Registration number.. IP000166
Connswater Homes Limited
Annual Report and Financial Slatements
for the Year Ended 31 March 2023

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Contents
Board of Management and Advisers
Report of the Board of Management
2to10
Independent Auditor's Report to the members of Connswater Homes Limited
11 to14
Slatemenl of Comprehensive Income
15
Statement of Financial Position
18to17
statement of Changes in Reserves
18
Slatemenl of Cash Flows
19
Notes to Statement of Cash Flows
20to22
Notes to the Financial Statements
23to47

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Board of Management and Advisers
Management Board Mr Robbie Davis {Chairman)
Professor Paddy Gray
Mr Alan Hill (Honorary Secretary)
Mr Michael Graham (Honorary Treasurer)
Mr John Beattie
Dr Sara Templar (Vice Chairman)
Mrs Nicola Barber
Mr Alex Ward
Mr Trevor Hamplon
Mrs Kelly Andrews
Jacqueline Locke
Chief executive
Company secretary Mr Alan Hill (Honorary Secretary)
Registered office
Unit 5 Citylink Business Park
Albert Street
Belfast
BT12 4HQ
Solicitors
Elliot Duffy Garrett
40 Linenhall Slreet
Belfast
BT2 8BA
Bankers
Danske Bank
Corporate Banking
Donegall Square West
Belfast
BT16JS
Auditors
RBCA Limited
Linenhall Exchange
26 Linenhall Street
Belfast
BT2 8BG
Company number IP000166
Status
Registered under the Co-operative and Community Benefit Societies Act
{Northern Ireland) 1969 - No. IP 166
Registered Charity with the Charity Commission for Northern Ireland Charity
Registration No.: NIC106095-0
Registered with the Dfc {Nl) - Number 8
Registered with HMRC - Number XN 41599
Page 1

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Report of the Board of Management for the Year Ended 31 March 2023
The Board of Management present their report and the audited financial statements for the year
ended 31 March 2023 of Connswater Homes Limited (the "Association l. This report is also known as
the Trustees, report for Charity law purposes.
Principal activities
The Association is an Industrial and Provident Society and is registered with the Department for
Communilies {"DfC") providing housing accommodalion for those in need. 11 has charitable status with
HM Revenue and Customs and is a registered charity with the Charity Commission for Northern
Ireland.
Board of Management
The Board of Management meets regularly throughout the year. There are also various commiltees
who meet regularly throughout the year. The Committees have responsibility for development,
housing management, maintenance and audit. Financial matters are reported directly to the Board.
The Board carries out an annual appraisal of its own performance and an annual appraisal of
individual of individual Board Members. The Board of Management are the directors of the Gompany
and are the trustees of the charity.
The Board of Management, who served the Association during the year, and up to the date of signing
the financial statements, were..
Mr Robbie Davis {Chairman)
Dr Sara Templar (Vice Chairman)
Mr Alan Hill (Honorary Secretary)
Mr Michael Graham (Honorary Treasurer)
Ms Kelly Andrews
Mrs Nicola Barber
Mr John Beattie
Professor Paddy Gray
Mr Trevor Hampton
Mr Alex Ward
Page 2

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Report of the Board of Management for the Year Ended 31 March 2023
Performance for the year ended 31 March 2023
During Ihe year the number of homes in ownership increased to 1,205 from 1,175 at the end of the
prior year representing a 2.60/0 increase in stock size for the Association. Turnover increased by 3.8 %
from £8,243,854 in 2021122 to £8,555,856 in 2022123. This increase is as a resull of new homes
added to the Association's stock during the year. An average annual inflalionary rent increase of
2.380/0 on much of our existing stock also helped to boost turnover.
Operating costs of £6,188,080 represent 720/0 of turnover {2022'. 730/0). The Association generated a
surplus for the year of £1,212,402 giving a net margin of 14,/0 (2022.. 120/0), which is better than both
sector average and the performance of the Association over the past two years.
The Association continuously invests in Ihe maintenance of our existing stock of properties, ensuring
our homes remain in great condition. To this end £912.010 was spent on planned maintenance
(including capital) during the year. These works included 4 heating upgrades, 23 loft insulations, 60
window and door replacements, 3 kitchen replacements and 2 complete property refurbishments as
well as internal redecoration to the communal areas of 2 apartment schemes.
A programme of health and safely inspections was also completed including boiler seNicing, smoke
and carbon monoxide alarms testing, asbestos monitoring, legionella testing and fire risk
assessments.
The Board has a set number of key performance indicators monitoring the operations of the
Association on regular basis.
Performance Indicator
Actual 22123
Target 22123
>85%
Emergency repairs carried out within 24 hours
Urgenl repairs carried out within 4 days
Routine repairs carried out within 28 days
Operating margin
Net margin
Gearing ratio
Interest cover ratio
>800/0
>800/0
28%
>30'/0
>10'/0
38%
<60'/0
Net debt per unit
Voids as a 0/0 of Stock
£29,949
0.8/0
<£38,000
Board members altendance at Board meetings
93.25 /0
>75%
Housing management staff assisted tenants struggling on low incomes by offering welfare and
general money management advice, including assistance with universal credit applications.
Page 3

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Report of the Board of Management for the Year Ended 31 March 2023
Expected performance in the year ending 31 March 2024
The Association expects to maintain its level of operations and performance in 2023124.
It is planned that 114 homes will be added to the development programme during Ihe year made up of
a number of schemes. We expect there will be approximately 59 properties completed from existing
schemes on site and added lo management during the year with the remainder completing in the
years ending 31 March 2025 and 2026.
A cyclical and planned maintenance programme of approximately £1.1 m of investment has been
approved. This includes 5 heating upgrades, 50 window and door replacements, 6 complete property
refurbishments, 15 HRU JEnvirovent replacements, fixed wire testing at 400 properties and all health
and safely inspections.
Corporate Governance
In the opinion of the Board of Management, the Association is in compliance with the Best Practice
issued by the NHF Code of Governance and wrth the Dfc Regulatory Standards.
Corporate Strategy
The Association launched a new strategic plan in April 2022 covering the five year period 2022 to
2027. Our business goals over this period focus on working together and recognising diversity.,
striving to be more environmentally aware throughout our business and activities., promoting kindness,
resilience and community cohesion,. being open and clear in our actions, rectifying mistakes and doing
what we say we will do,. connecting with tenants, engaging with stakeholders and buddying up with
others to improve our services. We will be working on these goals in a tough financial environment
under the burden of welfare reform, political uncertainty and economic recovery following a global
pandemic. It has never been more important to make sure value for money is embedded in our
business., to offer seNices that our tenants actually need and to look at the wider picture of
challenging poverty, improving health and well-being and promoting inclusivity.
Our strategy to achieve this is to help our tenants lo live in warm, safe, affordable homes,. lo provide
added value through community initiatives, customer led service provision and reducing our negative
impact on the environmenl and by being a viable, foward thinking, environmentally aware business.
We want to see houses become homes,. safe and well-maintained homes thal complement their
environment. We want to help our tenants to live comfortably in these homes, so making them more
energy efficient and affordable is very important. We also aim to deliver excellence across our core
housing service activities such as routine repairs, investing in planned maintenance, rent collection
and peaceful living.
Whilst striving for continuous improvemenl and service development we will be inclusive and mindful
of the needs of our tenants.
Our developmenl priorities will be to not only provide new affordable homes in thoughtfully designed
developments that will sland the test of time, but also lo consider alternative models for their delivery
and tenure. We will have an active asset management and investment strategy to maintain our
homes.
We will continue to enhance our customer engagement opportunitie5 Ihrough collaborative
partnership with tenants and key stakeholders as we work lo innovate in delivery of services.
Page 4

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Report of the Board of Management for the Year Ended 31 March 2023
Through information and practice we want to gel involved in the sustainability agenda as we provide
homes, enhance neighbourhoods and operate our business. Our tenants and employees will be
encouraged to get involved in our efforts to reduce our carbon footprint.
We will signpost our tenants to fuel poverty initiatives and offer welfare benefit advice.
We want to be a great employer and an employer of choice. It is our people who make us great, they
determine how we perform as an organisation and we want to empower Ihem to be the best they can.
We want to develop a staff team with skills, knowledge and motivation to deliver our goals. We want
our team to feel valued and lislened to,. to provide them with a working environment that is agile and
safe and to ensure they have resources to perform at their best.
As an organisalion, we will meet, or exceed slatulory and legal requirements, apply appropriate risk
controls, develop and comply with internal policies and apply innovative thinking lo develop service
efficiencies and deliver excellenl customer focused services.
Our business activities are underpinned by sustainability, regulation and collaborative working. We will
assess a range of factors to ensure posilive outcomes for all parts of our business including financial
viability, value for money and environmental sustainability. We will raise staff awareness of energy
efficiency and how to pass benefits on to tenants.
Digital transformation has never been more important and Connswater recognises that it is business
crilical. We will ensure that the appropriate infrastructure, applications and systems are available in
order for staff to deliver seNices in an efficient, consistent and cost-effective manner whilst ensuring
clear and transparent governance. We will focus on improving customer access to services and data.
This will be driven further by developing our tenant portal and improving access lo equipment for
tenants through our lablel loan scheme.
Going Concern
After making enquiries, the Board of Management have a reasonable expectation that the Association
has adequate resources to continue in operational existence for the foreseeable future. For Ihis
reason they continue to adopt the going concern basis in preparing the financial statements.
Page 5

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Report of the Board of Management for the Year Ended 31 March 2023
Value for Money
Our strategy at Connswater Homes Limited is to operate our core activities as efficiently and
effectively as possible.
We strive to improve the quality of our services to our tenants, continue building high quality homes
and generate social value whenever we see Ihe opportunity.
VFM Framework - 3 E s
The Association strives lo achieve Value {i.e. be as effective as possible) for the money that is
invested in the activities that we carry out.
We measure our VFM using a framework which examines our performance in terms of Economy,
Efficiency and Effectiveness.
Treasury Management Policy
The Association's aim is to maintain loan balances at a level to support development while keeping
loan interest charges to a minimum. This is achieved without comprising the Association's ability to
meet its financial obligations at they fall due.
Financial Risk Management
Page 6

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Report of the Board of Management for the Year Ended 31 March 2023
The Association's operations expose il to a variety of financial risks that include the effects of changes
in credit risk, price risk and interest rate risk. The Association has in place a risk management
programme that seeks to limit the adverse effects on the financial performance of the Association by
regular review of activity levels against changing market conditions and adjustment to cashflow
projections accordingly. The Association liaises with lenders on an ongoing basis to keep up to date
with other products in the marketplace.
Interest rale risk
Exposure to fluctuating interest rates is managed by Ihe composition of a balanced portfolio between
fixed rate and variable rate loans. The Association's effective interest rate in 2022123 was 3.070/0. For
the past number of years the Association's effective interest rate has been falling year on year as the
Association agreed competitive terms on new loans. We recognise that we now find ourselves in
Ghanged economic environment and that any new loans drawn down in future years are likely lo be at
considerably higher Interest rates. This will cause our effective interest rate to increase in future
years. Higher interest rates will put a squeeze on Net Margins in years to come and our development
plans will need to take account of this higher interest rate environment to ensure bank covenants are
mel. The Association runs stress testing scenarios each year lo ensure our future plans are viable
and we amend our plans where necessary.
Liquidily risk
The Association maintains a mixture of long-term and short-lerm loan finance that is designed to
ensure there is sufficient funds lo achieve business objectives and to facilitate planned growth.
Currency risk
The Association does not engage in foreign currency transaclions and so is not exposed to exchange
risk
Page 7

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Report of the Board of Management for the Year Ended 31 March 2023
Regulation
The Association's principal regulator is the Department for Communities (Dfc). Their regulatory
judgement for the year 2020121 gave the Association the highest rating of Level 1 assessing the 3
standards.. Governance, Finance and Consumer. As a registered charity the Association is also
subject lo regulation by Ihe Charity Commission for Northern Ireland.
Environmental matters
The Association recognises its corporate responsibility to carry out its operalions and development
programme whilst minimising environmental impacts. The Board's continued aim is to comply with all
applicable environmental legislation, prevent pollution and reduce waste wherever possible.
Internal Financial Control
The Board of Management is responsible for establishing and overseeing a risk management
framework in order to safeguard the assets of the Association and for the Associalion's systems of
internal financial control and along with senior management is responsible for establishing and
operaling detailed control and report procedures. The systems of internal financial control can provide
over reasonable, and not absolute, assurance against malerial 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 reseNed for its approval ensuring it
maintains responsibility for overall strategy, approval of all property transactions and other major
capital expenditure projects.
There is an organisation structure with clearly defined lines of responsibility and delegation of
authority.
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.
The Audit Committee review matters relating to internal control and receives reports on a regular
basis from the external and internal auditors and from senior management.
Page 8

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Report of the Board of Management for the Year Ended 31 March 2023
Statement of the Board's responsibilities in respect of the financial statements
The Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and Registered
Housing Association legislation require the members of the Board of Management to prepare the
financial statements for each financial year which give a true and fair view of the state of the
Association's affairs and of its surplus or deficit for that period. In preparing these statements the
Board is required to..
select suitable accounting policies and apply them consistently.,
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
prepare the financial statements on the going concern basis unless it is inappropriate to presume
that the Association will continue to operate.
The members of the Board of Management are responsible for keeping proper accounling records
which disclose with reasonable accuracy at any time the financial position of the Association and to
enable them to ensure that the financial statements comply with the Co-operative and Community
Benefil Societies Act (Northern Ireland) 1969 and the Registered Housing Associations (Accounting
Requirements) Order (Northern Ireland) 1963. They have general responsibility for the taking of
reasonable steps lo safeguard the assets of the Association and to prevent and detect fraud and other
irregularities.
Events after the Balance Sheet date
The Association has no post balance sheel dale events lo disclose.
Charitable donations
Donations totalling £3,555 (2022.. £2,595) were made by the Association during the year. No
donations for political purposes were made during the year (2022.. £nil).
Financial sustaTnability
The Association has a robusl framework of longer term financial planning in place. The Board
regularly considers the longer term financial plan which covers a 30 year period. The financial plan is
prepared in accordance with FRS102 using Brixx planning software. The Association remains
profitable for each of the 30 years in the plan and both gross margin and net margin remain strong.
Sensitivity analysis is carried out to see how the Association would cope financially under the
following four stress factors.. voids increase by 10/0, bad debts increase by 10/0, CPI increases by 1 %
and interesl rates increase by 10/0. In addition, lo reflect the current economic environment, further
slress testing was undertaken lo assess the impact of 20/0 increases in CPI and interest rates.This
allows the Board to consider whether the Association may need to amend or postpone future
development plans should any of the above scenarios materialise.
Page 9

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Report of the Board of Management for the Year Ended 31 March 2023
Statement of disclosure of information to auditors
So far as each of the members of the Board of Management at the date of approval of these financial
slatements is aware:
there is no relevant audit information of which the Association's auditors are unaware, and
that each Board member has taken all the steps that ought to have have been taken as a Board
member in order to be aware of any relevant audit information and to establish that the
Association's auditors are aware of that information.
Independent Auditors
The auditors, RBCA Limited, have indicated their willingness to continue in office, and a resolution
proposing their reappointment will be proposed at the Annual General Meeting.
Approved and authorised by the Board on
75 and signed on its behalf by..
Mr Robbie
avis (Chairman)
r Alan Hill (Honorary Secretary)
Mr Michael Graham (Honorary Treasurer)
Page 10

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Independent Auditor's Report to the Members of Connswater Homes Limited
Opinion
We have audited the financial statements of Connswater Homes Limited for the year ended 31 March
2023, which comprise the Statement of Comprehensive Income, Stalement of Financial Position,
Statement of Changes in Resources, Statement of Cashflows and Notes to the Financial Stalements
including a summary of significanl accounting policies. The financial reporting framework that has
been applied in their preparation is applicable law and United Kingdom Accounting Standards,
including FRS 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland,
(United Kingdom Generally Accepted Accounting Practice) and the Slatement of Recommended
Praclice 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 company's affairs as at 31 March 2023 and of its
surplus for the year then ended.,
have been properly prepared in accordance wilh United Kingdom Generally Accepted Accounting
Practice- and
have been prepared in accordance with the requirements of the requirements of the Co-operative
and Community Benefits Societies Act (Northern Ireland) 1969 {formerly the Industrial and
Provident Societies Act (Northern Ireland) 1969>, the Charities Act (Northern Ireland) 2008, The
Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 and the Registered Housing
Associations (Accounting Requirements) Order (Northern Ireland) 1993.
Basis of Opinion
We conducted our audit in accordance with International Standards on Auditing {UK) (ISAS (UK)) and
applicable law. Our responsibilities under those standards are further described in the Auditor's
responsibilities for the audit of the financial statements section of our report. We are independent of
the company 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 these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relatlng to going concern
We have nothing to report in respect of the following matters in relation to which the ISAS (UK) require
us to report to you where-.
the Board of Management's use of the going concern basis of accounting in the preparation of the
financial statements is not appropriate., or
the Board of Management have not disclosed in the financial statements any identified material
uncertainties that may cast significant doubt about the Association's ability lo continue to adopt the
going concern basis of accounting for a period of at least twelve months from the date when the
financial statements are authorised for issue.
Other information
The other information comprises the information included in the annual report, other than the financial
statements and our auditor's report thereon. Our opinion on the financial statements does not cover
the other information and, except to the extent othetwise explicitly slated in our report, we do not
express any form of assurance conclusion thereon.
Page 11

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Independent Auditor's Report to the Members of Connswater Homes Limited
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit or otherwise appears to be malerially
misstated. If we identify such material inconsistencies or apparent material misstatements, we are
required to determine whether there is a material misstatement in Ihe 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.
Responsibilities of the Board of Management
As explained more fully in the Board of Management responsibilities statement the Board of
Management are 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
delermines is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing Ihe 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 alternalive but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are lo obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and lo 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 IUKI will always detect a material misstatemenl
when il exists. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the economic decisions of users
taken on the basis of these financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed
below..
We identified areas of laws and regulations that could reasonably be expected have a material
effect on the financial statements from our sector experiences through discussion the Board of
Management and other management (as required by auditing standards).
We had regard to laws and regulations in areas that directly affect the financial statements
including financial reporting and laxalion legislation. We Considered the extent of compliance with
those laws and regulations as apart of our procedures on the related financial statement items.
With the exceplion of any known or possible non-compliance, and as required by auditing
standards, our work in respect was limited to enquiry of the Board of Management.
We communicated applicable laws and regulations throughout our audit team and remained alert
to any indications of non-compliance throughout the audit.
We addressed the risk of fraud through management override of controls, by testing the
appropriateness of journal entries and other adjustments,. assessing whether the judgements
made in making accounting estimates are indicative of a potential bias., and evaluating the
business rationale of any significant transactions thal are unusual or outside Ihe normal course of
business.
Page 12

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Independent Auditor's Report to the Members of Connswater Homes Limited
Our audit procedures were designed to respond to risks of material misstatement in the financial
statements, recognising that the risk of not detecting a material misstatement due to fraud is higher
than the risk of not detecling one resulting from error, as fraud may involve deliberate concealment
by, for example, forgery, misrepresentations or through collusion. There are inherent limilations in
the audit procedures performed and the further removed non-compliance with laws and regulations
is from the events and transactions reflected in the financial statements, the less likely we are to
become aware of it.
A further description of our responsibililies is available on the Financial Reporting Council's website
at.. www.frc.org.uklauditorsresponsibilities. This description forms part of our auditor's report.
Other required reporting
Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 ex¢eption reporting
Under the Co-operative and Communily Benefit Socielies Act {Northern Ireland) 1969, we are
required to report to you if, in our opinion-
A satisfactory syslem 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 accounling records have not been kept by the association., or
The financial statements are not in agreement with the accounting records.
We have no exceptions lo report arising from this responsibility.
Charities {A¢counts and Reports) Regulations (Northern Ireland) 2015 ex¢eption reporting
Under the Charities (Accounts and Reports) Regulations {Northern Ireland) 2015 we are required to
report to you if, in our opinion-.
Sufficient accounting records have not been kept., or
The financial statements are not in agreement with the accounting records., or
We have not received all the information and explanalions we require for our audit.
We have no exceptions to report arising from this responsibility.
Use of our report
This report is made solely to the Board of Management, in accordance with Article 38 of the
Co-operative and Community Benefit Societies Act {Northern Ireland) 1969 (formerly the Industrial
and Provident Socielies Act (Northern Ireland) 1969). Our audit work has been undertaken so that we
might stale to the Board of Management those matters we are required to slate lo them in an auditor's
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 Board of Managemenl and Ihe Association as a body, for our
audit work, for this report, or for the opinions we have formed.
Page 13

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Independent Auditor's Report to the Members of Connswater Homes Limited
Ross Boyd (Senior Statutory Auditor)
For and on behalf of RBCA Limited,
Linenhall Exchange
26 Linenhall Street
Belfast
BT2 8BG
Page 14

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
statement of Comprehensive Income for the Year Ended 31 March 2023
2023
2022
Turnover
Operating costs
8,555,856
(6,188,080)
8,243,854
{6,036,095)
Operating surplus for the year
Surplus arising from disposals of housing property
Miscellaneous income
Miscellaneous expenses
Transfer to disposal proceeds fund
Interest received
Interest payable and similar expenses
other finance costs
2,367,776
110,427
36,595
2,207,759
758,923
23,550
(26,554)
(758,9231
12,814
(1,231,660)
{27,000)
(110,427)
16,279
(1,183,248)
(25,000
1,212,402
1,432,000
Surplus for the financial year
Remeasurement gain on defined benefit pension schemes
Total comprehensive income for the year
958,909
527,000
2,644,402
1,485,909
The notes on pages 23 to 47 form an integral part of these financial statements.
Page 15

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
(Registration number: IP000166)
Statement of Financial Position as at 31 March 2023
2023
2022
Note
Fixed assets
Housing properties
other tangible fixed assets
Investments
13
16
17
141,660,372
367,189
133,302,582
188,568
142,027,563
133,491,152
Current assets
Stocks
Debtors
Cash at bank and in hand
15
18
183,000
677,520
3,460,345
222,500
727,691
4,578,950
5,529,141
4,320,865
Creditors.. Amounts falling due within one year
Net current assets
19
{2,451,361)
(5,121.386)
1,869,504
407,755
Total assets less current liabilities
143,897,067
133,898,907
Creditors.. Amounts falling due after more than one year
Pension surplusl(liability)
Net assets
20
(122,716,797) (114,147,039)
148,000
(1,068,000)
18,683,868
21,328,270
Capital and reserves
Called up share capital
Capital reserve
Revenue reserve
12
80
21,328,178
14
78
18,683,776
Total funds
21,328,270
18,683,868
Approved and authorised by the Board on
and signed on its behalf by..
The notes on pages 23 10 47 form an integral part of these financial statements.
Page 16

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
(Registration number: IP000166)
Statement of Financial Position as at 31 March 2023
Mr Robbie Da)iis (Chairman)
r Alan
ill (Honorary Secretary)
ichael Graham (Honorary Treasurer)
The notes on pages 23 to 47 form an integral part of these financial statements.
Page 17

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Statement of Changes in Reserves for the year ended 31 March 2023
2023
2022
Note
Total comprehensive income for the year
2,644,402
1,485,909
Net addition to revenue reserves
2,644,402
18,683,776
1,485,909
17,197,867
Opening total revenue reserves
Closing total revenue reserves
21,328,178
18,683,776
The notes on pages 23 to 47 form an integral part of these financial statements.
Page 18

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Statement of Cash Flows for the Year Ended 31 March 2023
2023
2022
Note
Nel cash inflowloutflow from operating activities
Returns on inveslments and servicing of finance
Capital expenditure and financial investment
2,491,523
(1,166,969)
{3,092,4851
958,564
(1,218,846)
(1,967,445)
Cash inflowloutflow before use of liquid resources and
financing
{1,767,931)
(2,227,727)
Financing
649,326
(1,336,929)
Inceasel{decrease) in cash in period
{1,118,605)
{3,564,666)
2023
2022
Reconciliation of net cash flow
Increasel(decrease) in cash in period
Net cash at 1 April
(1,118,605)
4,578,950
(3,564,656)
8,143,606
Net cash at 31 March
3,460,345
4,578,950
The notes on pages 23 to 47 form an integral part of Ihese financial statements.
Page 19

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to Statement of Cash Flows for the Year Ended 31 March 2023
2023
2022
Note A Reconciliation of surplus for the year to
operating cashflows
Surplus for the year
Depreciation
Amortisation of grant
Movemenls..
1,212,402
2,067,384
(1,560,170)
958,908
2,104,830
(1,553,232)
stock
39,500
50,171
2,334,694
(110,427)
(2,734,000)
25,000
{16,279)
1,183,248
(222,500)
(174,277)
(1,414,090)
1758,923)
772,000
27,000
{12,814)
1,231,660
- Debtors
Creditors
{Surplus}Ideficit arising from disposals of housing property
Difference in pension charge and cash contributions
Other finance costs
Interest received
Interest payable
2,491,523
958,564
The notes on pages 23 to 47 form an integral part of these financial statements.
Page 20

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to Statement of Cash Flows for the Year Ended 31 March 2023
2023
2022
Note B - Analysis of cash flows for headings netted Sn
the cash flow statement
Returns on investment and servicing of finance
Interest received
16,279
(1,183,248)
12,814
{1,231,660)
Interest payable
Net cash inflowl (outflow) for returns on investment and
servicing of finance
{1,166,9691
{1,218,846)
2023
2022
Capital expenditure and financial investment
other fixed assets
{230,999)
(10,916,389)
7,224,983
829,920
{78,765)
(9,935,915)
7,178,948
868,287
Housing, land and buildings
Capital grant received
Sales proceeds
Net cash inflowl {outflowl for capital expenditure and
financial investment
(3,092,485)
{1,967,445)
2023
2022
Financing
Loan principal payments
Loan redemptions
Draw-downs
<1,350,674)
{1,337,220)
2,000,000
Net cash inflowl (outflow) for capital expenditure and
financial investment
649,326
{1,337,220)
The notes on pages 2310 47 form an integral part of these financial statements.
Page 21

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to Statement of Cash Flows for the Year Ended 31 March 2023
At 1 April
2022
Cashflows
Other At 31 March
Changes
2023
Note C - Analysis of changes in net funds
Cash in hand and at bank
Debt due within one year
Debl due after more than one year
4,578,950 (1,118,605)
{1,355,299)
{9,456)
{37,394,532) 1639,8691
3,460,345
{1,364,7551
(38,034,401)
(34,170,881} (1,767,930)
{35,938,811)
The notes on pages 23 to 47 form an inlegral part of these financial statements.
Page 22

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
1 General information
The association's principal activity during the financial year was providing high quality, affordable
homes for rent throughout Northern Ireland. The association is registered under the Co-operative and
Community Benefit Societies Act (Northern Ireland) 1969 and domiciled in the UK.
The address of its registered office is:
Unil 5 Citylink Business Park
Albert Street
Belfast
BT12 4HQ
2 Accounting polTcies
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statemenls are set out
below. These policies have been consistently applied to all the years presented, unless otheNise
stated.
Statement of compliance
These financial stalements of Connswater Homes Limited have been prepared on the going concern
basis in compliance with United Kingdom Accounting Standards, including Financial Reporting
standard 102, "The Financial Reporting Standard applicable in the United Kingdom and the Republic
of Ireland" {"FRS 102) under the historical cost convention, and in accordance with the applicable
accounting slandards in the United Kingdom and Statement of Recommended Practice for Accounting
by Registered Social Landlords. The principal accounting policies, which have been applied
consistently throughout the year, are set out below. The presentation of the financial stalements
complies with the Registered Housing Associations (Accounting Requirements) Order (Northern
Ireland) 1993.
Basis of preparation
These financial statements are prepared on a going concern basis, under the historical cost
convention. The preparation of financial statements requires the use of certain crilical accounling
estimates. It also requires management to exercise its judgement in the process of applying the
associalion accounting policies. The areas involving a higher degree of judgement or complexity, or
areas where assumptions and estimates are significant to the financial statements, are disclosed in
note 3.
Foreign currency transactions and balances
Transactions and non-monetary assets, denominated in foreign currencies, are Iranslated al the
exchange rate at the date of the transaction. Monetary assets and liabilities are denominated in
foreign currencies are retranslated at the rate of exchange ruling at the statement of the financial
position date or the exchange rate of a related foreign exchange contract where relevant. The
resulting exchange gains or losses are dealt with in the income and expenditure account.
Page 23

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable and represents the
amount receivable for goods supplied or services rendered, net of returns, discounts and rebates
allowed by the association and value added taxes. The association bases its estimate of returns on
hislorical results, taking into consideration the type of customer, the type of transaction and the
specifics of each arrangement.
Where Ihe consideration receivable in cash and cash equivalents is deferred and the arrangement
constitutes a financing transaction, the fair value of the consideration is measured at the the present
value of all future receipls using the imputed rate of inlerest. The association recognises revenue
when (al the significant risks and rewards of ownership have been transferred to the buyer- {b) the
associalion retains no continuing involvement or control over the goods; (cl the amount of revenue
can be measured reliably,. (d) it is probable that future economic benefits will flow through the
association and (el when the specific criteria relating to each of the associations, sales channels have
been met, as described below and in note 4.
Net rental Income
Income includes rent and service charge income arising from the provision of housing accommodation
and the amortisalion of Housing Association Grant. Income is recognised in the period to which it
relates.
Employee benefits
The association provides a range of benefits lo employees, including paid holiday arrangements and
defined benefit pension plans.
i) Short term benefils
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as
an expense in the period in which the service is received.
ii) Multi-employer pension plan
Retirement benefits lo employees of the Association are provided by the Northern Ireland Local
Government Officers Superannuation Committee (NILGOSCI defined benefit scheme which is
externally funded.
The assets of the NILGOSC scheme are held separately from those of the Association. The
Association has adopted FRS 102 section 28 "Employee benefits" in these financial statements.
Pension scheme assets are measured using market value. Pension scheme liabilities are measured
using the projected unil method and discounted at the current rate of retLtrn on a high quality
corporate bond of equivalent term to the the liability. The increase in the present value of the liabilities
of the Association's defined benefit pension scheme arising from employee service in the year is
charged to operating surplus. The net interest cost is calculated by applying the discount rale lo the
net balance of the defined benefit obligation and the fair value of the plan assets. This cost is
recognised in the Statement of Comprehensive Income as "Other finance costs."
Stock
Housing properties held for sale are measured at the lower of cost and eslimated selling price less
costs to complete and sell.
Page 24

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
Tangible fixed assets
Housing properties
The association operates a full component accounting policy in relation to the capitalisation and
depreciation of its completed housing stock.
Housing Association Grant and other grants
Housing Association Grant and other grants received as a contribulion towards the capital costs of
housing properties of the Association were set against the capital cost of these properties in the prior
years. Housing Association Grant is disclosed as "Creditors.. amounts falling due after more than one
yearf, rather than set against the capilal cost and are amortised to the Statement of Comprehensive
Income as per the turnover policy. Housing Association Grant received against revenue expenditure is
credited to revenue in the period in which the related expenditure is charged.
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 nel proceeds of the sale.
Depreciation and impairment
Housing properties
Housing properties are split bebNeen land, structure and major components which require periodic
replacement. Replacement or refurbishment of such major components is capitalised and depreciated
over the estimated useful life which has been set taking into account professional guidance and the
association's asset management strategy. In determining the remaining useful lives for the housing
stock, the association has taken account of views provided by both internal and external professional
sources.
Freehold land is not subject to depreciation. Depreciation is charged so as to wrile down the cost or
valuation of the freehold housing properties and major Gomponents on a straight-line basis over Iheir
expected useful economic lives.
Major components are treated as separable assets and depreciated over their expected useful
economic lives or the lives of the structure to which they relate, if shorter, over the following periods..
Asset class
Depreciation method and rate
Land
Not depreciated
SlruGlure (including roon
100 years
Kitchen
20 years
Bathroom
25 years
Heating system
15 years
Windows and doors
35 years
Electrics
30 years
Page 25

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
Housing assets are depreciated in the month of acquisition, or in the case of a larger project, from the
month of completion. Where there is evidence of impairment, Ihe fixed assets are written down lo the
recoverable amount and any write down would be charged to the operating surplus.
Other fixed assets
Ground rents are depreciated. Depreciation of other fixed assets is Charged on a straight-line basis
over the estimated useful economic lives of the assels at the following annual rates..
Office premises 2 %
Office furniture and equipment 250/
Motor vehicles 14 %
Subsequent additions and major components
Subsequent costs, including major inspections, are included in the assets carrying amount or
recognised as a separate asset, as appropriate, only when it is probable that economic benefits
associated with the item will flow to the association and the cost can be measured reliably. The
carrying amount of any replaced component is de-recognised.
Repairs, maintenance and minor inspection cosls are expensed as incurred.
Derecognition
Tangible assets are de-reGognised on disposal or when no future economic benefits are expected. On
disposal the difference between the net disposal proceeds and the carrying amount is recognised in
the Statement of Comprehensive Income.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Payments made under operating leases are charged to Statemenl of
Comprehensive Income on a straight-line basis over the period of the lease.
Page 26

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand, deposits held at call with banks. other short-term
highly liquid investments with original maturities of one month or less and bank overdrafts. Bank
overdrafts are shown within borrowings in current liabilities.
Impairment of non-financial assets
At each Statement of financial position date non-financial assets are not carried at fair value are
assessed to determine whether there is an indication that the asset lor asset's cash generating uniti
may be impaired. If there is such an indication the recoverable amount of the asset (or asset's cash
generating unil) is compared to Ihe carrying amount of the asset (or asset's cash generating unit).
The recoverable amount of the asset (or asset's cash generating unit) is the higher of the fair value
less costs lo sell and value in use. Value in use is defined as the present value of the future cash
flows before interest and tax obtainable as a result of the asset's (or asset's cash generating unit)
conlinued use. These cash flows disconlinued using a pre-tax discount rate that represents the
current markel risk-free rate and Ihe risks inherent in Ihe assets.
If the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than
the carrying amount, the carrying amount is reduced to ils recoverable amount. An impairment loss is
recognised in the Slatement of Comprehensive Income and Retained Earnings, unless the asset has
been revalued when Ihe amount is recognised in other comprehensive income to the extent of any
previously recognised revaluation. Thereafter any excess is recognised in the Statement of
Comprehensive Income and Retained Earnings.
If an impairment loss is subsequently reversed, the carrying amount of the asset (or asset's cash
generating unit) is increased to the revised estimate of its recoverable amount, but only to the extent
that the revised carrying amount does not exceed the carrying amount that would have been
determined (net of depreciation or amortisation) had no impairment loss been recognised in prior
periods. A reversal of an impairment loss is recognised in the Statement of Comprehensive Income
and Retained Earnings.
il Provisions
Provisions are recognised when the Association has a present legal or construclibr obligation as a
result of past events,. it is probable that an outflow of resources will be required to settle the obligation.,
and the amount of the obligations can be estimated reliably. Where there are a number of similar
obligations, the likelihood that an outflow will be required in settlemenl is determined by considering
the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow wilh
respect to any one item included in the same class of obligations may be small.
Provisions are measured at the present value of the expenditures expected lo be required to settle the
obligation using a pre-tax rate that reflects current market assessments of the time value of money
and the risks specific to the obligation. The increase in the provision due to passage of time is
recognised as a finance costs.
ii) Contingencies
Contingent liabilities, arising as a result of past events, are not recognised when li) it is not probable
that there will be an outflow of resources or that the amount cannot be reliably measured at Ihe
reporting date or {ii) when the existence will be confirmed by the occurrence of uncertain future events
not wholly within the Association's control. Contingent liabilities are disclosed in the financial
statements unless the probability of an outflow of resources is remote.
Page 27

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
Flnancial instruments
The association has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial
inslrumenls.
i) Financial assets
Basic financial assets, including trade and other receivables and cash and bank balances inilially
recognised al transaction price, unless the arrangement constitutes a financing transaction, where the
transaction is measured at the present value of the future receipts discounted al a market rate of
interest. Such assets are subsequently carried at amortised cost using the effective interest method.
At the end of each reporting period financial assets at amortised cost are assessed for objective
evidence of impairment. If an asset is impaired the impairment loss is the difference belween the
carrying amount and the present value of the estimated cash flows discounted at the asset's original
effective interest rate. The impaiment loss is recognised in Statement of Comprehensive Income and
Retained Earnings.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was
recognised, the impairment is reversed. The reversal is such that the current carrying amount does
nol exceed what the carrying amount would have been had the impairment not previously been
recognised. The impairment reversal is recognised in Statement of Comprehensive Income and
Retained Earnings.
Financial assets are de-recognised when (al the contractual rights to the cash flows from the asset to
expire or are settled, (b} substantially all the risks and rewards of the ownership of the asset are
transferred to another party or, (c) despite having retained some significant risks and rewards of
ownership, control of the asset has been transferred to another party who has the practical abilily to
unilaterally sell the asset to an unrelated third party without imposing additional restrictions. Other
financial assets, including investments in equity instruments which are not subsidiaries, associates or
joint ventures, are initially measured at fair value, which is normally the transaction price.
Such assets are subsequently carried at fair value and the changes in fair value are recognised in the
Statement of Comprehensive Income and Retained Earnings, except that investments in equity
instruments that are not publicly traded and whose fair values cannot be measured reliably are
measured at cost less impairment.
Page 28

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
ill Financial liabilities
Basic financial liabilities, including trade and other payables, bank loans and loans from fellow
association companies, are initially recognised at transaction price, unless the arrangement
constitutes a financing transaction, where the debt instrument is measured al the present value of the
future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at
amortised cost, using the effective interest rate of melhod.
Fees paid on the establishment of loan facililies are recognised as transaction costs of the loan to the
extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is
deferred until the draw-down occur. The extent there is no evidence that it is probable that some or all
of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity setvices and
amortised over the period of the facility lo which il relates.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary
course of business from suppliers. Accounts payable are classified as current liabilities if payment is
due within one year or less. If not, they are presented as non-current liabilities. Trade payables are
recognised initially al transaction price and subsequently measured al amortised cost using the
effective interest method.
Disposal proceeds fund
The net surpluses, after loan repayments, that arise from the sale of property to lenants under the
voluntary purchase grant arrangements instituted by the Department for Communities can be used by
the Association to fund works on property that would not be eligible for housing association grant or in
certain circumstances, attract loan finance.
If the surpluses are not used within two years of their receipt they may be payable in part or in full to
the Department of Communities.
Revenue reserves
The Association's policy is to retain a level of revenue reseNes which reflects its needs at the current
time and in the foreseeable future. The reserves required are sufficient to meet committed running
costs for a period equivalenl to nine months budgeted futLtre expenditure. The Board of Management
reviews Ihe adequacy of the revenue reserves level on an annual basis.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured al the fair value of the cash
or other resources received or receivable, net of the direct costs of issuing the equity instruments. If
payment is deferred and the time value of money is material, the initial measurement is on a present
value basis.
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.
Page 29

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
3 Critical accounting judgements and estlmation uncertainty
Estimates and judgements made in the process of preparing the association financial statements are
continually evaluated and are based on historical expenses and other factors, including expectations
of future events that believed to be reasonable under the circumstances.
(al Critical judgement in applylng the entity's accounting policies
There are no critical judgements in applying the entity's accounting policies.
(b) Critical accounting estimates and assumptions
The Board of Management makes estimates and assumptions concerning the fulure in the process of
preparing the association financial statements. The eslimates and assumptions Ihat have a significant
risk of caLFsing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year are addressed below.
(i) Useful economic lives of housing properties
The annual depreciation on housing properties is sensitive to Ghanges in the estimated useful
economic lives and residual values of the assets. The useful economic lives and residual values are
reviewed annually. They are amended when necessary to reflect current estimates, based on future
investments, economic ulilisation and the physical condition of the assets.
(li) Defined benefil pension scheme
The Association has an obligation to pay pension benefits lo certain employees. The cost of these
benefits and the present value of the obligalion depend on a number of faclors, including., life
expeGlancy, salary increases, asset valuations and the discount rate on corporate bonds.
Management estimates these factors in determining the net pension obligalion in the balance sheet.
The assumptions reflect historical experience and current trends.
There are no other critical accounting estimates and assumptions.
Page 30

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
4 Analysis of turnover
Turnover and results relate to the association's main activities which are carried out in the United
Kingdom. Turnover represents rental and service charge income and residential charges for housing
with care, net of voids. It also includes amortisalion of grants received from the Northern Ireland
Housing Executive.
5 Operating costs
2023
2022
Direct costs
4,283,608
1,904,472
4,303,531
1,732,564
Administrative expenses
6,188,080
6,036,095
6 Operating surplus
2023
2022
This is stated after chargingllcrediting):
Staff costs (Note 7)
Wages and salaries
Depreciation
Housing properties
Other tangible fixed assels
Amortisation of grants
Auditors, remuneration
1,747,479
1,635,472
2,014,989
52,395
(1,560,170)
2,067,469
37,361
(1,553,232)
Audit services
8,100
8,100
Page 31

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
7 Employee information
2023
2022
Staff costs
Wages and salaries
Social security costs
Other pension costs
1,354,206
146,121
247,152
1,279,067
126,405
230,000
1,747,479
1,635,472
2023
2022
Number
Number
Average monthly number of persons employed during
the year by activity:
Administration
33
32
8 Directors, emoluments
The aggregate remuneration of key management personnel of the Association during the year was..
2023
2022
Aggregate emoluments (including pension contributions)
Emoluments payable to the highest paid director (excluding
pension contributions)
356,599
331,289
123,028
114,296
The number of direclors to whom emoluments were paid during the year falls within each of the
following bands..
Page 32

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
2023
2022
Salary Band
£120,000 - £130,000
£110,000 - £120,000
£100,000- £110,000
£90,000 - £100,000
£80,000 - £90,000
£70,000 - £80,000
Members of the Board of Management serve in a voluntary capacity and none (2022.. none) were in
receipt of emoluments during the year.
The Board and Committee members were reimbursed for expenses totalling £Nil12022'. £Nil) during
the year.
9 Transfer of disposal proceeds fund
2023
2022
Proceeds of disposal
Asset original costsllegal fees
Voluntary grant payable
830,920
{305,773)
164,281
868,287
(336,028)
226,664
Transfer to disposal proceeds fund {note 19)
689,428
758,923
10 Interest receivable and similar income
2023
2022
Interest receivable
16,279
12,814
16,279
12,814
Page 33

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
11 Interest payable and similar expenses
2023
2022
Housing property loans
Bank interest and charges
1,179,138
4,110
1,227,852
3,807
1,183,248
1,231,660
12 Other finance costs
2023
2022
Defined benefit pension scheme net interest cost
25,000
27,000
25,000
27,000
Page 34

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
13 Tangible fixed assets - housing properties and housing association grants
2023
2022
Housing Properties
Cost
At l April 2022
Additions
149,545,851
11,453,944
(1,322,243)
142,095,855
9,935,915
(2,033,945)
{302,153)
Disposals
Transfers
At 31 March 2023
159,677,552
149,695,672
Accumulated depreciation
At 1 April 2022
Charge for the year
Disposals
Transfers
16,362,417
2,014,989
(360,2251
15,066,500
2,067,469
{687,780)
{53,0981
At 31 March 2023
18,017,181
16,393,090
Net book value
At 31 March 2023
141,660,372
133,302,582
Net book amount comprises:
Freehold property
141,660,372
133,302,582
Net book amount comprises..
Completed scheme
Properties under construction
127,508,388
14,151,984
126,138,642
7,163,940
At 31 March 2023
141,660,372
133,302,582
Included in the above is a figure of £393,425 for capitalised component replacements 12022..
£589,247).
Page 35

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
14 Housing Association Grants
2023
2022
Housing Association Grants
Cost
Al 1 April 2022
Additions
91,492,175
8,542,674
(981,998)
86,809,816
8,087,291
(1,404,932)
Disposals
At 31 March 2023
99,052,850
91,492,175
Accumulated amortisation
At 1 April 2022
Charge for the year
Disposals
14,279,783
1,462,428
{547,999)
13,188,704
1,481,199
(390,1201
At 31 March 2023
15,194,212
14,279,743
Net book value
At 31 March 2023
83,858,638
77,212,392
Page 36

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
15 Stock
2023
2022
Houses held for sale
183,000
222,500
183,000
222,500
16 Other tangible assets
Ground
Rents
Office
Building
Office
Equipment
Motor
Vehicles
Total
Cost
At 1 April 2022
Additions
839
238,572
160,372
417,949
12,422
657,360
231,000
58,223
At 31 March 2023
839
398,944
430,371
58,223
888,377
Accumulated amortisation
At 1 April 2022
Charge for the year
116,224
17,523
352,568
26,555
468,792
52,396
8,318
At 31 March 2023
133,747
379,123
8,318
521,188
Net book value
At 31 March 2023
839
265,180
51,248
49,905
367,189
At 31 March 2022
839
122,348
65,381
188,568
Page 37

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
17 Investments
Investments
Cost and net book value
At 1 April 2022 and 31 March 2023
Investments Detailed
Name
EPIC Clean Limited
Dormant Company
Northern Ireland
Principal Activity
Country of Incorporation
Registered Address
Unit 5 Citylink, Business Park, Albert Street, Belfast
BT12 4HQ
Holding
Class of Share
Ordinary
18 Debtors
2023
2022
Rental Debtors Gross - Technical
Rental Debtors Gross- Non Technical
Provision for Bad Debts
200,389
207,307
(140,8081
197,136
200,998
{140,8081
Net renlal (including rates, service charges) debtors
266,888
257,326
Other Debtors
276,018
84,856
49,758
326,678
89,374
54,313
Prepayments and accrued income
Housing Association Grant receivable
677,520
727,691
Page 38

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
19 Creditors: amounts falling due within one year
2023
2022
Bank loans
1,349,039
15,716
1,339,583
15,716
1,481,199
42,230
331,933
497,391
1,091,657
321,677
THFC premium
Housing Association grants
Rent, rates and service charges received in advance
Disposal proceeds fund
Other creditors
30,747
321,322
123,101
278,580
332,856
HAG in advance
Accruals and deferred income
2,451,361
5,121,386
20 Creditors: amounts falling due after more than one year
2023
2022
Bank loans
33,785,131
4,249,271
659,059
83,858,638
164,898
33,130,177
4,264,354
758,875
75,731,193
262,440
THFC premium
Disposal proceeds fund
Housing Association grants
Other grants
122,716,797
114,147,039
The surplus on the disposal proceeds fund must be used within two years of Ihe sale of the property.
Page 39

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
21 Loans
2023
2022
Bank loans - Housing property and other loans
Less than one year, or on demand (Note 18)
Between one and two years
Between two and five years
After more than five years
1,364,755
6,543,719
11,475,575
20,015,107
1,355,299
1,372,719
8,124,384
27,897,428
39,399,157
38,749,831
Security
Loans are secured by way of mortgages upon the deeds of the relaled housing properties.
Page 40

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
22 Other grants
As at 1 April 2022
Grant received during financial year
Grant amortisation
262,440
97,742
As at 31 March 2023
164,698
23 Called up share capital
Ordinary shares of £1 each, fully paid
As al 1 April 2022
Allotted during the year
Transfer lo capital reserve
14
As al 31 March 2023
12
Page 41

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
24 Turnover, operating costs and operating surplus
2023
2022
Operating Operating Operating Operating
Turnover
Costs
Surplus
Surplus
Social Housing Activities
Non-social Housing Activities
8,555,856 6,181,906 2,373,950 2,215,744
6,174
{6,1741
(7,985)
8,555,856 6,188,080 2,367,776 2,207,759
25 Housing stock
Number of units owned on 31 March
2023
2022
Number
Number
Self-contained
General needs housing
1,205
1,175
1,205
1,175
26
Turnover, operating costs and operating surplus or deficit from social and non-social
housing activities - Association
2023
2022
Social Housing Activities
Operating income
Rent and rates receivable
Service charges receivable
Income from Housing Association grant
Income from other grants
Other income
6,948,461
90,425
1,557,079
6,649,226
88,416
1,481,199
72,033
6,000
147,020)
Voids
<40,108)
Total social housing income
8,555,856
8,243,854
Operating costs
Services
110,135
1,279,554
105,037
1,211,227
Managemenl costs
Page 42

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
Rates
813,987
903,403
518,585
528,136
2,014,989
13,117
763,684
819,011
530,370
517,297
2,067,469
14,015
Maintenance and administration costs
Planned and cyclical maintenance
Reactive maintenance
Depreciation of social housing
Bad debts (rent and service charges)
Total social housing expenditure
6,181,906
6,028,110
Operating surplus on social housing
2,373,950
2,215,474
2023
2022
Dfc Allowances
Management allowances
Management costs
471,240
(1,097,821)
465,300
(907,553)
Deficit
(626,581)
(442,253)
Maintenance Allowances
Maintenance Allowances
543,083
(518,585)
(528,136)
545,200
{530,370)
{517,297)
Planned and cyclical maintenance
Reactive maintenance
Deflclt
{503,638)
(593,467)
Technical and Non - Technical Income
Technical
5,254,526
1,784,357
5,029,649
1,707,993
Non-Technical
Total
7,038,884
6,737,642
2023
2022
Non-social Housing Activities
Operating costs
Developmenl costs written off
6,174
7,985
Total non-social housing expenditure
6,174
7,985
Operating loss on non-social housing
{6,1741
(7,985)
Page 43

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
27 Pension commitments
The net pension deficit shown below under section 28 of FRS 102 deals with the accounting for
employee benefits does not represent a shortfall which requires short term cash funding. The amount
shown below is calculated below lo comply with the Financial Reporting Standard, the specific
requirements of which differ from the basis on which pension liabilities are actuarially calculated for
the purpose of the ongoing funding of the scheme. The Financial Reporting Standard requires..
actuarial deficiencies to be recognised immediately as a liability in the financial statements rather
than being spread forward over employee's remaining service lives., and
the actuary, in valuing the scheme's liabilities, is required to use a bond yield as the discount rate
for valuing future liabilities, rather than a rate that reflects the expected return on the scheme's
particular asset portfolio, with the result of an apparent increase in the present value of future
longer term liabilities.
The below is in relation to employees and ex-employees who are members of the NILGOSC pension
scheme.
NILGOSC pension scheme is considered a related party of the Association. The most recent valuation
was conducted as at 31 March 2023 by a qualified actuary for the purpose of the disclosures below=
The major assumptions used by the actuary were..
2023
2022
2021
2020
Rate of increase in salaries
Rate of increase in pensions in payment
Pension accounts revaluation dale
3.8%
2.85°
2.60°/0
2.280/0
2.00
2.60'/0
2.280/0
2.0%
Discount rate
2.700/0
2.250/0
2.250
Inflation assumption
2.280/0
2.00
The mortalily assumptions used were as follows..
2023
2022
2021
2020
Years
Years
Years
Years
Longevity at age 65 for current pensioners:
-men
22.2
21.8
21.9
21.6
- Women
25.0
25.0
25.1
25.0
Longevity at age 65 for future pensioners:
-men
23.2
23.2
23.3
23.2
- Women
26.0
26.4
26.5
26.4
Page 44

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
Pension Commitments (continued)
Value
at
31
March
2023
Value
at
31
March
2022
The assets in the scheme and the expected rate of return were..
Equilies
Property
Bonds
42.90
26.90/0
Gilts
25.20
20.2°
100/0
2023
2022
Reconciliation of present value of scheme liabilities
At 1 April
Current service cost
7,117,000
440,000
193,000
95,000
(2,369,000)
{29,0001
6,769,000
475,000
153,000
87,000
(336,000)
(31,000)
Interest cost
Member contributions
Actuarial lossesl{gains)
Benefits paid
At 31 March
5,447,000
7,117,000
Page 45

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
2023
2022
Reconciliation of fair value of scheme assets
At l April
Interest income on assets
Remeasurement gains on assets
Contributions by the employer
Contributions by participants
Nel benefils paid out
8,049,000
168,000
193,700)
249,000
95,000
(29,000)
5,446,000
126,000
191,000
230,000
87,000
{31,000)
At 31 March
5,595,000
6,049,000
2023
2022
£'ooo
£'ooo
Analysis of amount charged to income or expenditure are as follows:
Current service costs
440,000
Interest on pension scheme liabilities
25,000
Lossl(gain) on plan inlroductions, changes, curtailments and seltlements
475,000
27,000
465,000
502,000
2023
2022
£'ooo
£'ooo
Amounts recognised in other comprehensive income
Return on plan assets excluding interest income
Actuarial lossesl(gains)
937,000
(2.369,000)
(191,000)
(336,000)
(1,432,000)
{527,000)
Amounts for current and previous three years:
2023
2022
2021
2020
Fair value of employer assets
Present value of defined benefit obligation
5,595,000 6,049,000 5,446,000 4,108,000
(5,447,000) (7,117,000) (6,769,000) (5,072,000)
148,000 (1,068,000) (1,323,000) {964,000)
Surplusl{deficit)
Page 46

Connswater Homes Limited
Annual report and Financial statements for the year ended 31 March 2023
Notes to the Financial Statements for the Year Ended 31 March 2023
28 Capital Commitments
2023
2022
Capltal expenditure
Contracted for but not provided for in the financial
statements
5,819,704
6,921,882
The Association anticipates that this expenditure will be funded by Housing Association Grant from
the Department for Communities, by private finance, both external and internal and the association's
resetves.
29 Contingent liabilities
There exists a contingent liability on the Association of the possibility of having to repay grants
received on properties if any properties are sold. This also includes any grants written off through the
implementation of component accounting.
30 Related party disclosures
Connswater Homes Limited is an admitted body to the Northern Ireland Local Government Officers.
Superannuation Committee (NILGOSC> and make contributions on behalf of those of ils employees
whom are in the scheme.
31 Ultimate controlling party
The ultimate controlling party is the Board of Management.
Page 47