2023-03-31-accounts - Alpha Housing (NI) Ltd

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Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

Statement of Comprehensive Income

For the year ended 31 March 2023

Notes Turnover 3 Operating costs 3 Operating surplus / (deficit) Gain / (loss) on disposal of fixed assets Interest payable 7 Interest receivable Finance costs Surplus / (deficit) before tax Taxation Surplus / (deficit) after tax Other comprehensive income Unrealised surplus / (deficit) on revaluation of housing properties Total comprehensive income for the year	2023 £ 6,600,858 6,072,461 528,397 - (2,612) 20,476 (49,905) 496,356 - 496,356 - - 496,356	2022 £ 6,143,818 5,463,959
		679,859 1,310 (6,708) 5,510 (50,504)
		629,467 -
		629,467 - 629,467

The notes on pages 22 to 33 form part of these financial statements.

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

Statement of Changes in Equity

For the year ended 31 March 2023

Balance at 1 April 2022 Surplus / (deficit) for the year Other comprehensive income Transfers between reserves Issue of share capital Balance at 31 March 2023	Share Capital Capital reserve Revenue reserve Total £ £ £ £ 20 69 13,480,266 13,480,355 496,356 496,356 - (2) 2 - 4 (4) - 22 67 13,976,622 13,976,711

The notes on pages 22 to 33 form part of these financial statements.

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

Statement of Financial Position

As at 31 March 2023

Notes Fixed assets Housing properties 12 Other tangible fixed assets 14 Current assets Trade and other debtors 15 Cash and cash equivalents Less: Creditors: amounts falling due within one year 16 Net current assets / liabilities Total assets less current liabilities Creditors: amounts falling due after more than one year 16 Total net assets Reserves Share capital 19 Revenue reserve Capital reserve 20 Total reserves	2023 £ 31,937,841 571,541 32,509,382 1,463,252 1,852,649 3,315,901 (2,573,924) 741,977 33,251,359 (19,274,648) 13,976,711 22 13,976,622 67 13,976,711	2022 £ 30,515,760 543,466
		31,059,226
		242,851 3,609,098
		3,851,949
		(2,234,590)
		1,617,359
		32,676,585
		(19,196,230)
		13,480,355
		20 13,480,266 69 13,480,355

These financial statements were approved by the Board of Management and authorised for issue on 21st September 2023 and signed on its behalf by:

Mr John Glass Chairman

Irene Kingston Mr K Dempsey Secretary Vice Chair

The notes on pages 22 to 33 form part of these financial statements.

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

Statement of Cash Flows

For the year ended 31 March 2023

Notes Net cash inflow / outflow from operating activities A Returns on investments and servicing of finance B Capital expenditure and financial investment B Cash inflow / outflow before use of liquid resources and financing Financing B Reconciliation of net cash flow Cash at 1 April 2022 Increase / decrease in cash in period Cash at 31 March 2023		2023 £ 469,949 (32,041) (2,163,514) (1,725,606) (30,843) (1,756,449) 3,609,098 (1,756,449) 1,852,649		2022 £ 1,692,478 (51,702) (2,115,919)
				(475,143)
				(45,443)
				(520,586)
				4,129,684 (520,586) 3,609,098

The notes on pages 22 to 33 form part of these financial statements.

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

Notes to Statement of Cash Flows

For the year ended 31 March 2023

A. Reconciliation of operating surplus / (deficit) to operating cashflows

Operating surplus / deficit Depreciation Amortisation of grant Movements in: Rent arrears Other debtors Creditors Net cash inflow / outflow from operating activities B. Analysis of cash flows for headings netted in the Returns on investment and servicing of finance Interest received Bank charges Net cash inflow / (outflow) for returns on investment and servicing of finance Capital expenditure and financial investment Other fixed assets Housing, land and buildings Capital grant received Proceeds from sale of tangible fixed assets Net cash inflow / (outflow) for capital expenditure and financial investment Financing Loan principal repayments Net cash inflow / (outflow) from financing	2023 £ 2022 £ 528,397 679,859 1,617,738 1,733,628 (843,533) (835,444) (7,388) (6,932) (760,995) 234,420 (64,270) (113,053) 469,949 1,692,478 cash flow statement 2023 £ 2022 £ 20,476 5,510 (52,517) (57,212) (32,041) (51,702) (118,456) - (2,718,983) (2,165,873) 673,925 48,644 - 1,310 2,163,514 (2,115,919 ) 30,843 (45,443) 30,843 (45,443)	2023 £ 2022 £ 528,397 679,859 1,617,738 1,733,628 (843,533) (835,444) (7,388) (6,932) (760,995) 234,420 (64,270) (113,053) 469,949 1,692,478 cash flow statement 2023 £ 2022 £ 20,476 5,510 (52,517) (57,212) (32,041) (51,702) (118,456) - (2,718,983) (2,165,873) 673,925 48,644 - 1,310 2,163,514 (2,115,919 ) 30,843 (45,443) 30,843 (45,443)	2023 £ 2022 £ 528,397 679,859 1,617,738 1,733,628 (843,533) (835,444) (7,388) (6,932) (760,995) 234,420 (64,270) (113,053) 469,949 1,692,478 cash flow statement 2023 £ 2022 £ 20,476 5,510 (52,517) (57,212) (32,041) (51,702) (118,456) - (2,718,983) (2,165,873) 673,925 48,644 - 1,310 2,163,514 (2,115,919 ) 30,843 (45,443) 30,843 (45,443)
			(51,702) - (2,165,873) 48,644 1,310
			(2,115,919 ) (45,443)
			(45,443)

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

Notes to Statement of Cash Flows (cont’d)

For the year ended 31 March 2023

C. Analysis of changes in net funds

Cash in hand and at bank Bank Loans	At 01/04/22 £ 3,609,098 (53,143) 3,555,955	Cashflows £ (1,756,449) (30,843) (1,787,292)	Other Changes £ - - -	At 31/03/23 £ 1,852,649 (22,300)
				1,830,349

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

Notes to the financial statements

1. Legal status

Alpha Housing (Northern Ireland) Ltd is a housing association registered in Northern Ireland in the United Kingdom under the Credit Unions and Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 (formerly known as the Industrial and Provident Societies Act (Northern Ireland) 1969). The registered office of the Association is Alpha House, 6 Edgewater Road, Belfast, BT3 9JQ.

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 (“SORP”) 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 and service charge income, rates receivable and residential charges, net of voids, and release of Social Housing Grants.

Rental income for each rental period (rent week) is recognised in full on the first day of the rent week i.e. when the rent falls due.

2.3 Government and other grants

Social housing grant (SHG) or Housing Association Grant (HAG) is receivable from the Northern Ireland Housing Executive (NIHE) and is recognised in income over the useful life of the housing property structure under the accruals model. SHG or HAG due is included as a current asset. SHG or HAG received in advance is included as a liability.

SHG or 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.

SHG or 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 Financial Position within Creditors.

Alpha Housing (Northern Ireland) Ltd 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, interest charges incurred during the development period.

Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that result in an increase in net rental income over the lives of the properties, thereby enhancing the economic benefits of the assets, are capitalised as improvements.

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 using the following useful lives:

Land	-	Not depreciated
Structure/main fabric	-	60 years
Roof	-	45 years
Bathroom	-	30 years
Mechanical systems	-	30 years
Electrics	-	30 years
Windows and doors	-	25 years
Kitchen	-	20 years
Lifts	-	20 years
Primary heating unit	-	15 years
Fire alarm system	-	15 years
Warden call system	-	10 years

Depreciation of other tangible fixed assets

For other tangible fixed assets, depreciation is charged on a straight-line basis over the expected useful lives of the assets to write off the cost, less estimated residual values over the following expected lives:

Leasehold building	-	60 years
Scheme furniture and equipment	-	Between 3 and 5 years
Motor vehicles	-	4 years
Office furniture and equipment	-	Between 4 and 10 years

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

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 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 Employee benefits

Defined Contribution Pension

The Association operates a defined contribution scheme for certain employees. A defined contribution plan is a pension plan under which the Association pays fixed contributions into a separate entity. Once the contributions have been paid the Association has no further payment obligations.

The contributions are recognised as an expense when they are due. Amounts not paid are included as accruals in the Statement of Financial Position. The assets of the plan are held separately from the Association in independently administered funds.

2.7 Tenants’ Services Fund

For certain schemes the Association is required to charge to the tenants an additional amount to fund the cost of common facilities. Annual surpluses or deficits are transferred to the Tenants’ Services Fund to equalise the financial position over the lifetime of the scheme.

2.8 Disposal Proceeds Fund

The net surpluses, after loan repayments, that arise from the sale of property to tenants under the voluntary purchase grant arrangements, instituted by the Department for Communities, can be utilised by the Association. If the surpluses are not used within two years of their receipt they may be payable in part or in full to the Department for Communities.

2.9 Income tax

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.

2.10 Value Added Tax

The Association is not registered for VAT. All of its income, including rental receipts, is exempt for VAT purposes.

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

2.11 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.

2.12 Judgements in applying accounting policies and key sources of estimation uncertainty

No judgements 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 a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

2.13 Going concern

After making appropriate enquiries, 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.

3. Turnover, Operating costs and operating surplus

Social Housing Activities (Note 4) Non-Social Housing Activities (Note 5)	Operating Turnover 6,424,385 176,473 6,600,858	2023 £ Operating Costs 5,835,047 237,414 6,072,461	Operating Surplus/ (deficit) 589,338 (60,941) 528,397	2022 £ Operating Surplus/ (deficit) 684,859 (5,000) 679,859

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

4. Turnover, operating costs and operating surplus/(deficit) from social housing activities

Operating Income Rent Receivable Service Charges Receivable Rates Receivable Support Charges Receivable - Supporting People Support Charges Receivable - Tenants Direct Emergency Funding – Covid 19 Income from SHG/HAG Income from Other Grants Less: Voids Total Social Housing Income Operating Costs Service Costs Service Costs – Covid 19 Support Costs Support Costs – Covid 19 Tenants Support Management Costs Rates Payable Maintenance Administration costs Planned & Cyclical Maintenance Reactive Maintenance Major Repairs (not capitalised) Bad Debts Written Off Depreciation of Housing Properties Other Depreciation Transfer to/(from) Tenants’ Services Fund Total Social Housing Expenditure Operating surplus/(deficit) on social housing	2023 £ General Sheltered Total 415,706 3,352,424 3,768,130 19,411 931,685 951,096 55,655 446,460 502,115 - 298,508 298,508 - 148,031 148,031 - 2,289 2,289 64,615 737,298 801,913 1,669 97,681 99,350 (8,736) (138,311) (147,047) 548,320 5,876,065 6,424,385 15,527 1,016,271 1,031,798 - - - - 508,794 508,794 - 7,227 7,227 44 16,059 16,103 91,063 926,574 1,017,637 55,655 449,899 505,554 12,021 176,694 188,715 8,515 341,520 350,035 54,142 644,409 698,551 5,378 71,700 77,078 - - - 153,498 1,373,859 1,527,357 56 13,709 13,765 (3,327) (104,240) (107,567) 392,572 5,442,475 5,835,047 155,748 433,590 589,338	2022 £ Total 3,565,598 836,023 488,700 278,492 123,649 143,376 792,359 43,087 (219,842)
		6,051,442
		806,014 - 452,699 34,536 14,107 910,622 486,818 136,852 53,936 646,507 139,020 - 1,660,666 11,013 13,793
		5,366,583
		684,859

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

4. Turnover, operating costs and operating surplus / (deficit) from social housing activities (cont’d)

----- Start of picture text -----
|||| |---|---|---| |DfC Allowances|2023|2022| |£|£| |Management allowances|34,056|32,076| |Management costs|(91,063)|(88,285)| |Surplus/ (deficit)|(57,007)|(56,209)| |Maintenance allowances|39,904|37,584| |Planned and cyclical maintenance|(8,515)|(4,471)| |Reactive maintenance|(54,142)|(49,264)| |Maintenance administration|(12,021)|(10,479)| |Surplus/ (deficit)|(34,774)|(26,630)| |Technical & Non-Technical Income| |2023|2022| |£|£| |Technical|3,498,295|3,212,609| |Non-Technical|2,024,828|2,003,388| |Total|5,523,123|5,215,997| |5.|Turnover, operating costs and operating surplus/(deficit) from non-social| |housing activities| |2023|2022| |£|£| |Operating Income| |Development|176,473|92,376| |-|-| |Management Services| |Other Income|-|-| |Total Non-Social Housing Income|176,473|92,376| |Operating Costs| |Development Costs|237,414|97,376| |-|-| |Pension charge / (credit)| |Other Costs|-|-| |Total Non-Social Housing Expenditure|237,414|97,376| |Operating surplus/(deficit) on non-social housing|(60,941)|(5,000)|

----- End of picture text -----

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

6. Surplus on ordinary activities

Surplus on ordinary activities is stated after charging / (crediting):

Depreciation – owned tangible fixed assets Amortisation of grant / Release of capital grant Auditor’s remuneration - External audit of these financial statements - Internal audit 7. Interest payable Bank overdrafts Bank loans Other Loans Total	2023 £ 1,617,738 (843,533) 14,400 10,710 2023 £ - - 2,612 2,612	2022 £ 1,733,626 (835,444) 6,980 9,180
		2022 £ - - 6,708 6,708

8. Employee information

Average monthly number of employees during the financial year expressed as full-time equivalents is as follows:

Administration Housing, support and care Total Staff costs Wages and salaries Social security costs Pension costs Total	2023 No. 19 26 45 2023 £ 1,451,635 108,684 121,136 1,681,455	2022 No. 21 25
		46
		2022 £ 1,234,679 83,960 100,603 1,419,242

The remuneration, including benefits in kind, of the management team of the Association during the year was:

Aggregate emoluments Pension Contributions Total	2023 £ 369,152 39,952 409,104	2022 £ 275,935 32,226 308,161

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

9. Employee information (cont’d)

The emoluments payable to the highest paid management team member (currently included within the above table) are as follows:

Aggregate emoluments Pension Contributions	2023 £ 90,151 15,802 105,953	2022 £ 84,908 14,850 99,758

10. Board of Management remuneration

There was no remuneration paid to the Board of Management of the Association (2021: £Nil). The Board of Management members were paid out of pocket expenses totalling £nil (2021: £nil).

The number of management team members to whom emoluments were paid during the year falls within each of the following bands:

100,000-105,000 95,000- 100,000 75,000 – 80,000 60,000 – 65,000 55,000 – 60,000 50-000 – 55,000 45,000 – 50,000 25,000 – 30,000 15,000 – 20,000 5,000 – 10,000 0-5,000 Total	2023 2022 No. No. 1 1 1 1 1 1 3 1 1 1 1 2 7 8

11. Finance costs

Finance costs	2023 2022 £ £ 49,905 50,504 49,905 50,504

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

12. Tangible fixed assets – Housing properties

Cost or valuation At 1 April 2022 Additions Disposals At 31 March 2023 Completed Work in progress Depreciation and impairment At 1 April 2022 Charge for the year Impairment charged in year Eliminated on disposal At 31 March 2023 Net book value At 31 March 2023 At 31 March 2022	Housing properties held for letting £ 57,112,017 2,949,438 (389,882)
	59,671,573
	59,349,464
	322,109
	26,596,257 1,527,357 (389,882)
	27,733,732

	31,937,841 30,515,760

13. Housing Stock

Number of units owned and managed at year end

Self-Contained General Needs Housing Supported Housing Sheltered Housing Shared Ownership/ Affordable Housing Total Units Owned and Managed at year end	2023 Properties 86 896 982 982	2022 Properties (Restated) 86 - 882 - 968 968

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

14. Other tangible fixed assets

Leasehold building £ Cost or valuation At 1 April 2022 665,988 Additions Disposals At 31 March 2023 665,988 Depreciation At 1 April 2022 211,775 Charge for the year 18,567 Eliminated on disposal - At 31 March 2023 230,342 Net book value At 31 March 2023 435,646 At 31 March 2022 454,213 15. Debtors Gross rental debtors – Technical Gross rental debtors – Non-Technical Provision for bad debt Net rental debtors Housing Association Grant receivable Prepayments and accrued income Other debtors	Furniture and equipment Motor vehicles £ £ 434,095 34,399 74,071 44,385 508,166 78,784 368,341 10,900 51,968 19,846 - - 420,309 30,746 87,857 48,038 65,754 23,499 2023 £ 91,019 14,038 (10,197) 94,860 1,085,977 212,876 69,539 1,463,252	Total £ 1,134,482 118,456
		1,252,938
		591,016 90,381 -
		681,397

		571,541 543,466 2022 £ 83,859 13,810 (10,528) 87,141 25,641 75,646 54,423 242,851

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

16. Creditors

Amounts falling due within 1 year

Loans Housing Association Grant in advance Deferred Housing Association Grant Disposal Proceeds Fund Accruals and deferred income Rent and service charges received in advance Tenants’ Services Fund Trade Creditors Other creditors Total Amounts falling due after more than 1 year Loans (see analysis below) Deferred Housing Association Grant Loans Within one year Between one and two years Between two and five years In five years or more	2023 £ 22,300 780,604 858,768 - 372,294 45,105 56,747 381,980 56,126 2,573,924 2023 £ - 19,274,648 19,274,648 2023 £ 22,300 - - - 22,300		2022 £ 30,844 384,409 849,373 - 170,576 154,491 164,315 445,325 35,257 2,234,590 2022 £ 22,299 19,173,931 19,196,230 2022 £ 30,844 22,299 - 53,143	2022 £ 30,844 384,409 849,373 - 170,576 154,491 164,315 445,325 35,257
				2,234,590

Loans are secured by specific charges on the Association’s properties and are repayable at varying rates of interest in instalments due as above.

17. Deferred grant

At 1 April Grant recognised in the year Released to income in the year At 31 March	2023 £ 20,023,304 953,649 (843,553) 20,133,400	2022 £ 20,289,603 569,145 (835,444) 20,023,304

Alpha Housing (Northern Ireland) Ltd Year Ended 31 March 2023

18. Capital commitments

At 31 March 2023 the Association had capital commitments as follows:

Contracted for but not provided in the financial statements	2023 £ 1,827,500 1,827,500	2022 £ 934,323 934,323

19. Contingent Liabilities

The Association released Housing Association Grant to income during the year in accordance with the Housing SORP. 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.

20. Share capital

Ordinary shares of £1 each fully paid:

At 1 April 2022 Issued in the year Shares Issued Transferred to capital reserve At 31 March 2023	2023 £ 20 4 (2) 22	2022 £ 19 6 (5) 20

21. Capital reserves

At 1 April 2022 Shares Issued Transferred from share capital At 31 March 2023	2023 £ 69 (4) 2 67	2022 £ 70 (6) 5 69

22. Related party transactions

There were no related party transactions during the year.