Radius Housing Association Limited
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Independent auditors’ report to the members of Radius Housing Association Limited Report on the audit of the financial statements
Opinion
We have audited the financial statements of Radius Housing Association Limited (the “Association”) and its subsidiaries (together the “Group”) for the year ended 31 March 2024, which comprise the Consolidated and Association’s statement of comprehensive income, the Consolidated and Association’s statement of changes in reserves, the Consolidated and Association’s statement of financial position and the Consolidated statement of cash flows, and the related notes to the financial statements, including a summary of significant accounting policies.
The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and accounting standards issued by the Financial Reporting Council including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (United Kingdom Generally Accepted Accounting Practice).
In our opinion, Radius Housing Association Limited’s financial statements:
• give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice of the state of affairs of the Group and the Association as at 31 March 2024 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 accordance with the requirements of Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, the Housing (Northern Ireland) Order 1992, Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993 and the Charities Act (Northern Ireland) 2008.
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 ‘Responsibilities of the auditor for the audit of the financial statements’ 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 financial statements in the United Kingdom, including the FRC’s Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances for the entity. 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 of Managements’ use of 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 Group and Association’s ability to continue as a going concern for a period of at least twelve months from the date when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Board of Management with respect to going concern are described in the relevant sections of this report.
Other information
Other information comprises information included in the annual report, other than the financial statements and our auditor’s report thereon, including the Strategic Report of the Board of Management, and the Report of the Board of Management. The Board of Management are responsible for the other information. 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.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Radius Housing Association Limited
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Independent auditors’ report to the members of Radius Housing Association Limited (continued) Report on the audit of the financial statements (continued)
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:
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the Association have not kept proper books of account; or
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the Association have not maintained a satisfactory system of control over transactions; or
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the financial statements are not in agreement with the Association’s books of account; or
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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:
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sufficient accounting records have not been kept;
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the financial statements are not in agreement with the accounting records; or
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we have not received all the information and explanations we require for our audit; or
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the information given in the Report of the Board of Management and the Strategic Report is inconsistent in any material
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respect.
We have nothing to report in this regard.
Responsibilities of management and those charged with governance for the financial statements
As explained more fully in the Board of Managements’ responsibilities statement, management is responsible for the preparation of the financial statements which give a true and fair view in accordance with United Kingdom Generally Accepted Accounting Practice, including FRS 102, and for such internal control as directors determine necessary to enable the preparation of financial statements are free from material misstatement, whether due 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 concern and using the going concern basis of accounting unless management either intends to liquidate the Group and Association or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Group and Association’s financial reporting process.
Responsibilities of the auditor for the audit of the financial statements
The objectives of an auditor 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 their 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. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK). The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
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Radius Housing Association Limited
Independent auditors’ report to the members of Radius Housing Association Limited (continued) Report on the audit of the financial statements (continued)
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud (Continued) Based on our understanding of the Group and Association, we identified that the principal risks of non-compliance with laws and regulations related to compliance with Data Privacy law, Employment Law, Environmental Regulations, Pensions Legislation, Health & Safety, 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. The Audit engagement partner 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. We evaluated management’s incentives and 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.
Responsibilities of the auditor for the audit of the financial statements
We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statement.
In response to these principal risks, our audit procedures included but were not limited to:
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enquiries of management board on the policies and procedures 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, suspected or alleged fraud;
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inspection of the Group and the Association’s regulatory and legal correspondence and review of minutes of board meetings during the year to corroborate inquiries made;
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gaining an understanding of the internal controls established to mitigate risk related to fraud;
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discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of non-compliance or opportunities for fraudulent manipulation of financial statements throughout the audit;
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identifying and testing journal entries to address the risk of inappropriate journals and management override of controls;
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designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;
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challenging assumptions and judgements made by management in their significant accounting estimates, including useful economic life of housing and non-housing properties, and defined benefit assumptions; and
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review of the financial statement disclosures to underlying supporting documentation and inquiries of management.
The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of non-detection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.
The purpose of our audit work and to whom we owe our responsibilities
Our report is made solely to the Association 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 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 as a body, for our audit work, for this report, or for the opinions we have formed.
Louise Kelly FCA(Senior Statutory Auditor) For and on behalf of Grant Thornton (NI) LLP Chartered Accountants & Statutory Auditors Belfast Northern Ireland DATE:
Radius Housing Association Limited
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Consolidated statement of comprehensive income for the year ended 31 March 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Note | £ | £ | |
| Turnover | 5 | 104,460,255 | 97,067,730 |
| Operatingcosts | 6 | (86,966,611) | (83,243,376) |
| Operating surplus | 7 | 17,493,644 | 13,824,354 |
| Transfer to Disposal Proceeds Fund | 10 | (361,504) | (1,336,751) |
| Transfer from Tenant Services Fund | 342,239 | 406,645 | |
| Interest receivable and similar income | 11 | 765,697 | 127,659 |
| Interest payable and similar charges | 12 | (9,582,244) | (8,439,665) |
| Net pension income | 13 | 3,019,743 | 2,602,947 |
| Surplus before tax for the financial year | 11,677,575 | 7,185,189 | |
| Taxation | 14 | - | - |
| Surplus for the financial year | 11,677,575 | 7,185,189 | |
| Other comprehensive income/(expense): | |||
| Fair value gain on financial instruments | 33,942 | 199,878 | |
| Pension scheme deficit reduction payments | (1,319,000) | (1,669,000) | |
| Actuarial loss in respect of pension schemes | 36 | (3,021,000) | (2,605,000) |
| Total other comprehensive expenses | (4,306,058) | (4,074,122) | |
| Total comprehensive income for the year | 7,371,517 | 3,111,067 |
The notes on pages 27 to 51 are an integral part of these consolidated financial statements.
All amounts above relate to continuing operations of the Group.
Consolidated statement of changes in reserves for the year ended 31 March 2024
| 2024 | 2023 | ||
|---|---|---|---|
| Note | £ | £ | |
| Surplus for the financial year | 11,677,575 | 7,185,189 | |
| Fair value gain on financial instruments | 33,942 | 199,878 | |
| Pension scheme deficit reduction payments | (1,319,000) | (1,669,000) | |
| Actuarial loss recognised in pension scheme | 36 | (3,021,000) | (2,605,000) |
| Issue of share capital | 28 | 3 | 1 |
| Net addition to capital and reserves | 7,371,520 | 3,111,068 | |
| Opening total capital and reserves | 162,626,961 | 159,515,893 | |
| Closing total capital and reserves | 169,998,481 | 162,626,961 |