Registered No: IP000173 Grove Community Housing Association Limited Report and Financial Statements For the Year Ended 31 March 2023
Grove Community Housing Association Limited Year Ended 31 March 2023 Contents page Page Board of Management and Advisers Report of the Board of Management Independent Auditor's Report Statement of Comprehensive Income Statement of Changes in Equity io statement of Financial Position statement of Cashflows 12 Notes to the financial statements 13-25
Grove Community Housing Association Limited Year Ended 31 March 2023 Board of Management and Advisers Board of Management Mr B Dunn Mr J Chapman Ms A Johnston Mr E Hunt Mr E Holmes Ms C Mullan Mr RV Chestnutt Mr R Arbuthnot Mr B Mccarron Chair Vice Chair Resigned 20th September 2022 Resigned 27th February 2023 Chief Executive and Secretary Ms A Crawford Registered office 171 York Road, Belfast, BT15 3HB Registered number Registered under the Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 and Financial Conduct Authority, IP000173 Registered as a housing association with the Department for Communities (Northern Ireland), Registered Number R14 Registered as a charity with the Charity Commission for Northern Ireland, NIC 104573. statutory Auditors ASM (B) Ltd Glendinning House 6 Murray Street Belfast, BTI 6DN Bankers Ulster Bank Limited 202-206 York Street Belfast, BT15 IHY Bank of Ireland 31 University Road Belfast, BT7 INH Solicitors Edwards & Co. Solicitors 28 Hill Street Belfast, BTI 2LA Quigg Golden Limited 18 Hill Street Belfast, BTI 2LA Accountants Connon Associates Ltd 40 Liminary Road Ballymena, BT42 3HN
Grove Community Housing Association Limited Year Ended 31 March 2023 Report of the Board of Management for the year ended 31 March 2023 The Board present their report together with the financial statements for the year ended 31 March 2023. Principal activities The Association is a registered non-profit making housing association providing housing accommodation for those in need. Financial results The surplus for the year was £208,155 compared to a surplus of £244,866 for the previous year. Board of Management The Board of Management meets regularly throughout the year. Going Concern The Board has assessed its Forecasts under various scenarios, including a significant increase in inflation, energy and staffing costs, on its operating results and financial position and have a reasonable expectation that the Association has adequate resources to continue in operational existence for the foreseeable future. For this reason, they continue to adopt the going concern basis in preparing the financial statements, Value for Money The Association is committed to delivering Value for Money (Vfm) by continuous performance improvement. This is a key principle of the Association's business plan which aims to deliver Vfm under its business objectives and Department for Communities (Dfc) standards of Finance, Governance and Consumer. Achieving a balance of progress against the specific targets within our Strategic Plan and Business plan will ensure we remain true to our core mission and values and we believe, ensure success. We continue to benchmark our services against our peers and other relevant measures, mainly from the NI Federation of Housing Associations (NIFHA) and Dfc, to prioritise areas for focus. The Association considers Vfm in terms of the maximum outcome5 for the minimum cost of service provision. The Association therefore strives to provide quality homes at reasonable cost. In 2022-23 the annual rent increase was 40/0. The service charges were also reviewed to ensure all eligible costs were included and we strived to ensure the servicing contracts provided good value for money. The Association has always benefited from volunteerism, with many of our Committee members and shareholders undertaking tasks on behalf of the Association, such as actively participating in the provision of tenant participation activities, including social events, community garden activities and joint initiatives with others for those in food poverty. This type of practical contribution enables us to deliver high value, meaningful services while enabling the Association to keep costs to a minimum. The Association attivities that contribute to Vfm include.. Key performance indicators which encourage efficient and effective services and behavlours;
Grove Community Housing Association Limited Year Ended 31 March 2023 Continual review of services and suppliers and Investment in technology to enable procedures to be streamlined and improve compliance; Delivering maximum value to the customer while mlnimising costs; Working effectively and efficiently while maintaining and improving the service to our customers by making the best use of resources; Effective procurement of services including use of joint procurement with other Houslng Associations to provide very competitive maintenance costs; Tenant satisfactlon surveys and engagement to assess quality of services provided from an end user perspertive, thereby understanding their definition of value, and focusing on and doing the right things. and Ongoing investment in our properties, ensuring high standard accommodation and efficient, comfortable homes. Understanding Vfm is as essential as managing and demonstrating it. The Association's Board leads the approach to value for money by setting the strategic vision and mission. The Association is also focused and determined to secure Vfm into the future. We will continue to review opportunities for Vfm in 2023-24, coupled with ongoing benchmarking within the sector. Regulation The Association's principal regulator is the Department for Communities (Dfc). The Association complies with Dfc's Regulatory Standards. In April 2017 a new Regulatory Framework was introduced for the regulation of Registered Housing Association in Northern Ireland (RHAS). Under this approach, RHAS are assessed annually against 3 standards namely: Governance, Finance and Consumer, This has concluded that the overall engagement opinion and regulatory judgement rating for Grove Community Housing Association is l. It has assessed all three of the standards namely, Governance, Consumer and Finance as 'MET'. The Association will be reassessed following submission of the annual regulatory return at the end of September 2023. The Association continues to adopt a risk based approached in identifying and managing risk with a focus on outcomes rather than compliance. We prioritise the management and use of our resources and acknowledge our responsibility to stakeholders, particularly tenants and wider community, Internal controls The Board of Management is responsible for the Association's systems of internal financial control and, along with senior management, is responsible for establishing and operating detailed control and reporting procedures. The systems of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement and loss. The Board of Management have reviewed the effectiveness of the Association's system of internal financial control. The review included consideration of the business risks facing the Association and of the existing internal financial control procedures. The key elements of the control system In operation are: The Board has adopted a formal schedule of matters reserved for its approval ensuring it maintains responsibility for overall strategy, approval of all property transactions and other major capital expenditure projects; There is an organisational structure with clearly defined lines of responsibility and delegation of authority;
Grove Community Housing Association Limited Year Ended 31 March 2023 Detailed budgets are prepared covering the Association's businesses which are reviewed and approved by the Board. Actual results are compared against budget and appropriate action identlfied and initiated. and The Board review matters relating to internal control and receives reports on a regular basis from the external and internal auditors and from senior management. Statement of the responsibilities of the Board of Management The Board of Management is responsible for preparing the Board of Management's Report and the financial statements in accordance with applicable laws and regulations. The Board of Management is required by law to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the Association and of its surplus or deficit for that period. In preparing these financial statements, the Board of Management are required to: select suitable accounting policies and then apply them consistently. make judgments and accounting estimates that are reasonable and prudent; state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements. prepare the financial statements on the going concern basis unless it 15 inappropriate to presume that the Association will continue in operation. The Board of Management are responsible for keeping adequate accounting records that disclose with reasonable accuracy at any time the financial position of the Association and enable them to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act (Northern Ireland) 2016, (formerly the Industrial and Provident Societies Act (Northern Ireland) 1969). They are also responsible for safeguarding the assets of the Association and for taking reasonable steps for the prevention and detection of fraud and other irregularities. statement of disclosure to auditors So far as each of the members of the Board of Management are aware at the date of approval of these financial statements: there is no relevant audit information of which the Association's auditors are unaware, and they have taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the Association's auditors are aware of that information. Auditors A resolution to reappoint ASM (B) Ltd will be proposed at the Annual General Meeting. On behalf of the Board of Management Mr B Dunn (Chair) Mr E Hunt (Board Member) Date: 19th September 2023
Grove Community Housing Association Limited Year Ended 31 March 2023 Independent Auditor's Report Opinion We have audited the financial statements of Grove Community Housing Association Limited for the year ended 31 March 2023 which comprises the statement of comprehensive income, the statement of changes in reserves, the statement of financial position, the 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 their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) and the Housing SORP Statement of Recommended Practice for social housing providers issued by the National Housing Federation. In our opinion the financial statements: give a true and fair view of the state of the Association's affairs as at 31 March 2023 and of its surplus for the year then ended; have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been properly prepared in accordance with the requirements of the Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 (formerly the Industrial and Provident Societies Act (Northern Ireland) 1969). Basis of opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provlde a basis for our opinion. Conclusions relating to going concern We have nothing to report in respett of the following matters in relation to which the ISAS (UK) require us to report to you where: the Board of Management's use of the going concern basis of accounting In the preparation of the financial statements is not appropriate; or the Board of Management have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Association's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Grove Community Housing Association Limited Year Ended 31 March 2023 Independent Auditor's Report (cont'd) other information The other informatlon comprises the informatlon included in the Report of the Board of Management other than the financial statements and our auditor's report thereon. The Board of Management is 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 audlt of the financial statements, our responsibility is to read the other information and, in so doing, consider whetherthe 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 or apparent material misstatements, 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. Opinion on other matters prescribed by the Companies Act In our opinion, based on the work undertaken in the course of the audit: the information given in the Report of the Board of Management for the financial year for which the financial statements are prepared is consistent with the financial statements. and the Report of the Board of Management has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the Association and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Board of Management. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or the financial statements are not in agreement with the accounting records and returns; or we have not received all the information and explanations we require for our audit. Responsibilities of the Board of Management As explained more fully in the Board of Management responsibilities statement the Board of Management is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board of Management determine is necessary to enable the preparation of financial statements that are free from material mi55tatement, whether due to fraud or error.
Grove Community Housing Association Limited Year Ended 31 March 2023 Independent Auditor's Report (cont'd) In preparing the financial statements, the Board of Management is responsible for assessing the Association's ability to continue as a going concern, dlsclosing, as applicable, matters related to going concern and uslng the going concern basis of accounting, unless the Board of Management either intend to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objettives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following area: posting of unusual journals along with complex transactions. We discussed this risk with client management, tested a sample of journals to confirm they were appropriate and reviewed areas of judgement for indicators of management bias. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.or auditorsres onsibilities. This description forms part of our auditors, report. Use of our report This report is made solely to the Board of Management, in accordance with the Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 (formerly the Industrial and Provident Societies Att (Northern Ireland) 1969). Our audit work has been undertaken so that we might state to the Board of Management those matters that we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Association and the Board of Management, for our audit work, for this report, or for the opinion we have formed.
Grove Community Housing Association Limited Year Ended 31 March 2023 B Clerkln (Senior Statutory Auditor) for and on behalf of ASM (B) Ltd Statutory Auditor Glendinning House 6 M urray Street Belfast BTI 6DN 19th September 2023
Grove Community Housing Association Limited Year Ended 31 March 2023 statement of Comprehensive Income For the year ended 31 March 2023 Notes 2023 2022 Turnover 1,367,343 1,348,927 Operating costs (1,071,374) (1,010,635) Operating surplus 295,969 338,292 Gain / (Loss) on disposal of fixed assets 226,769 (16,344) Transfer to disposal proceeds fund 15 (250,976) other income 3a 475 Interest and financing income 6,683 181 Interest and financing costs (70,290) (77,738) Surplus for the year 208,155 244,866 other comprehensive income Actuarial gain in respect of pension scheme 18 278,000 181,000 Total comprehensive income for the year 486,155 425,866 The results relate wholly to continuing activities. The notes on pages 13 to 25 form part of these financial statements.
Grove Communlty Housing Assodatlon Llmite Year Ended 31 March 2023 Statement of Changes in Equity For the year ended 31 March 2023 2023 Share Capital 2023 Capital reserve 2023 Revenue reserve 2023 2022 Total Total Balance at l April Surplus for the year Remeasurement or the net defined benefit plan Movement in share capital Balance at 31 March 16 122 3,682.287 208.155 278,000 3.682,425 208,155 278,000 3,256,549 244,866 181.000 io 181 130 4 168 442 4 168 580 3 682 425 The notes on page5 13 to 25 form part of these financlal statements. io
Grove Community Housing Association Limited Year Ended 31 March 2023 statement of Financial Position As at 31 March 2023 Notes 2023 2022 Fixed assets Housing properties Other tangible fixed assets 11,911,346 557.442 12,468,788 12,030,368 558,048 12,588,416 li Current assets Trade and other debtors Cash and cash equivalents 12 109,174 1,321,853 1,431,027 102,203 1,405,642 1,507,845 Less: Creditors: amounts falling due within one year Net current assets Total assets less current liabilities 13 543,774 523,382 887,253 13,356,041 984,463 13,572,879 Creditors.. amounts falling due after more than one year 13 9,201,461 9,682,454 Pension fund (asset) / liability Total net assets 18 (14,000) 4,168,580 208,000 3,682,425 Reserves Share capital Revenue reserve Capital reserve Total reserves 19 20 21 16 3,682,287 122 4,168,442 130 4,168,580 3,682,425 These financial statements were approved by the Board of Management and authorised for issue on 19th September 2023 and are signed on its behalf by: Mr B Dunn Direttor (Chair) Mr E Hunt Direttor Ms A Crawford Secretary The notes on pages 13 to 25 form part of these financial statements. Registered No., IP000173
Grove Community Housing Association Limited Year Ended 31 March 2023 Statement of Cash Flows For the year ended 31 March 2023 2023 2022 Notes Cash flow from operating activities Surplus for the year Adjustments for non-cash items: Depreciation of tangible fixed assets Amortisation of HAG Decrease / (increase) in trade and other debtor5 Increase / (decrease) in trade and other creditors Pension costs less contributions payable Pension interest payments (Gain) / Loss on fixed asset disposals Transfer to disposal proceeds fund Adjustments for investing or financing activities: Interest payable Interest received 208,155 244,866 9,11 14 233,081 (244,369) (6,971) (45,165) 51,000 5,000 (226,769) 250,976 264,508 (256,585) (27,593) 121,322 57,000 7,000 16,128 12 13 18 18 15 65,290 (6,683) 283,545 70,738 {181) 497,203 Net cash generated from operating activities Cash flow from investing activities Purchase of tangible fixed assets Proceeds from sale of tangible fixed asset5 Grants received Interest received Net cash generated from / (used in) investing activities 9,11 (325,186) 360,000 89,651 6,683 131,148 (259,335) 181 (259,154) Cash flow from financing activities Interest paid Repayment5 of borrowings Share capital issued Net cash used in financing activities (65,290) (433,192) (70,738) (396,090) io 19 (498,482) (466,818) Net change in cash and cash equivalents Cash and cash equivalents at beginning of the year Cash and cash equivalents at end of the year (83,789) 1,405,642 1,321,853 (228,769) 1,634,411 1,405,642 The notes on pages 13 to 25 form part of these financial statements. 12
Grove Community Housing Association Limited Year Ended 31 March 2023 Notes to the financial statements l. Legal status Grove Community Housing Association Limited is a housing association registered in Northern Ireland in the United Kingdom under the Credit Unions and Co-operative and Community Benefit Societies (Northern Ireland) Act 2016 (formerly known as the Industrial and Provident Societies Att (Northern Ireland) 1969}. The registered offlce of the Association is 171 York Road, Belfast, BT15 3HB. 2. Accounting Policies 2.1 Basis of accounting These financial statements have been prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland, and the Statement of Recommended Practice for Registered Social Housing Providers. The financial statements are presented in Sterling (£), which is the functional currency of the Association. 2.2 Revenue recognition Revenue is recognised when the Association has entitlement to the funds and it is probable that the income will be received and the amount is reliably measured. Turnover includes rental income, service charge income receivable net of voids and release of capital grant and is recognised in the period to which it relates. 2.3 Government and other grants Housing Association Grant (HAG) is receivable from the Northern Ireland Housing Executive (NIHE) and 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 below, HAG released on sale of a property may be repayable but is normally available to be recycled and is credited to the Disposal Proceeds Fund and included in the Statement of Fi nancial Posltion within Creditors, HAG due Is included as a current asset. HAG received in advance is included as a current liability. HAG received in respect of revenue expenditure is credited to the income and expenditure account in the same period as the expenditure to which it relates. 13
Grove Community Housing Association Limited Year Ended 31 March 2023 2.4 Tangible fixed assets Housing properties Housing stock are properties held for the provision of social housing or to otherwise provide social benefit and are accounted for within tangible fixed assets. Housing properties are principally available for rent and are stated at cost less accumulated depreciation and any accumulated impairment losses. 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 of Housing properties The Association separately identifies the major components which comprise its housing properties, and charges depreciation, so as to write-down the cost of each component to Its estimated residual value, on a straight line basis, over its estimated useful life. The Association depreciates the major components of its housing properties over the following useful lives: Land structure Kitchen Bathroom Windows and doors Mechanical systems Roof Electrics Boilers Not depreciated 100 years 20 years 30 years 30 years 30 years 60 years 40 years 14 years Depreciation of other tangible fixed assets Tangible fixed assets, except housing properties, are stated at cost less accumulated depreciation. Depreciation is charged on a straight-line basis over the expected useful economic lives of the assets as follows: Office equipment Office premises 4 years 50 years 2.5 Impairment Housing properties are assessed annually for impairment indicators. Where indicators are identified an assessment for impairment is undertaken comparing the asset's carrying amount to its recoverable amount. Where the carrying amount of an asset is deemed to exceed its recoverable amount, the asset is written down to its recoverable amount, this is likely to be the fair value in use of the asset based on its service potential. The resultlng 14
Grove Community Housing Association Limited Year Ended 31 March 2023 impairment loss is recognised as expenditure in income and expenditure. Where an asset is currently deemed not to be providing service potential to the association, its recoverable amount is its fair value less costs to sell. other assets are reviewed for impairment if there is an indication that impairment may have occurred. 2.6 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. 2.7 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. 2.8 Defined Benefits Pension The Association participates in a defined benefit salary pension scheme. The underlying assets and liabilities of the scherne attributable to Grove Housing Association have been identified by actuaries. As a result, the Association recognises the scheme deficit or surplus on the balance sheet at the year end. Actuarial gains and losses are included in the Statement of recognised gains and losses. Current and past service costs, curtailments and 5ettlernents are recognised within operating surplus. Returns on scheme assets and interest on obligations are recognised as other finance costs. 2.9 Taxation The Association is accepted as a charity by the HMRC. Income and capital gains of the Association are generally exempt from tax if applied for charitable purposes. The Association is not registered for VAT. All of its income, including rental receipts, is exempt for VAT purposes. 2.10 Financial instruments The Association only has financial assets and financial liabilities of a kind that qualify as basic financial instruments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 2.10 Judgements in applying accounting policies and key sources of estimation uncertainty No judgments have been made in the process of applying the above accounting policies (apart from those involving estimates). There were no key assumptions made conceming the future and other key sources of estimation uncertainty at the reporting date that have 15
Grove Community Housing Association Limited Year Ended 31 March 2023 a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. 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. 2.11 Going concern After making appropriate enquires, the Board of Management has a reasonable expectation that the Association has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in the financial statements. Turnover, Operating costs and operating surplus 2023 2022 Operating Surplus/ {deficit) Operating Surplus/ (deficit) Turnover Operating Costs Social Housing Activities (Note 4) Non-social Housing Activities 1,367,343 1,071,374 295,969 338,292 1,367,343 1,071,374 295,969 338,292 3a. Other Income 2023 2022 Miscellaneous Covid19 Community Support Fund 473 475 16
Grove Community Housing Association Limited Year Ended 31 March 2023 Turnover, operating costs and operating surplus from social housing activities 2023 Total 2022 Total Income Rent Receivable Service Charges Receivable Rates Receivable Income from HAG Less: Voids Total Social Housing Income 1,021,207 8,993 108,591 244,369 1,006,267 7,039 109,477 256,585 1 367 343 1 348 927 Operating Costs Service Costs Management costs Rates Payable Maintenance Administration costs Planned & Cyclical Maintenance Reactive Maintenance Clerk of works Change of tenancy repairs Bad debts written off Depreciation of Housing Properties Other Depreciation Profit on disposal of fixed asset components and HAG Total Social Housing Expenditure 9,799 404,054 110,691 197,620 22,600 63,542 987 29,191 (191) 215,824 17,257 10,023 319,149 109,120 155,449 59,188 63,024 29,698 692 224,883 39,625 216 1 010 635 1 071 374 Operating surplus on social housing 295,969 338,292 Dfc Allowances 2023 2022 Management allowances Management costs Deficit 85,503 (404,054) (318,551) 86,295 (319,149) (232,854) Maintenance allowances Planned and cyclical maintenance Reactive maintenance Surplus/ (deficit) 118,940 (22,600) (63,542) 32,798 119,868 (59,188) (63,024) (2,344) Technical & Non-Technical Income 2023 2022 Technical Non-Technical Total 713,105 425,686 1,138,791 698,242 424,541 1,122,783 17
Grove Community Housing Association Limited Year Ended 31 March 2023 Surplus on ordinary activities Surplus on ordinary attivities Is stated after charging/(crediting): 2023 2022 Depreciation owned tangible fixed assets Amortisation of grant Auditor's remuneration External audit of these financial statements Interna l audit 233,081 244,369 264,508 256,585 9,000 12,920 6,600 7,408 Interest payable 2023 2022 Bank charges Loan Interest Pension Interest charges 932 64,358 831 69,907 70,290 77,738 Employee information Average weekly number of employees during the financial year expressed as full-time equivalents is as follows.. 2023 No. 2022 No. Office Staff costs 2023 2022 Wages and salaries Social security costs Pension costs Pension service non-cash cost 266,344 22,575 43,314 51,000 383,233 192,798 13,994 28,749 57,000 292,541 18
Grove Community Housing Association Limited 'Year Ended 31 March 2023 The aggregate remuneration, including benefits in kind and pension contributions, of key management personnel of the Association during the year was: 2023 2022 Salary Pension contributions Aggregate remuneration 65,339 12,680 78,019 62,420 12,111 74,531 *Remuneration 2022 includes a pay increase backdated to the previous financial year. The number of management personnel to whom emoluments (excluding employer pension contributions) were paid during the year falls wlthin each of the following bands: 2023 2022 65,000 - 70,000 60,000 65,000 55,000 60,000 Board of Management remuneration There was no remuneration paid to the board members of the Associatlon (2022: £nil). Board member5 were paid out of pocket expenses totalling £559 (2022: £288). Tangible fixed assets Housing properties Cost or valuation At l April 2022 Additions Disposals At 31 March 2023 16,512,736 308,535 367 008 16 454 263 Depreciation At l April 2022 Charge for the year Eliminated on disposal At 31 March 2023 4,482,368 215,824 155 275 4 542 917 Net book value At 31 March 2023 At 31 March 2022 11,911,346 12,030,368 2023 2022 Net book value comprises Completed schemes Properties under construction 11,284,902 626,444 11,911,346 11,492,070 538,298 12,030,368 19
Grove Community Housing Association Limited Year Ended 31 March 2023 10. Housing Stock Number of units owned and managed at year end Self-contained 2023 Properties 215 2022 Properties 217 General Needs Housing Supported Housing Sheltered Housing 215 217 Number of units managed (but not owned) at year end Self-contained 2023 Properties 2022 Properties General Needs Housing Supported Housing Sheltered Housing Total Units Owned and Managed at year end 215 217 11. Other tangible fixed assets Office premises Office equipment Garden Total Cost or valuation At l April 2022 Additions Disposals At 31 March 2023 755,618 103,503 16,651 65,380 924,501 16,651 755,618 120,154 65,380 941,152 Depreciation At l April 2022 Charge for the year Eliminated on disposal At 31 March 2023 263,546 15,112 102,907 2,145 366,453 17,257 278,658 105,052 383,710 Net book value At 31 March 2023 At 31 March 2022 476,960 492,072 15,102 596 65,380 65,380 557,442 558,048 20
Grove Community Housing Association Limited Year Ended 31 March 2023 12. Debtors 2023 2022 Gross rental debtors Technical Gross rental debtors Non-Technical Provision for bad debt Net rental debtors Prepayments and accrued income Other debtors 17,125 31,658 (3,856) 44,927 42,540 21,707 109,174 30,393 14,643 (4,200) 40,836 33,644 27,723 102,203 13. Creditors Amounts fallin due within I ear 2023 2022 Loans (see analysis below) Deferred Housing Association Grant (note 14) Disposal Proceeds Fund (note 15) Accruals and deferred income Rent and service charges received in advance Trade creditors Other taxes and social security Other creditors 111,626 222,254 11,890 71,487 12,912 99,268 8,722 5,615 543,774 135,691 240,273 117,317 9,953 10,650 5,794 3,704 523,382 Amounts fallin due after more than I ear 2023 2022 Loans (see analysis below) Deferred Housing Association Grant (note 14) Disposal Proceeds Fund (note 15) 917,106 7,946,648 337,707 9,201,461 1,326,233 8,257,600 98,621 9,682,454 Loans Loans are secured on individual assets of the Association and are repayable in instalments as follows.. 2023 2022 within one year Between one and two years Between two and five years In five years or more 111,626 111,309 333,927 471,870 1,028,732 135,692 135,692 407,076 783,464 1,461,924 21
Grove Community Housing Association Limited Year Ended 31 March 2023 14. Deferred grant 2023 At l April Grant recelved in the year Released to income in the year Eliminated on house and component disposals At 31 March 8,497,873 89,651 (244,369) (174,253) 8,168,902 Deferred grant is Housing Association Grant (HAG) originally received less accumulated amortisation. 15. Disposal Proceeds Fund 2023 At l April House sales Expenditure At 31 March 98,621 336,911 (85,935) 349,597 The surplus on the disposal proceeds fund must be used within two years of the sale of the property. 16. Capital commitments 2023 2022 Capital expenditure Contracted for but not provided in the Financial Statements 61,341 The Association anticipates that this expenditure will be funded by Housing Association Grant from the Department for Communities and by external private finance. 17. Contingent Liabilities The Association released Housing Associatlon Grant during the year in relation to building components replaced. The possibility of reimbursement to the Department for Communitles is considered to be unlikely as the housing properties are expected to continue to be made available for social housing for the foreseeable future. 22
Grove Community Housing Association Limited Year Ended 31 March 2023 18. Pension commitments The Association contributes to the Northern Ireland Local Government OlcerS Superannuation Scheme (NILGOSC). This is a defined benefit scheme and the benefits currently provided are on a Career Average Revaluation Earnings ('CARE') basis, based on an accrual rate of 1149. Death in service benefits include three times pensionable salary, and spouse pension paid to a qualifying spouse. The valuation used for the disclosures has been based on the most recent attuarial valuation at 31 March 2022 by a qualified independent actuary in order to assess the liabilities of the scheme using the Projected Unit Method. A full actuarial valuation is carried out every three years, Pension scheme assets were stated at their estimated market value at 31 March 2023. At 31st March 2023, the pension valuation prepared independently by Aon reports a net pension asset of £14,000. Reconciliation of funded status to balance sheet 2023 2022 Fair va lue of assets Present value of funded defined benefit obligation Funded status Unrecognised asset Asset / (Liability) recognised on the balance sheet 1,208,000 (1,194,000) 14,000 1,430,000 (1,638,000) (208,000) 14,000 (208,000) Changes to the fair value of assets 2023 2022 At l April Interest income on assets Re-measurement gains / (losses) on assets Contributions by employer Contributions by participants Net benefits paid out At 31 March 1,430,000 39,000 (279,000) 44,000 15,000 (41,000) 1,208,000 1,342,000 28,000 71,000 28,000 9,000 (48,000) 1,430,000 Changes to the present value of defined benefits obligations 2023 2022 At l April Current service cost Interest expense on defined benefit obligation Contributions by participants Actuarlal (gains) 1105ses on liabilities Net benefits paid out At 31 March 1,638,000 95,000 44,000 15,000 (557,000) (41,000) 1,194,000 1,667,000 85,000 35,000 9,000 (iio,000) (48,000) 1,638,000 23
Grove Community Housing Association Limited Year Ended 31 March 2023 Amounts recognised in the income statement 2023 2022 Operatlng costs.. current service cost Financing cost.. Interest Income on assets Interest expense on net defined benefit obligation Total expense recognised in income statement 95,000 (39,000) 44,000 loo,000 85,000 {28,000) 35,000 92,000 Amounts recognised in other comprehensive income 2023 2022 Asset gains / (losses) arising during the period Llability gains / (losses) arising during the period Total amount recognised in other comprehensive income (279,000) 557,000 278,000 71,000 iio,000 181,000 The principal actuari31 assumptions used by the actua ry at the year-end were as follows.. Key assumptions 2023 0/0 p.a. 2022 Discount rate CPI inflation Pension increases Pension accounts revaluation rate Salary increases 2.70 % 3.000/0 2.700/0 3.000/0 4.500/0 4.200/0 The main assumptions relating to member longevity at the balance sheet date are as follows.. Mortality assumptions 2023 2022 Years Years Male pensioner member aged 65 at accounting date Male active member aged 45 at accounting date Female pensioner member aged 65 at accounting date Female active member aged 45 at accounting date 22.2 23.2 25.0 26.0 21.8 23.2 25.0 26.4 Asset Allocation Value at 31 March 2023 0/0 £M 0.499 0.127 0.248 0.033 0.158 0.071 0.072 1.208 Value at 31 March 2022 0/0 £M 0.615 0.143 0.353 0.031 0.187 0.057 0.044 1.430 uities Pro ert Government bonds Cor orate bonds Multi Asset Credit Cash Other Total 20.50/0 2.7010 13.10/0 5.90/0 24.70/ 2.20/0 13.1% 4.00/0 iOO.OO/o 100.oo/o 24
Grove Community Housing Association Limited Year Ended 31 March 2023 19. Share capital Ordinary shares of £1 each fully paid.. 2023 2022 At l April Issued in the year Transferred to capital reserves 31 March 16 15 io (9) 16 (8) 20. Revenue reserves 2023 2022 At l April Surplus for the year Actuarial gain / (loss) for the year At 31 March 3,682,287 208,155 278,000 4,168,442 3,256,421 244,866 181,000 3,682,287 21. Capital reserves 2023 2022 At l April Transferred from share capital At 31 March 122 113 130 122 25