Registered Number: IP174 Charity Registration Number: NIC106082
CRAIGOWEN HOUSING ASSOCIATION LIMITED
REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 MARCH 2024
CRAIGOWEN HOUSING ASSOCIATION LIMITED
CONTENTS For the year ended 31 March 2024
| PAGES | |
|---|---|
| Chairman’s Foreword | 1 |
| Report of the Board | 2 – 6 |
| Auditor’s Report | 7 – 11 |
| Statement of Comprehensive Income | 12 |
| Balance Sheet | 13 |
| Statement of Cash Flows | 14 |
| Statement of Changes in Equity | 15 |
| Notes to the Financial Statements | 16 – 25 |
CRAIGOWEN HOUSING ASSOCIATION LIMITED
GENERAL INFORMATION
| THE BOARD | A Hamilton – Chairman | |
|---|---|---|
| N Carson | ||
| A Watt | ||
| A Smyth | ||
| M Woods | ||
| R Buchanan | ||
| P Farry | (Resigned 21/02/2024) | |
| H Logan | ||
| S Clements | ||
| E Dixon | ||
| C Thompson |
(Co-opted 25/10/2023) | |
| G Hill | (Co-opted 25/10/2023) | |
| G McCann |
(Co-opted 13/12/2023) | |
| K Johnston | (Co-opted 21/02/2024) | |
| SECRETARY | W McCreight | |
| REGISTERED OFFICE | 150 Holywood Road | |
| Belfast | ||
| BT4 1NY | ||
| REGISTERED NUMBER | IP174 | |
| CHARITY REGISTERED NUMBER | NIC 106082 | |
| AUDITORS | GMcG BELFAST | |
| Chartered Accountants & Statutory Auditor | ||
| Alfred House | ||
| 19 Alfred Street | ||
| Belfast | ||
| BT2 8EQ | ||
| SOLICITORS | Edwards & Co | |
| 28 Hill Street | ||
| Belfast | ||
| BT1 2LA | ||
| BANKERS | Bank of Ireland | |
| 1 Donegall Square South | ||
| Belfast | ||
| BT1 5LR | ||
| Bank of Ireland | ||
| 4-8 High Street | ||
| Belfast | ||
| BT1 2BA | ||
| Ulster Bank | ||
| 11-16 Donegall Square East | ||
| Belfast | ||
| BT15UB |
CRAIGOWEN HOUSING ASSOCIATION LIMITED
CHAIRMAN’S FOREWORD
For the year ended 31 March 2024
I have great pleasure in presenting the annual report and accounts for Craigowen Housing Association for the year ended 31 March 2024.
Craigowen Housing Association was established to provide and maintain housing accommodation for people with learning disabilities and for those who care for them, along with their families. We have 38 properties, 36 of which are located within the three Camphill Communities in Northern Ireland: Glencraig, Mourne Grange and Clanabogan, and 2 in Holywood. All offer a distinct and caring ethos of shared living for which the Camphill Communities are renowned.
During the course of the year we have refreshed our Board and welcomed 4 new Members; Chris Thompson, Geoff Hill, Gerry McCann and Kim Johnston. It is with regret that 4 of our longest serving Members have fulfilled their tenure and are retiring at the AGM. Nigel Carson, Ann Watt, Anne Smyth and Peggy Woods each served the Association diligently for over 9 years. Their commitment, knowledge and experience cannot be understated and the Association is in a very good place thanks to their efforts and dedication.
We are clearly a very small Housing Association and our only source of income is from the rents collected from the people who live in our accommodation, our Villagers. The nature of our housing stock and the need to ensure that it meets the specific needs of our Villagers provides us with a number of challenges, not least of which is the need to set rents that are fair and affordable, but which provide sufficient income to fulfil our ongoing maintenance obligations. The Association has an established rent strategy agreed with each of the Communities and this ensures that rent charges are clearly set out equitably across each Community.
Although there have been challenges to service provision during the past year due to the well-publicised cost increases and difficulties in retaining skilled contractors, the Association was able to deliver its extensive planned and cyclical maintenance programme in full. In total we invested £409,192 on capital improvement and on planned and cyclical maintenance programmes in the course of the year. Some 46 projects were completed and material improvement made to the quality of Villagers’ homes across the Camphill Communities.
The Board closely monitors the response times and quality of our response maintenance operations. In the course of the year we invested some £176,009 (£131,144 in 2022-2023) in responding to emergencies and the need for routine repairs. We have set time targets for completion of these categories of repair, and I am pleased to report that all our targets have been surpassed. We understand the priority that is attached to a good responsive maintenance service by our Villagers and we will continue to work hard to maintain our service to these very high standards.
During the year the Board set up a sub-group to consider the Strategic direction of the Association and plans are in place to consult with each of our stakeholders to ensure we develop a comprehensive strategy to continue to meet the needs of our Villagers.
A Hamilton Chairman
Date: 26 June 2024
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
REPORT OF THE BOARD
For the year ended 31 March 2024
The Board is pleased to present its Report and the Financial Statements for the year ended 31 March 2024.
Principal Activity
The principal activities of the Association are to provide housing and related amenities for adults who have learning disabilities, and the staff caring for them and their dependents. The Association owns 24 properties; with 6 located in Camphill Community Glencraig, 10 in Camphill Community Mourne Grange, 6 in Camphill Community Clanabogan and 2 in Holywood. The Association also manages 14 properties which are leased from Camphill Community Trust (NI). Housing management services at all properties are carried out by the relevant Camphill Community who are the Managing Agents. The Association aims to provide good quality accommodation with proper levels of maintenance and investment over the long term at affordable rents.
Status
The Association is a registered society under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (Ref IP 174) and is a Registered Housing Association.
The Association is recognised as a charity by HMRC (Ref X01015) and became registered with the Charity Commission for Northern Ireland on 6 July 2017 (Charity Registration Number: NIC 106082).
The Board
The Board meets regularly throughout the year and has four sub-committees with specific responsibilities for finance, audit and risk, strategic direction, staffing and Board refreshment. There were nine Board meetings during the course of the year and the attendance was as follows:-
| Member | Attendances | Membership of Sub-committees | |
|---|---|---|---|
| N Carson | 7 | BR, SD | |
| E Dixon | 6 | BR, SD | |
| A Smyth | 9 | SRC, BR | |
| A Watt | 5 | SRC | |
| M Woods | 6 | ||
| S Clements | 6 | FARC, SRC, SD | |
| A Hamilton-Chair | 8 | ||
| R Buchanan | 9 | FARC, SRC | |
| P Farry | Retired 21/2/2024 | 1 | FARC |
| H Logan | 5 | FARC | |
| C Thompson | Co-opted 24/10/2023 | 3 | SD |
| G Hill | Co-opted 25/10/2023 | 3 | FARC |
| K Johnston | Co-opted 21/02/2024 | 1 | |
| G McCann | Co-opted 13/12/2023 | 2 |
SD – Strategic Direction sub-group FARC – Finance, Audit & Risk committee SRC Staffing & Remuneration committee BR - Board refreshment sub-group
Each year one third of members retire by rotation and are eligible for re-election.
Secretary - W McCreight.
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
REPORT OF THE BOARD (Cont’d) For the year ended 31 March 2024
Governance
During the year the Board continued with improvements in corporate governance. These improvements include: appointment of an external Consultant to conduct a Board Governance Review, additional Board and staff training, the ongoing review of risk management, ongoing review of policies, and continued compliance with DfC regulatory standards. The Board created a sub-group to develop the process of Board refreshment and this process has led to the recruitment of 3 new Members in the year under review with a possible 2 further new Members planned to join in 2025. The Board has adopted a phased approach to refreshment ensuring that corporate knowledge is retained and there is a seamless integration of new Members.
Impact of Covid -19
During the year, the impact of the Covid 19 pandemic has reduced substantially but as with all other Housing Associations and many businesses we have experienced the challenges caused by increases in material costs and pressures in sourcing skilled and experienced contractors. Nevertheless, we have been able to work with our suppliers and contractors and fully provide the level of service required.
Maintenance
The Association has strengthened its in-house maintenance team with the full-time employment of a second experienced maintenance officer and continues to provide funding to the 3 Camphill Communities for a maintenance officer on each Camphill site. The provision of maintenance services, which was brought fully under the control of directly employed CHA staff from April 2023, is operating very efficiently as evidenced by the excellent key performance indicators reported. The Board is confident that this change will continue to benefit Villagers and provide greater value for money.
The Board has continued with its extensive Planned maintenance programme and met all budget targets for this in the year.
Response Maintenance Performance
| Year ended 31 March 2024 |
Year ended 31 March 2023 |
Target | |
|---|---|---|---|
| Total number of repair jobs | 689 | 715 | |
| % of emergency repairs completed in 24 hours |
99% | 87% | 85% |
| % of urgent repairs completed in 4 days |
94% | 73% | 80% |
| % of routine repairs completed in 20 days |
90% | 77% | 80% |
The Association has significantly surpassed all its targets set for response maintenance performance, achieving an overall completion of 93% against a target of 80%. The performance for emergency repairs was exceptional with 99% of emergency and immediate repairs being completed on time.
Finance
The Board has approved robust financial plans to ensure that its charitable aims are achievable and sustainable in the long term and continues to review and scrutinise monthly and quarterly financial reports.
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
REPORT OF THE BOARD (Cont’d) For the year ended 31 March 2024
Staffing
The Board believes that the optimum staffing level is four members of staff: General Manager, Finance Officer and two Maintenance Officers. The Association currently retains this staff complement.
Tenant Participation
Tenant participation remains a crucial element to the services provided by the Association. The Tenant Participation Strategy is continually monitored to ensure tenants are involved in the design, delivery and continuous improvement of services. Tenant satisfaction surveys are regularly undertaken with a comprehensive survey across all 3 communities having been undertaken in July 2023.
Risk Management
The Board has carried out a review of major risks to which the Association is exposed and put in place systems and controls to mitigate the effects of these risks. This includes an assessment of the implications of key risks if they are not managed appropriately, the controls in place to manage the identified risks and the identification of further actions planned to minimise the risks. This system has been in place during the course of the year under review and is regularly reviewed by the Finance, Audit and Risk Committee and made available for Board review at each Board meeting. During the year the Internal Auditors undertook a comprehensive review of the Association’s Risk management procedures and concluded that the existing systems were sound and provided satisfactory assurance to the Board.
The Association has also continued with its programme of review of existing policies regarding Finance and Risk Management, Health and Safety, Property Maintenance and Development and Employment and Communication.
Results and Financial Review
The Statement of Comprehensive Income shows that the Association generated £1,460,898 (2023 - £1,002,730) of income from collection of rents, Special Needs Management Allowance and amortisation and incurred expenditure of £1,483,891 (2023 - £1,073,188) on the maintenance and management of its properties, incurring an overall deficit of £198,027 (2023 – £59,725) in the year after accounting for exceptional non-recurring expenditure of £200,000. At the balance sheet date, the Association had total reserves of £2,100,721 (2023 - £2,298,748) including revenue reserves of £1,036,036 (2023 - £1,234,063).
The Association continues to carry out a programme of maintenance and repairs to its properties and the total expenditure for the year was £412,905, with a further £86,148 of additions made to properties.
Going Concern
After making enquiries, the Board has 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.
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
REPORT OF THE BOARD (Cont’d) For the year ended 31 March 2024
Statement of Board Members’ Responsibilities
The Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and registered housing association legislation require the Board to prepare financial statements for each financial year which give a true and fair view of the state of the affairs of the Association and of the surplus or deficit of the Association for that period. In preparing these the board is required to:
-
Select suitable accounting policies and apply them consistently;
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Make judgements and 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; and
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Prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Association will continue to operate.
The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association and enable it to ensure that the financial statements comply with the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and the Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993. It has general responsibility for taking reasonable steps to safeguard the assets of the Association and to prevent and detect fraud and other irregularities.
Internal Control
The Board has overall responsibility for the Association’s systems of internal financial control and for reviewing the effectiveness of the systems. Such systems are designed to manage rather than eliminate the risk of failure to achieve business objectives, and can only provide reasonable, and not absolute assurance against material misstatement or loss.
The process for identifying, evaluating and managing the significant risks faced by the Association is ongoing. The Board has reviewed the effectiveness of the Association’s systems of internal control, this review has included the commission and participation in detailed review of existing internal control procedures and the business risks faced by the Association.
The key elements of the system which the Board has established to provide effective internal control include:
-
The establishment of a Finance, Audit and Risk Committee which regularly reviews the overall financial position and the key risks facing the Association.
-
The Committee updates the Board regularly on its review of matters relating to internal control and reports from the internal auditors.
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Detailed budgets are prepared which are reviewed in detail by the Committee and approved by the Board, with appropriate action taken when variances are identified.
-
The establishment of a system of KPI’s to monitor monthly performance of the provision of maintenance services.
-
The Board maintains responsibility for overall strategy and the approval of all major expenditure.
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CRAIGOWEN IATI N LIMITED REPORTOF THE BOARD For the ear ended 31 March 2024 Statemont of Dlsclosurè of Infomatlon to Audltors So far as each of the members of the Board is aware: The is no rel8vant information of which the Association's auditors are unaware. and They have taken all reasonable Steps that they oughl to have taken, as members of the Board, to make themselves aware of any relevant audit information and to establish that the Association's auditors are aware of that Information. Auditors The Board has appointed GMCG BELFAST as the Association's auditors. This report was approved by the Board on 26 June 2024 and signed on its behalf by.. A Hamllton Chalrman 150 Holywood Road Belfast BT4 1NY
CHARTERED rtCOUNTANT8 CRAIGOWEN HOU ING ASSOCIATION LIPIIITED INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS LIMITED FOR THE YEAR ENDED 31 MARCH 2024 F CRAIGOWEN HOU ING ASSOCIATION We have audited the financlal statements of Craigowen Housing Associatlon Limited for the year ended 31 March 2024 which comprise of the Statemenl of Compreh8nsive Income, the Balance Sheet, the Statement of Cash Flows, the Statement of Changes in Equity and 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 Accountin9 Standards. Including Financial Reporting Standard 102 The Financial Reporting Standard applicab18 In the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our oplnion the financial statements.. give a true and fair view of the state of the Association's affalrs as at 31 March 2024 and of Its Income and expenditure for the year then ended; have been properly prepared In accordance with Uniled Klngdom Generally Accepted Accounting Praclice: and have been prepared in accordance wlth requirements of the Co-operative and Communlty Benefit Societies Act (Northern Ireland) 1969 and the Registered Housing Associattons (Accounting Requirements) Order (Northern Ireland) 1993. Ba818 for oplnlon We conducted our audit in accordance with Internalional Slandards on Auditing (UK) (ISAS (UK)) and applicable law, Our r8sponsibililies under those standards are further described in the Auditor's responsibilities for the audit of the Ilnancial statements seclion of our report. We are independent of the Association In accordance wilh the ethical requirements that are relevant to our audit of the financial statemenls in the UK, including the Financial Reporting Council's Ethlcal Standard, and we have fulfilled our other ethical responsibillties in accordance wlth these requirements, We believe that the audlt evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclu8Sons rolatlng to golng concern In audiling the financial statements, we have concluded that the board's use of Ihe going concem basls of accounting in the preparation of the financial slatements is appropriate. Based on the work we have performed, we have nol identified any material uncertaintles relating lo events or conditions that. Individually or collecllvely, may cast significant doubt on the association's ability to continue as a going concem for a period of at least Iwelve months from when the financial statements are authorised for issue. Our responsibilitles and the responslbllltles of the Board with respect to going concern are described in the relevant sectlons of this report. Alfred House 19 Alfred Street BELFAST BT2 8EQ DX3910 I¥R Belfa8t so Century House 40 Creseent Biisiness Park LISIIURN BT28 2GN 17 Mandeiillc Sireet )RTAIX)WN Craigavon 31.62 3PB Tel: +44 (0)28 9031 A113 Fax: +44 (0)28 903107n Td: +44 (n)28 926() TJ55 F. +44 [u)28 9260 16.56 Tel: +44 (¢J)2tl 3833 2801 F#x- +44 (0)28 3835 Q293 WIVW•snicgca+com
CRAIGOWEN HOUSING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT T THE MEMBERS OF CRAIGOWEN HOUSING A LIMITED FOR THE YEAR ENDED 1 MARCH 2024 SOCIATION Other Informatlon The other information comprises the information included in the annual report, other than the financial statements and our 8uditor's report thereon. The Board is responsible for the other information contained within the annual report. Our oplnion on the financial statements does not cover the other Infwmalion and, except to the extent otherwlse explicitly stated in our report, we do nol express any form of assurance concluslon thereon. Our responsibility is to read the other information and, in doing so, consider whether the other inforrnalion is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or other4vise appears to be materlally misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives ris8 to a material misstatement in the financial statements themselves. If, based on the work we have performed. we conclude that there is a material misstalement of thls other information, we are required to report that fact. We have nothlng to report In this regard. Mattars on whlch we are requlred to roport by oxc•ptlon In the light of our knowledge and understanding of the Association and its environment obtained in the course of the audit, we have not identified material mlsstatements in the Report of the Board. We have nothing to report In respect of the followlng matters where the Co-operatlve and Communlly Beneflt Socieiies Act (Northern Ireland) 1969 requires us to report to you, if in our opinlon: the Association has nol kept proper books of account; or a satisfactory system of control over transactions has not been maintained. or the financlal statements are not In agreement wlth the Associalion's books of account; or we have not obtalned all the Infomiatlon and explanatlons necessary for the purpose of our audlt. Responslbllltl•g of th• Board As explalned more fully the slatement of board members, responsibilities set out on page 5, the Board Is responsible for the preparatlon of the financial slatements and for being salisfied that they glve a true and fair view, and for such internal control as the Board 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 staiements, the Board is responsible for assessing the Associatlon's abllily lo continue as a going concern, dlscloslng as applicable, matlers related lo going concern and uslng the golng concern basis of accounting unless the Board either InterKJs to liquldate the assoclation or to cease operations, or to have no realistic alternative bul to do so.
CRAIGOWEN HOU IN IATION LIMITED INDEPENDENT A DIT REPORT TO THE MEMBERS OF CRAIGOWEN HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2024 Audltors, responslbllities for the audlt of the flnanclal statements Our objectives are to obtain reasonable assurance about whether the financial statements a5 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, bul is not a guarantee that an audit conducted in accordance with ISAS {UK) will always delect a malerial misstalement when it exists. Misstatements can arise from fraud or error and are considered material if, ind6vklually or In the aggregate, they could reasonably be expected to inffluence the economic declslons of users taken on the basis of these financial statements. Irregularities, including fraud, are 5nstances of non-compliance with laws and regtjlations. We design procedures in line with our responsiblllties, outlined above, to delect material misstatemenls in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, Is detailed below. Extent to whlch tho audlt was conslderad capablo of detectlng irregularitlos, Sncludlng fraud We Itjentlfy and assess the risks of materlal mlsslatement of the flnanclal statements, whelher due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifylng and assessing potential risks of material misstatement in Spect of irregularities, including fraud and non-compliances with laws and regulalions, we considered the following: The nature of the industry and sector, control environment and business performance, including the Association's remuneratlon policies for dirtOrS, bonus levels and performance targels, if any: Results of our enquiries of management about their own identification and assessment of the risks of irregularlties,. Any matters we identified having obtained and reviewed the Association's documentation of thelr policles and procedures relating to.. Identifylng. evaluating and complying with laws and regulations and whether they were aware of any Instance of non-compliance: Detectlng and responding to the risks of fraud and whether they have and knowledge of any actual, suspected or alleged fraud,. and The internal controls establlshed to mltlgate risks of fraud or non<ompliance with laws and regulations, The matlers discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud. As a result of Ihese procedures. we consldered the opportunities and incentives that may exist within Ihe Association for fraud and identified the greatest potential for fraud in revenue recognition. In common with all audits under ISAS (UK), we also perform specrfic procedures to respond to the risk of management override. We also obtalned an understanding of the legal and regulatory frameworks that the Assoclatlon operates in, fUsing on provisions of those laws and regulations that had a dlrect effect on the determination of material amounts and disclosures In the financial statemenls. The key laws and regulations we considered in this context included the Co-operative and Community Benefrt Societies Act (Northern Ireland) 1969, the Reglstered Housing Associalions {Accounting Requiremenis) Order (Northern Ireland) 1993 and Ihe Stalement of Recommended Practice for Social Housing Providers 2018.
CRAIGOWEN HOUSING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT T THE MEMBERS OF CRAIGOWEN HOUSING ASSOCIATION LIMITED FOR THE YEAR ENDED 31 MARCH 2024 Extent to whlch the audlt was consldored capable of dotectlng Irregularltles, Includlng fraud (cont'dl In addltion, we considered provisions of other laws and regulatlons that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Associatlon's ability to operate or to avoid a material penalty. Audlt rnsponse to rlsks Identified Our procedures to respond to Ihe risks identified inclu¢Yed the following: Revlewing the financlal statement disclosures and testing to supporting documentalion to assess compliance with provislons of relevant laws and regulations described as having a direct effecl on the financial statements,, Enquiring of management concerning actual and potential litigation and claims; Performing analytical PredureS to identify any unusual or unexpected relationships that may indicate risks of materi81 misstatement due to fraud,, Reading minutes of meetings of those charged wlth governance and revlewing correspondence wlth lax authorities,. and In addressing the rlsk of fraud through management overrlde of controls, testlng the appropriateness of journal entrles and other adjustments; assessing whether the judgements made in making accounting estimates are indicallve of a potential bias. and evalualing the business rationale of any significant transactions thai are unusual or outside the nofmal course of business. We also communicated relevant Identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indlcations of fraud or non-compliance wlth laws and regulalions throughout Ihe audit. Owing to the Inherent limitalions of an audit, there is an unavoldable risk Ihat we may not have detected some material misslalements in the financial statements, even though we have properly planned and performed our audit in accordance with auditlng slandards. In addltion, as with any audit. there remains a higher risk of non- detection of irregularities, as they may involve collusion, forgery. intentional omissions, mlsrepresentations, or the override of internal controls. We are not responsible for preVentIg non-compliance and cannot be expected to detect non-compliance with all laws and regulations. A further descrlption of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.o .ukJaudit res onsibilitles. This descriplion forms part of our auditors. report. -10-
CRAIGOWEN HOUSING ASSOCIATION LIMITED INDEPENDENT AUDITOR'S REPORT T THE MEMBER LIMITED FOR THE YEAR ENDED 31 MARCH 2024 OF CRAIGOWEN HOUSING ASSOCIATION Uso of our report This report is made solely to the Association's members, as a body. in accordance with Section 43 of th8 Co- operative and Community B8nefit Societies Act (Northern Ireland) 1969 and article 19 of The Housing (Northern Ireland) Order 1992. Our audil work has been undertaken so that we might state to the Association's members those matters we are required to state to them in an audilor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibllity to anyone other than the Association and the Association's members as a body, for our audit work. for thls report, or for the opinions we have formed. .? Mr Nlge ooro FCA Senior Statutory Audltor Date GMCG BELFAST Chartered Accountants & Statutory Auditor Alfred House 19 Alfred Street Belfast BT2 8EQ -11-
CRAIGOWEN HOUSING ASSOCIATION LIMITED
STATEMENT OF COMPREHENSIVE INCOME For the year ended 31 March 2024
| Note Turnover 21 Operating costs 21 Operating Deficit 21 Interest receivable and similar income Profit or loss on disposal 8 Exceptional item 3 Deficit on ordinary activities Net transfer (to)/from designated reserves Deficit for the year |
2024 £ 1,460,898 (1,483,891) (22,993) 24,966 - (200,000) (198,027) - (198,027) |
2023 £ 1,002,730 (1,073,188) (70,458) 10,468 265 - (59,725) - (59,725) |
|---|---|---|
All amounts above relate to continuing operations of the Association.
The notes on pages 16 to 25 form part of these financial statements.
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RAIG ING ASSOCIATION LIMITED BALANCE SHEEr Note 2024 2023 FIXED ASSETS Housing.18nd and buildings Other fixed assets 4.586.399 4,743,593 10 4,595.384 4,746,229 CURRENT ASSETS Debtors Cash al bank 13 55,222 48,995 1461656 1 161664 CURRENT UABILITIES Creditors.. amounts falling due wllhSn one year 14 458 014) 593 678 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES 5,299,034 5,663,202 CREDITORS . AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR Housing Assoclatlon Grant Deferred contribulion 11 12 (2,903,979) {3,054,830) 24 3 198313 NET ASSETS CAPITAL AND RESERVES Share Capital Capital Reserve Designated Reserv8 Revenue Reserve 100 721 74 15 18 17 31 1.064.647 103603 31 1,064,647 The financSal statements were approved by the Board o and signed on its behalf by: A Hamilton Chairman R Buchanan Board Membor W Mccrelghl Socretary The notes on pages 16 to 25 fomi part of these financial stalements. -13-
CRAIGOWEN HOUSING ASSOCIATION LIMITED
STATEMENT OF CASH FLOWS For the year ended 31 March 2024
| Cash flows from operating activities Deficit for the year Adjustments for:- Depreciation of tangible assets Grant amortisation Interest received (Increase)/ decrease in debtors (Decrease)/ increase in creditors Net cash generated from operating activities Cash flows from investing activities Purchase of tangible fixed assets Proceeds from disposal of tangible fixed assets Interest received Net cash from investing activities Decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year Cash and cash equivalents at the end of year comprise: Cash at bank and in hand Analysis of changes in net funds Cash and cash equivalents Total net funds |
2023 £ 1,461,656 1,461,656 |
2024 £ 2023 £ (198,027) 245,730 (166,141) (24,966) (6,227) (135,664) (285,295) (59,725) 238,706 (166,140) (10,468) 50,553 52,483 105,409 (94,885) - 24,966 (69,919) (355,214) 1,461,656 1,106,442 (181,224) 2,400 10,468 (168,356) (62,947) 1,524,603 1,461,656 1,106,442 1,461,656 Cash flows Other Non-Cash changes 2024 £ £ £ (355,214) - 1,106,442 (355,214) - 1,106,442 |
|---|---|---|
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
STATEMENT OF CHANGES IN EQUITY For the year ended 31 March 2024
| Share Capital Capital Reserve £ £ At 1 April 2023 Comprehensive income for the year Deficit for the year At 31 March 2024 7 - 7 31 - 31 STATEMENT OF CHANGES IN EQUITY For the year ended 31 March 2023 Share Capital Capital Reserve £ £ At 1 April 2022 Comprehensive income for the year Deficit for the year At 31 March 2023 7 - 7 31 - 31 |
Revenue Reserve £ 1,234,063 (198,027) 1,036,036 Revenue Reserve £ 1,293,788 (59,725) 1,234,063 |
Designated Reserve £ 1,064,647 - 1,064,647 Designated Reserve £ 1,064,647 - 1,064,647 |
TOTAL £ 2,298,748 (198,027) 2,100,721 TOTAL £ 2,358,473 (59,725) 2,298,748 |
|---|---|---|---|
The notes on pages 16 to 25 form part of these financial statements.
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
1. General Information
The principal activities of the Association are to provide special needs accommodation for adults who are mentally and/or physically handicapped, and to provide accommodation for staff, and their dependants. The Association is a registered society under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969. The Association’s principal place of business is its registered office at 150 Holywood Road, Belfast, BT4 1NY.
Craigowen Housing Association Limited constitutes a public benefit entity as defined by FRS 102.
2. Accounting Policies
2.1 Basis of Preparation
The financial statements have been prepared in accordance with Financial Reporting Standard 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102). The financial statements comply with the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, the Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993 and the Statement of Recommended Practice for Social Housing Providers 2018.
The presentation currency of these financial statements is sterling. All amounts in the financial statements have been rounded to the nearest £1.
The financial statements have been prepared on a going concern basis under the historical cost convention unless otherwise specified within these accounting policies.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the association’s accounting policies.
The following principal accounting policies have been applied:
2.2 Going Concern
The Board continues to adopt the going concern basis of accounting in preparing the financial statements. During the year the Board has continued investigating the long-term strategic options for the future direction of the Association. After making enquiries, the Board has 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.
2.3 Turnover
Turnover represents income receivable from lettings, grants and other income. Rental income is recognised in the period to which it relates, and other income is recognised when the terms of revenue recognition have been met.
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
2. Accounting Policies (Cont’d)
2.4 Housing Association Grant (HAG)
HAG received as a contribution towards revenue expenditure is credited to revenue in the period in which the related expenditure occurs. HAG received as a contribution towards the capital costs of housing properties is recognised in income over the useful life of the housing property structure and, where applicable, its individual components (excluding land) under the accruals model. Such grants, although treated as a grant for accounting purposes may be repayable under certain circumstances, primarily following the sale of housing property, but any amount repayable would be restricted to the net proceeds of the sale.
2.5 Contribution from Camphill Communities Trust (NI)
Contributions received from Camphill Communities Trust (NI) towards the capital costs of housing properties are reflected using grants received basis, in accordance with FRS 102 and recognised in income over the useful life of the housing properties.
2.6 Special Needs Management Allowance
Special Needs Management Allowance (SNMA) is credited to revenue in the period to which the relevant claim refers.
2.7 Tangible Fixed Assets
Housing, Land and Buildings
Social housing properties are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended such as the cost of acquiring land and buildings, developments costs and expenditure on improvements. Expenditure on improvements will only be capitalised when it results in incremental future benefits such as increasing rental income, reducing maintenance costs or resulting in a significant extension of the useful economic life of the property.
Major components of housing land and buildings are depreciated at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:-
| Land | Not depreciated |
|---|---|
| Structure | 50 years |
| Roofs | 50 years |
| Lifts | 30 years |
| Kitchens | 20 years |
| Bathrooms | 25 years |
| Doors | 20 years |
| Windows | 25 years |
| Electrics | 25 years |
| Heating and plumbing | 15 years |
| Fire alarm systems | 15 years |
| Fire escapes | 33 years |
Fixtures, fittings and equipment of schemes 10 – 20 years
Housing properties under construction are not depreciated until they are in use and the useful economic lives of all tangible fixed assets are reviewed annually.
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
NOTES TO THE FINANCIAL STATEMENTS For the year ended 31 March 2024
2. Accounting Policies (Cont’d)
2.7 Tangible Fixed Assets (Cont’d)
Other
Other tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is provided on all tangible fixed assets, at rates calculated to write off the cost, less estimated residual value, of each asset on a systematic basis over its expected useful life as follows:
Office fixtures, fittings and equipment
25% straight line
2.8 Impairment
Annually housing properties are assessed 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 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 the Statement of Comprehensive Income. 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.
2.9 Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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.
2.11 Creditors
Short term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
2.12 Pensions
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.
2.13 Interest income
Interest income is recognised in the Statement of Comprehensive Income using the effective interest method.
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS For the year ended 31 March 2024
2. Accounting Policies (Cont’d)
2.14 Taxation
The Association is recognised as a charity by HMRC and is therefore entitled to the exemption from tax afforded by Section 505 (1) Income and Corporation Tax Act 1988. The Association is recognised as a charity by HMRC under reference number X01015.
2.15 Sinking Fund
This reserve is set aside from rental income and reflects the intention to replace the housing properties in the future.
2.16 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 such as depreciation rates). 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.
2.17 Exceptional Items
Exceptional items represent the impact of non-recurring items. Due to their nature and infrequency, these are presented separately on the face of the Statement of Comprehensive Income.
3. Exceptional items
| Other non-recurring items | 2024 £ 200,000 |
2023 £ - |
|---|---|---|
During the year the company paid £200,000 in relation to a lease surrender. Due to the nature and infrequency, it is presented separately on the face of the Statement of Comprehensive Income.
4.
Operating Surplus/(Deficit)
| Operating surplus is stated after charging: Depreciation of tangible assets Auditors’ remuneration - external - internal |
2024 £ 245,730 8,280 4,470 |
2023 £ 238,706 9,360 6,156 |
|---|---|---|
5. Donated Facilities
The Association holds 13 leasehold properties for an annual rent of £1, if demanded. The Association generated rental income of £97,446 (2023 - £88,151) in relation to these properties during the year.
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS
For the year ended 31 March 2024
6. Employee Information
| 2024 Number Number of Employees The average monthly number of employees during the year was: Administration and maintenance staff 4 2024 £ Staff costs Wages and salaries 153,056 Social security costs 17,104 Other pension costs 4,443 Temporary staff 2,375 176,978 The number of employees whose annual remuneration was £60,000 or more were: 2023 Number In the band £60,001 - £70,000 1 |
2023 Number 4 2023 £ 148,127 16,957 4,824 2,147 172,055 2024 Number 1 |
|---|---|
7. Key Management Personnel
| Remuneration payable to key management personnel during the year was:- 2024 £ Aggregate emoluments 72,582 Pension contributions 2,595 75,177 |
2023 £ 71,795 2,555 74,350 |
|---|---|
The Board serve in a voluntary capacity and are unpaid. No board members were reimbursed expenses during the year (2022 - £nil). 8. Interest Receivable
| Bank interest receivable | 2024 £ 24,966 |
2023 £ 10,468 |
|---|---|---|
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS For the year ended 31 March 2024
9. Tangible Fixed Assets – Housing, Land and Buildings
| Cost At 1 April 2023 Additions Disposals At 31 March 2024 Depreciation At 1 April 2023 Charge for year Eliminated on disposals At 31 March 2024 Net Book Value At 31 March 2024 At 31 March 2023 |
Housing, Land & Buildings £ 10,057,052 86,148 - 10,143,200 5,313,459 243,342 - 5,556,801 4,586,399 4,743,593 |
Total £ 10,057,052 86,148 - |
|---|---|---|
| 10,143,201 | ||
5,313,459 242,700 - |
||
| 5,556,160 | ||
4,587,041 |
||
4,743,593 |
Housing includes a leasehold property at a cost of £694,102. It is the intention that freehold title of the land will be transferred to the Association in due course.
10 . Tangible Fixed Assets – Other
| Office fixtures, | ||
|---|---|---|
| fittings and | ||
| equipment | Total | |
| £ | £ | |
| Cost | ||
| At 1 April 2023 | 27,181 | 27,181 |
| Additions | 8,737 | 8,737 |
| At 31 March 2024 | 35,918 | 35,918 |
| Depreciation | ||
| At 1 April 2023 | 24,545 | 24,545 |
| Charge for year | 2,388 | 2,388 |
| At 31 March 2024 | 26,933 | 26,933 |
| Net Book Value | ||
| At 31 March 2024 | 8,985 | 8,985 |
| At 31 March 2023 | 2,636 | 2,636 |
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS
For the year ended 31 March 2024
11. Housing Association Grant
| Housing Association Grant At 1 April 2023 and 31 March 2024 Amortisation At 1 April 2023 Charge for the year At 31 March 2024 Net Book Value At 31 March 2024 Released within one year Released after more than one year 12. Contribution from Camphill Communities Trust (NI) Contribution At 1 April 2023 and 31 March 2024 Amortisation At 1 April 2023 Charge for the year At 31 March 2024 Net Book Value At 31 March 2024 Released within one year Released after more than one year |
2024 £ 7,542,568 4,336,887 150,851 4,487,738 3,054,830 150,851 2,903,979 3,054,830 2024 £ 764,484 439,570 15,290 454,860 309,624 15,290 294,334 309,624 |
2023 £ 7,542,568 4,186,036 150,851 4,336,887 3,205,681 150,851 3,054,830 3,205,681 2023 £ 764,484 424,281 15,289 439,570 324,914 15,290 309,624 324,914 |
|---|---|---|
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS For the year ended 31 March 2024
| 13. Debtors Other Debtors Prepayments Accrued Income 14. Creditors: amounts falling due within one year Trade Creditors Accruals and Deferred Income Other Creditors Housing Association Grant (Note 11) Deferred Contribution (Note 12) 15. Share Capital Shares classified as equity Allotted, called up and fully paid 7 Ordinary shares of £1 each 16. Reserves Capital Reserve £ At 1 April 2023 31 Deficit for the year - At 31 March 2024 31 |
Revenue Reserve £ 1,234,063 (198,027) 1,036,036 |
2024 £ - 12,043 43,179 55,222 2024 £ 55,224 164,459 72,190 150,851 15,290 458,014 2024 £ 7 Designated Reserves (Note 17) £ 1,064,647 - 1,064,647 |
2023 £ 4,904 10,557 33,534 48,995 2023 £ 72,657 302,842 52,038 150,851 15,290 593,678 2023 £ 7 Total £ 2,298,741 (198,027) 2,100,714 |
|---|---|---|---|
The reserves of the association as set out above are in line with the associations reserve policy.
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS
For the year ended 31 March 2024
17. Designated Reserves
| At 1 April 2023 Transfer from Income & Expenditure At 31 March 2024 |
Sinking Fund £ 1,064,647 - 1,064,647 |
Total £ 1,064,647 - 1,064,647 |
|---|---|---|
This reserve is set aside from rental income and reflects the intention to replace the housing properties in the future.
18. Pension commitments
The company operates a defined contribution pension scheme in respect of the staff. The scheme and its assets are held by independent managers. The pension cost charge represents contributions payable by the company to the fund and amounted to £4,443 (2023 - £4,824).
19. Contingent Liabilities
There exists a contingent liability on the Association of the possibility of having to repay Housing Association Grant received on properties if any properties are sold. This also includes any grant written off through the implementation of component accounting.
20. Related Party Transactions
No transactions with related parties, as defined under FRS 102, were undertaken in the current or prior year.
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CRAIGOWEN HOUSING ASSOCIATION LIMITED
NOTES TO THE ACCOUNTS For the year ended 31 March 2024
21. Turnover, Operating Costs and Operating Surplus from Social Housing Activities
| Income from Social Housing Lettings Rent receivable net of service charges Special Needs Management Allowance Gross Income from rents and service charges Less voids Bad debts (rent and service charges) Net Income from rents and service charges Amortisation Total Social Housing Income Operating costs Management services Special Needs Management Allowance Planned and cyclical maintenance Reactive maintenance Management charges Depreciation of Social Housing Total operating costs Operating Deficit 22. Housing Stock Number of units owned by the Association on 31 March 2024:- - Supported Housing Number of units leased by the Association on 31 March 2024:- - Supported Housing |
2024 Supported Housing £ 847,560 468,798 1,316,358 (21,601) - 1,294,757 166,141 1,460,898 45,000 468,798 236,896 176,009 311,458 245,730 1,483,891 (22,993) |
2024 Total Social Housing £ 847,560 468,798 1,316,358 (21,601) - 1,294,757 166,141 1,460,898 45,000 468,798 236,896 176,009 311,458 245,730 1,483,891 (22,993) 2024 £ 24 14 38 |
2023 Total Social Housing £ 756,977 94,283 851,260 (14,670) - 836,590 166,140 1,002,730 45,000 94,283 268,115 131,144 295,940 238,706 1,073,188 (70,458) 2023 £ 24 16 40 |
|---|---|---|---|
Housing management services at all properties are carried out by the relevant Camphill Community who are the Managing Agent.
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