that renewal of existing short-terni facilities may not be forthcoming on acceptable tenns. Further undrawn long-terni facilities will meet development programme funding requirements into the foreseeable future, Consequently, th¢ director5 have a r¢asonable expectation that the Group and Association has adequate resources to continue in operational existence for the foreseeable future. Accordingly. they continue to adopt the going concern basis in prcparing th¢ financial statcm¢ntS. 1.7 Classification of finan¢ial instruments Issued by the Group In a¢¢ordanc¢ with FRS 102.22, financial instruments issued by the Group are treated as ¢quity only to the extcnt that they meet the following two conditions: (a) they include no contractual obligations upon the Group to deliver cash or oth¢r financial assets or to exchang¢ financial assets or f)nancial liabilities with another party under conditions that are potentially unfavourable to th¢ Group. and (b) where the instrument will or may be settl¢d in the entity's own equity instrum¢nts, it is either a non- derivative that includes no obligation to deliver a variable number of the Group's own equity instruments or is a derivative that will be settled by the Group's exchanging a fixed amount of cash or other financial assets for a fLxed number of its own equity instruments. To the extent that this definition is not met, the proceeds of issue are classifi¢d &8 a financial liability. 35
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (continued) ACCOUNTING POLICIES (continued) 1.8 Basic financial instruments Rental debiors and other debtors Rental debtors and other debtors are recognised initially at transaction price less attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effcctive interest method, less any impairnient losses. Trade and other creditors Trade and other creditors are recognised initially at transaction price plus attributsblc transaction costs. Subsequent to initial recognition they are measured at amortiscd cost using the effective interest mcthod. If the arrangement constitutes a financing transaction, for example if payment is def¢ed beyond nomial business tcnns. then tt is measured at the present value of futur¢ payments discounted at a market rate of interest for a similar debt instrument. Interest-bearing borrowings Classified as basicfinancial Instruments Int¢r¢st-bearing borrowings are recognised initially at the present value of future paym¢nts discounted at a market rate of iDt¢rest less attributable transaction costs. Subs4uent to initial Tecognition, int¢rest- b¢aTing borrowings are stat¢d at amortised c05t using the effectivc interest method. Cash and cash equivalenls Cash and cash 4uivalents comprise cash balances and call deposits. 1.9 Other financial instruments Financial Inslrumenfs nol considered io be basicfinancial instruments (Otherfinancial instrt4ments). Other financial instruments not meeting th¢ definition of basic financial instruments are recognised initially at fair value. Subsequent to initial recognition olher financial instruments are me&sured at fair value with changes recognised in income and expenditure except hedging instruments in a designated hedging relationship shall be recognised as set out b¢low. Derivativefinancial instruments and hedging Derivative financial instniments are recognised at fair value. The gain or loss on re•m¢asurement to fair value is recognised immediately in income and expenditure. However, wh¢re derivatives qualify for hedge accounting, recognition of any resultant gain or loss depends on the nature of the item being hedged (see below). Cashflow hedges Where a derivative financial instrument 15 designated as a hedg¢ of the variability in cash flows of a recognised asset or liability, or a highly probable forecast transaction, the efftive part of any gain or loss on the derivative financial instrument is recogni5ed directly in other comprehensive incom¢. Any ineffectiv¢ portion of the hedge is r¢cognised immediately in income and ¢xpenditure. For cash flow hedges, where the forwast transactions r¢sulted in the recognition of a non-financial asset or non-financial liability, the h¢dging gain or loss r¢oognised in other Mprehensive income is included in the initial cost or oth¢r carrying amount of the asset or liability. Alternatively, when the hedged item is recogniscd in income and expenditure the hedging gain or loss is reclassified to the inwme and expend]tt¢. 36
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Statements For the Year Ended 31 March 2024 NOTES (eontinued) ACCOUNTING POLICIES (contlnued) 1.9 Other financial instruments (continued) When a hedging instrument expires or is sold terniinated or exercise or the entity discontinucs designation of the hedge relationship but the hedged forecast transaction is still expected to occur, the cumulative gain or loss at that point remains in equity and is recognised in accordance with the above policy when the transaction occurs. If th¢ hedged transaction is no longer expected to tak¢ place. the cumulative unrealised gain or loss recognised in equity is recognised in income and expenditure immediately. 1.10 Tangible fixed assets Housing properties are properties held for the provision of social housing or to otherwise provide social benefit. Housing properties are principally properties available for rent and are stated at cost less accumulatcd d¢preciation and impairnient losses. Cost includes the cost of acquiring land and buildings, developm¢nl costs, interest charges incurred during the devclopment period. In instances wher¢ acquisition accounting is applied, the Group recognises the acquired housing assets at the Existing Use Value for Social Housing at the date of acquisition. Oth¢r tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairn)ent losses. Housing properties are split betwcen land, structur¢ and major components which rcquire periodi replacement. Replacement or refurbishment of these components is capitali5ed and depreciated over their estimated useful life, which has been set laking into account professional guidance and the Group's asset management strategy. The related r¢placed asset is written off. In detern]ining the remaining useful lives for the housing stock, the Group has taken account of views from both internal and ¢xternal professional sources. The expected useful lives are revi¢wed on a regular basis. Freehold and long le&8ehold land is not depreciated. In all other cases d¢preciation is provided to write off the cost of fixed assets, less their eslimatcd residual values on a straight-line b&sis over the expected useful lives of the assets concerned. The estimales of the useful lives of the major classes of asset are: Asset Category Useful Llfe {Y¢4rs) Asset Category Useful Life (Years) Housingpropertles Main fabric (new build) Main fabri¢ (rehobilitated properties) R(f structure and coverin8 Windows and external doors Gas boilerslfires Kitsh¢n Bathroom51WCs echanical systems Electrics Lift DefeGts insurance Oiher assets The Group's office buildings Office furnirure and equipment Computer and telephone hardware Computer software Furniture in schem¢5 Fixtures and fitlings in schemes Motor vehicles Tools loo 50 40 15 18 30 20 30 30 io 2-3 3-10 Assets in the Course of construction are stated at cost. These assets ar¢ not depreciated until they are available for use. 37
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Statements For the Year Ended 31 March 2024 NOTES (Continued) ACCOUNTING POLICIES (continued) 1.10 Tangible fixed Assets (continued) Works to existing properties which replace a component that has been tr¢ated separately for depreciation purposes, along with those works that result in an increase in net rental income ov¢r the lives of the properties, thereby enhancing thc economic benefits of the assets. arc Capitalised as improvements. Housing properties are assessed annually for impairnient indicators. Where indicators are identified, an assessment for impairment is undertaken comparing the scheme's carrying amount to its recoverable amount. Where the carrying amount of a scheme is deemed to exceed its recoverable amount, the schcme is written down to its recoverable amount. The resulting impairnient loss is Kcognised as operating expenditure. Where a scheme is currently decmed not to be providing service potential to the association, its recoverable amount is its fair value less costs to sell. Developmen¢ cosls D¢velopment Costs arc rapitalised wher¢ ihey are direcily attributable to bringing the properties into working condition for their intended use. Such costs g¢n¢rally include th¢ labour costs of our own employ¢es arising directly from the acqui51tion or development of th¢ propety and incremental costs that would only have been avoided if the property ¢onc¢rned had not been acquired or constructed. l.ll Government grAnts Government grants are included within creditors in the Balance Sheet and credited to inrome and expenditur¢ over the expected us¢ful lives of the assets to which they relate or in periods in which the related costs are incued. The accruals mod¢l is adopted and grants are classified as grants relating to asscts. Government grants received for housing prop¢rti¢s are recognised in income over th¢ useful life of the housing property structure and its individual components (excluding land) on a pro rata basis. Grants received specifically for components of a housing prortY (e.g. funding for replacement of boilers) are recognised in income over the expected useful life of the component. On disposal of an asset for which a government grant was received and wh¢rc there is no obligation to repay the grant, any unamortised grant remaining within liabilities in thc Balance Sheet relating to this asset is derecognised as a liability and recognised as revenue in income and expenditure. Where there is a rcquirement to either repay or recycle a grant received for an asset that has becn disposed of, a liability is included in the Balance Sh¢et to recognise this obligation, measured at best estimate. Property r¢ceived at below market value 15 treated as a non-exchange transaction as described more fully in note 1.21. Grants and contributions r¢ceivabl¢ relating to both completed schemes and schemes being built are Shown separately within debtors. Those r¢ceived in advance of the related ¢xpenditure are shown separately within creditOTS. In certain circumstance5 any grant or contribution may be repayable in part or in full. but any such amounts will rdnk as subordinated or unsecured debt on the relevant property. 38
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanclal Statements For the Year Ended 31 March 2024 NOTES (continued) I ACCOUNTING POLICIES (continued) 1.12 Investment property Investment properties arc Properties not held for social benefit which are held togeth¢r to earn rental income or for capital appreciation or for Ix)th. Investment properties are recognised initially at cogt. Subsequent to initial recognition, investment properties are held at fair value. Any gains or losses arising from changes in the fair value are recognised in income and expenditure in the period they arise. No depreciation is provided in respect of investment properties. 1.13 Stocks - properties held for sale and work in progress Completed properties and properties under construction for opcn market sales are recognised at the lower of cost and cstimated selling price less costs to complete. Cost comprises materials, direct labour and direct devclopm¢nt overheads. Assessing n¢t realisable value r¢quires use of the estimation techniques. In making this assessment, manag¢m¢nt considers publicly available inforniation and internal forec&8ts on future sal¢s activity. Net realisabl¢ value is based on estimated sales price after allowing for all further Costs of completion and disposal. 1.14 Impairment excluding stocks. Investments and deferred tax a55et5 Finunelal assels (Including trnde and other deblors) A financial asset not carried at fair value through incomc and expenditure is assessed at each r¢porting date to detern]ine wheth¢r there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after th¢ initial recognition of the asset, and that the loss event had a negative effcct on the estimated future cash flows of that asset that can be estimated reliably. An impairnient loss in respect of a financial &8set measured at amortised c05t is calculated as the differenc¢ between its carrying amount and the prescnt value of the ¢5timated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less tmpairnlent, an impairnient is calculated as the difference between its carrying amount and the bcst estimate of the amount that the Group would receive for the asset if it were to b¢ sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. Impainnent losses are recognised in Income and Expenditure Account. When a subsequent event causes the amount of impairnicnt loss to decrease, th¢ d¢cre&8e in impairnient loss is reversed through income and expenditure. Ivon-finanelal 4vsels The carrying amounts of the Group'5 non-financial assets, other than investment propety, and stocks, are reviewed at each reporting date to detennin¢ whether there is any indication of impainnent. If any such indiration exists, then the asset, s recoverable amount is estimated. The rewverable amount of an asset or housing scheme is the greater of its value in use and its fair value les5 rosts to sell. In assessing value in use, the estimated future ¢a5h flows are discouDt¢d to their present value using a pre-tax discount ratc that reflects curnt market assessments of the time value of money and the risk5 specific to the assel. For the purpose of impairn]ent testing, ass¢ts that cannot be test¢d individually ar¢ grouped together into the smallcst group of assets that g¢nerates cash inflows from continuing us¢ that are largely independent of the cash inflows of other ass¢t5 or groups of assets. An impairnient Ioss 15 recognised if the carrying amount of an &ss¢t or its Cash Generating Unit (CGU) exceeds its estimated recoverable amount. Impairn]ent losses r¢¢ognised in Income and Expenditure Account. Irnpairnient losses recognised in respect of CGUS are allocated to reduce the Caying amounts of the other assets in the unit (group of units) on a pro rata b&8is. 39
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanaal Statements For the Year Ended 31 March 2024 NOTES (continued) ACCOUNTING POLICIES (eonlinued) 1.14 Impatrment excluding stocks, investments and deferred tax assets (continued) An impairnient loss is reversed if and only if the reasons for the impairnient have ceased to apply. Impairn]ent losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairnient loss is reversed only to the extenl that the asset's canying amount does not ¢xceed the carrying amount that would have been dcterniined, net of dcpreciation or amortisation, if no impainnent loss had been recognised. 1.15 Employee benefits DeJ7ned Contrlbullon plans and olher long4erm employee benefits A defined contribution plan is a post-employment benefit plan under which the Group pays fixed Contributions into a separate entity and will have no l¢gal or constructive obligation to pay further amounts. Obligations for contributions to defined contribution pension plans are recognised as an expense in income and expendilur¢ in the periods during which services are rendered by employees. Dejlned benefllplon$ The Group participat¢s in the Northern Iland Local Governlnent Officers P¢nsion Scheme, which is a funded dcfined benefit scheme. The Group takes no part in the administration of this fund. Conlributions to it are in accordance with the instructions of the Trustees of the scheme, which follows actuarial advice given to Ihem. A defined benefit plan is a post4mployment benefit plan other than a defined contribution plan. The Group's net obligation in respect of defin¢d benefit plan5 is calculated by estimating the amount of future benefit that employees have earned in return for their scrvice in the curr¢nt and prior year. that benefit is discountcd to deterniine its present value. The fair value of any plan assets is deducteil. The Group detennines the net interest expense (income) on the net defined benefit liability {set) for the year by applying thc discount rate as deterniined at the beginning of the annual period to the net defin¢d benefit liability (asset) taking account of changes arising as a result of contributions and benefit payments. The discount ratc is the yield at the Balance Sheet date on AA credit rated bonds denominated in the currency of, and having maturity dates approximating to the ternis of the Group's obligations. A valuation is perfornied every three years by a qualified actuary using the projected unit credit method. The Group recognises net defined benefit plan assets to the extent that it is able to recover the surplus either through reduced contributions in the future or through refunds from th¢ plan. Changes in the net defined benefit liability arising from employee service rendered during the period, net int¢rest on net defined benefit liability, and the cost of plan introductions, benefit changes, curtailments and settlements during the year ar¢ recognised in InMe and expenditure. Re-m¢&8urement of the net defin¢d benefit liability / asset is re¢ognis¢d in other comphenSIve incom¢ in the year in which it occurs. Termlnalion benefits Tennination b¢n¢fits are recognised as an expense wh¢n the Group is demonstrably committed, without realisti¢ possibility of withdrawal, to a fornial detailed plan to either temiinate employment before the nomaI retirement dat¢, or to provide tennination benefits as a result of an off¢r made to encourage voluntary redundancy. Terniination benefits for voluntary redundancies are rerognised as an expense if the Group has made an offer of voluntary redundancy? it is probable that the offer will be CePted, and 40
CHOICE HOUSING IRELAND LIMITED Annual Report and Financial Ststements For the Year Ended 31 Mar¢h 2024 NOTES (continued) I ACCOUNTING POLICIES (continued) 1.15 Employee benefits (continued) the number of acceptances can be estimated reliably. If benefits are payable morc than 12 months after the reporting date, then thcy are discounted to their present value. 1.16 Provisions A provision is recognised in the Balance Sheet when the Group has a present legal or constructive obligation as a result of a past event, that can be reliably measured and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recognis¢d at the best estimate of the amount required to settle the obligation at the reporting date. 1.17 Turnover Turnover excludes value-added t&x and represents tal and service charge income r¢c¢ivable (net of void losses), fees receivable. and amortisation of grants. Rental income is recognised on the execution of tenancy agreements. Other income is rognISed as receivabl¢ on the delivery of services providd. Donations received under the Gift Aid scheme lo the Parent, from its subsidiaries are recognised as tumover upon r¢¢¢ipt as it relates to the principal activities of the Association and is eliminated on consolidation. 1.18 Expenses Jnterest receivable and interesfpayable Interest is capitali5ed on borrowings to finance the devclopment of qualifying &8sets to the ¢xtent that it accrues in respect of the period of development if it repr¢sents: (a) interest on bOowingS specifically financing the development programme after deduction of related grants received in advance. or (b) a fair amount of int¢rest on borrowings of the association as a whole aftex deduction of Housing Association Grant (HAG) received in advance to the extcnt that they can be deemed to be financing the development programme. A qualifying asset is one which necessarily takes a substantial p¢rAod of time to get ready for its intended use or sale. Other interest payable is charged to in¢ome and expenditure in the year. Other interest receivable and similar income include interest receivable on funds invested. Interest in¢ome and interest payable ar¢ Tecognised in in¢om¢ and expenditure as they accrue, using the effective interest method. Operaling Lease Payments made under operating leases are recognis¢d in the income statement on a straighl-line basis over the t¢m of the lease. 41
CHOICE HOUSING IRELAND LIMITED Annual Report and Finandal Statements For the Year Ended 31 March 2024 NOTES (continued) ACCOUNTING POLICIES (eontinued) 1.19 Taxation Certain activities of the Group are not t&xable &$ the entities have charitable status. Currcnt tax is recognised for the amount of income tax payable in respect of the taxable surplus for the current or past reporting periods using the tax rates and laws that have been enacted or substantively enacted by thc rcporting date. Def¢rred tax is recognised in respect of all timing differences at the reporting date. except as otherwise indicated. Deferred tax assets are only recognised to the extent that it is probable that they will be recovered againsl the reversal of deferred tax liabilities or other future taxable profits. If and when all Conditions for retsining tsx allowances for the cost of a fixed asset have been mct, the d¢f¢Tred tax is reversed. Deferred tax is calculated using the tax rates and laws that that have been enacted or substantively enacled by the reporting date that ar¢ expected to apply to lh¢ reversal of the timing difference. Def¢ed tax is measured on an undIOunt¢d basis. Unrelieved tax losses and other def¢rr¢d tax assets are recognised only to the extent that it is probable that th¢y will be recovered against the reversal of deferr¢d liabilities or other future taxable profits. 120 Propertles managed by agents Most of the Group's special needs stock is managed by agents with the relevant skills and expertise to support the tenants in these schemes. Some of these schem¢s receive a revenu¢ grant, which is passed to the managing agent. Where the financial risk in these schemes falls primarily on the managing agents, the related income and cxpenditure arising from day-to-day operations have been excludcd from these fjnancial statements whilst the property rental income arising and related direct costs of management and maint¢nance are included. 1.21 Non exchange transactions Property received at below market value is treated as a non-exchange transaction. The differencc between the fair value of th¢ asset donated or acquired and the consideration paid for the asset is cOgniSed as a govcrnmcnt grant and included in the Balance Sheet as a liability. The ternis of the donation or acquisition arc considered to be perfom]ance-ttlated conditions and the grant is amortis¢d to turnover in the ycar of perfomiance of the condition5. 1.22 Disposal proeeeds fund Surpluses arising from the sale of property to tenants are transferred to the Disposal Proceeds Fund, along with any related Housing Association Grant. The net surpluses can be used by the Group to fund works on property that would not be cligibl¢ for housing assLKiation grant or (in c¢rtain cir¢umstances) attract loan finance. If the surpluses are not used within two yvars of their receipt they may be payable in part or in full to the Department for Communities and the amounts potentially repayable are in¢lud¢d within Creditors. 1.23 Tenant services fund ('TSF') Surpluses or d¢ficits arising from a differcnre between tenant s¢rvice and support charges and the relat cost of service provision are held on the Balance Sheet as debtors or creditors, with the balance being recovered from or releas¢d to future income streams. The TSF movem¢nts are included within operattng costs on the face of the income stat¢ment. 42
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (continued) ACCOUNTING POLICIES (continued) 1.24 Critical accounting estimates The Board of Management makes estimates and assumptions concerning the future in the process of preparing the Group financial statements. The estimates and assumptions made in the preparation of th¢se financial statements are as follows: mpainn¢nt- As part of the Group's Association's continuous review of the perforniance of their assets, management identify any homes, or schemes, that have incre&sing void losses. are impacted by policy changes or where the decision has been made to dispose of the properties. These factors a considered to be an indication of impairn]ent. Where there is evidence of impairnient, the fixed &ssets are written down to the recoverable amount and any impairnient losses are charged to operating SUTpluses. Defined benefit obligation- Management's estimate of the defined benefit obligation is based on a number of ¢ritiral und¢rlying assumptions such as standard rates of inflation. mortality, discount rate and anticipation of future salary incr&ases. Variation in these assumptions may significantly impact the liability and the annual defined benefit expenses (as analysed in Note 19). The net defined Irnefit p¢nsion asset at 31 March 2024 was £5,324k Management have assessed that there are no judgements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities recognised in the financial statemenls. PARTICULARS OF TURNOVEII OPERATING COSTS AND OPERATING SURPLUS- PARENT 2024 2023 Operating surplusl (defi¢it) £'ooo Operating surplus1 (deficit) £1000 Turnover Operating costs £'ooo £'ooo Social housing activities Non-social housing activities Total per income and expenditure a¢¢ount 77,41)0 (57,051) (439) 20J49 (433) 18,875 (417) 77,406 (57,490) 19,916 18,458 43
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 Marth 2024 NOTES (Continued) 2.1 TURNOVE OPEIL4TING COSTS AND OPERATING SURPLUS OR DEFICIT FROM SOCIAL HOUSING ACTIVITIES Parent 2024 General Sheltsred Supported Agents Admin needs £'ooo 39,519 5,551 1.713 85 67 1,077 8,946 56,958 (675) 56383 2023 Total Total Ineome from lettlDgs: Rent Rates Services Services- Heat Supporting people Other income Amortisation of grant Gross income Less: void losses £'ooo 7.271 1.023 2,125 793 1,047 52 794 13,105 (369) 12,736 £'ooo £'ooo £'ooo 3,155 2,926 209 72 431 61 19 £'ooo 52,877 6,855 4276 939 1,133 1,138 1,466 78.684 (1278) 77.406 £'ooo 47,805 6,297 4,063 814 1,090 3.320 11,182 74,571 {1,428) 73,143 823 903 4,706 3.909 (222) (12) 4,484 3,897 Net Income Services Heat Supporting people Management Rat¢s payable Maintenance administration Planned and cyclical maintenance Reactiv¢ maintenance Major repairs Property lease charges Bad debts Exchange movement Impairn)ent Depreciation- social housing Depreciation - non-social housing Transfer to Tenants, S¢rvi¢¢s Fund Operating costs Operating surplusl (deficit) 2,807 71 (20) 10,421 5,164 1,948 655 1,395 (229) 898 622 64 iio 5.487 790 1,375 10,436 6,326 4,421 I,ooi 1,427 10,590 5.836 56 159 188 96 2,206 671 359 242 3,478 3,131 1.949 464 532 198 3.143 2,404 5,079 610 14 344 1,428 82 503 579 16 7,589 719 16 344 72 7,549 1,306 12 779 72 17,661 16,344 12.980 2,301 1,139 1,241 356 356 409 (448) 41.177 328 (163) 3282 (19) 2.651 (302) 439 57,490 (526) 9,941 54,685 15.106 2,795 1,202 1,246 (433) 19,916 18,458 Oth¢r income includes £449k (2023: £948k) of donations r¢ceived under the gift aid scheme from Group entities. Turnover and operating costs relating to non-social artivities are set out in the AdmiD ¢olumn. 44
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Statements For the Year Ended 31 March 2024 NOTES (continued) TURNOVEK OPERATING COSTS AND OPERATING SURPLUS OR DEFICIT FROM SOCIAL HOUSIIYG ACTIVITIES (Continued) Parent 2024 General Sheltered Supported Agents Admin needs £yooo 2023 Total Tot81 £'ooo £'ooo £'&oo £'ooo £'ooo £'ooo DIE management allowances Management allowances Management costs (Deficitysurplus 3,057 (10,421) (7,364) 807 284 422 4,570 (10,436) (5.866) 4,533 (10,591) (6,058) 229 1,036 (56) (188) 228 234 Dfc mglntenance allowances Maintenance allowances Planned and cyclical Maintenance Reactive maintenance Defl¢lt 3.910 945 358 539 5,752 5.713 (2,349) (664) (5,253) (1,583) (3,692) (1,302) (634) (206) (603) {619) (879) (286) (3,853) (8,058) (6,159) (2,983) (7,895) (5,165) Tllrnover excluding other income and amortisation of grant Parent 2024 Total £1000 2023 Total £'ooo 39,357 19,284 58,641 Techni¢al Non-te¢hni¢al Total 44,300 20,502 64,802 Group The addition of the turnover of Maple And May Ltd, Maple And May (Homes) Ltd and Choice Services (Ireland) Limited (net of consolidation adjustments) of £5.162k (2023: £21,860k) resultcd in a Group turnover of £82,568k (2023: £95,003k). The addition of the operating costs of Maple And May Ltd, Maple And May (Hom¢s) Ltd and Choice Services (Ireland) Limited (net of consolidation adjustments) of £4,204k (2023: £14,173k) r¢sulted in Group operating costs of £61,694k (2023: £68.858k). 45
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (continued) 3 EMPLOYEES Th¢ average number of persons employed (including the Group Senior Executives) during thc year. analy5¢d by category was: Group 2024 PareDt 2024 2023 2023 No. Corporate Services Development and Growth Housing Maintenance 71 20 152 178 421 86 26 173 178 463 70 20 152 79 321 76 21 155 75 327 The costs incurred in r¢spect of these employees were: 2024 £'oo 2023 £'ooo 2024 £'ooo 2023 £'ooo Wages and salaries Social security cosls Other pension costs 13,342 lJ52 1,104 15,798 13,851 1,467 1,473 16,791 9,946 1,012 949 11.907 9.356 972 1,273 No redundancy costs were incurred during the year (2023.. £Nil). Included in the above are employee costs capitalised of £2,654k (2023: £2,232k). INFORMATION REGARDING DIRECTORS AND EMPLOYEES Remuneralion of Group Senior EYeGutlves Th¢ remuneration paid to six (2023: seven) Group Senior Executives (defined for the purposes of emoluments as members of the Group Senior Management Team of the Association) was as follows: Group Parent 2024 2023 2024 2023 £'ooo £'ooo £'ooo £'ooo Aggregate emoluments (including benefits in kind) Pension contributions 732 783 732 676 142 139 142 123 874 922 874 799 The emoluments to the highest paid Director (currently included within the above table) are as follows: Aggregate emoluments (including benefits in kind) Pension contributions 155 17 142 15 157 155 17 142 15 172 172 157 Total ex[nseS reimburs to the Group S¢nior Executives and not chargeable to inwm¢ t&K 46
CHOICE HOUSING IRELAND LIMITED Annual Report and Finandal Statements For the Year Ended 31 March 2024 NOTES (Continued) 3.1 INFORMATION REGARDING DIRECTORS AND EMPLOYEES (Continued) Remuneration ofGroup Senior EKect4tives by Salary Band The nutnbers of Group Senior Executives whose emoluments (including pension contributions but excluding redundancy rclat¢d payments) fell within the following rangcs were: Group 2024 Parent 2024 No. 2023 2023 BY4nd £115,001- £120,000 £120,001- £125,000 £125.001- £130,000 £130,001- £135,000 £135.001- £140,000 £140.001- £145,000 £145,001- £150,000 £150,001- £155,000 £155.001- £160,000 £160.001- £165.000 £J65,001- £170.000 £170,001- £175.000 Total Those Group Senior Executives who are member5 of the NILGOSC Pension Scheme are on the same terms as all other rnembers. Remuneration ofslaffby Salary Band The number of staff who received r¢munerdtion greater than £60,000 (excluding directors and Group Senior Executives): Group 2024 No. 2023 Band £60,001- £70.000 £70.001- £80,000 £80,001- £90,000 £90.001- £100,000 £ioo,ooi - £iio,000 Total 14 16 47
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (continued) 3.1 INFORMATION REGARDII¥G DIRECTORS AND EMPLOYEES (continued) Remuneration ofBoard Members - Parent The memb¢rs of the Board are not remunerat. The total expcnses paid to members of the Board were £137 for the year ended 31 March 2024 (2023: £nil). INTEREST RECEIVABLE AND SIMILAR INCOME Group 2024 £'ooo Parent 2024 £?000 2023 £'ooo 2023 £'ooo Interest receivable from bank deposits Interest receivable from Group companies 1.143 2,641 1.144 738 459 523 982 1,143 2,641 1.882 INTEREST PAYABLE AND SIMILAR CHARGES Group 2024 £'ooo Parent 2024 £'ooo 2023 £'ooo 2023 £'ooo Interest payable on financial liabilities at amortis¢d Cost Net int¢rest (creditycharge ol) net defined benefit obligations 9319 12,370 .797 7,525 (696) (99) (696) (99) 8,523 12,271 8,101 7,426 48
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (Continued) SUIiPLUS ON ORDINARY ACTIVITIES Included in income/¢xpcnditure are th¢ following: Group 2024 Parent 2023 £'ooo 2024 £'ooo 2023 £'ooo Depreciation on housing and other fixed assets Write-off of major repairs on owncd tsngible fixed assets Amortisation of grants and contributions SUrp1s on sale of housing assets Change in fair value of investment property Change in fair value of derivatives r¢cognised in income and ¢xpenditure Impainnent loss on s¢hem¢s being built Internal audit services 32 29 32 Capitalisation ofown labour and overhead lL} 17A24 16.766 17,560 20,671 719 719 1,306 (11.384) (4,186) 1.306 (13,376) (4,186) (881) (11235) (3385) (656) (11235) (3,285) (199) (419) (199) (181) Group 2024 £'ooo 2023 £'ooo Auditorgs Remuneration: Fees payable to the Association's auditors for the audit of the parent and Group financial statements Fees payable to th¢ Association's auditors for other services: T&x compliance services Tax advisory services All oth¢r services Total amounts payable to the Association'5 auditors 64 88 io 74 96 49
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (continued) 7 TAXATION The Association is considered to pass the tests s¢t out in Paragraph I Schedul¢ 6 Finance Act 2010 and theT¢fore meets the definition of a charitable company for UK corporation tax purposes. ACrdinglY. the Association is w)tentially exempt from taxation in respect of income or capital gains received within categories covered by Chapter 3 Part I I Corporation Act 2010 or Section 256 of the Taxation of Chargeable Gains Act 1992. to the cxtent that such income or gains are applied exclusively to charitable purposes. Maple And May Ltd Maple And May (Homes) Ltd and Choice Services (Ireland) Limited, as subsidiaries of the Association, can gift their taxable profits to the Parent under a gift aid arrangemenL thereby rcducing their t&xabl¢ profits to £Nil. All of the taxable profits of the company must be gifted to the ParenL in cash, on or before l January following the accounting period end to meet this arrangement. A current lax crediu (clwge) of £212k (2023: £37k) has been ognIsed in respect of these entities. A deferred charge of £164k (2023: £167k) has been recognised relating to Maple And May Lt arising on investment properties- total d¢ferred tax liability recognised of £1,133k (2023: £742k). Additionally? due to the unc¢rtainty of the recoverability of the tax losses. a deferr¢d t&x asset of £244k (2023: £244k) relating to Maplc And May Ltd has not been recognised. Group 2024 2023 £'ooo £'oo& Parent 2024 2023 £'ooo £'ooo Current tax UK corw)ration tax on surplus for the year Deferredlax Deferred charged to the SOCI in arriving at the surplus for the year Total t&x on results 211 (37) 167 164 375 130 50
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Ststements For the Year Ended 31 March 2024 NOTES (continued) FIXED ASSETS- HOUSING PROPERTIES Group Housing Schemes being bullt £'ooo Total £'ooo £'ooo Cost At 31 March 2023 Additions Transfers Impaimient Disposals At 31 March 2024 1,011,983 21,050 47,002 113,607 75,604 (47,002) 1,125.590 96,654 (9,669) 1,070J66 (10,736) 131,473 (20,405) 1,201,839 Depre¢i2tlon At 31 March 2023 Charge for the year Disposals At 31 March 2024 (200,456) (17,167) 2,552 (215.071) (200,456) (17,167) 2.552 (215,071) Net Book Value At 31 Mareh 2024 At 31 March 2023 855,295 811,527 131,473 113,607 986,768 925,134 The tenure for these properties at cost IS: Freehold Long leasehold £•ooo £'ooo 1,078,273 123,566 1,010,241 115,349 Totsl £'ooo IJOl,839 1,125,590 At 31 March 2024 At 31 March 2023 No fixed assets are held under finance l¢as¢s. Schemes being built The amount of borrowing costs capitali5ed during the period was £897k (2023: £1,21 Ik) with a capitalisation rate of 3.2 % (2023: 5.70/0 Includd in the cost of housing properties is £4,711 k (2023: £3,814k) in respect of capitalised finance costs. Security Bank loans are secured by specific charges on some of the Group's properties. See note 16. The Nct Book Value of assets hcld for sale at the ye8r-end is £Nil (2023: £1.2M) 51
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Statements For the Year Ended 31 March 2024 NOTES (continued) FIXED ASSETS- HOUSING PROPERTIES (continued) Parent Housing Schemes Being Built Totsl £'ooo £'ooo £'ooo Cost At 31 March 2023 Additions Transfers Disposals Impairnient At 31 March 2024 1.011,983 21.050 47,002 (9,669) 113,382 75,580 (47,002) (10,736) 1,125,365 96,630 (20,405) 1,070J66 131224 1,201,590 DepreciAtion At 31 March 2023 Charge for the year Disposals At 31 Msrch 2024 (200,456) (17,167) 2,552 215,071 (200.456) (17,167) 2,552 215 071 Net Book Value At 31 March 2024 At 31 March 2023 855395 811,527 131.224 113,382 986,519 924,909 The tenure for these propcrties at Cost is: Long Leasehold Freehold £'ooo 1,078,023 1,010,014 Total £'ooo 1,201,590 1.125,365 At 31 March 2024 At 31 March 2023 123,567 115.351 No fixed assets leased ar¢ held under finance leases. Schemes being built The amount of borrowing costs capitalised during the period was £897k (2023: £1,21 Ik) with a capitalisation rate of 3.20/0 (2023: 5.70/0). Included in the cost of housing propertics is £4,71 Ik (2023: £3,814k) in respect of capitalised finance costs. Security Bank loans are secured by specific charges on some of the PaT¢nt's properties. S¢¢ note 16. 52
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (continued) OTHER TANGIBLE FIXED ASSETS Group Office Land * and Buildings £'ooo Office Furniture Tools Total Vehieles Computers Software Equipment £'ooo £'ooo £'ooo £?000 £'ooo £'ooo Cost At 31 March 2023 Additions Disposals At 31 March 2024 7.956 114 1,375 13 2,555 319 2,307 106 74 14,381 456 7,963 125 lJ88 2.874 2.413 74 14,837 Depreei2tion At 31 March 2023 Charge for the year Disposals At 31 Mareh 2024 (3,417) (72) (92) (17) (1,345) (18) (2,150) (2.162) (181) (87) (54) (9,220) (18) (393) (3.489) (109) (lJ63) (2,331) (2249) (72) (9.613) Net book value At 31 March 2024 At 31 March 2023 4,474 4A39 16 22 25 30 543 405 164 145 5,224 5,161 20 Office land is held freehold. No fixed assets are held under finance leases. 53
CHOICE HOUSING IRELAND LIMITED Annual Report and Finanual Statements For the Year Ended 31 March 2024 NOTES (eontinued) OTHER TANGIBLE FIXED ASSETS (continued) Parent Otrice Land* and Buildings £'ooo oirice Furniture & Computers Software EquipmeDt £'ooo Totsl Vehicles £'ooo £'ooo £'ooo £'ooo Cost At 31 March 2023 Additions At 31 Mareh 2024 7.956 81 1.355 13 2,539 319 2.307 106 14,238 448 7,963 84 lJ68 2J58 2.413 14,686 Depreclation At 31 March 2023 Charge for the year At 31 March 2024 (3,417) (72) (3.489) (81) (1,328) (17) (lJ45) (2,134) (2.162) {9,122) (181) (87) (357) (2J15) (2,249) (9,479) (81) Net book value At 31 MAreh 2024 At 31 March 2023 4,474 4,539 23 27 543 405 164 145 5307 5,116 Office land is held freehold. No fixed assets are held under finance leases. 10 INVESTMENT PROPERTY Group £'ooo 31,139 5,010 (557) 656 36,248 Parent £'ooo 324 At l April 2023 Additions Disposals Revaluation gainl(loss) At 31 March 2024 324 Investment properties consist of domestic properties in Maple And May Ltd and commercial propertie5 in Choice Housing Ireland Limited. held for rental. Any gain or loss arising from a change in fair value is recognised in income and expenditur¢. Rental income from investment property is accounted for as (kscribed in the turnover accounting policy. 54
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (contlnued) 10 INVESTMENT PROPERTY (continued) Group Th¢ investment property fair value is predominatcly based on a valuation by an external, indepcndcnt valuer, having an appropriate recognis¢d professional qualification and recent Cxperience in the location and class of the properties being valued. The valuation exercise for £36,017k of the propcrties held wa5 pcrfomied with a valuatlOD date of 31 March 2024. Thc valuations, which are supported by previous market evidence, are prepared by considering the aggregate of th¢ net annual rents, receivable from the properties and where rel¢vant, associated costs. The directors have not obtained a valuation report as at 31 March 2024 in respect of the portion of Lesli¢ Morrell House carried as an investment property with an &8sessed value of £324k. The directors have assessed the fair value as at 31 March 2024. Any gain or loss arising from a ¢hang¢ in fair value is re¢ognised in profit and loss. Rental income from inv¢sknent propety is accounted for as described in the turnover accounting policy. Th¢ historical cost of the inv¢stment properties at 31 March 2024 was £31.962k (2023.. £27.354k). Company Leslie mOell House (a portion of the property is carried as an investment propety and the remainder is us¢d in the business): The directors have not obtained a valuation report as at 31 MaKh 2024 in respect of this investment property with an assessed fair value of £324k. The directors have asKssed the fair value as at 31 March 2024 cognisant of a valuation perfonned by an cxternal, independcnt valuer in March 2021. The historical cost of the investment prop¢rti¢s at 31 March 2024 was £230k (2023: £230k). I I FIIYANCIAL ASSETS Group Parent £,(0 At l April 2023 Additions 13,200 1,500 At 31 March 2024 14.700 55
CHOICE HOUSING IRELAND LIMITED Annual Report and Financial Ststsments For the Year Ended 31 March 2024 NOTES (eontinued) FINANCIAL ASSETS (continued) li The undertakings in which the Group and Association's interest at th¢ y¢ar-end is mor¢ than 2/0 are as follows- Regtstered oifice Subsidiary undertakings Maple And May Ltd Northern Ireland Nature of Business Class of sbares held Ownership Provision of property ntaI Ordinary & and related services Preference shares Maintenance services Ordinary shares Ordinary shares loo% Choice Services (Ireland) Limited Maple And May (Homes) Ltd Jolnt venture Comhar Facilities Management Limited Northern Ireland Northern Ireland Development of affordable housing i oo°/ Republic of Ireland Provision of facilities management services A shares 99% Maple & May Ltd- The Association holds 14,500,000 Preference shares of £1 each which are redeemable at any time on request at the option of the issuer. The prcmium on red¢mption is £Nil. Comhar Facilitics Management Limited is accountcd for &$ a Joint Venture within the Group financial statements; carried at Cost. The investm¢nt at 31 March 2024 was £172 (2023: £172). In 2023 there was a deconsolidation of th¢ Republic of Ireland subsidiaries, Oaklee and Acorn which are treated in the Group results as a disposal of their net assets as at 31 st March 2023. Loss on disposal of 8ub$ldlgrles Group 2024 £'ooo 2023 £'ooo Income & Expendilure Accounl Loss on disposal s¢alenmI of c0ryreheive Incon Loss on disposal 16,393 6.917 56
CHOICE HOUSING IRELAND LIMITED Annual Report and Finandal Statements For the Year Ended 31 March 2024 NOTES (continued) 12 STOCK Group Parent 2024 £9000 598 235 22 2023 £'ooo 1,204 247 22 2024 £,0 2023 £'ooo Work-in-progress Stock- materials Fuel 22 22 855 1,473 22 22 Work in progress rccognised in operating costs in the year amounted to £1,389k (2023: £866k). 13 DEBTORS Group Parent 2023 £'ooo 2024 £'ooo 2023 £'ooo 2024 £'ooo Rental debtors gross - technical Rental debtors gr05s - non-technical Less provision for bad and doubtful debts Net Rental Debtors Housing asset grant receivablc Other debtors Amounts du¢ from group undertakings Amounts due from joint venture Prepayments and a¢¢rued income 2286 3.042 (1.759) 3,569 15,776 6,129 1,962 2,442 (1,733) 2,671 41,052 6,214 2,286 1,962 3,042 2,442 (1,759) (1,733) 3J69 2,671 15.776 41,052 5.639 5.570 14,129 11,015 16 13 1.041 757 40,170 392 1334 27,100 597 891 51,425 61.078 Due within one year Due after one year 27,100 51,425 27233 12,937 40.170 59,278 1.800 61,078 27,100 51,425 The terni '*echnical" refers to the portion of the rental debt which will be paid out of expected Housing B¢nefit and Supporting People payments. Parent- Other debtors includes £944k in relation to the Tenants Services Fund. (2023: £39 Ik) Par¢nt- Amounts due from group undertakings are interest free and unsecured. £12,937k due from group undertakings is due after more than one year (2023: £1,800k), with £1,192k repayable on demand (2023: £9,215k). 57
CHOICE HOUSING IRELAND LIMITED Annual Report and Finanual Statements For the Year Ended 31 Marth 2024 NOTES (eontinued) 14 CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR Group Parent 2024 £*ooo 2023 £'ooo 2024 £'ooo 2023 £'ooo Debt (note 16) Trade creditors Accruals Other creditor5 CorFX)ration tax payable Due to contractors for certified work and retentions Rental and ry1¢e charge paid in advance Other tax and social security Amounts due to group undertakings Amounts due to joint venture companies Housing grant received in advance Housing grant repayable Deferred t&x liability Disposal proceeds fund (note 18) D¢ferred grant income (note 17.1) 24,737 4,149 8,436 140 204 31,612 2,859 6,754 190 275 24,737 3,752 8,061 24,862 2,575 6,296 6,049 1,408 343 3,525 1,156 64 6.049 1.408 250 3,525 1,156 49 35,134 29,294 4.178 1,134 5,563 29,294 4,178 35,134 742 2,458 10.583 95,401 S,563 11,116 94,408 2,458 10,583 86.594 96,751 Amounts due to group undertakings are interest free, unsecured and repayable on demand. 15 CREDITORS: AMOUNTS FALLING AFTER MORE THAN ONE YEAR Group 2024 £'ooo Parent 2023 2024 £'ooo 2023 £'ooo £?000 Debt (note 16) Disposal proceeds fund (note 18) Financial instrumcnts (note 26) Deferred grant income (note 17.1) 282,149 282,121 2,708 4,011 iJoo 1,954 513,378 504,612 799,535 792,698 275J99 2,708 iJoo 513J78 792,785 282,121 4,011 1,954 504,612 792,698 58
CHOICE HOUSING IRELAND LIMITED Annual Report and Finandal Statements For the Year Ended 31 March 2024 NOTES (¢ontlnued) 16 DEBT ANALYSIS Group 2023 £'ooo Parent 2024 £?000 2024 £'ooo 2023 £'ooo Due within one year Banks and other loans Dfc loans 24,734 31,545 67 31,612 24,734 24,795 67 24,862 24.737 24,737 Due greater than one year Banks and oth¢r loans Dfc loans 282.149 282,118 275J99 282,118 282,149 282,121 306.886 3 I3,733 275J99 300,136 282,121 306,983 TotaE borrowings Terms ofrepayment and interest rates Group CurreDCy Nornlnl Intere4t rate Yearof maturlty R4nge 2024 to Repayment xhedule 3J MArch 2024 31 Mrch 2D23 Range 0.81J/o to 6.20/0 (V8riable ond Fixed) 9.6301• to 12.32% (Fixed) 2024 to 2025 Bank loans GBP and Euro Monthly ond quarterly Bivannually 211,195 217.642 DfC108n GBP 70 The Housing Fin8n¢e Cory)(Kation ('THFC') loans GBP 2.92°/010 6.35V• (Fixed) 2026 to 2054 Quarterly bi- annually and bullet 95,688 96,021 Totsl 306,886 313,733 At 31 March 2024 the Group had undrawn loan facilities of £94,OOOk (2023: £73,OOOk). Parent Curreney NomlnAI Inter¢8t rate Yr of maturity R#Dge 2024 to 2042 Repayment schedule 31 Mar¢h 2024 £'ofjo 204,445 31 M#reh 2013 £.10 210,892 Range Bank loans GBP Monthly and quorterly 2024 10 2024 Bi-annually (Variable and Fixed) 9.63 /0 to 12.32% (Fixed) Dfc loan GBP 70 THFC loans GBP 2026 to 2054 Quarterly bi- annually and bullBt 95,688 96.021 (Fixed) Tot41 300,136 59
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Statements For the Year Ended 31 March 2024 NOTES (eontlnlled) 16 DEBT ANALYSIS (eontinued) At 3) March 2024 the Parent had undrawn loan faciliti¢s of £94,OOOk (2023: £73,OOOk). Hedging £30m of bank loans included in Parent and Group above have been hedged using interest rate swaps to fix the interest payable (5.35010 Swap £20m 2040 and £1 Om Interest rate collar). £35m of a bank terni loan facility for the Parent, which is undrawn at 31" March 2024, has been hedged using an interest rate swap to fix the interest payable (3.5240/0 Swap £35m 2038). Sect4rity Bank loans are secured by way of mortgages upon the deeds of the related properties financed by the loans and charges over the assets of the cntity. The Housing Financ¢ Corporation Limited (THFC) loans are secured by way of a fixed charge over the Association's housing assets. Repayment schedule Bas¢d on the lendels earliest repayment dat< bornwings are repayable as follows: Group 2023 £'ooo Parent 2024 £'ooo 2024 £'ooo 2023 £'ooo Within one year or on demand One year or more but less than two years Two years or more but less than five years Five years or more Total borrowings 24,737 7,722 30,139 31,612 7,644 24,178 24,737 7,655 15,698 24,862 7,644 24,178 244,288 250,299 306,886 313,733 252,046 300,136 250,299 306,983 Changes ipT net debr Net debt represents the amounl of borrowings less cash. The changes in net debt arising during th¢ year end 31 March 2024 w¢r¢ as follows: Group Net ¢h 2nd Cash equlvalents £9000 D¢bt wlthln ont year £'o(M) Debt greater than one year Total £'ooo £'ooo At l April 2023 Cashflow Other non-cash movements 7?98 1,602 (31ffj12) 31,612 (24.737) 24.737 (282,121) 6,847 (6.875) 282.149 (306J35) 40.061 (31,612) 297,886 At 31 Mareh 2024 60
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Statements For the Year Ended 31 March 2024 NOTES (continued) 17 DEFERRED GRAr INCOME 17.1 GRAIYT RECONCILIATION- NET Group 2024 £'ooo Parent 2024 £'ooo 2023 £'ooo 2023 £'ooo 515,195 486,959 24.528 44,981 (11.235) (11,384) (3,994) (5,361) At l April Additions Released to income in year Disposals Disposal of subsidiary At 31 Mareh 515.195 24,528 (11.235) (3,994) 532.104 47,343 (13,376) (5,361) (45,515) 515,195 524,494 524,494 515,195 Amounts to b¢ released within one year Amounts to be released in mor¢ than one year 11.116 513,387 524,494 10,583 504,612 515,195 11,116 513,378 524,494 10.583 504,612 515.195 17.2 GRANT RECONCILIATION- GROSS Parent Other £'ooo 5,913 Group Total £'ooo 697.951 24.528 (5.231) HAG £'ooo 692,038 24,528 (5,231) Total £'ooo 697,951 24,528 (5,231) At l April 2023 Additions Disposals At 31 Mar¢h 2024 711J35 5,913 717,248 717,248 Amortlsatlon At l April 2023 Released to income in year Disposals (180,198) (2,558) (10,855) (380) 1,237 (182,756) (11,235) 1,237 (182,756) (11,235) 1,237 At 31 March 2024 (189016) (2,938) (192.754) (192,754) Net book value At 31 March 2024 At l April 2023 521,519 511,840 2,975 3,355 524,494 515.195 524,494 515.195 61
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (continued) 18 DISPOSAL PROCEEDS FUND The movements in th¢ disposal proceeds fund during the y¢ar were: Group Parent 2024 £'ooo 2024 £'ooo 2023 £'ooo 2023 £'ooo At l April House salcs Expenditu At 31 March 6,469 2,694 (892) 8371 2,901 4,011 (443) 6,469 6,469 2,694 (892) 8.271 2,901 4,011 (443) 6,469 The disposal funds surpluses must be used As follows: Within the next y¢ar (note 14) 5,563 Within th¢ next two years (note 15) 2,708 &271 2,458 4,011 6,469 5.563 2.708 8371 2,458 4,011 6,469 19 EMPLOYEE BENEFITS 19.1 Pensions Group and Parent Thc Parent contributes to the Northern Ireland Local Governmcnt Officers Superannuation Committee (NILGOSC). This is a defined benefit scheme and th¢ benefits currently provided are on a Career Av¢rage Revaluated Earnings ('CARE') basis, based on an accrual rate of1149. Death in service benefits include three times pensionable salary, and spouse pension paid to a qualifying spouse. The most recent fornial actuarial valuation was completed &s at 31 March 2022 and rolled forward, allowing for the different financial assumptions required under FRS 102, to 31 March 2024 by qualified independent actuary. A full actuarial valuation is carried out ev¢ry three years. Pension scheme assets were stated at their estimated market value at 31 March 2024. At the 31" March 2024 the pension valuation reports a net pension asset of £19,930k before consideration of a surplus restriction. In line with FRS 102 para 28.22 the Association has not re¢ognised all of this sU]us. as it is unccrtain as to whether this surplus (calculated for Financial Reporting purposes) will be recoverabl¢ via reduced future contributions (calculated for pension funding purpos¢5). Based on third party specialist advire we have recOgnid £5,324k in th¢ Pension Asset Account. Netpension asset 2024 £'ooo 2023 £'ooo Defined benefit obligation Plan assets Restriction on pension asset Nct pension asset (40.424) 60J54 (14.606) 5?24 (40,317) 54,334 (7,349) 6,668 62
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (continued) 19.1 Pensions (continued) Movements in present valt4e ofdefined benefits obligation 2024 £'ooo 40J17 430 1,898 (1,473) 174 (922) 40,424 2023 £901)0 55,781 827 1,592 (17,229) 183 (837) 40,317 At l April Current service cost Interest expense Re-me&qurement: acluarial gainsl{losses) Member contributions Benefits paid At 31 March Movemenls infalr valt4e ofplon assers 2024 £'ooo 54,334 2094 2,867 IJ07 174 (922) 60J54 2023 £'ooo 58,897 1,691 (7,091) 1,491 183 (837) 54.334 At l April Interest income Re-measurement gains on assets Contributions by employer Contributions by members Benefils paid At 31 March Re-measurement of net defined liability 2024 £'ooo 1,699 2,867 (219) (14,606) (10.259) 7J49 (2,910) 2023 £'ooo 19,831 (7,091) (2,602) (7,349) 2.789 3,116 5,905 Re-measurement: actuarial gainsl(losses) Rc-mcasurement gains on assets Actuarial gains from experience Restriction on pension asset Net re-measurement- recognised in other ¢ompr¢hensive in¢om¢ Previous year curtailment Total recognised in current year Other Comprehensive Income Eypense recognised in the income and expenditure account 2024 2023 £'ooo £'ooo Operating costs: _ current service cost - administration costs 417 814 13 13 Amounts charged to operating costs Net inter¢st on net defined ben¢fit liability Amounts charged to interest expense 430 827 (696) (696) (99) (99) 63
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (continued) 19.1 Pensions (continued) The fair value of the plan assets and the return on those &8sets were as follows: 2024 Fair value £'ooo 2024 Fair value 2023 Fair value £9000 2023 Fair value Equities Bonds Multi-asset credit Prop¢rty Cash 26,406 13,003 8,050 9,413 3,482 60J54 44.0 22,415 21.0 12,644 13.0 7,093 i&0 5,725 6,457 54,334 41.2 23.3 10.5 11.9 Actual return on plan assets 5,461 (5,400) Principal actuarial assumptions.. Financial asst4mpiions The principal actuarial assumptions used by the actuary (expr¢ssed as weighted averages) at th¢ year- end were as follows: Assumptions used for calculations Discount rate Future increase in retail price index Future increase in consumer price index Future rate of salary increase Average future rate of pension increases 2024 4.85 / 2023 3.200/0 2.800/0 2.800/0 4.30 /0 2.800/ The main assumptions relating to membu longevity underlying the pension liabilities at th¢ balan¢¢ sheet date are as follows: Average expected future life expeet8n¢y after 65 for: Male staff currently aged 65 Female stsff ¢urr¢ntly aged 65 Mal¢ currently aged 45 Female curr¢ntly aged 45 2024 Years 2023 Years 21.8 24.6 22.8 25.7 24.0 22.0 25.0 Defined contributions plan The Association operates a defined contribution pension plan. The total expens¢ relating to th¢se plans in the current year was £532k (2023: £459k). 192 Holiday Pay Entitlement The employees of the Group have unused holiday entitlements at 31 March 2024 amounting to a liability of £267k (2023: £185k). These have been r¢ported within staff costs and accruals. 64
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Statements For the Year Ended 31 March 2024 NOTES (continued) 20 SHARE CAPITAL Pydrent and Group 2024 2023 (Figur¢s are in single pounds) Ordinary shares of£] each. fyllypaid At l April Share capital issued. fully paid Transfer to capita] SerVe At 31 March 48 67 (19) 48 The Parent's sharc Capital is classified as equity and the shares are not entitled to a dividend, are never redeemable. and will not be repaid if the Parent is wound up. Every Board member h&s owned one sharc since their election to the Board. The names of all Board members who held office during the year are listed on page 2 and 3. No Board member holds or exercised an option to buy shares in or debentures of the Parent. 21 RESERVES Capital reserve Capital reserve represents the value of 5harcs surrendered on cessation of membership. Parent and Group 2024 2023 (Figures are in single pounds) At l April Transfer from share capital At 31 March 156 E37 19 156 156 Caskflow hedging reserve The hedging reserve comprises the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have not yet occurred. 65
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnancial Statements For the Year Ended 31 March 2024 NOTES (Continued) 22 CAPITAL COMMITMENTS Group Parent 2024 £?000 133,031 2023 £'ooo 132,537 2024 £'ooo 132,072 2023 £'ooo Authorised and rontracted for 131,914 Th¢ figures above are gross expenditure b¢fore offsetting attributable grants. The Group 0rateS a prudent Tr¢asury policy and has funding in place to meet these capital commitments. 23 RELATED PARTY TRANSACTIONS Details of transactions with related parties during the financial year ended 31 March 2024 are shown below: Nature of ¢rgnsaction Amount Balance due Drl(Cr) froml(to) related party 2024 £'ooo Amount Drl(Cr) Balance due froml(to) related party 2023 £'ooo 2024 £?000 2023 £'ooo Comhar Facllities Management Servic¢s provided by Par¢nt Services provided by Group SkAinos Service charges Mullgeh Allainn Management Co Service charges (45) (1.778) 16 392 (43) (1,658) 13 602 78 78 55 The Group have availed of the exemption in FRS102 to not report related party transactions for IOOO/o owned subsidiaries. The exemption ha5 been adopted for Maple And May Ltd, Maple And May (Homes) Ltd and Choice Services (Ir¢land) Limited. Comhar Facilities Management Limited is a joint venture of the Parent. Skainos Limil¢d is a property dev¢lopment partner and is considered to be & related party because the Parent has repr¢s¢ntation on its Board. Mullach Allainn Management Company Limited is a management company of a housing scheme and is a wholly owned subsidiary which is not CODsolidated on the grounds of materiality. All transactions with related parties are on an anns-length basis. There are no provisions against any balance with related parties at the year-¢nd (2023: £nil). 66
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnanclal Statements For the Year Ended 31 March 2024 NOTES (Continued) 24 CASHFLOW FROM OPERATING ACTIVITIES 2024 £'ooo 14A65 (3285) 2023 £'ooo 1,467 (4,186) Surplus for the year Gain on disposal of tangible fixed assets Exceptional item- disposal of subsidiary Interest receivable and similar income Interest payable and similar charges Net finance charges relating to pension scheme Gain on property valuation Transfer to disposal proceeds fund Movement in fair value of fjnancial instruments Taxation Depreciation, impairnient and write-off of major repairs on own¢d tangible fixed assets Amortisation of capital grants and contributions Pension costs less contributions Pydyable Decrease in stock and tfdding properties Decreas¢l(incre&8e) in trade and other debtors Increase in trade and other creditors Nct cash inflow from operating activities (1.143) 9,219 (696) (656) 2,694 (199) 375 (2,641) 12.370 (99) (881) 4,011 (419) 130 32 J80 (11,235) (870) 618 (1.000) 25,600 {13,376) (664) (627) (19,016) 46.986 33,653 24.1 CASH INVESTMENTS 2024 £'ooo 5,618 2023 £'ooo 27,442 Cash Investments Cash invcstments includes cash on deposit for more than 90 days. 67
CHOICE HOUSING IRELAND LIMITED Annual Report and Finan¢ial Ststements For the Year Ended 31 March 2024 NOTES (continued) 25 HOMES AND BEDSPACES IN MANAGEMENT AND IN DEVELOPMENT The number of homes and bed-spaces in management and in development in Northern Ireland &9 at 31 March 2024 was 12,841 (2023: 12,765). This is analysed in the table below: Number of units owned by the Parent Self-CODtsined 2024 Properties 2023 Properties General needs housing- Social Rent Sheltered housing Supported housing Shared ownership 7,781 1,909 792 7,660 1,909 795 10.484 10,365 Non self-contalned Bed$paees Bedspaces General needs housing- Social rent Supported housing 14 1,053 1,067 1,047 1,055 TotAI units owned at yegr end 11.539 11,432 Number of units managed but not owned by the Parent Self-contained Properties 16 Properties 16 General Needs Housing- Social rent Sheltered Housing Total units managed at year end 16 16 Total units owned and managed by the Parent 11.553 11,448 Maple And May Ltd Total units managed by the Group 286 11,841 266 11,714 Unlts In development at the year end 1,000 1,051 68
CHOICE HOUSING IRELAND LIMITED Annual Report and Finandal Statements For the Year Ended 31 March 2024 NOTES (continued) 26 FINANCIAL INSTRUMENTS Carrying amouF7ts offinancial instrumeFTts held at other thanfair value.. Group Parent 2023 £'ooo 2024 £'ooo 2023 £'ooo 2024 £'ooo Assets measured at amortised cost Cash and cash equival¢nts Cash investmcnts Trade and other debtors Liabilities measured At amortised cost Debt Trade and other payables 9,000 5,618 25066 7,398 27,442 50,534 6,331 5,618 39,129 5,523 27,442 60,321 (306086) (313,733) (18084) (14,220) (285286) (242,579) (31)0,136) (306,983) (18,112) (12,397) (267,170) (226,094) Financial instruments measured atfair value., Group 2024 £'ooo {1,079) (1,381) (415) (573) 194 iJoo Parent 2024 £'ooo (1,079) (1,381) (415) (573) 194 1,300 2023 £'oo 2023 £?000 Derivatives- Level 2 Interest rate swap Interest rate collar Interest rate swap Carrying value 1,954 1,954 The Group has the following d¢rivative financial instruments which have been measured at fair value: Barclays £20m interest rate swap Barclays £ IOM interest rate collar National Westminster Bank £35m interest rate swap The fair values of the interl rate swaps and collars is based on discounting estimated cash flow5 based on the ternis and maturity of each contract and using markct interest ra*s for a similar instrument at the m¢&surement date. 69
CHOICE HOUSING IRELAND LIMITED Annual Report and Financial Statements For the Year Ended 31 March 2024 NOTES (Continued) FINANCIAL INSTRUMENTS (continued) 26 26.1 HEDGE ACCOUNTING Th¢ following table indicat¢s the periods in which the ¢ash flows associat¢d with cash flow h¢dging instruments ar¢ ¢xpected to occur as reqUId by FRS 102.29(a) for the cash flow hedge accounting models. Hedging Cash Flows Group Derivative$ Carrying amounl Expected ¢Ash flows £'ooo lyear Ito<2 2to<5 or less years years £'ooo 5 years and over £'ooo £'ooo £'ooo £'ooo 2024 Inflows Outflows 31,860 (33,490) 2.425 6,390 56,535 (33.841) 33,496 (2,503) (7,347) (57,487) (1,981) (78) (957) (952) (iaoo) 2023 Inflows Outflows 15,091 1,173 1,093 2,953 9,871 (18,130) (1,291) (1,290) (3,766) (11,784) (3,039) (118) (197) (813) (1,913) (1.954) Company Derivatives Carrying amount £'ooo Expeeted ¢a8h flows lyear Ito<2 2to<5 or le$$ years years £'ooo £'ooo £'ooo 5 yearj and over £'ooo 2024 Inflows Outflows 31,860 (33,490) 2,425 6.390 56,535 (33,841) 33,496 (2,503) (7,347) (57,487) (1,981) (78) (957) (952) (iJoo) 2023 Inflows Outflows 15,091 1.173 1,093 2,953 9,871 (18,130) (1,291) (1,290) (3,766) (11,784) (3.039) (118) (197) (813) (1,913) (1,954) 70
CHOICE HOUSING IRELAND LIMITED Annual Report and Financlal Statements For the Year Ended 31 March 2024 NOTES (eontinued) FINANCIAL INSTRUMENTS (continued) 26 26.1 HEDGE ACCOUNTING (continued) Reconciliation offair value measuremenls offinancial liabilities Group Interest Interest rats rate swap collar £'ooo £'ooo Fair value liability at l April 1,381 573 Movemenls recognised in Income andEYpendi¢ure Ineffective portion of (gain5ylosses on derivatives treatcd as cash-flow hedges Fair value mov¢ment on derivativc contracts whi¢h are not in a hedging relationship Movements recosnised in other comprehensive income Effective portion of changes in fair value of cash-flow h¢dg¢s Interest r2te swap 2024 Total 2023 Totsl £'ooo £?000 1,954 £'ooo 3,287 (200) (199) (419) (303) 42 (194) (455) (8,480) Disposal of subsidiary 7.566 Fair value Ilability at 31 Mareh 1,079 415 (194) iJoo 1,954 The interest rate swaps and interest rat¢ collar are hedge accounted. Parent Interest Interest Interest rate rate rate eollar swap £'ooo £'ooo 573 2024 Total 2023 Total swap £,0 1,381 £?000 1,954 Fair value liability at l April Movements recognised in Income and Erpendilure In¢ffective portion of (gain5)/losses on derivatives treated as ¢ash-flow hedges Fair valu¢ movement on derivative contracts which are not in a hedging r¢lationship Movements recognised in other comprehensive Income Effective portion of changes in fair value of cash-flow hedges Fair value liability at 31 March The interest rat¢ swaps and interest rate collar are hedge accounted. 5,224 (200) (199) (181) (303) 42 (194) (455) {3,089) 1.079 415 (194) 1,300 1,954 71
CHOICE HOUSING IRELAND LIMITED Annual Report and Financial Statements For the Year Ended 31 March 2024 NOTES (contlnued) 26 FINANCIAL INSTRUMENTS (continued) 26.1 HEDGE ACCOUNTING (contlDued) Summary of hedges FiFTancial instrumenl - Barclays £20m interest ra¢e swap Hedge dcriptiOn- The objective of the hedge is to mitigate the variability of the cash flows stemming from the floating rate interest payments related to the Barclays floating rate loan £20m (2040) against unfavourable movements in Ihe SONIA rate. The swap pays a fixed interest rate and receives a floating interest ratc. Risk being hedged- The cash flows stemming from the interest payments of the Barclays floating rate loan £20m (2040) 15 linked to SONIA. The interest payments are highly expected to occur as the loan h&g already been drawn. The h¢dged documentation takes into account the "critical ternis matching" Quantitative analysis on hedge effectiveness is calculated using the hypothetical derivative method, to ensure that no over-hedging is taking place. Financial inslrument - Barclays £IOm interest rale collar Hedge description- Thc obj¢ctive of the hedge is to mitigate the variability of the cash flows stemming from the floating rate interest payments related to the Barclays floating loan £1 Om {2040), against unfavourabl¢ movements in the SONIA rat¢. The instrument includes a cap at 60/0 and floor of 4.5 %. Risk being hedged- Th¢ c&sh flows stemming from the interest payments of the Barclays floating loan £1 Om (2040) is linked to SONIA. The interest payments arc highly expected to occur as the loan has already been drawn. The hedged documentation takes into account the "critical ternis matching" Quantitative analysis on hedge effectiveness is calculated using the hypothetical derivative method, to ensure that no over-hedging is taking place. Financial in$lrument- National Wesfminster Bank £35m interesl rate swap Hedge description- Th¢ objective of the hedge is to mitigate the variability of the cash flows st¢mmtng from the floating rate interest payments related to the National Westminster Bank floating rate loan £35m (2038) against unfavourabl¢ movements in the SONEA rate. The swap pays a fixed int¢rt rate and receives a floating inkrest rate. Risk being hedged- The c&8h flows stemming from the interest payments of the National Westminster Bank floating rate loan £35m (2038) is linked to SONIA. The hedged documentation takes into account the "critical ternis matching" Quantitative analysis on hedge effectiveness is calculated using the hypothetical d1Vative method, to ensu that no over-hedging is taking place. 72
CHOICE HOUSING IRELAND LIMITED Annual Report and Flnandal Statements For the Year Ended 31 March 2024 NOTES (contlnued) 27 LEASING COMMITMENTS Non-cancellable operating lease rentals are payable as follows: Group Pgrent 2023 £'ooo 2024 £'ooo 2023 £9000 2024 £9000 Less than one year Between one and five years More than five years 530 960 419 1,190 530 960 419 1,190 1,490 1,609 IA90 1,609 During the year £571k (2023: £372k) was r¢¢ognis¢d as an expense in the income and expenditure account in respect of operating leases. 28 CONTINGEIYT LIABILITIES There is a contingent liability in respect of grants and contributions if the Group does not comply with the ternis of the letter of grant award. The Housing Association Grant for Eligible Housing Activities Gen¢ra] (Northern Ireland) Detern]ination 1992. known as the 'General D¢terniination'* gives dctails of a number of relevant events that trlgger grant recovery. The possibility of any reimbursement is considered to bc r¢mok. 29 POST BALANCE SHEET EVENTS There hav¢ bcen no significant events subsequent to year end that would rquir¢ adjustm¢nt or disclosure in these financial statements. 73