Clanmil Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 The Board present their strategic rert and the audited fjnancial Statements for the year ended 31 March 2023 of Clanmil Housing Association Limited (the "Association") and its subsidiaries {thc ""Group'"")- The Board is a voluntary Committee who havc Teswnsibility for the rategIC dircction, general policy and management of the Group. The day-to-day management of operation5 15 dclcgatcd lo the Cjroup Chiel Cxcculivc and the LxcculiTr'c Tcam. Gender analysi.s "l-he ExeCutie l earn of Ihc Association comprisc5 3 fcrnales and 3 males at end. 'Ihe Group had 327 ctnployccs on the 31 arch 2023, both part and full titne, of w'hich 97 are male and 230 are femalc. Status Clanmil Housing Association Litnited 15 registered under the Co-operative and Communiti, Benefit Societies Act (Northern Ireland} 1969 (No. IPOOOI 36) and is & Registered Housing Association. The Association is a registered charity ivith HNIRC {Charity No. XR 43042). The Association is registered with the Charit), Commission for Northem Ireland {Registrdtion No. NIC103840) Group structure Clanmil Housing Association Limited provides social and affordable housing in Northem Ireland and is the controlling member of the Group. Clanmil Deelopments Limited provides propertv development services io assist Clanmil Housing Association in delivering its social housing development programme_ Clanrnil Properties Limited manages commercial propertv rentals and proiwides services to property management companies and other Housing Associaiions.IOrganisations. Nqilbreen Limited is currently dom1ant bui intends to develop housing for sale. Ref¥r to note 18 for details of Clanmil Ilousing Association Limilcd investhicnts in subsidiary undertakings. Principal activities The Group provides over 5,800 high quality homes for T¢J)t throughout Northern Ireland and helps facilitate home owTrership for pLx)ple who cgnnot afford to purchase a home outright through its shared equifv product. Our hoTne5 are allocated to people Irom the housing selection scheme Managed by the Northern Ireland Housing Executive. A wide range of people live in our homes. All share a need for a good quality home, and to be part of a sustainable community where they can live well, flourish and thrive. We offer a .]de range of high quality housing and services including.. homes for f8Jnilies and single people. housing and support for older people. 5UPPOrtcd housing for older people with demeniia and for people with learning disabilities and mental ill-health- hostels providing temporary refuge for women and their children escaping dotnestic violence- houses for Irish Travellers," and supportLd housing for young pcoplc Icaving care. Our equity share, pgrt-buy, part-rent scheme Tnake5 horneownership achievable for people ivho cannot afford to purchase a home outright. It allows first time buyers to purchase a share in a home and pav renl on the remaining share, Ivith an option kn buv the remainder at a time that suit5 them.
Clanmil Ilousing Association Limited Strategic report of the Board for the year ended 31 March 2023 (cont'd) Shaping our Future Strategy 2026 In April 2021 we launLhed our new Strategy. Shaping our Future and M-e began our shaping our fuwre joumey set out in a bold five )'¢ar stratLgic plan. This plan co 4lc5igned by colle2gue4 cusiotncrs and stakcholders, and is both challenging and ambitious and provides, Ivc bLlicvc, focus for us all, whi15t rcinforcing the import¢illLL" of gcnuinc partncrships that help our customers thriv¢ and flourish within sustainablc communities. Alongside our strategy, wc rcviewed and clarified our purpose and value.s that guide u5 al Clanmil. Wc arc hcrc to providc homes for people to live well and iv£ also spent time this ycar as an organisation connecting with this purpose and our rcfrc5hcd valucs, to ensure that they are at the heart of all that we do and are truly lii'e5 b). everyone throughout Clanmil. Together ive want to.. Leavea po$ltlveexpeTkThe• Believe in betler A¢hl•v•tQgether . T(•F&)eF ¥estrwr. Irs & strn* as tr
By a% ¢LtsIL¥nus J CCmlS we m real CN a pc6th tslhYJ tnwe5skn rf YC cJJmpasskn•NI demtr31 )uJ tae ffle Wll we that tÈ5 WÈ r we¥ see the wL¥trJ we MWA ccwn5tsKe5 we a wye LwJ5Thss. $01rn5l ¥e Weaea w. soYe ccrnesstr The five key aims of our new Strategy are= Build and maintain quality homes whilst preserving the environment Elaving the right pldLf to call homc is an essential part of bcing ablc to livc M'cll. With that in mind we want to play a leading rolc in tackling the housing crisis in Northem Ireland. 'e iiyanl lo sirL"ngihcn cxisling communitics and help to crcatc nciv ones through thc dcvclopmcnt of ne.. sustainabl¢ homes that arc built for the futurc. Thc homes 'e build will be Th'ell rnaintned, safe and cncrgv cfficient. Climate changc is the challcnge of a generation so we must play our part in reducing our carbon footprint. We aim to= Build and develop up to 1,400 well designed. energy efficient, mixed-tenure homes in the next five years. Target the design and delivery of new homes in both urban and rural areas I1th the greatest housing need. Be innovative in our delivery and adopt all affordable delivery options. including modern methods of construction, to minimise our carbon footprint. Invest in actively managing our assets. making them safe and attractive placcs to live. Subsidise our core activity bv diversifying our approach. capitalising on new opportuniiies for growth through initiatives such as the empty and aflordable homes schemes. Provide services tbat make life easier for our customers We want our customers 10 5UStain their tenancies for &$ long they choosL. It's imp)t1ant that we remain restJ)nsive to changing customer neets and that we make life easitt for them by making it to do business with us. Wc need to build and maintain hLalthy, trusting and respectful r¢lalion5hips with our customers, so they are empowered to help shape thc standard of services iyc providc. We will.. Create serviccs that provide a great customcr cxpcricncc. being clear atmlut what we offer and how wc wurk to support diverse CU51omcr need.s. Build trusting relationships by getting to know our cuslomer5. their communities and listening to their individual needs. lorking in partnership wilh other service proi'idcr5, create an environment where stable communities can thrive and customers are emp)wered to make int-orrned decisions that are right for them. Create more opportunities for regular aJ]d robust customer feedback (o generate quality insights that will help u5 to continually enhance our services. Develop an cxccllcnt multi-channel approach to seTring our customers, giving customers a real choice in how they want to Idlk to us.
Clanmil Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 (cont'd) Create a brilliant and sustainable organisation, fit for the future In a world of digital, environmental and social disnjption we must be ready to change and adapt to fulfil our purpose, and as a busines5 we're onlv as good as our people and that's why we want to create a great place to work. We realise that to achieve our ambitions we must have financial strength and operation&1 etTicienci', and that we have to manage our business to the highest standards. This will come through robust financial management and systems, as well as seeking to poieniially generate additional revenue that ive can re-leI for the benefii of our customers. We seek to= Review our organisational design and capability lo ensure ive have the right people and expertise to deliver our strategy, managing and communicating chanoe M'ell. Strengthen our employer brand and offer lo retain great people and attract diverse new talent. Lead with our new values and create the right culture where 0p]e can deliver their best ivork. We will create more opportunities for colleagues to contribule, feel empowered, supported in personal and professional development and have their voices heard. Deliver organisalional efficiency and operntionhl excellence bv maximising the benefits of new and existing technologies lo improve our end-to-end processes. Optimise our financial group slructurc and identify opwrtunities for fijture groth through partnership or innovation. launching new effective services for our cuslomers and communities. Be a respected voice to grow our impact We bclicvc that everyonc has thc right to a quality homc and thc opportunity to live in a safe and supportive community. that's why we will stand up and be hcard H'hen it comes to social housing. We want peoplc to undcr5tand the import3llCe of the sector and we want to add our voice io future housing policy so ihat we Can ensure the issues that really impact on people's lives are addressed. We ivill promore a positive vie. of Clanmil. both locally and regionally. to create both interest and demand in partnering ivith us or in becoming a customer. This will be achieved bv-. Creating strong, trusted and productive relationships ivith n1. and existing stakeholders. Initiating change, influence p)licy and be leadcr5 I1th1n the housing secior to deliver our purpose. Powerfully communicating our nei¥ strategy and brand so people understand who wc are. Ivhat we do and how we add value to pcoplc's lives. Lsing Ihc right communication channels to effectively cngagc our audiences and Ml15r our imparL sharing our successe.s bcyond the housing scctor. Cultivating new partnerships with service providers that are beneficial in helping our customer5 to lii'e well, whilst also addressing future societal challenges. Reach, connect and collaborate to strengthen communities We know that some communities do not gct the chance to thriwe. W'e believe there are more ways in which we can support people and their comtnunities bewond simpl!" proi'iding them '1th a home. We ivant to help make this a more shared place and ive know that shared communilies have a18siing w)5itive impact on people's lives. We appreciate the value in developing great partnerships and we understand the importancc of these in supFM)rting our customers. We want lo maximise these partnerships so that customers know. 'here to look for guidance, help and cxpcrtisc. We aim to.. R.oLus our resources on Ihc pcople who need m05l support, H'orking closely with cxpcrt partncrs to dclivcr more services that communilics need. Cornmis5ion a rcview of e.xisting communitv developmenl aclivity to identify the biggest challenges and opportunities. deterniining whcther we Ivad, leave. collaborate or delegate. Contribute to building stable communities by supporting people to live well and keep their homes. We will achieve this through financial inclusion services, creating opwjrtunities aThd by exploring new ways of tackling isolation in a post-COVID world. Support our existing shared communities and deliver at least five more shared schemes that are welcoming to all and give people the choice of living alongside neighbours frotn manv backgrounds and traditions.
Clanmil Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 (cont'd) Raise environmental awareness by nurturing a comtnunity cultuTe that values thc cnviTonmcnL community landscapes and cnergy effiLiency. Our Performance For the core business areas the Board has set 2 number of key perfortnance indicalors these include rent arrears, voids, vuslomer 8aiisfaLlion, growth, maintenatice repair limes. staff turnover and financial stabiliry. Our pcrformanie is also assessed through a number of statutory inspection regimes. and we are cornrnitted to continuing lo achieve the highcst standards. The financial year to 31 Lklarch 2023 was impaclcd by c05t of living crisis and economic lurmoil artsing from the Russian invasion of Ukrallie. We experienced an in¢rease in repairs as w'c bcgin to catch up after the delays caiised by COVID, bul also experienced significant increases in repair costs and in comn]on with our customers. energy costs and financing cosrs. We assess our performance by how satisfied our customers are wirh ihe homes and services ive provide. We regularly seek feedback from the people who live in our homes on everything from repairs to neighbourhoods. For the financial year ending 202Y23, following an independeni survey. 67.9°/o of our tenatits were satisfied with our ovcrall service- 75.6'/0 were satisfLed with the qualiry of Ihetr home. and 74.3°/o were satisfied with tlieir neighbourhood as a place to live. While this shows some improvement on last ycar. wc are comniitted io high perfonrtance and will ivork (o improve levels of customer salisfaciion further. Tli¥ Group continues to grow and efficiency savings arc rcinvcstcd ivhcic appropriate to improvc cxisling services, deliver additional servicc5, n]aintain and improve condition and value of our hornes as wcll a5 the delivery of new homes. Wc 51riv¢ to operate efficiently and effectively, and outputs are monitorcd by the Board of Managcmcnl whu reLcivc perforTnance rcport5 covcring a variety of financial and non-financial pcrformancc iTJformalioTt. In challenging opeTating conditTons, the Association has achieved the following performance against its key targcts= Performance Indicator Gearing ratio Actual 2022123 Target 2022123 450/. Comment Gearing is Dow calculated in line with new loan covenants as debt as a per centage of gross book N'alue of property. The Group was fully compliant wilh loan covenants durino the Berter perfom]ance than target. The Group wa5 fully compliant with interest cover covenants during the year. Low'er than anricipated staff costs and better than expected rentsl income havc more than offsei incrcased mainicnance costs Pcrfortnancc itnpacted by c05t of living rri5is and impact on our customcrs as wcll as court dclays. in ursuin udoemenis. Perfonnallce improved on 2021,'22 out turn of 3.9 /0. R'ork now focu8sed on key roperties P¢ifortnance below largel but an iTnprovement on 211?2 pcrfortnance of 73.40/0. a renewed focus is being placed on triaging repairs calls given that 60/0 arc deemed hi nori Nvhilsi this rcflccls an improvement on 21122 Out turn of 6J.4%. this remains a kc arca of focus ¥Thi.Y internul kej'perfonnance indicalor excltlding rutes charged fJnd collecled on behulfofLaKd & PFoperty ServtCÈS Interest cover 2.3 timcs 1.25 times Operating maTgin 24.6/. Housing schemes total atrcars Social Hoiising voids 2.6/ 2.6V/o Responsc mainlcllaTLce repairs cornplcled within tirnescalc 84.6/0 92/. Tenant satisfaction 67.9/ 88%
Clanmil Housing Association Limited Strategic report of the Board for the year ended .11 March 2023 (cont'd) The management of financial resources is critical to the Ciroiip'.s ability to rncct its objcctivcs. Ivhilst the registered Housing Associ&lioTL has voluntary nan-profit making status, the generation of an annual surplus is vital to cnsure thc ongoinD ini'e.%rment in nur existing homes as well as the delivery ol new homes to play our part in alleviaclng ihe housing crisis in Northern Ireland as well as providing for longer lerni maintenance obligations, to meet thc commitments to letjdets. and to generally ensure adequate protection against unforeseen circutnstanccs. The key strengths of the Group which enable ils PTimary objectives to be achieved are.. A commitment to the highest standards of corporale governance- A tinancial position which secures the confLdencc of thndcrs, facilitating futuic investment and strategic growth opportunities. Professional and dcdicatcd staFf wbo are cun]milicd lo the Group's objectives. and A provcn ability to play its part in thc dclivcry of thc social housing dcvelopTncnt programme. Colleagues Our success is due to the commitment and professionalism of Ihe pcople ivho work at Clanmil. Our teaTns worked incredibly hard in difficult circumstances this year to share and promote our values ensuring thal our custorners rernain at the heart of cvcrytliing we do. The Group's total staff costs increased from £8.3 million in 2021122 10 £9.2 million in 2022123. As 2 percentage of turnover glaffing costs fcll slighdy from 19.5 /0 in 2021122 to 19.3 % iii 2022123. Sickness abscDcc levels reduccd from 4.90/0 in 2021122 to 4.50/n in 2022123, Labour turnovcr dccrcascd from 23 10 in 2021.,22 to 17 /0 in 2022123. Value for Monev (Vtm) Achieving value for moncy remains a key business objective. Our aim is to utilisc our assets and resources 8s much as possible lo meet the nceds of existing and fun]r¢ customers. To do this wc continuc to work collaborativcly across Clanmil, harncssing ihc innovalion and creaiivity of our people, our customers and stakcholdcrs to dclivcr improvcniciiT5 thtough clTicicncJ. clfccliveThe5s and ccottumy. Through effcctive procurcmcnt activity ovcr thc year, we achicvcd the folloiving errlciencies: 20 Quotation exercises, ensuting we received the best VFM with regards to approximately £250,000 spend (under £30,000 value each) 24 Contracts ivere tendered for Services to be delivered, with a total pre-tender estimate of £3,517,510. The accepted tender costs were £3,145,074 which is a saving of £372,436 on the pre-tender estimate. 4 Contracts were tendered for works, with a total pre-tender estimate of £ 4,572,600. The accepted (ender costs of these procurements were £4,522,463 W'hich is a saK'ing of £50.136. Of these 28 contracts over the £30.000 threshold. the total savings equate to £422,57? In addition we undertook 20 individual quotation exercises (under £30,000 each) Ih1¢h ensured we achieved best value for moncy ,]lh rcgards to a further £250,000 01 .speiid. Through positive social impact we.. A88lStcd 1,171 customcrs with moncy advicc Help¥d thcTn s¥cure £3.Om in additional benefits: £1.5m of ivhich assistants to pay iheir rent Supportcd 174 customcrs to furnish thcir hom¢s by acocssiDg discrctionary 5UPPOrt grants/ch3rities M'ith an average award of£l,510 cach Worked with contractors to secure £7k for Social Value projects We wtll continue to integrate Value for Money inio our culture as a matter of cour5C, Wlth value defined from the perspective of our customers and the services we deliver.
Clanmil IIousing Association Limited Strategic report of the Board for the year ended 31 March 2023 (cont'd) DeliN'ering more soeial hollsitsg with less financlal support from the laxpayer During the year we increased the number of homes under management by 3.20/0 and havc made progress on our plans to deliver 1,400 new homes by 2026 through the development of addiiional hoines for social, markct rcnlal, affordable equity share homes and by bringing empty homes back into use across a range of tenures. Construction dclays duc to tnaterial shoMaRes and planninE, hai'c imPdC(ed both costs and conslruLlion timclinc5 bul the Develnpment team continue to managc contTacls robustly in uhallenging circum5tanLes. 305 ncw propcrtics wcic handcd ovcr in thc year with a fih¢1 357 prop¢rti¢s at various stagcs of dcvclopTncDt al 31 Imarcli 2023. To achieve those targets, H'e plan to make our as5et5 work harder, through increasing our gearing {wELich reTnains Wlthin the covenanis granted by the lending institutions that have supported us), focusing on driving improvement on voids, devcloping complementary income streams and improving operational cfficiency. Wc successfully launched a private placemcnt for £IOOm in September 2022 complementing the renegotiation of £150in of eXL5ting borrowing facilities at more favourable raics in 2021122. We haN'e £40 million of agreed undrawn loan faciliiies available to asslst in fundintr our growth strategy and meering ongoing cominitments. Ive have generated modest surpluses from diversification into housing relaied activities. The pury)ose of the diversification is to provide surpluses to contiiiue to subsidise ne atTordable housing. Thesc diversified aciivilies, albeit on a relaiively sniall Seale, are successfully operating in the market rental sector. commercial rctail UT]its and Management Agent senTices Providing good qu21ity and tfficient services to tenants Keeping our customers, homes safe, secure and comfortable is our priority and during the ycar aftei the tragic nem's from Rochdale. wc began a review ot all damp and mould cases reported to us over thc past two ycars to cnsurc thcy have been resolved or are currently being addressed. Ongoing issues were identified in 4.50/ll of our homcs and our colleagues are working hard wilh customcrs to find solutions. This has rcinforccd thc nccd for us lo lislcn lo, Icarn from and act on ivhat custonier.s tell us, and in Dcccmber 2022 we launched our first Cusiomer Strategy, setting out how ive will move forn'ard alongf ide cusromers to provide Ihc homes and services they need. The strategy was co-designed with our customers and is a qtalement of our inteni to refresh our customer relationships and embed a truly customer centric culture throughout Clanmil. The Customer Council. which comprises eight Customers from across Clanmil's homes,. provides a channel for engagement between our customers and both senior management and Board Members on a range of 155ues (Iffecling cuslomeis. Four customers from the Customer Council attended the annual Board away day on 9 February 2023. to consider Ihc implementation of thc Customer Stralcgy: including customer priorities and engagernent approaches. The Council is siipported by seven local engagement fora across Northem Ireland. Customers also contribute lo the Health Safery and Well Being forum, a readers panel which helps make policies and publications Tnore cu51oTner frirndly and as part of the ScrN'ice Improvcment Panel are currently scrutinising our grounds maintenance scrviccs. Wc would like lo thank the customers WELO have been involved so far and have given their time to work with us and help us improve. It really is appreciated. The completion of phase l of our Customer Services Centre is helping us handle customer calls expediently and deal more responsively with queries. We have also continued to develop our Clanmil Conncct customer service portal, launched last year, and over 1,500 customers are now registered and using this self_service option. In March 2023 we launched a Clanmil Connect app to further improve accessibility for customers. Also, during the year we introduced a neiv Digital Siraleg}T Ihat tocuses on cquipping Clanmil Lolleagues with digital tools to work better and smarter and on designing and upgrading hoiDes for a digital tllre. Investing our communities Clanmil is committcd to improvin¥ comTllunTty cohesion and good relations by incrcasing Ihc nuTnber of Shared Ncighbourhoods across Nortlicm Ireland. DuritLg thc y¢aT we conlinucd to deliver Good Rclations Projccls to strcngthen relationships bctwcen our Customcrs and Communitie5 within 3 fivc-tnile radius in our current 9 Shared Neighbourhoods in Banbridge, Belfast, Cookstow'n, Crossgar, Crumlin, Downpatrick. GlcnwhiTry, Newtoivnabbey and Neivcasile. The Cohesion leaTn are currently working liard to proFllOtc a furthcr two schcmes in Anlim and Carrickrer. Other value for money considerations The Association has maintaincd an opcrating rnargin of 27 /0 Kyhich can be partly attribulcd to effcrlive procurement and incrcascd income in thc year. Wc continu¢ to avail of lh¢ brnrhmarkino proN'tdcd by Housemark, ii,hirh enables us to better understand vur costs and quality of service provision, leading to better infoTmed decision making.
Clanmil Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 (cont'd) Environment We also continue to implement our Environmental Strategy a road map for how will progress the decarbonisation of our existing homes and the design and construction of new homes to the highest possible environmental standard. A key focus of this straregy is ensuring our customers live in homes that are etTJcient to run. Currently 98.50/0 of our stock meet Decent Homes standard. we are working to irnproN'e levels of thernial comfort. As a result 850/. of our homes are already at EPC rating C with plans to move the remainder (where possible) to EPC rating C by 2030. We are building our new homes on a fabric first approach and to achiei'e EPC rating B and wc are taking foN'ard a pilot scheme during 2022123 to design and construct to EPC rating A as well as exploring what 111 be required 10 design and construct our homes lo the carbon neutral nZEB stfthdard. For the year ahe2d 2023124 Our year ahead ivill again focus on engaging i¥ith our customers in the face of the unprecedented economic challenges they will face. We will continuc on our digital joumey tn3Ximi5ing thc cfficiencies M'e can achieve in the delIerV of high qualiry services. We ivill also examine opporttjnities for additional funding to supwirt our continuing development progratnme to deliver new homes so Clanmil can play ils part in alleviating the housing crisis in Northern Ireland given Ihe high number of applicants on thc waiting list tor a social home. Risk Management Responsibility for the identitication of risks is clearly defined and operates through a rolling risk assessment process. Key risks r3¥ing the Group are considered by th¢ Board of Management at each meeiing and the Board has adopted a risk-aware sirategic approach - and revieivcd its risk appetite statement in Ihe vear to ensure continued locus on the management of risk as il drives foTrN'ard thc delivery of its strategic ambitions. Performance in the sector is gencrally affected bl. government w)licics and changing legislation, the impact of the regulatory regime, changes in demographic, political or economic conditions or enl'ironmental risks. Some of thc major factors ii,hich may aftect the Group over the next year are= Political cconomic uncertainty Lau5cd bv cvents in F.urope and more locally ihc fornlation of an Lxccutivc in Northern Ireland and inflationary impact on our cu5tomcrs. Cyber and data security- Regulation changes related to the enN'ironment and climate changc on existing as ell as new properties. Impact of Brexit / Nl Protocol on suppl). and cosi of tnaterials and skills. The impact of wellare reform- Development risks resulting from tirnelv 5ssue of planning approvals. al'ailability of land and ivater and sewage infrastructure and property values; Regulation changes ihal could impact the health and safetN' obligations within our operating environment; Limits on Supporting People and other revenue fvnding:. Increasing customer demandslexpectations including the need to deal with anti-social behaviour. Measures are in place to manage thcse risks and the revie. and implcrnentation of further mitigating actions is regularl}, monitored by the Board. Performance in the year ended 31 March 2023 Overall the number ol propcrtics incrcased (305 ne. homcs handcd ovcr including 79 alreadj in stock, being held for iedc&clopmcn¢ a of 28 homcs via the right kn buy hou5c sales .scheme alongside 12 shared owncrship homcs, whcrc customcrs purchased the remaining equity in Ihcir homcs) bv 186 to 5,851 (notc J l ). The Association's arUal review of renlal chargcs al April 2022 resulted in a 3.9 /9 increas¢ in the majority of rents. There Th'ere 357 units under development by the Group at 31 March 2023. £29.5 million was spent on housing propcrtiC5 additions and component rcplaccment during the year (notes l4 and 17) partiallv funded by Housing Association Grant of £14.8 million (notc li).
Clanmil Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 (cont'd) 10 Turnover for the Group increased by 12. L /0 from £42.4 million in 202112? to £47.5tn. £1.4n] or 3.3 /0 of this increase arose from shared equity property disposals. Group operating costs of £34.4 million represent 72.3 /0 of Djrnover (69.1 /0 in 202 I122). This includes an increase in costs of £1.9m assoLidled with property disposals. The surplu5 on ordinary activities for ihc CJroup was £7.8 millioii, showing a decrease over 2021122 of £0.5 million (6 % decica5c) This Wds iTnpaLted by inflationaiy pre.s.8ureq on maintenance cosl.s, as ii""cll a5 incieased iepairs as we camc out of COVID rcslrictions. Incrcascd salary costs reflect increased head count and intcr¢st ¢osts incrcascs Iclate lo new borro,]ng to hclp fund contiiiucd growth. Commercial properties COTnprising COTnmercial prernises lo Icl and Tnarket rent residential property werc Icvalued at year end 31 March 2023. Overall these investment properties benefited Irom a small increase on revaluation of £0.2tn. Financing costs increased froni £4.8 million in 2021122 10 £5.6 million. This was in part due to ne loans secured as part of a Prii'aie Placement which was priced before Ihc economic turmoil in Seplember 2022. Loan balances w'ere £1 82.1 m (£174.7m in 2021122). The Association continues its prograjnme of mdjof TepaiTs and impioiiements lo properties and the total expenditure in the year ivas £3.0 million. This was £0.8m below planncd levels. Expendiluie of this type will fluctuate froni year-to-year dependent on the age and condition of schcmes. Costs defcrred in ?022123. will be reprogrammed in 2023124 and future years. Events after the balance sheet. There were no posi balance sheet events. The potential ongoing impact of the cU¢t economic and political unccnainty is considered undcT Risk Mana¥cTnCllt and cxpeGled perforniance in 2023124 is outlincd abovc. Expected performance in the year ending 31 .March 2024 'otwiihslanding the ongoing economic upheaal, the Group expect5 further growth in 202.3124. as a re5uII of the significant on- going developinent programme and the requirement to include inflationary increases in rental charges. Turnover is projected lo increase by around 9Q/o to approximately £52.3 million, wilh the end of ihe right to buy scheme leading lo rther house sales as existing applications are processed. It is planned that approximately 179 additional hornes will be completed during the year and after of disposals estiniatcd at 30, thc total homes owned or managed will increase to approximatel}, 6,000 units {ncl of right to buy sales and equity shdre sales). £3.7m of expenditure regarding thc on-going programme of major repairs and improi'ements to properties is anticipated in the year. The Group operalcs itL a hiahly regulated enN'ironment w'hich can resuli in associated cost pressures and constraints on inLome streams. It will continue to develop a co-oidinated COTporate appToacb io achieving efficiency targets in line with the Strategic Plan. Priorities have becn set to ensuie that efficiencies aTe gained without an 2dversc impact on seTvice delivery or service user sdtisfaction. Financial sustainability The CJroup has a robust and compiehensive framcw'ork of longer-tenn financial planning in place. The Board regularly considers the longcr-tcrm financial plan which covcrs a 40-Ncai pcriod. The plan includes scnsitiiiity analysis Èind comparcs projcctcd rcsults t() fundcr.8' covcnants whcrc applicablc. I'o demonslratc the Tobustness of thc plan, and io inform the Board of thc polcntial risks 155ULiated with the financial plan, scvcral sccnario analyses arc cotnpleted. The most rcccnt plan was Lonsidered by the Board in March 2023. This incorporatcd strcss tcsting on a Tnulti-variate basis thai considcrcd ihe potential down.sidc frotn cconoinic and busincss risks potentially arising. l-his deTnonstratcd that the financial plan docs not put undue pressurc on the Group, and that through the adoption of planned tniligation strategies the Group can continue to opcralc within its covenant limits. By order of the Board C MLTaggart Company Secretary 6 Jul}, 2023
Clanmil Housing Association Limited 11 Report of the Board for the year ended 31 March 2023 The Board prcscnt tELcir report and the audiied fmancial statcmcnts for the year endcd 3 1 March 2023 of Clanmil IIousing Associaiion Limited (the "Associatioii") and its subsidiaries (the "Group")- Board The Board is a voluntary Commitlee who have responsibility for the strategic direction. general policy and management of the Group. The day-to-day management of operations is delegated to tbe Group Chicf Executive and the Executive Management Team. Performance in the year ended 31 March 2023 and expecled performance in the year ended 31 March 2024 The sections on performance in the year ended 31 March 2023 and expected performance in the year ended 31 March 2024, are contained in the stralegic report, which fonns part of this report. Treasury The Group's treasury management poli¢y facilitates the effective managernenl of cash floH's, borrowings, investments and the risks associatcd with tbese aLtivities. An update to the policy was approved by the Board in FebNary 2023. At 31 March 2023 the Association had102ns outstandiDg o1£182.1 million. comparcd with £174.7m at 31 Maich 2022. Average net debt per unit continucd al £3 Ik at 31 March 2023 (£3 Ik 2021122) as 186 bomes (net of disposals) were added in thc ycar. The Group was fully cotnpliant with loan cOenants during the year. The Association's inTeresl cover ratio for the year of 2.3 tffin)es and the gearing ratio as at 31 March 2023 of 28.00/0 coffifortably meet the Association's primary lender requirements. Responsibility lor the rnanagement OF interest rate risk and liquidity risk is th'ith the Board. The Association finances it5 operations through a combination of borrowing and the reinvestment of rescrves. The amount of borroiviTLgs and its terms arc revicwed and deterniined by thc Board. The Grollp engages specialist Trcasury MaTLagemeni Adirisors 10 aSilSt in rhis process. Interest rate risk Exposure to fluctuating iThlerest rates is managed by the composition of a balanced portfolio between fixed rate and variable rale loans. Liquidity risk The Group maintains a mixture of long-terni and short-temi loan finance that is designed to ensure rhere are sufficient funds to achieve business objectives and io facilitate planned gmwth. As al 31, March 2023, thc Group had agreed facilities unused across a nuvnber of Institutions of £40rn, to assist in funding ils growth stratcgy and me¢ting ongoing commitmcnts. Currency risk The Asiociation and CJroup do not engage in foreign currency transactions and so are not exposed to exchange risk. Regulation The Association's principal regulator is Ihe Department for CoTnmunities (Dfc). It is al50 regulaied by che Chariry Commission Northem Ireland (CCNI) and the Northern Ireland Housing Executive (NIHE) in ils role as administrator of Supporting People funding.
Clanmil Housing Association Limited 12 Report of the Board for the year ended 31 March 2023 (cont'd) The Association complies wilh thc Dfc Rcgulalory Standard5. Bascd on ihe lasi Rcgulatory Framework rating received in relation to 2021122, Dfc delerniined that Clanmil Housing Association Ltmited mel the Regulatory Standards for Governance, Finance and Consumer with the htghest Rating l- meets the requirement. Quality Management The quality of the Assoeialion's Tnanagcmenl system5 is rccogni5ed through the Investors in People Silver re-accredilalion in May 2022. and the standards of the Regiilation and Qualiry Improvement Auihoriry. Environmental matters The Group recognises its cory)oratc responsibility lo carry out lis operations and development programme whilst niinimising cnvironmenlal impacts. The Board's continued aim is lo comply with all applicable environmental legislation, prevenl pollution and reduce waste wherever possible. Statement of the responsibilities of the members of the Board The Co-operative and Community Bencfil Socictics Act and rcgisrcrcd housing association leoislation require the members of the Board of Mana(Tcmenl to prepare financial statenients for each financial year i4,hich give a true and fair i'iew of the state of tlie A.8sDciation and Group's aftair.% and of irs surplus or defjcit for Ihar period. In preparing Ihese staten)ents the Board is required to.. Select suitable accounting policic5 alld apply them consisicntly- Make judgernenls and estimates that are reasonable and prudent. ste whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. and Prepare the financial statements on the going concern basis unless it is inappropriate to presume Ihat the Association will continue to operate. The members of th¢ Board are responsible for keeping proper accounting records which disclose with reasonable accuracy at any Time the financial position of the Association and Group and lo enable them to ensure that rhe financial stateinetlts comply with the Co-operative and Community Benefit Societies Act {Northem Ireland) 1969 and the Registered Housing Associations {Accounling Requirements) Order {Northem Ireland) 1993. They havc general responsibiliry for rhe tskj.ng of reasonable steps to safeguard the assets of the Association and to prevent and delect fraud and other irregularities. Statement of discIosure of information to auditors So far as each of the members of the Board at the datc of approval of these financial statemenis is aware.. Thcrc is no rclcvant audit information of which the Associarion and Group's auditors art unaware- and 'L'hcy havc lakcn all Ihc slcps ihal Ihcy oughi lo havc iakcn as mcmbcrs Dr chc Board in older lo make thcmselvcs awarc of any relevant audit infortnation and to C51ablish Ihat the Associalion and Group's auditors are aivaie of that inforn]alion. Internal Control The Board has overall responsibility for the Association and Group's internal control systems and for reviewing the effectiveness of these. Such sysleins can only provide ihe Board with reasonable. and iioi absolute, assurance against material misstatement or loss as tlie}' arc designed lo manage the risk of failure to acliieve business objectives raiher than eliminate the risk completely.
Clanmil Housing Association Limited Report of the Board for the year ended 31 March 2023 (cont'd) 13 Audit The Board has established a Group Audit and Risk Committee with clvdrly defined ternis of reference. The main functions of the Group Audit and Risk Commitlee are lo control and review the external and internal audit fiLnctions, the internal control systems and monitor the perforniance of thc Association against the key business indicators. The Association's intemal auditors report direcily to the Group Audit and Risk Con]mittec on completion of each systems review and an annual summary report is produced by the inlernal auditors summarising the systems audit programme each year. The provision of the external auditor, s report to those Charged with Governance also provides some assurance througb the year-end audil and the provtsion of an internal control report. Board and Executive Officers The members of the Board and ihe Executiv¢ Officers of the Assoeialion are lisled on page 2. After a qualifying period each member of the Board becomes a shareholder aTJd holds one fully paid share of £1 in the Association. Independent auditors The auditors, ASM (B) Ltd, hdvc indicatcd Ihcir willingness to conb.nue in office, and a iesolutioll proposing their reappointment will be proposcd at thc Annual Gcncial Mccting. By order of the Board C McTaggart Company Secretary 6 July 2023