Registered No: IP000173 Grove Community Housing Association Limited Report and Financial Statements For the Year Ended 31 March 2024
Grove Community Housing Association Limited Year Ended 31 March 2024 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 10 Statement of Financial Position li statement of Cashflows 12 Notes to the financial statements
Grove Community Housing Association Limited Year Ended 31 March 2024 Board of Management and Advisers Board of Management Mr B Dunn (Chair) Mr J Chapman (Vice Chair) Mr E Hunt Mr E Holmes Mr RV Chestnutt (Vice Chair) Mr R Arbuthnot Mr B Mccarron Mr D Ward Mr J Peel (Treasurer) Mr J Cochrane Mr M Wilkins Ms S Smyth Mr C McGivern st Resigned l August 2024 Resigned 1st May 2024 th Resigned 19 September 2023 th Appointed 19 September 2023 th Appointed 19 September 2023 th Appointed 19 September 2023 th Appointed 19 September 2023 th Appointed 19 September 2023 th Appointed 19 September 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 Sumer Auditco NI Limited 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 2024 Report of the Board of Management for the year ended 31 March 2024 The Board present their report together with the financial statements for the year ended 31 March 2024. 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 £259,390 compared to a surplus of £208,155 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 resu Its and fi nancial 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 outcomes for the minimum cost of service provision. The Association therefore strives to provide quality homes at reasonable C05t. In 2023-24 the annual rent increase was 7010. 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 artivities that contribute to Vfm include., Key performance indicators which encourage efficient and effective services and behaviours;
Grove Community Housing Association Limited Year Ended 31 March 2024 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 minimising 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 Housing Associations to provide very competitive maintenance costs. Tenant satisfaction surveys and engagement to assess quality of Services provided from an end user perspective, 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 2024-25, 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, RHA5 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 fol lowing submission of the annual regulatory return at the end of September 2024. 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 reasor>able, 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 strategyi 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 CommunÈty Housing Association Limited Year Ended 31 March 2024 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 identified 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 is 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 detettion 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 In July 2024, our previous external auditors, ASM (B) Ltd, transferred all their external audit contracts to Sumer Auditco NI mIted. The Board has agreed to a new external audit contract with Sumer Auditco NI Limited. A resolution to reappoint Sumer Auditco NI Limited will be proposed at the Annual General Meeting. On behalf of the Board of Management Mr B Dunn (Chair) Mr J Peel (Treasurer) th Date.. 24 September 2024
Grove Community Housing Association Limited Year Ended 31 March 2024 Independent Auditor's Report Opinion We have audited the financial statements of Grove Community Housing Association Limited for the year ended 31 March 2024 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 2024 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 condutted 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 provide a basis for our opinion. Conclusions relating to going concern In auditing the financial statements, we have concluded that the directors, use of the going concern basis of accounting in the preparation of the financial statements is appropriate. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Association's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the Board of Management with respect to going concern are described in the relevant sections of this report.
Grove Community Housing Association Limited Year Ended 31 March 2024 Independent Auditor's Report (cont'd) Other information The other information comprises the information 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, Our responsibility is to read the other information and, In so doing, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies 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. We have nothing to report in this regard. Matters on which we are required to report by exception In light of our knowledge and understanding of the Association 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 where the Charities (Northern Ireland) Act 2008 and Regulation 9 of the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 require us to report to you if, in our opinion: the information given in the Report of the Board of Management is inconsistent in any material respect. sufficient accounting records have not been kept. the financial statements are not in agreement with the accounting records. or we have not received all the information and explanations required to complete our audit, We have nothing to report in thi5 regard. Under the Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 (formerly the Industrial and Provident Societies Act (Northern Ireland) 1969) are required to report to you if, in our opinion.. a satisfactory system of control over transactions has not been maintained; or we have not received all the information and explanations we require for our audit. or proper accounting records have not been kept by the Association,. or the Association's financial statements are not in agreement with the accounting records. We have nothing to report in this regard.
Grove Community Housing Association Limited Year Ended 31 March 2024 Responsibilities of the Board of Management As explained more fully in the Board of Management's Statement of Responsibilities on page 4, 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 misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Management is responsible for assessing the Association's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Board of Management either intend to cease operations, or have no realistic alternative but to do so. Auditors. responsibilities for the audit of the financial statements Our objectives 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 i rregularities, i nclud ing fraud is detailed below,. We considered the opportunities and incentives that may exist within the organisation for fraud and identified the g reatest potential for fraud in the fol lowi ng area,. posting of unusual journals along with complex transactions, We discussed this risk with client mar)agement, 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 .uk auditorsre ies. 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 Act (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 2024 Amanda Mcmaw (Senior Statutory Auditor) for and on behalf of Sumer Auditco NI Limited statutory Auditors Glendinning House 6 Murray Street Belfast BTI 6DN th 24 September 2024
Grove Community Housing Association Limited Year Ended 31 March 2024 statement of Comprehensive Income For the year ended 31 March 2024 Notes 2024 2023 Turnover 1,427,345 1,367,343 Operating costs { 1,129,380) (1,071,374) Operating surplus 297,965 295,969 Gain / (loss) on disposal of fixed assets (6,869) 226,769 Transfer from / (to) disposal proceeds fund 15 5,017 (250,976) Interest and financing income 15,932 6,683 Interest and financing costs (52,655) (70,290) Surplus for the year 259,390 208, 155 other comprehensive income Remeasurement of net defined benefit plan 18 105,000 278,000 Restriction on pension asset recognition 18 (111,000) Total comprehensive income for the year 253,390 486,155 The resu Its relate wholly to continui ng activities. The notes on pages 13 to 26 form part of these financial statements.
Grove Communlty Houslng As50Clation Limited Year Ended 31 March 2024 Statement of Changes in Equity For the year ended 31 March 2024 2024 Share Capltal 2024 Capital reserve 2024 2024 2023 Revenue reserve Total Total Balance at l April Surplus for the year Remeasuremellt of the net define(J beneflt plan Restriction on penslon asset recognition Movement In share capital Balance at 31 March 130 4,168,442 259,390 259,390 105,000 105,000 {1 i 1,0001 (i 11,000) 4,168,580 3,682,425 208,155 278.000 14 130 4,421,832 4,421,976 4,168,580 The notes on page5 13 to 26 form part of these financial staternents. io
Grove Community Housing Association Limited Year Ended 31 March 2024 Statement of Financial Position As at 31 March 2024 Notes 2024 2023 Fixed assets Housing properties other tangible fixed assets 12,237,630 539,858 12,777,488 11,911,346 557,442 12,468,788 Current assets Trade and other debtors Cash and cash equivalents 12 88,342 943,031 1,031,373 109,174 1,321,853 1,431,027 Less.. Creditors.. amounts falling due within one year Net current assets Total assets less current liabilities 13 850,277 543,774 181,096 12,958,584 887,253 13,356,041 Creditors.. amounts falling due after more than one year 13 8,536,608 9,201,461 Pension fund asset Total net assets 18 (14,000) 4,168,580 4,421,976 Reserves Share capital Revenue reserve Capital reserve Total reserves 19 20 21 14 4,421,832 130 4,421,976 4,168,442 130 4,168,580 These financial statements were approved by the Board of Management and authorised for issue on 24 September 2024 and are signed on its behalf by,. Mr B Dunn Director (Chair) Mr J Peel Director (Treasurer) Ms A Crawford Secretary The notes on pages 13 to 26 form part of these financial statements. Registered No., IP000173
Grove Community Housing Association Limited Year Ended 31 March 2024 Statement of Cash Flows For the year ended 31 March 2024 2024 2023 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 debtors Increase l (decrease) in trade a nd other cred itors Pension costs less contributions paya ble Pension interest payments (Gain) / Loss on fixed asset disposals Transfer to disposal proceeds fund Adjustments for investing or financing activities: Interest payable Interest received Net cash generated from operating activities 259,390 208,155 9,11 14 12 13 18 18 243,268 (217,309) 20,832 (18,536) 9,000 (1,000) 6,869 (5,017) 233,081 (244,369) (6,971) (45,165) 51,000 5,000 (226,769) 250,976 15 53,655 (15,932) 335,220 65,290 (6,683) 283,545 Cash flow from investing activities Purchase of tangible fixed assets Proceeds from sale of tangible fixed assets Grants received Interest received Net cash generated from / (used in) investing activities 9,11 (569,890) (325,186) 360,000 89,651 6,683 131,148 14 5,017 15,932 (548,941) Cash flow from financing activities Interest paid Repayments of borrowings Sha re capital issued Net cash used in financing activities (53,655) (111,452) (65,290) (433,192) 13 19 (165,101) (498,482) 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 (378,822) 1,321,853 943,031 (83,789) 1,405,642 1,321,853 The notes on pages 13 to 26 form part of these financial statements.
Grove Community Housing Association Limited Year Ended 31 March 2024 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 Act (Northern Ireland) 1969), The registered office 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 Position 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 2024 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 expetted 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 resulting 14
Grove Community Housing Association Limited Year Ended 31 March 2024 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 scheme 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 settlements 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 instru ments. 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 concerning 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 2024 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 2024 2023 Operating Surplus/ (deficit) Operating Surplus/ (deficrt) Turnover Operating Costs Social Housing Activities (Note 4) 1,427,345 1,427,345 1,129,380 1,129,380 297,965 297,965 295,969 295,969 16
Grove Community Housing Association Limited Year Ended 31 March 2024 Turnover, operating costs and operating surplus from social housing activities 2024 Total 2023 Total Income Rent Receivable Service Charges Receivable Rates Receivable Income from HAG Less: Voids Total Social Housing Income 1,095,170 9,942 116,710 217,309 1,021,207 8,993 108,591 244,369 1,427,345 1,367,343 Operating Costs Service Costs Management costs Rates Payable Maintenance Administration costs Cyclical Maintenance Reactive Maintenance Clerk of works Change of tenancy repairs Bad debts written off Depreciation of Housing Properties other Depreciation Total Social Housing Expenditure 13,468 430,091 116,474 208,883 14,580 73,282 9,799 404,054 110,691 197,620 22,600 63,542 987 29,191 (191) 215,824 17,257 1,071 374 27,319 2,015 223,685 19,583 1 129 380 Operating surplus on social housing 297,965 295,969 Dfc Allowances 2024 2023 Management allowances Management costs Deficit 85,140 (430,091) (344,951) 85,503 (404,054) (318,551) Maintenance allowances Planned and cyclical maintenance Reactive maintenance Surplus 118,515 (14,580) (73,282) 30,653 118,940 (22,600) (63,542) 32,798 Technical & Non-Technical Income 2024 2023 Technical Non-Technical Total 795,220 426,602 1,221,822 713,105 425,686 1,138,791 17
Grove Community Housing Association Limited Year Ended 31 March 2024 Surplus on ordinary activities Surplus on ordinary activities is stated after charging/(crediting): 2024 2023 Depreciation owned tangible fixed assets Amortisation of grant Auditor's remuneration External audit of these financial statements Internal audit 243,268 217,309 233,081 244,369 11,400 8,072 10,800 12,920 Interest payable 2024 2023 Bank charges Loan Interest Pension Interest charges 989 52,666 932 64,358 52,655 70,290 Employee information Average weekly number of employees during the financial year expressed as full-time equivalents is as follows: 2024 No. 2023 No. Office Staff costs 2024 2023 Wages and salaries Social security costs Pension costs Pension service non-cash cost 318,424 27,953 50,651 9,000 406,028 266,344 22,575 43,314 51,000 383,233 18
Grove Community Housing Association Limited Year Ended 31 March 2024 The aggregate remuneration, including benefits in kind and pension contributions, of key management personnel of the Association during the year was: 2024 2023 Salary Pension contributions Aggregate remuneration 68,068 12,851 80,919 65,339 12,680 78,019 The number of management personnel to whom emoluments (excluding employer pension contributions) were paid during the year falls within each of the following bands.. 2024 2023 65,000 - 70,000 Board of Management remuneration There was no remuneration paid to the board members of the Association (2023: £nil). Board members were paid out of pocket expenses totalling £1,792 (2023.. £559). Tangible fixed assets Housing properties Cost or valuation At l April 2023 Additions Disposals At 31 March 2024 16,454,263 567,891 147 982 16 874 172 Depreciation At l April 2023 Charge for the year Eliminated on disposal At 3 1 March 2024 4,542,917 223,685 130 060 4 636 542 Net book value At 31 March 2024 At 31 March 2023 12,237,630 11,911,346 2024 2023 Net book value comprises Completed schemes Properties under construction 11,482,622 755,008 12,237,630 11,284,902 626,444 11,911,346 19
Grove Community Housing Association Limited Year Ended 31 March 2024 10. Housing Stock Number of units owned and managed at year end Self-contained 2024 Properties 215 215 2023 Properties 215 215 General Needs Housing Total Units Owned and Managed at year end 215 215 I i. other tangible fixed assets Office premises Office equipment Garden Total Cost or valuation At l April 2023 Additions Disposals At 31 March 2024 755,618 120,154 1,999 65,380 941,152 1,999 755,618 122,153 65,380 943,151 Depreciation At l April 2023 Charge for the year Eliminated on disposal At 31 March 2024 278,658 15,112 105,052 4,471 383,710 19,583 293,770 109,523 403,293 Net book value At 31 March 2024 At 31 March 2023 461,848 476,960 12,630 15,102 65,380 65,380 539,858 557,442 12. Debtors Restated 2024 2023 Gross rental debtors Technical * Gross rental debtors Non-Technical * Provision for bad debt Net rental debtors Prepayments and accrued income Other debtors 39,538 17,818 (3,431) 53,925 28,879 5,538 88,342 28,007 20,776 (3,856) 44,927 42,540 21,707 109,174 * Gross rental debtors 2023 split between technical and non-technical has been restated. 20
Grove Community Housing Association Limited Year Ended 31 March 2024 13. Creditors Amounts fallin due within I ear 2024 2023 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 114,641 206,571 344,580 149,345 12,615 12,319 7,234 2,972 850,277 111,626 222,254 11,890 71,487 12,912 99,268 8,722 5,615 543,774 Amounts fallin due after more than I ear 2024 2023 Loans (see analysis below) Deferred Housing Association Grant (note 14) Disposal Proceeds Fund (note 15) 802,639 7,733,969 917,106 7,946,648 337,707 9,201,461 8,536,608 Loans Loans are secured on individual assets of the Association and are repayable in instalments as follows: 2024 2023 Within one year Between one and two years Between two and five years In five years or more 114,641 114,324 342,972 345,343 917,280 111,626 111,309 333,927 471,870 1,028,732 21
Grove Community Housing Association Limited Year Ended 31 March 2024 14. Deferred grant 2024 At l April Grant received in the year Released to income in the year Eliminated on component disposals At 31 March 8,168,902 5,017 (217,309) (16,070) 7,940,540 ** Transferred from the Disposal Proceeds Fund (note 15). Deferred grant is Housing Association Grant (HAG) originally received less accumulated amortisation, 15. Disposal Proceeds Fund 2024 At l April House sales Expenditure At 31 March 349,597 (5,017) 344,580 The surplus on the disposal proceeds fund must be used within two years of the sale of the property. 16. Capital commitments 2024 2023 Capital expenditure Contracted for but not provided in the Financial Statements 61,341 17. Contingent Liabilities The Association released Housing Association Grant during the year in relation to building components replaced. The possibility of reimbursement to the Department for Communities 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 2024 18. Pension commitments The Association contributes to the Northern Ireland Local Government Officers Superannuation Scheme (NILGOSC). This is a funded defined benefit plan with benefits earned up to 31 March 2015 being linked to final salary. Benefits after 31 March 2015 are based on a Career Average Revalued Earning scheme. Details of the benefits earned over the period covered by this disclosure are set out in 'The Local Government Pension Scheme Regulations (Northern Ireland) 2014, (as amended) and The Local Government Pension Scheme (Amendment and Transitional Provisions) Regulations (Northern Ireland) 2014, (as amended). The funded nature of the scheme requires participating employers and their employees to pay contributions into the Fund, calculated at a level intended to balance the pension liabilities with investment assets. Information on the framework for calculating contributions to be paid is set out in 'The Local Government Pension Scheme Regulations (Northern Ireland) 2014, and the Fund's Funding Strategy Statement. The last actuarial valuation was at 31 March 2022 and the contributions to be paid until 31 March 2026 resulting from the valuation are set out in the Fund's Rates and Adjustments Certificate. The Committee is responsible for the governance of the Fund. Assets The assets allocated to the Employer in the Fund are notional and are assumed to be invested in line with the investments of the Fund for the purposes of calculating the return over the accounting period. The Fund holds a significant proportion of its assets in liquid investments. As a consequence there will be no significant restriction on realising assets if a large payment is required to be paid from the Fund in relation to an employer's liabilities. The assets are invested in a diversified spread off investments and the approximate split of assets for the Fund as a whole is shown in the disclosures. The Committee may invest a small proportion of the Fund's investments in the assets of some of the employers participating in the Fund if it forms part of their balanced investment strategy. Risks associated with the Fund in relation to accounting l. Asset volatility The liabilities used for accounting purposes are calculated using a discount rate set with reference to corporate bond yields at the accounting date. If assets underperform this yield will create a deficit in the accounts. The Fund holds a significant proportion of growth assets which, while expected to outperform corporate bonds in the long term, creates volatility and risk in the short term in relation to the accounting figures. 2. Changes in Bond Yield A decrease in corporate bond yields will increase the value placed on the liabilities for accounting purposes although this will be marginally offset by the increase in the assets as a result (to the extent the Fund invests in corporate bonds). 3. Inflation Risk The majority of the pension liabilities are linked to either pay or price inflation. Higher inflation expectations will lead to a higher liability value, The assets are not perfectly correlated with inflation meaning that an increase in inflation will increase the deficit. 23
Grove Community Housing Association Limited Year Ended 31 March 2024 4. Life expectancy The majority of the Fund's obligations are to provide benefits for the life of the member following retirement, so increases in life expectancy will result in an increase in the liabilities. 5. Existing employers Employers which leave the Fund (or their guarantor) may have to make an exit payment to meet any shortfall in assets against their pension liabilities. If the Employer (or guarantor) is not able to meet this exit payment the liability may in certain circumstances fall on other employers in the Fund. Further, the assets at exit in respect of 'orphan liabilities, may, in retrospect, not be sufficient to meet the liabilities. This risk may fall on other employers. 'Orphan liabilities, are currently a small proportion of the overall liabilities in the Fund. Professional Qualifications The pension valuation was prepared by an independent qualified actuary. Results under FRS 102 At 31, March 2024 there is a net pension asset before consideration of a surplus restriction under paragraph 28 of FRS 102. The maximum economic benefit which can be recognised in the accounts, referred to as the asset ceiling, has been calculated in accordance with IFRIC 14. As the asset ceiling is less than the net pension asset, the net pension asset has been restricted to the asset ceiling. Reconciliation of funded status to balance sheet 2024 2023 Fair value of assets Present value of funded defined benefit obligation Funded status Unrecognised asset Asset recognised on the balance sheet 1,349,000 1,238,000 i 11,000 iii 000 1,208,000 1 194 000 14,000 14,000 Changes to the fair value of assets 2024 2023 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 1,208,000 57,000 60,000 50,000 19,000 1,430,000 39,000 (279,000) 44,000 15,000 1,349,000 1,208,000 24
Grove Community Housing Association Limited Year Ended 31 March 2024 Changes to the present value of defined benefits obligations 2024 2023 At l April Current service cost Interest expense on defined benefit obligation Contributions by participants Actuarial (gains) / losses on liabilities Net benefits paid out At 31 March 1,194,000 59,000 56,000 19,000 (45,000) 1,638,000 95,000 44,000 15,000 (557,000) 1,238,000 1,194,000 Amounts recognised in the income statement 2024 2023 Operating costs.. current service cost Financing cost.. Interest income on assets Interest expense on net defined benefit obligation Total expense recognised in income statement 59,000 (1,000) 95,000 (39,000) 58,000 loo,000 Amounts recognised in other comprehensive income 2024 2023 Asset gains / (losses) arising during the period Actuarial gains / (losses) due to changes in financial assumptions Actuarial gains l (losses) due to changes in demographic assumptions Actuarial gains / (losses) due to liability experience Adjustment gain l (loss) due to restriction of surplus Total amount recognised in other comprehensive income 60,000 39,000 20,000 (14,000) iii 000 (6,000) (279,000) 552,000 (10,000) 15,000 278,000 The principal actuarlal assumptions used by the actuary at the year-end were a5 follows: Key assumptions 2024 2023 0/0 p.a. 4,700/0 Discount rate CPI inflation Pension increases Pension accounts revaluation rate Sala increases 2.600/0 2.600/0 2,600/0 4.100/0 2.700/0 The main assumptions relating to member longevity at the balance sheet date are as follows: Mortality assumptions 2024 Years 21.7 22.7 24,6 25,6 2023 Years 22.2 23.2 25.0 26.0 Male pensioner member a ed 65 at accountin date Male active member a ed 45 at accountin date Female ensioner member a ed 65 at accounting date Female active member aged 45 at accounting date 25
Grove Community Housing Association Limited Year Ended 31 March 2024 Asset Allocation Value at 31 March 2024 £M 0.537 0.125 0.202 0.062 0.175 0.167 0.081 1.349 Value at 31 March 2023 0/0 £M 41.30/0 0.499 10,50/0 0.127 0.248 0.033 0.158 0.071 0.072 1.208 uities Pro Government bonds Cor orate bonds Multi Asset Credit Cash Other Total 39.70/0 9,30/0 15.00/0 4.60/0 2.70/0 12.40/0 6.00/0 100.OO/o 5.90/0 6.00/0 100.OO/o 19. Share capital Ordinary shares of £1 each fully paid.. 2024 2023 At l April Issued in the year Transferred to capital reserves 31 March 16 (8) 14 20. Revenue reserves 2024 2023 At l April Surplus for the year Remeasurement of net defined benefit plan Restriction on pension asset recognition At 31 March 4, 168,442 259,390 105,000 (iii,000) 4,421,832 3,682,287 208,155 278,000 4,168,442 21. Capital reserves 2024 2023 At l April Transferred from share capital At 31 March 130 122 130 130 22. Related party transactions No transactions with related parties were undertaken such as are required to be disclosed under FRS 8. 26