Radius Housing Association Limited 16 Independent auditors, report to the members of Radius Housing Association Limited Report on the audit of the financial statements Opinion We have audlted ihe flnancial ststements of Radiu5 Housing Association Limited (the"As50ciation") and its subsidiaries (together the "Group") for the year ended 31 March 2023, which comprise the Consolidated and Association's statement of comprehensive income. the Consolidated and Association's statement of changes in reserve5, the Consolidated and Association's statemeni of fEnancial position and the Consolidated statement of cash flows. and the reEated notes to the fancial statements. including a summary of significant accounting policies. The financial reportin8 framework that has been applied in tILe preparation ofthe fJnan¢ial ststements is applicable law and ac¢ounting standards issued by the Financial Reporting Council including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of treland- (United Kingdom Generally A¢cepced Accounting Practice). In our opinion. Radius Housing Association Limited'5 financial statements.. give a true and fair view in accordance with United Kingdom Generally Accepted Ac¢ounting Practice of the state of affairs of the Group and the Association as at 31 March 2023 of the assets, liabilities and financial position of the Group and Association's income and expenditure and the Group's cash flows for the year then ended" and have been properly prepared in a¢cordance with the r¢quir¢m¢nts of Co-op¢rative and Cominunity Benefit Societies A¢¢ (Northern Ireland) 1969. the Housing (Notthem Ireland) Order 1992. Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993 and the Charities A¢t (Northern Ireland) 2008. Basis for opinion We conducted our audit in &ccordallce with International Standards on Auditing {UK) ('ISAs (UK).) and applicabl¢ law. Our responsibilities under those standards are fijrther described in the 'Responsibilities of the auditor for the audit of the financial 5tatementS' Section of our report. We are independent of the Group and Association in accordance with the ethical requirements that are relevant to our audit of the finan¢ial statements in the United Kingdom. including the FRC'S Ethic&l Siand8rd and the ethical pronouncements established by Chartered Accountants Irelan4 applied as deteTmined to be appropriate An the cvreumslances for th¢ entity. We have fulfilled our other ethical responsibilities in accordance with these requiremenls. We believe thai the audit evidence we have obtained 15 sufficient and appropriate to provide a b&sis for our opinion. Conclusions relating to going concern In auditing the ffftanctal statements, we have eonoluded that the Board of Mana8ements' use of going ¢on¢em basis of accounting in the preparation of the fmaneial statements is appropriate. Based on the work we have perforn]ed. we have not identified any material uncertainties relating to events or coJ)dirions that individually or collectively. may cast significant doubt on the Group and Association's ability to continue as a going concern for a period of at least twelve months from the date when the financi81 statements are authorised for issue. Our responsibilities and the responsibilities of the Boord of Management with respect to going concern are descTibed in the relevant sections of this report. Other information Other infOation Gomprises infonnatis)n included in the annual report, oth¢T than the fjnancial statements and our auditor'5 report thereon. inrludin8 the Strat¢8i¢ R¢port of th¢ Board of MaiJag¢ment, and th¢ Report of th¢ Board of Mana8einent. The Board of Management are responsible for the other inforn]ation. Our opinion on the fin¢la) statements doEs not cover Ihe other infoThation and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance con¢lusion thercon. In ¢ODne¢tion with our audit of the financial 5tal¢ments, our responsibility is to read the other infonnalion and, in doing so. consider whether the other infomiation is materially in¢on51St¢nt with the Fancial siatements or our knowledge obtained in the audit, or otherwise appears io be materially misststed. If we identify such material inconsistenoies in the fJnan¢ial ststements. we are required to deterniine whether there is a mat¢rial misstatement in the fancIal statements or a material misstatement of the other infornjation. If. bed on the work we have performed. we conclude that there is a meterial misstatement of this other infornialion. we are required to report that fact. We have nothing to report in this regard.
Radius Housing Association Limited 17 Independent auditors, report to the members of Radius Housxng Association Limited (colltinued) Report on the audit of the flnaneial statements (continued) Matters on whi¢h we are reqllired to report by ¢xceptioD Under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 we are required to report to you if, in our opinion= tELe Association have noi kept proper books of account. or the Association have not maintsined a satisfactory system of control over transactions. or the financial statements are not in agreement with the Association's book5 of accounL or we have not received all the information and explanations we require for our audit. We have nothing io report in this regard. Under the Charities Act (Northern Ireland) 2008 and Regulation 9 of the Charities (Accounts and Reports) Regulations (Nonhem Ireland) 2015, we are required to report to you if, in our opioion.. sufficient accounting records have not been kept. the fjnancial staEements are not in agreement with the accounting records; or we have not received all the infornation and explanations we requite for our audit. or the information given in the Report of the Board of Management and the Strategic Report As inconsisknt in any material re5PeCt. We have nothing to report in this regard. Responsibilities of managemenl and those charged with gov¢rn3nc¢ for th¢ fianCIal statements A5 ¢xplained more fully in the Board of Manaoements. responsibiltties statemen¢ managem¢nt IS Te5pon5ible for the preparation of the fJnan¢ial statements which give a ttue and fair view in accordance with United Kingdom Generally Accepted Ac¢ounting Pra¢tic¢, including FRS 102, and for such internal Control as director5 detennine necessary to enable the preparation of fmancial stalemenls are free from material misstatement, whether du¢ to fraud or error. In preparing the financial statements. management is responsible for assessing the Group and Association's ability to continue as a going Concern. disclosing, as applicable, matters related to going concem and using the going concern basis of accounting unless management either intends lo liquidate the Group and Association or to cease operations. or has no realistic alternative bul to do so. Those charged with governance are responsible for overseeintr the Group and Asso¢iation's fancial reportingproces5. R¢sponsibilities of the auditor for the audit of the fin8ncial statements The objectives of an auditor are to obtain reasonable assurance about wheth¢r the financial statements as a whole are free from material tnisstatement, whether due to frdud or eOr, and to 155u¢ an auditor's report that includes their opinion. Reasonable assurance is a high level of assurance. but is not a suarant¢e that an audit CQDducted in acroTdance wilh ISAS (UK) will alway5 detect a material rnisstaremeni 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 dlSIonS of users taken on the basis of these financial statements. A fijrther description of auditor's responsibilities for tb¢ audit of the finan¢ial statements is located on the Financid Reporting Council's website at.. www.frc.org.uklauditorsresponsibilities. This description forn)s part of our auditor's report. %pluiiailoii as io wlial lei ilie atldli coftslderedcapable of delecflng Irregularliles, Ineludlngfraud Irregularities. including fraul are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, Olltlined above. to detsct material misstatements in respect of iffegul8rities, including fraud. Owing to the inherent limitations of an audit, there 15 an unavoidable risk that material misstatement in the financial statements may not be d¢tected. even though the audit is properly planned and perfornied in accordance with the ISAS (UK). The extent to which our procedure5 ar¢ capable of detecting irre8ularities, including fraud i5 detailed below.
Radius Housing Association Limited 18 Independent auditors, report to the members of Radius Housing Association Limited (continued) Report on the audit of the financial statements (continued) Expjkllation gs to what extent the audit wo$ considered tapable of detecting irregularities, including framd {Con£inued) Based on our understanding of the Group and Association. we identified that the principal risks of non-¢ompliance with laws and regulations related to compliance with Data Privacy law, Employrnent Law. Environmentsl Regulations, Pensions Legislation, Health & Safety, and we considered the extent to which non-compliance might have a material effect on the fmancial statements. We also on5idered those laws and regulations that have a direct impact on the preparation of the financial staternents. We evaluated management's inceniives and opportunities for fraudulent manipulation of the financial statemenls (including the risk of override of controls), and deterniined that the prineipal risks were related to P05ting inappropriate journal entries lo manipulate financial perforniance and management bias through judgemenls and assumptions in significant accounting ¢stimates, in particular in relation to sRgnifLcant one-off or unusual transactions. Responsibilities of th¢ auditor lor the audit of the fJnanci815tatement$ We apply professional scepti¢ism through the audit to consider potential deliberate omission orconcealrnenl ofsignificant transaction5, or incompletelinaccurate disclosures in the fijjancial statement. In response to these principal ri5k& our audit procedures included but were not limited to." ¢nquiries of manag¢m¢nt board on the policies and procethjres in place regarding compliance with laws and regulations. including consideration of known or suspected instances of non-compliance and whether they have knowledge of any actual, 5Uspe¢ted or alleged fraud. inspection of the Group and the Association's regulatory and legal correspondence and review of minutes of board meetings during the year to conoborate inquiries mad¢. gaining an understanding of the internal controls ¢stablished to mitigate risk related to fraud. discussion amongst the engagement team in relatÉon 10 the identified laws and reoulations and regarding the risk of frau¢ and remaining alert to any indications of non-compliance OT Opportunities for fraudulent manipulation of financial statements throughout the audi¢ identifying and testing journal entries to address the risk of inappropriate journals and management oveIde of Controls; designing audit procedures to incorporate unpredictability around the natwe, timing or extent of our testing" Challenging assumptions and judgements made by management in their sigThifIcant accounting estimates, including useful economic life of housing and non-hou5ing properties, and defined benefit assumptions- and r¢vi¢w of the financial statement disclosures to underlying supporting documentation and inquiries of rnanagement. The primary responsibility for the prevention and detection of irreryularities including fraud rests with those charged with governance and managemettt. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusiory forgery, intentional omissions, misrepresenlations or overrid¢ of internal ¢oiitrols. The purpose of our audit work and to whotn ive oive our responsibiliti¢5 Our report is made solely to the Association in accordance with Section 43 of the Co-operative and Community Benefit Societies Act (Nortliern Ireland) 1969. section 65 of the Charitie5 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 those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent pem]ilted by law, we do not accept or assume responsibility io anyone other than the Association as a body. for our audit work. for this repo¢ or for the opinions we have fonned. Louise Kelly (Senior Statutory Auditor) For and on behalf of Grant Thornton (Nl) LLP Chartered Accountants & Statutory Auditors Belfrdst Northern Ireland 19
Radius Housing Association Limited 19 Consolidated statement of comprehensive income for the year ended 31 March 2023 2023 2022 Note Turnover 97,067.730 (83,243J76) 13,824,354 (1,336,751) 406.645 127,659 (8,439,665) 1602,947 94.162.736 {78,882.355) 15,280,381 (330,592) (41.59G) &062 (8.542,691) (511) (25,000) 6,348,059 Operatiog costs Operating surplus Transfer to Disposal Proeeeds Fund Transfer froml(to) Tenant Services Fund Interest receivable and similar income Interest payable and similar Charges Net pension income Exceptional wsts Surplus before tax for the finaneiaR year Taxallon io 12 13 7,185,189 14 Surplus for the finan¢lal year Other comprehensive bneomd(expense): Fair value gain on fmancial instruments Pension scheme deficit rcduclion payments Actuarial (lossygain in respect of pension scheme5 Total other comprehensive (expenses)lincome Total ¢omprebensive income for the year 7,185,189 6.348.059 199,878 (1,669,000) (2,605,000) (4,074,122) 3,111,067 177,273 (1,639,000) 10.754,000 9.292.273 I5.640,332 36 The notes on pages 24 to 49 are an integral part of these consolidated financial statements. All amounts above relate Eo Continuing operations of the Group. Consolidated statement of changes in reserves for the year ended 31 March 2023 2023 2022 Not SlpIUs for the financial year Fair value gain on fmancial instruments Pension scheme deficit reduction payments A¢arIal (lossygain recognised in pension scheme Issue of share Gapital Net addition to capital and reserves Opening total capital atid reserves C105itt total ea ital and reserves 7,185,189 199,878 (1,669,000) (2,605,000) 6,348.059 177,273 (1,639,1)00) 10,754,000 36 28 3,111,068 159.515.893 162 626,961 15,640,334 143,875,559 159.515.893