2024-03-31-accounts - Ark Housing Association Northern Ireland Limited

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ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2024

Note Turnover 2 Operating costs 2 Other Income Gain/(Loss) on disposal of housing properties Operating Surplus 7 Interest receivable and similar income 5 Interest payable and similar charges 6 Other finance costs 15 Additional Pension Service Costs 15 Surplus on ordinary activities Actuarial (loss)/gain on pension scheme Total comprehensive income for the year	2024 £ 6,783,783 (4,820,591) - 23,878 1,987,070 15,177 (876,307) 9,000 (3,000) 1,131,940 (88,000) 1,043,940	2023 £ 5,570,707 (3,933,896) - 13,908
		1,650,719 8,387 (654,018) (34,000) (260,000)
		711,088 1,755,000 2,466,088

All amounts above relate to continuing operations.

There is no material difference between the surplus for the year end and their historical cost equivalent .

Turnover includes £391,834 house sales income.

Operating costs include a transfer to Disposal Proceeds Fund of £367,956

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

STATEMENT OF CHANGES IN RESERVES FOR THE YEAR ENDED 31 MARCH 2024

Note Surplus for the financial year Actuarial (loss)/gain on pension scheme 15 Issued share capital in year 16 Net changes in capital and reserve Opening restricted reserve Movement in Restricted Reserves in year Opening revenue reserve Opening Capital 16,17 Closing total capital and reserves	2024 £ 1,131,940 (88,000) - 1,043,940 142,582 (98,100) 7,785,666 52 8,874,140	2023 £ 711,088 1,755,000 2
		2,466,090 98,100 - 5,364,060 50 7,928,300

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2024

----- Start of picture text -----
2024 2023
FIXED ASSETS Note £ £
Housing properties - depreciated cost 8 104,579,962 93,650,699
Other tangible fixed assets 9 870,710 897,389
105,450,672 94,548,088
NON CURRENT ASSETS
Pension 15 - 82,000
CURRENT ASSETS
Debtors 10 6,368,278 1,773,846
Cash at bank and in hand 1,880,134 1,254,295
8,248,412 3,028,141
Creditors: amounts falling due within one year 11 (16,676,832) (13,142,186)
Net Current (Liabilities)/Assets (8,428,420) (10,114,045)
Total Assets Less Current Liabilities 97,022,252 84,516,043
CREDITORS: amounts falling due after more
than one year
Creditors 12 (88,148,111) (76,587,743)
(88,148,111) (76,587,743)
NET ASSETS 8,874,141 7,928,300
Capital and Reserves
Called up share capital 16 9 11
Capital reserve 17 43 41
Restricted reserves 19 56,979 142,582
Revenue reserve 18 8,817,110 7,785,666
TOTAL FUNDS 8,874,141 7,928,300
----- End of picture text -----

An undrawn Revolving Credit Facility balance of £12.5m is in place.

The financial statements on pages 21 to 42 were approved by the Board of Management on 24 June 2024 and were signed on its behalf by:

Chair of the Board of Management

Mr Tom Doran

Board Member

Mr Ian McAvoy

Company Secretary

Mr James McShane

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 MARCH 2024

	2024	2023
Note	£	£

Net cash generated from operating activities 23	2,682,343	5,123,078

Cash flow from Investing activities
Purchase of housing properties	(11,851,499)	(21,382,826)
Purchase of other fixed assets	(44,507)	(30,666)
House Sales	516,070	200,959
Capital grants received	3,614,275	22,604,598
	(7,765,661)	1,392,065

Cash flow from financing activities
Loan principal repayments	(396,171)	(390,673)
Loan (repayments)/advances received	7,000,000	(9,000,000)
Shares	-	2
Repayment of Restricted Reserves to NIHE	(98,100)	-
Interest Paid	(811,749)	(669,985)
Interest Received	15,177	8,387
Net cash from financing activities	5,709,157	(10,052,269)
Net increase/(decrease) in cash	625,839	(3,537,126)
Cash and cash equivalents at the beginning of the year	1,254,295	4,791,421
Cash and cash equivalents at the end of the year	1,880,134	1,254,295

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

1 Accounting Policies

1.1 Basis of Accounting

The financial statements have been prepared on the historical cost basis and in compliance with FRS 102, The Financial Reporting Standard applicable in the UK and the Housing SORP 2018: Statement of Recommended Practice for Social Housing Providers.

The financial statements are prepared in sterling, which is the functional currency of the entity. Monetary amounts are rounded to the nearest £.

The Association is a company limited by shares incorporated in Northern Ireland. The registered office is situated at Unit 1, Hawthorn Office Park, 43 Stockmans Way, Belfast, BT9 7ET.

1.2 Turnover

Turnover represents rental income, service charges receivable net of voids and the release of capital grants and is recognised in the period to which it relates.

1.3 Other Tangible Fixed Assets and Depreciation

Tangible fixed assets are stated at cost less accumulated depreciation. Depreciation is charged on a straight-line basis over the expected useful economic lives of the assets at the following annual rates: Furniture and equipment 10% - 33.3%.

Depreciation is charged on a straight-line basis for the new office over 30 years.

1.4 Housing Properties

Housing properties are stated at cost less accumulated depreciation. Cost includes the cost of acquiring land and buildings, development costs and expenditure incurred in respect of improvements. All development costs directly attributable to bringing properties into management are identified and capitalised to schemes in construction during the year.

Expenditure on improvements to existing properties, which enhances the economic benefits of the property or extends its useful life, is capitalised as part of the cost of the property. Other maintenance expenditure is written off to the Income and Expenditure Account as it is incurred.

Depreciation is charged on a straight-line basis over varying timescales, depending on the estimated useful life of the individual components. The major components and their estimated useful lives are listed below. Depreciation charged in the accounts is based on properties in management on the 1[st] April each year.

Land	Not depreciated
Structure (including roof)	100 years
Kitchen	20 years
Bathroom	25 years
Heating boiler	10/15 years
Heating system	30 years
Windows and doors	35 years
Electrics	35 years

Where there is evidence of impairment, the fixed assets are written down to the recoverable amount and any write down charged to operating surplus.

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

1 Accounting Policies (Cont’d)

1.5 Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

1.6 Housing Association Grant

Grant received for property has been included under long term liabilities and is amortised over the estimated useful life of the component to which it relates on the same basis as the depreciation charge listed above under the accruals model. Such grants may be repayable under certain circumstances, primarily following the sale of housing property, but any amount repayable would be restricted to the net proceeds of the sale.

1.7 Restricted Reserves

The Association sets aside money raised for a specific purpose into a restricted reserve.

1.8 Retirement Benefits

The Association participates in the NILGOSC defined benefit pension scheme. The underlying assets and liabilities of the scheme attributable to the Association are held separately from those of the Association. Pension scheme liabilities are measured on an actuarial basis using a projected unit method and are discounted to their present value. Assets are measured at market value at the balance sheet date. As a result, the Association either recognises the scheme deficit on the balance sheet at the year end, or in the case of an asset position, does not recognise this on the balance sheet, on the grounds of prudence. Actuarial gains and losses are included in the statement of comprehensive income. Current and past service costs, curtailments and settlements are recognised within operating surplus. Returns on scheme assets and interest on obligations are recognised as other finance costs.

1.9 Disposal Proceeds Fund

Surpluses from disposal of housing properties, including the Voluntary Purchase Grant, are transferred to the Disposal Proceeds Fund. The association is required to apply these surpluses within a specified period to housing projects as Recycled Housing Association Grant.

1.10 Tenants' Services Fund

For certain schemes the Association is required to charge the tenants for additional services provided, over and above those of the normal management and maintenance services. The Association levies an additional charge to the tenants for this. Annual surpluses are transferred to a fund to equalise the financial position over a period of time and deficits are written off in the year in which they occur.

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

1 Accounting Policies (Cont’d)

1.11 Employee Benefits

The costs of short-term employee benefits are recognised as a liability and an expense unless those costs are required to be recognised as part of the cost of stock or fixed assets. The cost of any unused holiday entitlement is recognised in the period in which the employee's services are received. Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12 Cash and Cash Equivalents

Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13 Financial Instruments

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date. Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss. If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

1 Accounting Policies (Cont’d)

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Basic financial liabilities

Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

1.4 Judgement and Key Sources of Estimation Uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The association has recognised a defined benefit pension scheme liability in the balance sheet, the value of which has been prepared by an independent qualified actuary. The actuarial valuation involves making assumptions about discount rates, future salary increases, mortality rates and future pension increases. Due to the complexity of the valuation, the underlying assumptions and the long-term nature of these plans, such estimates are subject to significant uncertainty.

The annual depreciation charge on fixed assets depends primarily on the estimated lives of each type of asset and estimates of residual values. The asset lives are regularly reviewed and are changed as necessary to reflect current thinking on remaining lives in light of prospective economic utilisation and physical condition of the assets concerned. Changes in asset lives can have a significant impact on depreciation and amortisation charges for the period. Details of the useful lives is included in the accounting policies.

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

2 Turnover, operating costs and operating surplus

Social Housing Activities	Social Housing Activities	2024 2023
		Operating Turnover Operating Costs Operating Surplus/ (deficit) Operating Turnover Operating Costs Operating Surplus/ (deficit)
		£ £ £ £ £ £

		6,232,011 4,259,950 1,972,061 4,852,000 3,246,092 1,605,908

	Non-Social Housing Activities	943,606 928,597 15,009 852,431 807,620 44,811
Total		7,175,617 5,188,547 1,987,070 5,704,431 4,053,712 1,650,719

Income from Social Housing

Income from Social Housing	Income from Social Housing
		Property Revenue	Sheltered	Supported	2024 Total Social Housing
		£	£	£	£
	Rent receivable Service Charges Receivable Support Charges and other Other OperatingIncome	3,801,645 330,077 - 391,833	306,109 147,232 34,915 -	320,574 197,454 - -	4,428,328
					674,763
					34,915
					391,833
	Gross Income	4,523,555	488,256	518,028	5,529,839
	Voids	(54,095)	(4,038)	(8,827)	(66,960)
	Net Income Grant released	4,469,460 659,027	484,218 20,733	509,201 89,372	5,462,879
					769,132
	Total Income	5,128,487	504,951	598,573	6,232,011
	Operating Costs Services Support Rates Payable	262,452 - 432,983	122,809 33,652 45,864	155,578 - -

					540,839
					33,652
					478,847
	Insurance	130,906	9,180	17,475	157,561
Management Costs Maintenance Administration Costs Planned and Cyclical Maintenance Reactive Maintenance Gardening Component Disposals Depreciation		482,520 256,020 70,874 289,586 23,233 28,460 1,084,810	57,865 - 10,629 31,513 5,392 4,590 72,608	70,929 - 6,726 50,094 14,715 - 120,532	611,314
					256,020
					88,229
					371,193
					43,340
					33,050
					1,277,950
	Bad Debts	-	-	-	-
	Other	367,955			367,955
	Total OperatingCosts	3,429,799	394,102	436,049	4,259,950
	Operating Surplus
					1,972,061

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

2 Turnover, operating costs and operating surplus (Cont’d)

Income from Social Housing

Income from Social Housing
	Property Revenue £ 3,040,615 230,282 - 133,724	Sheltered £ 267,567 117,618 32,807 -	Supported £ 295,459 167,673 - -	2023 Total Social Housing

				£
Rent receivable				3,603,641
Service Charges Receivable				515,573
Support Charges and other				32,807
Other OperatingIncome				133,724
Gross Income	3,404,621	417,992	463,132	4,285,745
Voids	(39,924)	(9,786)	(27,037)	(76,747)
Net Income	3,364,697	408,206	436,095	4,208,998
Grant released	517,975	29,807	95,220	643,002
Total Income	3,882,672 183,058 - 371,057 104,135 295,164 249,430 61,339 180,669 21,769	438,013 98,231 28,655 42,333 8,763 53,022 - 16,166 25,461 3,549	531,315 125,072 - - 15,693 65,468 - 26,018 43,187 13,803	4,852,000

Operating Costs
Services				406,361
Support				28,655
Rates Payable				413,390
Insurance				128,591
Management Costs				413,654
Maintenance Administration Costs				249,430
Planned and Cyclical Maintenance				103,523
Reactive Maintenance				249,317
Gardening				39,121
Component Disposals	18,793	19,201	4,000	41,994
Depreciation	861,785	68,875	121,580	1,052,240
Bad Debts	-	-	-	-
Other	119,816	-	-	119,816
Total OperatingCosts	2,467,015	364,256	414,821	3,246,092

Operating Surplus				1,605,908

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

2 Turnover, operating costs and operating (Cont’d)

	Property Revenue	Sheltered	Supported	2024
				Total Social Housing
	£	£	£	£
Technical Non-technical	2,892,205 1,239,517	436,290 17,051	466,225 51,803	3,794,720
				1,308,371
Total	4,131,722	453,341	518,028	5,103,091

Technical Non-technical	Property Revenue £ 2,289,628 981,269	Sheltered £ 370,166 15,019	Supported £ 416,819 46,313	2023
				Total Social Housing
				£
				3,076,613
				1,042,601
Total	3,270,897	385,185	463,132	4,119,214

DFC Allowances			2024	2023
			£	£
Management Allowances			260,964	222,552
Management Costs			(443,563)	(268,018)

Deficit			(182,599)	(45,466)

Maintenance Allowances			305,776	260,768
Planned and cyclical maintenance			(70,874)	(61,339)
Reactive Maintenance			(289,586)	(180,669)

Surplus/(Deficit)			(54,684)	18,760

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

2 Turnover, operating costs and operating surplus (Cont’d)

Turnover, operating and operating surplus from non-social housing activities

	2024	2023
	£	£
Income	943,606	852,431
Total	943,606	852,431

Operating Costs
Management Services	928,597	807,620
Total	928,597	807,620

Operating surplus	15,009	44,811

Housing Stock
	2024	2023
Number of units owned on 31 March	£	£

General needs housing	659	562
Supported Housing	57	57
Sheltered Housing	74	74
Homeless	24	24
	814	717

3 Board Members’ emoluments

Board members act in a voluntary capacity and as such, none were in receipt of emoluments during the financial – year. Two members were reimbursed expenses totalling £132 during the year. (2023 £216).

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

4 Employee information			2023 Number 23 21 44 £ 1,046,191 93,885 189,116 108,297 1,437,489 175,759 34,273 210,032 82,713 16,129 98,842 Number - 1 - 3 - 4 2023 £ 8,387	2023 Number 23 21 44 £ 1,046,191 93,885 189,116 108,297 1,437,489 175,759 34,273 210,032 82,713 16,129 98,842 Number - 1 - 3 - 4 2023 £ 8,387
	2024
Average monthly number of persons employed during the financial year by
activity:	Number		Number
Office	21		23
Support Staff	18		21
	39		44

Staff Costs	£		£
Wages and salaries	1,230,098		1,046,191
Social security costs	110,168		93,885
Other pension costs	220,016		189,116
Agency costs	102,878		108,297
	1,663,160		1,437,489

Directors' Emoluments
Aggregate Emoluments		213,553		175,759
Pension contributions		35,298		34,273
		248,851		210,032

CEO's Emoluments
Aggregate Emoluments		103,895		82,713
Pension contributions		17,320		16,129
		121,215		98,842

Total Directors' Emoluments per Salary		Number		Number
£120,000 - £125,000		1		-
£95,000 - £100,000		-		1
£85,000 - £90,000		2		-
£70,000 - £75,000		-		3
£65,000-£70,000		1		-
		4		4
5 Interest receivable and similar income


		2024		2023
		£		£
Interest receivable		15,177		8,387

6 Interest payable and similar charges
				2023 £ 654,018
		2024		2023
		£		£
Loan interest repayable		876,307		654,018

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

7 Operating Surplus
	2024	2023
	£	£
This is stated after
Depreciation	1,357,472	1,120,862
Amortisation of grant	(752,466)	(628,985)
Amortisation written off	(16,666)	(14,017)
Components written off	33,050	41,994
Operating Lease Rentals - land and buildings		-
Auditors' remuneration
- audit services	9,000	8,580

8 Tangible fixed assets - housing properties (land & buildings)

8 Tangible fixed assets - housing properties (land & buildings)
Cost At 1 April 2023 Additions Disposals	2024 101,610,670 12,571,142 (613,874)	2023

		80,790,873
		21,123,988
		(304,191)
At 31 March 2024	113,567,938	101,610,670
Accumulated depreciation At 1 April 2023 Charge for year Disposals	7,959,971 1,277,950

		7,034,548
		1,052,240
	(249,945)	(126,817)
At 31 March 2024	8,987,976	7,959,971

NBV at 31 March 2024	104,579,962	93,650,699
Net Book Amount Comprises: Completed Schemes Schemes in Progress	87,430,472 17,149,490

		70,574,184
		23,076,515

	104,579,962	93,650,699

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

9 Other Tangible Fixed Assets Cost At 1 April 2023 Additions Disposals At 31 March 2024 Accumulated depreciation At 1 April 2023 Charge for the year Disposals At 31 March 2024 Net book value At 31 March 2024	Office Refurb £ 309,035 - - 309,035 61,808 30,904 - 92,712 216,324	2024 Total 2023 Total £ £ 1,062,703 1,050,018 52,844 12,685 - - 1,115,547 1,062,703 165,314 96,692 79,522 68,622 - - 244,836 165,314 870,710 897,389

	2024	2023
10 Debtors	£	£
Rental Debtors - Gross technical	278,603	221,946
Rental Debtors - Gross non-technical	131,850	113,875
Provision for Bad Debts	(53,630)	(53,630)
Net Rental (including rates and service charges)	356,823	282,191
Other Debtors	96,465	124,870
Prepayments	103,798	75,919
Housing Association Grants Receivable	5,811,192	1,290,866

	6,368,278	1,773,846

11 Creditors - amounts falling due within one year
	2024	2023
	£	£
Bank loans (note 14)	405,261	361,035
Rent, rates, service charges received in advance	59,932	75,907
Deferred Grant (note 13)	1,269,774	1,168,436
HAG in Advance	10,957,646	8,865,627
Contractors	233,992	336,259
Other Creditors	538,406	352,180
Accruals and Deferred Income	2,674,809	1,812,393
Payroll cost and Pension fund	49,241	50,533
Disposals proceeds fund	487,771	119,816

	16,676,832	13,142,186

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

12 Creditors - amounts falling due after more than one year
	2024	2023
	£	£
Bank Loans (note 14)	25,929,134	19,334,396
Housing Association Grants (note 13)	62,218,977	57,253,347

	88,148,111	76,587,743

13 Deferred Grant - Housing Association Grant

	2024	2023
Housing Association Grant	£	£
At 1 April 2023	63,815,233 6,042,582	61,985,670
Additions		2,000,744
Disposals	(348,912)	(171,181)
At 31 March 2024	69,508,903	63,815,233

Accumulated Amortisation	5,393,450 751,069
At 1 April 2023		4,853,484
Charge for year		628,985
Disposals	(124,367)	(89,019)
At 31 March 2024	6,020,152	5,393,450

NBV at 31 March 2024	63,488,751	58,421,783
	1,269,774 62,218,977
Released within one year		1,168,436
Released after more than one year		57,253,347
	63,488,751	58,421,783

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

14 Loans

Loans are secured on individual assets of the Association and are repayable as follows:

	2024	2023
	£	£
Bank loans - Housing property and other loans
Less than one year	405,261	361,035
Between one and two years	524,000	366,835
Between two and five years	1,744,613	1,274,875
After more than five years	23,660,521	17,692,685

	26,334,395	19,695,430

Bank loans include £12,379,692 of secured loans repayable after five years by quarterly instalments of £81,667. All RCF loans outstanding at the end of the applicable period, will be converted to term loan until the end of the facility term being repayable on amortised basis over 45 years. Bank loans bear interest at rates ranging between 2.27% and 6.44% at variable and fixed rates. All bank loans is secured by way of mortgages upon the deeds of approved portfolios of properties.

Unamortised finance costs of £265,223 (2023 - £300,359) associated with the secured loan are held against the outstanding balance measured at amortised cost using the effective interest method in accordance with FRS 102 Section 11.

15 Retirement Benefits

The Association's pension scheme forms part of the total fund administered by NILGOSC. Ark has contributed at a rate of 19.5% of pensionable salaries. Members have paid contributions at varying rates up to 8.50%.

Formal valuations are carried out at regular intervals by independent professionally qualified actuaries. The last formal valuation was carried out as at 31 March 2024.

Assumptions

Assumptions
	2024	2023	2022
	(£000s)	(£000s)	(£000s)
Rate of salary increase	4.10%	4.10%	4.50%
Pension increases in payment	2.60%	2.60%	3.00%
Discount rate	4.80%	4.60%	2.70%
Pension accounts revaluation rate	2.60%	2.60%	3.00%

Mortality Rates

Mortality Rates
	2024	2023
	(Years)	(Years)
Male - current pensioners	21.7	22.2
Male - future pensioners	22.7	23.2
Female - current pensioners	24.6	25.0
Female - future pensioners	25.6	26.0

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

15 Retirement Benefits (continued)

The assets in the scheme and the expected rate of return were: -

	2023	2023
	(£000s)	(£000s)
Equities	1,752	1,575
Government bonds	662	782
Property	410	400
Corporate bonds	203	103
Multi Asset Credit	574	500
Other	265	229
Cash	547	225

Reconciliation of funded status to balance sheet

	2024	2023
	(£000s)	(£000s)
Fair value of assets	4,413	3,814
Present value of scheme liabilities	3,958	3,732
Surplus/(deficit) in scheme	455	82
Related deferred tax liability	(455)	-
Net pension surplus/(deficit)	-	82

Income and expenditure impact

The following amounts have been recognised in the statements of comprehensive income:

	2024	2023
	(£000s)	(£000s)
Current service cost	222	447
Interest on net liability	(9)	34
Income Statement Total	213	481

Asset (losses)/gains arising in the period	197	(449)
Liability gains/(losses)arisingin theperiod	(285)	2,204
Other Comprehensive Income Statement Total	(88)	1,755

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

15 Retirement Benefits (continued)

Changes to the present value of obligations

	31-Mar-24	31-Mar-23
	(£000s)	(£000s)
Opening obligation	3,732	5,348
Current service cost	222	447
Past service cost	-	-
Interest expense on obligations	172	144
Contributions by participants	77	65
Actuarial (gain)/loss on liabilities	(170)	(2,204)
Net benefitspaid out	(75)	(68)
Closing obligation	3,958	3,732
Changes to the fair value of assets
	31-Mar-24	31-Mar-23
	(£000s)	(£000s)
Opening fair value of assets	3,814	3,969
Interest income on assets	181	110
Remeasurement (losses)/gains	197	(449)
Contributions by employer	219	187
Contributions by participants	77	65
Net benefitspaid out	(75)	(68)
Closing fair value of assets	4,413	3,814

Actual return on assets

	31-Mar-24	31-Mar-23
	(£000s)	(£000s)
Interest income on assets	181	110
Remeasurement(losses)/gains	197	(449)
Actual return on assets	378	(339)

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

16 Called up Share Capital

		2024	2023
		£	£
Ordinary shares of £1 each, full paid
At 1 April 2023		11	9
Transferred to capital reserve		(2)	2
At 31 March 2024		9	11
17 Capital Reserve
		2024
		£

At 1 April 2023		41
Transferred from share capital		2
At 31 March 2024		43
18 Revenue Reserve
	2024
	£
At 1 April 2023	7,785,666
Surplus for the year	1,119,444
Actuarial gain	(88,000)
At 31 March 2024	8,817,110
19 Restricted Reserve
	2024
	£
At 1 April 2023	142,582
Refund to NIHE Supporting People (2021/22)	(98,100)
Surplus in year	12,497
At 31 March 2024	56,979

The restricted reserve are funds from NIHE Supporting People for specific purposes relating to sheltered and homeless services.

20 Contingent liabilities

There exists a contingent liability on the Association of the possibility of having to repay grants received on properties if any properties are sold. This also includes any grants written off through the implementation of component accounting.

ARK HOUSING ASSOCIATION NORTHERN IRELAND LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024 (CONT’D)

21 Commitments

Capital Commitments

Capital commitments amounting to £32,828,542 (2023 - £33,610,082) have been contracted for as at 31 March 2024. These commitments will be financed through a combination of HAG, loans and the Association's reserves.

Operating Lease Commitments

At the year end the Association had no commitments under operating leases (2023 -Nil).

22 Related party disclosures

No transactions with related parties were undertaken such as are required to be disclosed under UK GAAP.

23 Notes to the Cash Flow Statement

	2024	2023
	£	£
Net cash inflow from operating activities
Operating surplus for the year	1,987,070	1,650,719
Depreciation of tangible fixed assets	1,357,472	1,120,862
Amortisation of grant	(752,466)	(628,985)
Amortisation written off	(16,666)	(14,017)
Components written off	33,050	41,994
Movement in debtors	(38,970)	2,497,936
Movement in creditors less than one year	112,853	454,569
	2,682,343	5,123,078

24 Analysis of Changes to Net Debt

24 Analysis of Changes to Net	Debt
	2023	Cashflows	Other non-cash changes	2024
	£	£	£	£
Long-term borrowings	(19,334,396)	(6,545,719)	(49,018)	(25,929,133)
Short-term borrowings	(361,035)	(58,110)	13,884	(405,261)
Total Liabilities	(19,695,431)	(6,603,829)	(35,134)	(26,334,394)


Cash and Cash Equivalents	1,254,295	625,839	-	1,880,134
Total net debt	(18,441,136)	(5,977,990)	(35,134)	(24,454,260)