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← Rural Housing Association Ltd

2025-03-31-accounts

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FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

Rural Housing Association Ltd

Tollgate House, 2 Killyclogher Road, Omagh, Co Tyrone, Northern Ireland, BT79 OAX Company Registration No: |P000345

Charity Registration No: 100886

‘

Rural Housing Association Ltd

2 Killyclogher Road, Omagh, County Tyrone, BT79 OAX

Association Information

Board of Management John Waddell (Chair) Tom Potter (Vice Chair) Ciaran McKenna (BSC MBA) (Secretary) Michaela McCusker (Treasurer) Thomas Gallagher B Ed. Margaret Rafferty John Moss Harry Gaffney Chief Executive Mr Stephen Fisher PGDip, MSc, CIHCM Registered Office Tollgate House, 2 Killyclogher Road, Omagh, County Tyrone, BT79 OAX Head Office Tollgate House, 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX Bankers Danske Bank 5-7 Market Street, Omagh, County Tyrone BT78 1BN AIB 1-4 East Bridge Street, Enniskillen, County Fermanagh, BT74 7BT Solicitors McCaffrey & Co 8-10 Church Hill Omagh Co Tyrone BT78 1DQ Statutory Auditors McAleer Jackson Ltd Chartered Accountants & Registered Auditors Church House 24 Dublin Road Omagh Co Tyrone BT78 1HE Internal Auditors Wbg Services LLP Chartered Accountants & Registered Auditors 168 Bath Street Glasgow G2 4TP

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Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Financial Statements for the Year Ended 31 March 2025

Contents

Report of Board of Management Page 3
Auditor's Report to the Members of Rural Housing Association Page 6
Statement of Comprehensive Income Page 9
Statement of Financial Position Page 10
Statement ofChanges in Equity Page 11
Statement ofCash Flows Page 12
Notes to the Financial Statements Page 13
Detailed Income and Expenditure Summary Page 24
for the Financial Year Ended 31 March 2025
Income and Expenditure from Lettings Page 26
for the Financial Year Ended 31 March 2025
Administrative Expenditure Page 27
fortheFinancialYearEnded31March2025

2

: Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Financial Statements for the Year Ended 31 March 2025

Report of the Board of Management

The Board present their report together with the audited financial statements for the year ended 31 March 2025.

Principal activities

Rural Housing Association was registered under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 on 2 March 1992. The Association is a registered non-profit making housing association with the Department for Communities providing housing accommodation for those in need and is recognised as a charity with The Charity Commission for Northern Ireland and has charitable status with HMRC (HM Revenue & Customs).0

Business Review

Welcome to the Rural Housing Association's Annual Report for 2024/25. This year, we remained steadfast in our mission to deliver high-quality, environmentally sustainable, and affordable homes across rural communities in Northern Ireland. Despite a challenging financial landscape, including a significant reduction in funding for Housing Associations, we continued to grow and deliver vital housing solutions where they are most needed.

Navigating a Challenging Funding Environment

The year began without a confirmed budget for the Social Housing Development Programme (SHDP), creating considerable uncertainty. In response, we conducted a comprehensive risk analysis across all development schemes and worked closely with our partners at the Northern Ireland Housing Executive, who oversee funding for Housing Associations. The absence of confirmed secure, long-term funding remains a material risk and is actively monitored through our corporate risk register.

Despite these challenges, we are pleased to report that the majority of our development programme remained intact. We started work on 28 new additional homes during the year, whilst also continuing our existing onsite development schemes comprising 52 units. We ended the year with 17 new homes completed and handed over to our tenants in our rural communities.

Digital Transformation and Operational Efficiency

A major highlight of the year was the successful transformation of our digital infrastructure. We completed a full overhaul of our core software systems, investing in a new, integrated suite covering Housing, Finance, Property, and CRM functions. This new system went live in October 2024 and has already delivered: Significant staff time savings Seamless communication with our maintenance contractor A 24/7 tenant portal offering real-time access to services and information We anticipate further efficiencies through the retirement of legacy systems and a full transition to cloud-based operations.

Putting Tenants First

Our tenants remain at the heart of everything we do. In the second half of the year, we renewed our focus on tenant engagement by revitalising participation panels and forums. These groups continue to play a vital role in shaping tenant policies before they reach Board level. We also secured new grant funding to support tenant welfare and expanded our Tenant Hardship Fund, which provides essential support for heating, electricity, rent, and other basic needs. We are especially proud to have a tenant representative serving as a full member of our Board of Management, ensuring the tenant voice is embedded at the highest level of governance. Community Investment and Cross-Community Initiatives

Our commitment to community development continued through our Housing for All schemes in Sion Mills and Cushendall. Over the year, we delivered 23 initiatives aimed at strengthening cross-community relations as part of these five-year Good Relations Plan.

Our People, Our Strength

The dedication of our staff and voluntary Board members remains the cornerstone of our success. Their commitment ensures the effective delivery of our corporate strategy and business plans. Our hybrid working model—blending home and office-based work—continues to be both productive and efficient. The CEO and Senior Management Team review this arrangement annually to ensure performance targets are consistently met.

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Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Financial Statements for the Year Ended 31 March 2025

Report of the Board of Management (continued)

Business Review cont'd

Financial Overview

During the financial year, the Association expanded our housing stock ith the addition of 17 new units. Operating costs increased by £555,775 (2024 : £200,046), resulting in a reduced operating surplus of £1,117,623 (2024: £1,204,629). These figures reflect both the challenges and the resilience of our organisation in a difficult economic climate.

Interest payable was £857,417 (2024 : £717,679) resulting in an overall surplus for the financial year £311,273 (2024 : £344,201)

On the balance sheet housing properties at depreciated cost was £64.9m (2024 : £60m). Average staff numbers for the year are currently at 25 (2024 : 24) and are not anticipated to increase significantly during the incoming financial year.

Looking Ahead

As we move into 2025/26, we remain focused on innovation, sustainability, and deepening our impact in rural communities. We are committed to building on this year's progress and continuing to deliver homes and services that makea real difference in people's lives.

Board of Management

The Association is governed by a voluntary Board of Management, which consists of 9 persons with a wide range of skills and experience in the private, voluntary and public sectors. The Board meet at least 6 times per year. The work of the Board includes deciding the strategic direction of the Association, monitoring and challenging the Chief Executive and Senior Management Team and receiving recommendations and decisions from four committees on policy and governance of the Association. The committees are the Audit, Risk and Governance committee, Technical committee, Housing Service committee and the Finance and General Purposes committee.

The Chief Executive is responsible for delivering the Board’s strategic vision at an operational level with help of the Senior Management Team (SMT) which provide reports and policies to the various committees on a regular basis. The SMT is made up of Chief Executive and four departmental directors; Housing & Operations Director, Development & Property Assets Director, Finance Director & Business Development Director.

Internal Controls Assurance

The Board acknowledges its overall responsibility for establishing and maintaining the whole system of internal control and for reviewing its effectiveness. The system of internal control is designed to manage, rather than eliminate, the risk of failure to achieve business objectives, and to provide reasonable, and not absolute, assurance against material misstatement or loss.

The process for identifying, evaluating and managing the significant risks faced by the Association is on going, has been in place throughout the period commencing 1 April 2023 up to the date of approval of the annual report and financial statements. Key elements of the control framework include:

The Board cannot delegate ultimate responsibility for the system of internal control, but it can, and has delegated authority to the Audit Risk and Governance Sub-committee to regularly review the effectiveness of the system of internal control. The Board receives regular reports from the Audit Risk and Governance Sub-committee together with minutes of meetings. The Audit Risk and Governance Sub-committee has received the annual report of the internal auditor, and has reported its findings to the Board.

4

Rural Housing Association Ltd

2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Statement of Board of Management Responsibilities

The Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and registered housing association legislation require the members of the Board of Management to prepare financial statements for each financial year that give a true and fair view of the state of the Association's affairs and of its surplus or deficit for that period. In preparing these financial statements the Board is required to:

The members of the Board of Management are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association and to enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and the Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993. They have general responsibility for taking reasonable steps to safeguard the assets of the Association and to prevent and detect fraud and other irregularities.

Financial Statements for the Year Ended 31 March 2025

Report of the Board of Management (continued)

Statement of Disclosure to Auditors

So far as each of the members of the Board of Management at the date of approval of these financial statements is aware:

On behalf of the Board

Wire AC. wi Maa ne Secretary

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‘ Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Statement of Board of Management Responsibilities

The Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and registered housing association legislation require the members of the Board of Management to prepare financial statements for each financial year that give a true and fair view of the state of the Association's affairs and of its surplus or deficit for that period. In preparing these financial statements the Board is required to:

The members of the Board of Management are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association and to enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and the Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993. They have general responsibility for taking reasonable steps to safeguard the assets of the Association and to prevent and detect fraud and other irregularities.

Statement of Disclosure to Auditors

So far as each of the members of the Board of Management at the date of approval of these financial statements is aware:

On behalf of the Board

Secretary

5

Rural Housing Association Ltd

2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Financial Statements for the Year Ended 31 March 2025

Auditor's Report to the Members of Rural Housing Association

Opinion

We have audited the financial statements of Rural Housing Association Limited (the ‘Association’) for the year ended 31 March 2025 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

« give a true and fair view of the state of the Association's affairs as at 31 March 2025, and of its income and expenditure for the year then ended;

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the Board's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Association's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Board with respect to going concern are described in the relevant sections of this report.

Other Information

The other information comprises the information included in the annual report, other than the financial statements and our Auditor's Report thereon. The Board are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowedge 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 are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

6

Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 OAX

Financial Statements for the Year Ended 31 March 2025

Auditor's Report to the Members of Rural Housing Association cont'd

Matters on which we are required to report by exception

Under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 we are required to report to you if, in our opinion:

« adequate accounting records have not been kept; or * the financial statements are not in agreement with the accounting records and returns; or * certain disclosures of directors’ remuneration specified by law are not made; or » we have not received all the information and explanations we require for our audit.

We have nothing to report in this regard.

Under the Charities Act (Northern Ireland) 2008 and Regulation 9 of the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015, we are required to report to you if, in our opinion: * 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 information and explanations we require for our audit; or « the information given in the Report of the Board of Management and the Strategic Report is inconsistent in any material respect.

We have nothing to report in this regard.

Responsibilities of the Board

As explained more fully in the Statement of Board of Management Responsibilities statement set out on page 5, the Board (who are also the trustees of the Association for the purposes of charity law) are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, and for such internal control as the board determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the Board is responsible for assessing the Association's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Board either intends to liquidate the association or to cease operations, or has no realistic alternative but to do so.

Auditor responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditor's Report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

A further description of an auditor’s responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation, even though the audit is properly planned and executed in accordance with ISAs (UK). This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Based on our understanding of the Association and from our commercial knowledge and experience of the sector, we identified that the principal risks of non-compliance with laws and regulations related to compliance with Employment Law, Health & Safety and Environmental Regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements. We considered the experience and expertise of the engagement team to ensure that the team had appropriate competence and capabilities to identify or recognise non-compliance with the laws and regulation.

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Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Financial Statements for the Year Ended 31 March 2025

Auditor's Report to the Members of Rural Housing Association cont'd

We evaluated the opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant one-off or unusual transactions.

Throughout our audit we exercise professional judgment and professional scepticism to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statements. In response to these principal risks, our audit procedures included but were not limited to:

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management.

Use of our report

This report is made solely to the Association's members, as a body, in accordance with section 43 of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, section 65 of the Charities Act (Northern Ireland) 2008, regulations made under section 66 of that Act (Part 4 of the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 and article 19 of the Housing (Northern Ireland) Order 1992. Our audit work has been undertaken so that we might state to the Association's members those matters we are required to state to them in an Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Association and the Association's members as a body, for our audit work, for this report, or for the opinions we have formed.

Michael Barnett (Senior Statutory Auditor)

for and on behalf of McAleer Jackson Ltd

Chartered Accountants and Statutory Auditors Church House 24 Dublin Road Omagh BT79 OAH

25 June 2025

8

. :

Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Statement of Comprehensive Income for the Year Ended 31 March 2025

2025 2024
(as restated)
Note £ £
Turnover 4,849,107 4,380,337
Less operating costs (3,731,484 ) (3,175,708 )
Operating surplus 2 1,117,623 1,204,629
Surplus on property disposals - 586,870
Interest receivable 7 32,067 15,869
Interest payable and other charges 8 (857,417 ) (717,679 )
Financing (cost)/income 16 19,000 3,000
Transfer to disposal proceeds fund - ( 586,870 )
Surplus on ordinary activities 311,273 505,819
before taxation
Corporation tax on surplus 9 - -
Surplus for the year aftertaxation 311,273 505,819
Other comprehensive income
Actuarial gain/(loss) on pension scheme 16 632,000 347,000
Prior year adjustment - -
Totalcomprehensiveincomefortheyear 943,273 852,819

Continuing operations

None of the Association's activities were acquired or discontinued during the above two financial years.

Historical cost

The difference between the results as disclosed in the Statement of Comprehensive Income before tax, and retained surplus for the year, on an unmodified historical cost basis is not material.

9

. Rural Housing Association Ltd

2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Statement of Financial Position as at 31 March 2025

2025 2024
(as restated)
Note £ £ £ £
Tangible fixed assets
Housing properties 10a 65,090,248 60,750,354
Other fixed assets 10b 844,674 851,377
65,934,922 61,601,731
Other non-current assets
Pension asset 16 1,000,000 340,000
66,934,922 61,941,731
Current assets
Debtors and prepayments 12 1,886,315 4,377,713
Cash and cash equivalents 13 1,085,350 1,680,474
2,971,665 6,058,186
Creditors: amounts falling due 14 (8,252,169) ( 7,898,069 )
within 1 year
Net current assets/(liabilities) (5,280,504) (1,839,882 )
Total assets less current liabilities 61,654,418 60,101,849
Creditors: amounts falling due after
more than 1 year 15 (53,448,700) ( 52,839,405 )
Provision for liabilities and charges
Pension liability 16 - -
Total net assets 8,205,718 7,262,444
Reserves
Share capital 17 8 9
Capital reserves 18 37 35
Revenue reserves 8,205,673 7,262,400
TotalReserves 8,205,718 7,262,444

Approved by the Board of Management on 25 June 2025

Oy elo Witla LO Chairman Honorary Secretary Honorary Treasurer

10

é

Rural Housing Association Ltd

2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Statement of changes in equity for the Year Ended 31 March 2025

Share
Capital		 Capital
Revenue
Reserves
Reserves
Total
£ £
£
£
At 1 April 2023 9
84—«6,409,581 = 409,624
Surplus/(deficit) for the year (as restated) - -
505,819
505,819
Actuarial gain/(loss) on pension scheme - -
347,000
347,000
Share issue 4 %
a
4
Share cancellation (1) 4
z
z
At 31 March 2024 (as restated) 9
~~35~~—~—«7,262,400
==,262,444
Surplus/(deficit) forthe year - -
311,273
311,273
Actuarial gain/(loss) on pension scheme - -
632,000
632,000
Share issue 1 -
-
1
Share cancellation (2) 2
-
-
At 31 March 2025 8.
387_—«i8205,673.
«8,205,718

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Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Statement of Cash Flows for the Year Ended 31 March 2025

2025 2024
Note £ £ £ £
Net cash flow from operating activities 19 1,931,757 2,201,015
Cash flow from investing activities
Purchase of tangible fixed assets (5,926,398 ) (8,720,874 )
Proceeds from sale oftangible fixed assets - 635,104
Grants received 4,157,828 3,044,580
Interest received 32,066 15,869
( 1,736,504 ) (5,025,321 )
Cash flowfrom financing activities
Interest paid (864,333) (842,151 )
New secured loans 1,000,000 5,000,000
Repayments ofborrowings (926,045) (840,719 )
Share capital 1 1
( 790,377 ) 3,317,131
Net change in cash and cash equivalents (595,124 ) 492,825
Cash and cash equivalents at 1 April 1,680,474 1,187,649
Cashandcashequivalentsat31March 13 1,085,350 1,680,474

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5 Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Notes to the Financial Statements for the Year Ended 31 March 2025

1 Accounting policies

Legal registration

The Association is registered within Northern Ireland under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and is a registered provider of social housing.

Basis of accounting

The financial statements have been prepared under the historical cost convention.

The financial statements have been prepared in compliance with UK GAAP, including FRS102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the Statement of Recommended Practice for registered social housing providers (SORP 2018) issued by the National Federation of Housing Associations. The presentation of the financial statements complies with the Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993.

Turnover

Turnover comprises rental income net of voids, grants, other income and the release of capital grants. The Association's rental income is reflected gross of income attributable to property rates.

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 accumulated depreciation and impairment losses. Cost includes the cost of acquiring land and buildings, development costs, interest charges incurred during the development period.

Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that result in an increase in net rental income over the lives of the properties, thereby enhancing the economic benefits of the assets, are capitalised as improvements.

Other fixed assets are stated at cost less accumulated depreciation.

Depreciation has been provided on the Association's Fixed Assets consistent with standard accounting practice at the following rates:

Fixed assets by class Useful life Method
Housing property :
* Main fabric 100 Years Straight line
* Roof structure & covering 70 Years Straight line
+ Windows & external doors 30 Years Straight line
* Kitchen 20 Years Straight line
* Bathroom/WCs 30 Years Straight line
¢ Heating, ventilation & plumbing 30 Years Straight line
* Electrics 40 Years Straight line
Office building 60 Years Straight line
Computer equipment 3 Years Straight line
Officefurniture&equipment 5Years Straightline

The depreciation charge is time apportioned in the month of addition and in the month of disposal. No depreciation is charged on either property under development or land.

Impairment

Housing properties are assessed annually for impairment indicators. Where indicators are identified an assessment for impairment is undertaken comparing the asset's carrying amount to its recoverable amount. Where the carrying amount of an asset is deemed to exceed its recoverable amount, the asset is written down to its recoverable amount, this is likely to be the fair value in use of the asset based on its service potential. The resulting impairment loss is recognised as expenditure in income and expenditure. Where an asset is currently deemed not to be providing service potential to the Association, its recoverable amount is its fair value less costs to sell.

Other assets are reviewed for impairment if there is an indication that impairment may have occurred.

13

, Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Notes to the Financial Statements for the Year Ended 31 March 2025

1 Accounting policies (continued)

Housing Association financing

Capital development expenditure by the Association is financed partially by Housing Association Grant from the Department for Communities and from Private Sector Loan Finance (Mixed Funding). Current (revenue) expenditure associated with the management of the development programme is also supported by Housing Association Grant allowance, which is attributed to the Income and Expenditure account as appropriate. Administration expenditure associated with the management of the Association's property is charged directly against income from lettings.

Acquisition and development allowances

The amount of acquisition and development allowances (HAG) allowed by the Department for Communities are attributed to the cost of the property concerned. Credit is taken for allowances for administrative costs (associated with the management of the development programme) in the Statement of Comprehensive Income and a relevant proportion of administrative expenditure is charged against them. Government and other grants Where the cost of properties have been financed by a Housing Association Grant (HAG) paid from the Department for Communities, the grant is recognised in income over the expected useful life of the housing property structure and its individual components on a pro rata basis under the accruals model. HAG and other grants received in respect of revenue expenditure is credited to the income and expenditure account in the same period as the expenditure to which it relates. To the extent that Housing Association Grant is received in advance of the related expenditure, it has been included in Creditors: falling due within 1 year, to be attributed to appropriate capital and revenue expenditure in future accounting periods.

Interest receivable and interest payable

Interest receivable is recognised in the income and expenditure account as they accrue, using the effective interest method. Interest on borrowings to finance the development of qualifying assets is capitalised to the extent that it represents interest on borrowings specifically allocated to financing the development programme, after the deduction of related grants received. Other interest payable is charged to the income and expenditure account as it accrues. Disposal proceeds fund

The Disposal Proceeds Fund represents the net surplus on property sales together with grant, which has been set aside for the purpose of providing replacement properties in accordance with the Department for Communities regulations. If the surpluses are not used within two years from their receipt they may be payable in part or in full to the Department for Communities.

Retirement benefits The Association participates in an industry wide defined benefit final salary pension scheme. The underlying assets and liabilities of the scheme attributable to Rural Housing Association have been identified by actuaries. As a result the Association recognises the scheme deficit on the balance sheet at the year end. Actuarial gains and losses and returns on scheme assets are recognised in the statement of comprehensive income. Current and past service costs are recognised within operating surplus and interest on obligations is recognised as other finance costs.

Financial instruments

The Association only has financial assets and liabilities of a kind that qualify as basic financial instruments. Basic instruments are initially recognised at transaction value and subsequently measured at their settlement value.

14

i Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 OAX

Notes to the Financial Statements for the Year Ended 31 March 2025

1 Accounting policies (continued)

Going concern

The Association's business activities, its current financial position, and factors likely to affect its future development are set out within the annual report from the Board and within these financial statements.

The Association has in place long-term debt facilities which provide adequate resources to finance committed reinvestment and development programmes, along with the Association's day to day operations. The Association also has a long-term business plan which shows that it is able to service these debt facilities whilst continuing to comply with lenders’ covenants. As at 31 March 2025 the Association had available cash reserves of £1.085m

The Board's assessment of going concern involves a number of subjective judgements including, but not limited to increased rent arrears, delayed rent collections, increasing inflation and interest rates, a reduction in property prices and costs associated with achieving energy efficiency homes. In making their assessment the Board have also considered the potential mitigations available to manage the potential impact on its cashflows and liquidity. Stress tests have been run on the Association's business plan, which include the impact of sensitivities on the association's cash flow requirements, compliance with debt facilities, as well as covenant compliance. This stress testing found that the business plan is robust and does not affect the Association’s ability to meet its obligations.

On this basis, the Board has a reasonable expectation that the Association has adequate resources to continue in operational existence for the foreseeable future, being a period of at least twelve months after the date on which the report and financial statements are signed. The Board have considered the foreseeable future for their going concern assessment to cover the period to 31 March 2027. On this basis, the Board continues to adopt the going concern basis in the financial statements.

Significant judgments and estimates

The following are the significant management judgements made in applying the accounting policies of the Association that have the most significant effect on the financial statements.

Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date based on the expected utility of the assets including any components. Uncertainties in these estimates relate to technological obsolescence that may change the utility of certain software and IT equipment, changes to the Decent Homes Standards and changes to energy efficiency requirements which may require more frequent replacement of key components.

Defined benefit obligation

Management's estimate of the defined benefit obligation is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the liability and the annual defined benefit expenses.

15

; Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Notes to the Financial Statements for the Year Ended 31 March 2025

2 Turnover, operating costs and operating surplus/(deficit) from social housing activities

The whole of the Association's turnover is attributable in the United Kingdom and is derived from the principal activity of social housing.

2025 2024
General
Needs
Housing		 Total
Social
Housing		 Other
Income		 Total
Income		 (as restated)
Total
Income
£ £ £ £ £
Operating Income
Rent receivable 3,762,235 3,762,235 - 3,762,235 3,375,288
Rates receivable 512,432 512,432 - 512,432 443,291
Management allowance re adaptations 16,690 16,690 16,690 18,652
Interest received - - 32,067 32,067 15,869
Surplus on property disposal - - - - 586,870
Other income 33,750 33,750 - 33,750 4,752
Community development grants - - - 41,531
Amortisation of grants 620,900 620,900 - 620,900 576,035
Less voids (96,900 ) ( 96,900 ) - (96,900 ) (79,212 )
Total Social Housing Income 4,849,106 4,849,106 32,067 4,881,173 4,983,076
Operating Costs
Bad debts (19,350 ) ( 19,350 ) - (19,350 ) (10,122 )
Housing Management costs (638,713 ) (638,713 ) - ( 638,713 ) ( 630,881 )
Maintenance Administration ( 434,595 ) ( 434,595 ) * ( 434,595 ) ( 397,879 )
Planned and cyclical maintenance ( 489,769 ) ( 489,769 ) - ( 489,769 ) (300,612 )
Development expenses (4,250 ) (4,250 ) - (4,250 ) ( 46,609 )
Response maintenance (585,717 ) ( 585,717 ) - (585,717 ) (393,203 )
Major repairs - 7 - - -
Depreciation
Rates		 (1,097,901 )
(461,189
)		 ( 1,097,901 )
(461,189 )		 -
-		 (1,097,901 )
(461,189 )		 ( 997,440)
( 398,962 )
Total Social Housing Expenditure (3,731,484 ) (3,731,484 ) - (3,731,483 ) (3,175,708 )
Interest payable - - (857,417) (857,417) (717,679 )
Financing cost/income - - 19,000 19,000 3,000
Transfer to Disposal Proceeds Fund - - - - ( 586,870 )
Surplus on ordinary activities 1,117,622 1,117,622 (806,350 ) 311,273 505,819
DFC Allowances 2025 2024
Management Allowances £396 per unit 237,996 231,264
Management costs (638,713 ) (630,881 )
Surplus/ Deficit (400,717 ) (399,617 )
Maintenance Allowances £464 per unit 278,864 270,976
Planned and cyclical maintenance ( 489,769 ) ( 300,612 )
Response maintenance (585,717 ) (393,203 )
Surplus / Deficit (796,622 ) ( 422,839 )
Gross income from rents
Technical 83.00% 3,122,655 82.00% 2,767,736
Non technical 17.00% 639,580 18.00% 607,552
Total 3,762,235 3,375,288
NoofProperties 601 584

16

Pg Rural Housing Association Ltd

2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Notes to the Financial Statements for the Year Ended 31 March 2025

2025 2024
£ £
3 Operating surplus
Operating surplus is stated after charging/(crediting):
Depreciation on tangible fixed assets 1,105,835 1,007,713
(Profit)/loss on disposal of other fixed assets - (25,772 )
Auditors remuneration - External 11,995 12,349
Auditors remuneration - Internal 15,444 11,880
Amortisation ofGovernment grants (620,900 ) ( 576,035 )
4 Employee information 2025 2024
The average monthly number of persons employed during the yearwas:
25		 24
2025 2024
£ £
5 Staff Costs
Salaries 830,535 770,173
Social security costs 82,608 79,209
Pension costs 148,766 151,444
Private Health Care 7,413 5,552
1,069,321 1,006,378
The aggregate remuneration, including benefits in kind and pension contributions, of key management personnel of the
Association during the year was:
2025 2024
£ £
Aggregate remuneration 381,733 392,136
381,733 392,136
The number of management personnel to whom emoluments (including salary, employer national insurance, employer pension
contributions and benefits in kind) were paid during the year falls within each ofthe following bands:
2025 2024
£ £
40,000 - 60,000 1
60,001
- 70,000		 2 2
70,001 - 80,000 2 2
80,001
- 90,000		 - -
90,001 - 100,000 “ -
100,001-130000 1 1

6 Board of Management remuneration

The Board members received no remuneration from the Association. Total expenses paid during the year to Board members amounted to £130 (2024: £96).

Rent received from one tenant Board members during the year amounted to £7,179 (2024: £6,612) equivalent to one board member.

7 Interest receivable

Bank interest

32,067

15,869

17

: Rural Housing Association Ltd

2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Notes to the Financial Statements for the Year Ended 31 March 2025

==> picture [405 x 71] intentionally omitted <==

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2025|2024| |£|£| |8|Interest|payable|and|other|charges| |Bank|loans|857,417|717,679| |9|Corporation|tax|

----- End of picture text -----

The Association became a registered charity reference XR23974 with effect from 13 October 2008. The Association is not liable to Corporation Tax from that date.

==> picture [408 x 151] intentionally omitted <==

----- Start of picture text -----
|||||||||| |---|---|---|---|---|---|---|---|---| |2025|2024| |(as|restated)| |£|£| |10|Fixed|assets| |(a)|Housing|Land|and|Buildings|cost| |At|beginning|of|year|72,782,499|64,146,500| |Additions|during|year|5,419,098|9,493,620| |Disposals|during|year|0|(857,621|)| |At|end|of year|78,201,597|72,782,499| |Depreciation| |At|beginning|of year|(12,032,145)|(11,250,592|)| |Charge|for|year|(1,079,204)|(|978,827|)| |On|disposals|0|197,274| |At|end|of year|(13,111,349)|(|12,032,145|)| |Net|book|value|at|end|of|year|65,090,248|60,750,354|

----- End of picture text -----

The Housing Land and Building costs includes £5.2m of Assets Under Construction. The deeds of Housing Properties are used to secure mortgages with our various lenders.

Additions to Housing Land and Buildings includes £105,965 of capitalised interest cost (2024: £161,618).

(b) Other fixed assets

==> picture [409 x 208] intentionally omitted <==

----- Start of picture text -----
|||||||||||| |---|---|---|---|---|---|---|---|---|---|---| |Computer|Office| |Office|Equipment|Equipment|TOTAL| |Cost| |At|beginning|of|year|1,116,777|107,596|$5,210|1,279,583| |Additions|during|year|14,498|5,435|0|19,933| |Disposals|during|year|-|-|-|-| |At|end|of|year|1,131,275|113,031|55,210|1,299,516| |Depreciation| |At|beginning|of year|(279,767)|(94,981)|(53,459)|(428,207)| |Charge|for|year|(18,699)|(6,940)|(996)|(26,635)| |On|disposals|-|-|-|:| |At end|of year|(298,466)|(101,921)|(54,455)|(454,842)| |Net|book|value|at|end|of year|832,809|11,110|755|844,674| |Net|book|value|at|beginning|of year|837,010|12,615|1,751|851,376| |11|Housing|Stock|2025|2024| |Number|of|units|owned|by|the|Association|on|31|March|2025| |-|General|Needs|Housing|601|584|

----- End of picture text -----

18

"

Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Notes to the Financial Statements for the Year Ended 31 March 2025

2025 2024
£ £
12 Debtors
Tenant debt
Rental debtors gross - technical 83.00% 149,388 170,833
Rental debtors gross - Non-technical 17.00% 30,598 42,708
179,986 213,541
Less: provision for bad and doubtful debts - a
179,986 213,541
HAG receivable 1,588,796 4,051,048
Interest receivable - -
Prepayments 80,861 90,550
Other debtors 36,672 22,574
1,886,315 4,377,713
13 Cash and cash equivalents
Bank deposit account - =
Current bank accounts 1,085,211 1,680,412
Cash on hand 139 62
1,085,350 1,680,474
14 Creditors (due within 1 year)
Tenant overpayment 29,001 28,085
Accruals 1,852,197 2,169,678
Other creditors 387,692 249,448
Loan interest 39,211 46,126
HAG paid in advance by DFC (see below) 4,365,748 4,043,581
Deferred Housing Association Grant (Note 15c) 620,900 435,896
Loan repayments due within 1 year (Note 15b) 957,420 925,255
8,252,169 7,898,069
HAG paid in advance by DFC
Opening balance 4,043,581 2,219,389
HAG receivable 2,688,162 6,314,169
Attributed to capital development (2,365,995 ) (4,489,977 )
Transfer to revenue account
Balanceatyearend 4,365,748 4,043,581

19

. Rural Housing Association Ltd

2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Notes to the Financial Statements for the Year Ended 31 March 2025

==> picture [410 x 556] intentionally omitted <==

----- Start of picture text -----
|||||||||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |2025|2024| |£|£| |15|Creditors|(falling|due|after|more|than|1|year)| |Disposal|proceeds|fund|(a)|-|1,015,332| |Bank|loans|(b)|19,303,706|19,261,917| |Deferred|income|-|capital|grants|(c)|34,144,994|32,562,156| |53,448,700|52,839,405| |(a)|Disposal|proceeds|fund| |Opening|balance|1,015,332|566,585| |Transfers|in|-|surplus|on|disposals|-|418,870| |-|repayment|of VPG|discount|-|168,000| |-|586,870| |Transfers|out|-|replacement|properties|(1,015,332|)|(|138,123|)| |Closing|balance|(0)|1,015,332| |(b)|Bank|loans| |Loans|are|secured|on|individual|assets|of|the|Association|and|are|repayable|as|follows:| |Within|one|year|or|on|demand|957,420|925,255| |One|year|or|more|but|less|than|two|years|986,350|957,423| |Two|years|or|more|but|less|than|five|years|3,021,106|1,993,477| |Five|years|or|more|15,296,250|16,311,017| |20,261,126|20,187,172| |All|bank|loans|are|secured|by way|of|mortgages|upon|the|deeds|of|properties.|All|bank|loans|are|fixed|loans|(excluding|the| |Reveloving|Credit|Facility)|on|a|fixed|quarterly|repayment|schedule|drawn|up|by|the|lender.|They|bear|interest|rates|ranging| |between|3.28%|and|5.15%.|We|secured|a|Revolving|Credit|Facility|in|December|2022.|The|Revolving|Credit|Facility|is| |provided|on|an|interest|only|basis|for|5|years|(with|an|option|to|extend|to|7|years)|with|the|drawn|balance|to|be|repaid|or| |converted|to|a|Structured|Term|loan|at|expiry|of|the|term.|The|Revolving|Credit|Facility|is|on|a|variable|quarterly|repayment| |schedule.| |(c)|Deferred|income|-|capital|grants| |Housing|Association|grant| |At|beginning|of|year|40,818,427|36,905,091| |Attributed|during|year|1,373,410|4,351,854| |From|disposal|proceeds|fund|1,015,332|138,123| |On|disposals|-|(576,641)| |At|end|of year|43,207,169|40,818,427| |Other|public|grant|58,766|58,766| |43,265,935|40,877,193| |Amortisation| |At|beginning|of|year|(7,879,140)|(7,443,244)| |Amortised|in|year|(620,900)|(576,035)| |On|disposals|-|140,139| |At end|of year|(8,500,040)|(7,879,140)| |Net|book|value|at|start|of year|32,998,053|29,520,614| |Deferred|Housing|Association|Grant|falling|due|within|1|year|620,900|435,896| |Deferred|Housing|Association|Grant|falling|due|after|1|year|34,144,994|32,562,156| |Net|book|value|at end|of|year|34,765,894|32,998,052|

----- End of picture text -----

20

F Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Notes to the Financial Statements for the Year Ended 31 March 2025

==> picture [414 x 402] intentionally omitted <==

----- Start of picture text -----
|||||||||||||||||||||| |---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---| |16|Provision|for|liabilities|and|charges| |2025|2024| |£|£| |Pension|liability| |Opening|balance|(340,000|)|2,000| |Current|&|past|service|cost|149,000|151,000| |Employers|contributions|(|158,000|)|(|143,000|)| |Interest|on|net|defined|benefit|liability/(asset)|(|19,000|)|(3,000|)| |Remeasurement|(gains)|/|losses|(|632,000|)|(|347,000|)| |Closing|balance|(1,000,000|)|(340,000|)| |17|Share|capital|8|9| |The|Association's|Rules|require|each|member|to|hold|only|one|share|of|nominal|value|of|one|pound|each|in|the|Association.| |There|were|8|members|of the Association|at|31|March|2024|(2024:9|members),|1|member|joined|and 2|retired|from|the|Board|of| |Management|during|the|year.| |18|Capital|reserves|37|35| |The|Capital|reserve|reflects|the|cumulative|nominal|value|of|shares|cancelled|by|the|Association.| |19|Cash|flow|from|operating|activities| |Surplus|for|the|year|1,117,623|1,204,629| |Adjustments|for|non-cash|items:| |Depreciation|of|tangible|assets|1,105,836|1,007,713| |Amortisation(Increase)/decreaseof|socialinhousingdebtors|grant|(|620,90029,150|)|(576,035(41,971|))|.| |Increase/(decrease)|in|creditors|309,048|624,451| |Pension|costs|less|contributions|payable|(9,000|)|8,000| |814,134|1,022,158| |Adjustments|for|investments|or|financing|activities:| |(Profit)/loss|on|sale|of|tangible|fixed|assets|-|(25,772|)| |-|(25,772|)| |Net|cash|inflow from|operating|activities|1,931,757|2,201,015|

----- End of picture text -----

20 Capital Commitments

At the balance sheet date the Association was contractually committed to capital development expenditure of £13.7m (2024:£16.7m) with 94 committed units coming on board within the next two years. To fund our development programme, we have an undrawn Revolving Credit Facility balance of £12m and Housing Association Grant from the Social Housing Development Programme.

21

Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Notes to the Financial Statements for the Year Ended 31 March 2025

21 Contingent liabilities

There exists a contingent liability on the Association of the possibility of having to repay Housing Association Grant received on properties if any properties are sold. This also includes any grant written off through the implementation of component accounting. The possibility of reimbursement to the Department for Communities of the HAG released on build components replaced is considered to be unlikely as the housing properties are expected to continue to be made available for social housing.

22 Retirement benefits

The Association operates a defined benefit pension scheme for its employees with the assets held separately from those of the company. The scheme provides retirement benefits on the basis of members' average earnings but any member who joined before 31 March 2015 will be based on final salary. The fund is administered by the Northern Ireland Local Government Officers’ Superannuation Committee. The funded nature of the Local Government Pension Scheme require the Employer and its employees to pay contributions into the fund, calculated at a level intended to balance the pension liabilities with investment assets.

A full actuarial valuation of the employer's Local Government Pension Scheme funded benefits was carried out as at 31 March 2022 by a qualified independent actuary. Adjustments to the valuation at that date have been made based on the following assumptions:

==> picture [408 x 50] intentionally omitted <==

----- Start of picture text -----
||||||| |---|---|---|---|---|---| |2025|2024| |Pension|increases|2.5%|2.5%| |Salary|increases|4.0%|4.0%| |CPI|Inflation|2.5%|2.5%| |Discount|rate|5.8%|4.7%| |Pension|accounts|revaluation|rate|2.5%|2.5%|

----- End of picture text -----

The mortality assumptions at the accounting date are based on actual mortality experience of members within the Fund based on analysis carried out as part of the 2022 Acturial Valuation, and allow for expected future motality improvements. Sample life expectancies at age 65 in normal health resulting from these mortality assumptions are shown below.

==> picture [408 x 69] intentionally omitted <==

----- Start of picture text -----
||||||||| |---|---|---|---|---|---|---|---| |2025|2024| |years|years| |Males| |Member|aged|65|at|accounting|date|21.6|21.7| |Member aged|45|at|accounting|date|22.2|22.7| |Females| |Member aged|65|at|accounting|date|24.5|24.6| |Member aged|45|at|accounting|date|25.2|25.6|

----- End of picture text -----

22

Rural Housing Association Ltd

2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Notes to the Financial Statements for the Year Ended 31 March 2025

22 Retirement benefits (continued)
Reconciliation ofscheme assets and liabilities
At 1 April 2024 Assets
2,999,000		 Liabilities
(2,659,000 )		 Total
340,000
Net Benefits paid out ( 26,000 ) 26,000 -
Employercontributions 158,000 158,000
Employee contributions 51,000 (51,000 ) -
Current service cost
Past service cost		 ( 149,000 )
-		 ( 149,000 )
-
Interest income on assets / (expense)
Remeasurement gains / (losses)		 145,000 (126,000 ) 19,000
-
- Actuarial gains/(losses) 663,000 663,000
- Remeasurement gains/(loses) on assets excluding interest income
At 31 March 2025		 (31,000
3,296,000		 ) (2,296,000 ) (31,000 )
1,000,000
Total recognised as an expense:
2025 2024
Current service cost 149,000 151,000
Past service cost = -
Interest cost (19,000 ) “ 3,000
130,000
148,000
eee
NG000
No amounts (2024: nil) were included in the cost of assets.
The fair value ofthe plan assets was:
2025 2024
Equities
Property		 1,360,000
313,000		 1,310,000
291,000
Bonds - government 518,000 522,000
Bonds - corporate 129,000 126,000
MultiAsset Credit 429,000 399,000
Cash 353,000 168,000
Other 194,000 183,000
3,296,000
2,999,000
SEO
9S,000
The return on the plan assets was:
2025 2024
Interest income 145,000 119,000
Return on plan assets less interest income
Totalreturnonplanassets		 (31,000
114,000		 ) 157,000
276,000

23 Prior year adjustment - Capitalisation of interest

During the year, the Association has reviewed its accounting policy in relation to the treatment of interest costs incurred during the development of housing properties. As a result of this review, and in accordance with FRS 102 and the Housing SORP, the Association has changed its accounting policy to capitalise interest costs that are directly attributable to the acquisition and construction of qualifying assets (i.e. housing properties under development).

Under the previous policy, all interest costs were expensed to the Statement of Comprehensive Income as incurred. The new policy aligns with the requirements of FRS 102 and also aligns with sector best practice and improves comparability with peers. The change in accounting policy has been applied and as a result, the prior year comparative figures have been restated to reflect the capitalisation of prior year interest costs incurred during the development of housing properties. The effect of the prior year adjustment is that the surplus for the year ended 31 March 2024 has increased by £161,618 due to the reversal of previously expensed interest which has now been capitalised within the cost of housing properties under construction. In addition, Housing properties (within tangible fixed assets) as at 31 March 2024 have increased by £161,618; and the opening reserves as at 1 April 2024 have increased by £161,618 to reflect the cumulative impact of the policy change. There is no impact on prior year or current year cash flows as a result of this change in accounting policy.

24 Events after end of reporting period

No events after the year end need to be reported.

23

Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 OAX

Detailed Income and Expenditure Summary for the Financial Year Ended 31 March 2025

2025 2024
(as restated)
£ £ £ £
INCOME
Rent receivable 3,665,335 3,296,076
Rates receivable 512,432 443,291
4,177,767 3,739,367
Other income 50,440 23,404
Community development grants - 41,531
Amortisation of grants 620,900 576,035
TOTAL INCOME 4,849,107 4,380,337
EXPENDITURE (BeforeAdmin Apportionment)
Letting costs 2,275,799 1,819,385
Rates 461,189 398,962
2,736,988 2,218,347
Administration costs 1,295,412 1,213,873
TOTAL EXPENDITURE 4,032,400 3,432,220
TRADING SURPLUS/(DEFICIT) 816,707 948,117
TRADING SURPLUS/(DEFICIT) (AfterAdmin Apportionments)
Letting 1,015,940 1,095,365
Rates 51,243 44,329
Administration 1,067,183
( 250,476 )		 1,139,694
(191,577 )
816,707 948,117
FIXED ASSETS AND INTEREST
Administration costs capitalised 300,916 256,512
Interest receivable 32,067 15,869
Interest payable (857,417 ) (717,679 )
SURPLUS/(DEFICIT) 292,273 502,819
Disposal of property
Sale proceeds - 687,000
Voluntary purchase grant - 168,000
- 855,000
Less
Cost of property - 831,416
HAG eliminated - (581,799 )
Allowable costs - 9,561
Voluntary purchase grant allowance - 8,952
0 268,130
Net Surplus Transferred to DFP - 586,870
292,273 1,089,689

24

Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Detailed Income and Expenditure Summary for the Financial Year Ended 31 March 2025

2025 2024
Note £ £ £ £
Balance brought forward 292,273 1,089,689
Financing (cost)/ income
Net interest on netscheme assets/liabilities 19,000 3,000
Net return 19,000 3,000
311,273 1,092,689
Corporation tax on tax adjusted surplus - -
Surplus/(deficit) aftertaxation 3 311,273 1,092,689
Transferto disposal proceedsfund - ( 586,870 )
311,273 505,819

25

Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Income and Expenditure from Lettings for Financial Year Ended 31 March 2025

2025 2024
£ £ £ £
Income
Rental income receivable 3,762,235 3,375,288
Less loss ofincome from voids (96,900 ) (79,212 )
3,665,335 3,296,076
Rates $12,432 443,291
4,177,767 3,739,367
Amortisation of Grants 620,900 576,035
Total Income 4,798,667 4,315,402
Less operating (property management) expenditure
Bad debt 19,350 10,122
Insurance 78,812 71,399
Development expenses 4,250 46,609
Housing (response) maintenance 585,717 393,203
External cyclical and planned maintenance 489,769 300,612
Property depreciation 1,097,901 997,440
Rates 461,189 398,962
Total operating costs
Rent surplus (before admin & interest payable)		 (2,736,988 )
2,061,679		 (2,218,347
2,097,055		 )
Administration apportionment ( 994,496 ) ( 957,362 )
Rentsurplus(beforeinterestpayable) 1,067,183 1,139,693

26

Rural Housing Association Ltd 2 Killyclogher Road, Omagh, County Tyrone, BT79 0AX

Administrative Expenditure for the Financial Year Ended 31 March 2025

2025 2024
£ £ £ £
Administrative expenditure
Salaries and wages 823,207 776,955
Pension service cost 149,000 151,000
Recruitment costs 868 6,638
Travel and subsistence 12,356 18,886
Stationery and publications 8,722 7,821
Affiliation and membership 19,208 22,528
Publicity and advertising 3,753 7,428
Courses and conferences 14,235 7,060
Office accommodation and services 136,858 85,893
Equipment and fittings - depreciation 7,934 10,273
Accountancy and audit 27,252 24,229
Consultancy 7,021 2,038
Legal & professional fees 6,151 47,384
Insurance (Non Property) 17,578 16,522
VPG administration allowance - ( 18,514 )
(Profit)/loss on disposal of fixed assets - (25,772 )
Vehicle lease charges 5,200 4,800
General expenses - -
Community development & Housing forAll expenditure 47,434 64,296
Tenant participation & Hardship 8,635 4,408
Total Administrative expenditure 1,295,412 1,213,873
Apportionments
%
Housing Management 56.30% 559,901 58.44% 559,482
Property Maintenance 43.70% 434,595 41.56% 397,879
100.00% 994,496 100.00% 957,361
Development and adaptations 300,916 256,512
1,295,412 1,213,873

27