Registered number IP125 Apex Housing Association Limited Annual report and financial statements for the year ended 31 March 2023 Apex Housing Association Limited Annual report and financial statements for the year ended 31 March 2023 Contents Pages Board and advisers Strategic report of the Board Report of the Board 10- 14 Independent auditors, report to Apex Housing Association Limited 15- 17 Consolidated statement of comprehensive income 18 Consolidated statement of changes in reserves 18 Association statement of comprehensive income 19 Association statement of changes in reserves 19 Consolidated statement of financial position 20 Association statement of financial position 21 Consolidated statement of cash flows 25 Notes to the flnancial statements 23-53 Apex Housing Association Limited Board and advisers Board Mr P Caldwell (Chairperson) Mr J Meehan (Treasurer) Mr D McKenna- resigned 2110912022 Mr M Doherty BSC Hons, MSC Dr R Naylor Mr S McKenna Ms C Cooke Ms L Watson Ms A Wallace Mr P O'Flaherty Mr L Hannaway Ms M Nicholson Mr C McQuillan- joined 3011112022 Chief executive and honorary secretary Ms S Mccallion Registered Office 10 Butcher Street Londondeny BT48 6HL Registered under the Co-operative and Community Benefit Societies Act (Northem Ireland) 1969- Registered number IP125 Registered under the Housing (Nl) Order 1992 - No R23 Registered with the Charity Commission Northern Ireland - No NIC106107 Registered with the Fair Employment Commission Registered under Data Protection Act- No X3488333 Bankers AIB Meadowbank Strand Road Londondery BT48 7TN Solicitors Arthur Cox Capital House 3 Upper Queen Street Belfast BTI 6PU Independent Auditors ASM (B) Ltd Glendinning House 6 Murray Street Belfast BTI 6DN Apex Housing Association Limited Strategie report of the Board for the year ended 31 March 2023 The Board present their strategic report together with the audited financial statements for the year ended 31 March 2023 of Apex Housing Association Limited (the "Association") and its subsidiaries (the "Group"). This report Includes requii'ed disolosures of the Trustees Report for charity law purposes. Principal activity Apex Housing Association Limited {"Apex") is a major housing association managing a stock of soTne 6,725 homes, which will grow to over 8,500 when our current planned programmes are completed. Our business is housing and associated care and support services. and from tiny beginnings in 1965 in Derry-Londondery, we have grown into a substantial not-for-profit housing association, led by volunteers working to social enlerpi'ise principles. We employ some 621 staff throughout the organisation and provide: General needs housing for families and single people Purpose-built accornmodation for older people and farnilies with complex needs Supported housing for people with mental health difficulties, leaming disabilities. alcohol/drug addictions, those who are physically disabled and young people in need of support Housing support for vulnerable groups under the Supporting People programme Support services for tenants and the wider community through our community investment programme Community buildings under the manageiT]ent of local communities Apex works across Northem Ireland in delivering social and affordable housing through the Apex Voluntary Housing Group structure. Our not-for-profit subsidiary company, Fairbuild Hoines (Nl) Ltd, provides affordable housing for sale. FairShar¢ is an innovative shared ownei-ship scheme developed by Apex. The scheme enables Apex and other housing associations in Northern Ireland to uive homebuyers the opportunity to buy a share of their new liome now, with the option of buying tlie rest later. Through Fairshare, homebuyers can buy a share of a newly constructed home directly from a housing association, or from a private developer. Newington Housing Association (1975) Lirnited ("Newington") 15 also a member of the Apex Group. Newington has its own board of management and manages a housing stock of around 716 units in North Belfast. Support and cooperation is fostered through the Group structure. allowing Apex and Newington to use their resources efficiently for mutual benefit. What Guides us? Our Corporate Strategy 2023 2026 provides us with strategic themes and objectives which set the direction of travel for everything we will do over the J-year period. We need this to give us a focus and to make sure we are working towards common goals. To ensure we achieve these goals. the Busine55 Plan section sets specific tasks annually for each of the 3 years. These are measurable and the outcomes are reported to the Board of Management and lo shareholders at the Annual General Meeting. The Strategy has been shaped by feedback from employee5, tenants, and.board members. It sets out our priorities to build on the success of the previous plan and introduces new initiatives to help deliver our aims. The themes of the Corporate Strategy feed into staff appraisals, training and development initiatives, team action plans and key perfonnance indicators. Apex does not operate in isolation. but inst¢ad is influenced by and must react effectively to changing contexts, not only within the housing and care sectors but a150 Wlthin the societal and comniunity fabric. In the same way we must learn from our own recent past. using our experiences both good and bad, to help u5 plan ahead. Due to the hard work and commitment of our staff over the lifetime of the previous Corporate Strategy 2020-2023. Apex has performed well and remain5 in a strong position despite challenging times. By pulling togetlier in the same direction we can continue our success and make a real difference to people's lives. Apex Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 (continued) What we value Our Corporate Strategy gives us direction for the current 3-year period from 2023 2026. however our vision, mission and values will run beyond that period and underpin everything we do as an organisation, both collectively and individually. Our Vision For every person to enjoy great quality homes and support. in vibrant and caring comrnunities. Our Mission To lead the way in building sustainable communities through the delivery of quality, affordable homes including tailored support and care services. Our Values We care We want to make a positive difference to people's lives. We fake oiviiersliip We are all responsible for ensuring we deliver our mission. Ive Ilo iliiiigs well We lead the way. we aim to get it right and to continuously improve. We work logetlier We collaborate to get the best r¢sult. We slioiv respecl We are respcctful and courteous to everyone we come in contact with. Factors influencing our plan Apex recognises that as we continue on our journey there are factors that will influence implementation of our plan. We will continue to identify. asses5 and marjage the risks. challenges and opportunities arising. in pursuit of delivering our vision. These include.. Ensuring effective governance Ensuring compliance Ensuring tenancy sustainment Implementing Welfare Refoi Managing our finances Responding to the increase in housing stress Reducing our carbon footprint Apex Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 (continued) Future plans We have consistently invested significant tirne and effort in govemance and our robustness hei'e is demonstrated by many positive audits and inspections and strong performance against core Dfc standards. We have committed and effective staff in place, continually working to improve our systeTns, processes, and procedures. We have top quality office accommodation and have been successful in attracting high calibre voluntary board members. When we are at our best we are up there with other top perfom)ing organisations. Our Customers are looking for something straightforward- a responsive, reliable. and timely service offei'ing value for money. While the Tnajority get that service. we must strive to identify any weaknesses that adversely impact upon our perfom]ance. Using our strong work ethic, we will ontinue to direct our energies to improving our weaker areas and tackling issues before tliey become problems. Iniplemeiitation of tlie 'Tenant and Resident Ennagement Strategy 2023-2026. will lielp us eiisure a stroiig custoiner focus and bettei- sei-vice delivery wliich underpin our overall direction of travel. Strategic priorities Our aiialysis of Ihe issues has detennilled tliat our objectives and tasks fall under five slrategic priorities. By firinly Com Initting to priority l .0 - Sustaiiiable co1￿1]7 uiiities. we will Inaxiinis¢ our hopes of achieviiig all our obje¢liv¢s across pi'iorities 2.0 lo 5.0. 1.0 Sustainable communities 2.0 High quality. energy efficient homes 3.0 Quality Supported Living 4.0 An effective and efficient organisation 5.0 Skilled people and teams The board has refreshed our medium-tenn corporate strategy for 2023-2026, in response to the current and expected operating environment and building on what we have achieved to date. This set5 Out a number of initiatives and activities to be undertaken or commenced in the current 3 yeais. What we achieved 2020-23 Delivered over 700 brand new homes for new tenants. Engaged with over I 1,000 people through events and activities. Completed 450 disabled adaptations for t¢nants. Completed 80,000 repairs and spent over £ l Om on planned and cyclical upgrades. Accessed £0.85rn of additional benefits for tenants through our welfare advice service. Awarded the highest Dfc regulatory rating. Retained our investment grade credit rating. Secured £IOOm in bond finance. Received a CIH award for greener environment and stronger community initiative. What we lan to do 2023-26 Priority l - Siislaiiiable coniiiiuiillles Deliver reliable, high quality, effective and efficient services to tenants and service users. Promote tenancy 5UStainment and respond appropriately to the changing needs of tenants. Work in partnership witli others to provide wider community support. Promote tenant engagement and community investment. Priorily 2 - Higli qiiiility, eliergy efficieiii lionies Deliver an arnbitious growth programme. Consider new housing models. Provide well maintained homes. Deliver energy efficient homes. Apex Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 (continued) Priority 3- Quality siipporled liviiig Deliver high-quality, cost-effective support and care services. Review service delivery. ensuring it remains strategically relevant and meets service user needs. Priority 4- Ali efficieiif and effeclive orgaiiisalioii Ensure effective governance and compliance. Gl'ow the balance sheet, while meeting key financial targets. Work to meet goveminent's social and affordable liousino agenda. Deliver cost effective services. Ensure sustainability. Implem¢nt effective and efficient ICT solutions. Communicate effectiv¢ly to drive service improvement. Priority s- Skilleilpeople ¢iiid leaHIs Improve workforce stability. Implement an effective and efficient organisational structure. Equip staff with the appropriate skills and knowledge to deliver high quality services. Community Investment Apex work5 across a range of vibrant and diverse communities throughout Northern Ireland and increasingly sees the need to targ¢t this work b¢yond our core biisiness activities. This is neces51tated by the considerable pressures society in general continues to face in a challenging econornic climate. As a social landlord, we see every day the impact of a range of factors on our communities. Apex therefore seeks to deliver a range of programmes and services that instigate positive change and make a fundamental diff¢i'ence to people's live5, thereby making our communities better places to live. Through investing in people, property, and the ¢nvironment, we aim to make a positive difference. To help achieve our aiin. we woi'k with several community partners to enabl¢ tenants and residents to access a range of initiatives includiiig 5elf-development prograrnmes, advice on health and well-being, budgeting and employment opportunities. By enhancing our eiigagement in community investment activities. we have established Apex as one of the leading socially responsible organisations in Northern Ireland. We want to contiiiue witli this irnportant work to ensure that we continue to build thriving cominunities where people want to live and work. Key Areas The "Comrnunity investment Strategy 2023-2026" has been developed with the aim of supporting our communities beyond our core laiidlord purpose and provides a focus to ensure we are working towards our common goals which in turn have been shaped by feedback from stakeholders including tenants, community groups and employees. They target the following five pillars of activity- Community Empowennent & Engagement Health & Well-Being Financial Well-Being Work & Learning Volunteering We will continue to Use our influence and knowledge. work in partnership and source additional funding to deliver a range of collaborative services. These services will aim to instigate positive change and make a fundamental difference to people's lives. also contributing to wider community benefits. Apex Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 (continued) What we achieved 2020-23 Supported more than 100 allotment users with an on-site horticulturalist. Helped more than 1,200 tenants through our Welfare Advice Service. Delivered more than 200 community events through the Housing for All initiative. Provided more than 70 rneals per week through our Luncheon Club service. Delivered almost 65,OOOkg of food to local communities. Supported almost 200 households though our Coinmunity Supermarket. Raised more than £60k to support community projects in Tanzania. What uides us 2023-2026 The 'Community Investment Strategy 2023-2026, has a range of programmes aimed at the individual. the wider community and the environment. Witliin the strategy we have consid¢red the following themes: Themes Tlienie l - Eiinble people lofulfii ilieir aspirtTfioiis Support people to make informed decisions about their lives and increase th¢ir independence. Support people to recognise their potential by increasing their motivation, confidence. skills, and knowledge. Tlieme 2- Eiifible successful coniniiiiiilies Providc opportunities for people to participate in making decisions about their communities. Support people to fulfil their vision and aspirations for their community and betwe¢n cornrnunities. Promote and encourage diversity and good relations in all housing developments and particularly within areas where there is '5hared housing,. Develop biodiversity and sustainability initiatives witliin our corninunities. Tlienie 3 - Pronioleposiliveparliiersliips Iviiliin coiiiiiiuiiilies Support charities, social enterprises, and SME5 Wlthin our conimunities. Support the development of economic activity within the areas that we work. Maximise the social value impact for our communities within Apex development contracts. Sustainability Housing associations play an integral role in the provision of affordable and safe homes. as well as responding to wider issues of social inequality and climate change. Therefore, Apex have developed our ' Sustainability Strategy 2023-2026, The Strategy sets out our plans for the next three-year period- focusing on key actions to make a real. measurable impact within our association and cornmunities, as well as contributing to the achievement of government sustainability targets. Our vision for this sustainability strategy has been developed to lielp us integrate sustainability into all aspects of our work. from the homes we build, to the way we run our association and how we support our comrnunities. Strategy In order to achieve our vision. we have developed six driver5 of our strategy. with the overarching aim of contributing to the UN Sustainable Development Goals (UN SDGS). Supporting residents and conimunities 2. Cliinate action Environmental protection 4. Affordability Supporting our people Strong govemance Apex Housxng Association Limited Strategic report of the Board for the year ended 31 March 2023 (continued) In turn, these six drivers will infonn three key areas for target and action. Tftrgei l - Siislaiiiuble lionies Reduced fuel povety Reduced carbon emissions Good quality, affordable homes Improved biodiversity Reduced resource use Tllrgei 2- Siisl¢7iiiable ttssocialioii Reduced carbon emissions frorn association Reduced resoiirce use Supported and motivated staff Increased transparency and accountability Target 3 - Siisluiiirtble coniiiiuiiiliej Community pride and ownership Increased community SUPPOrt Improved health and wellbeing Net biodiversity gain in local areas Reduced carbon emissions across communities Throughout 2023-2026 we will continuously monitor and periodically evaluate the success of the Sustainability Strategy. Operating Performance Apex measures performance through a range of key indicators which are reviewed quarterly. Indicator Average no. of staff employed during the ear Workin time lost Staff tuiiiover Units started /0 of total Nl starts Void5 % of total stock Total ¢llTears % airs com leted within res onse time eratin mai. in Grou Retained surplusl(deficit) for tlie year (after pension changes) Grou 22123 r¢5uIt 645 21122 result 680 7.57 /. 6.90°/. 14.02°/0 307 553 6.660/. 87.36 % 15.0 / £1.3m £11.6m Our People Our staff are one of our most valuable assets. Apex provides a comprehensive employment package including access to pension scheTnes, on-going training and development, and access to a range of einployee well-being initiatives. Board of Management The Board is a voluntary committee who have responsibility for the strategic direction, general policy and management of the Group. The day-to-day management of operations is delegated to the Chief Executive and Senior Management Teams of each group company. Gender analysis 7 members of the Board are male and 5 are female. The Senior Management Team 15 comprised of 3 males and 4 fetnales. The association has 618 employees of which 21 % are mal¢ and 79 % are female. Apex Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 (continued) Events after the balance sheet date There are no Significant events that have occurred after the balance Sheet date that would affect the financial statements. Value for Money (VFIVD Apex 15 fully committed to achieving value for money (VFM). We recognise that we need to continue to push our perforniance and capacily UP to higher levels if we are to meet the goals and targets set by our board. During 2023124 we will continue to publish a VFM statement aiid continually monitor and report performance against that Statement. Return on social investment Apex continues to deliver its community investment programme as set out in the note above. During the Course of 2023124. Apex will work towards the delivery of this programme and measure its outcomes for reporting to the board and stakeholders during the year. Status Apex Housing Association Limited is registered underthe Co-operative and Community Benefit Societies Act(Northern Ireland) 1969 (No. IP125) and is a Registered Housing Association with the Department for Communities (Nl) - No. R23. The Association is a r¢gistered charity (Registration no. NICI 06107). Newington Housing Associatioii {1975) Limited is reoistered under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 {IP000158) and is a Registered Housing A5so¢iation with the Department for Communities (NI)- No. Rl 3. The Association is a registered charity (Registration No. NICI 02477). Rislc Management Internal and external risk evaluation remains integral to the fonnulation of our business strategy. Our Board and Senior Management Team has maintained its ongoing programme of risk review throughout the year, and our most significant risks currently facing tl)e organisation are shown below. These, along with the other main business risks captured on the strategic and key risk register, are reviewed by the Board on at least a quarterly basis. Failure to secure adequatc revenue funding for th¢ proper management of Supported Living accommodation resulting in increasing revenue deficits. Difficulties recruiting qualified nurses which could result in nursing schemes operating below required staffing levels. Financial impact of the NILGOSC defined benefit pension scheme affecting annual accounts. Levels of voids in supported living accommodation leading to increasing deficits. Risk of cyber-attack resulting in theft or loss of data and access to IT systems. Failure to recruit and relain skilled and experienced Staff. Failure of subsidiary and associated companies to meet their perforniance tai'gets leading to increasing intercompany financial support. Financial impact of potential future delivery of affordable homes and rnixed tenure developments. Failure to ensure effective adult safeguarding leading to breach of regulatory requirements and poor levels of care. Failure to manage the risk of fraud resulting in considerable financial losses and seriou5 reputational damage. Failure to maintain sufficient liquiditylcash flow leading to loan default. Failure to implement good governance resulting in breach of regulatory requirements. reputational damage and impacting on future viability. Failure to comply with General Data Protection Regulations. Failure to have a robust and transparent procurement process in place resulting in cliallenges from unsucce55ful contractors and wider public Griticism. Apex Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 (continued) Performance in the year ended 31 March 2023 During tlie year the number of homes in management in Apex Housing Association increased by 113 units (1.710/0) to 6,725. There were 176 completions, 50 house sales to tenants, and 13 shared ownership buy-outs. There were 1.107 under development at 31 March 2023. Homes under management within the Apex Housing Group increased by 113 units (1.680/D) to 7,444 (net of Sales and shared ownership completions). £53. Im was spent on developing and improving housing properties during the year. partly funded by £3 Im of Housing Association Grant. Association turnover increased to £57.Im (1.65%) from £56.2m in 2022. Turnover from shared ownership sales was £1.2rn in 2022, whereas this was lower in 2023 at £0.6m. Operating costs increased frorn £48.7m in 2022 to £53.Im in 2023. Net financing Costs increased by £0.2m to £7.3m. Surplus fortlie year was £9.5m (including actuarial gain of£12.4rn on the NILGSOC defined benefit scheme) compared with a surplus of £0. Im in 2022 (including actuarial gain of £3.4m). There was a large gain on the accounting treatment of the NILGOSC defined benefit scheme during the year (£12.4m), excluding this, the association incurred a loss of £2.87m. This was attributable to the high level of voids in supported living schemes. loweT than inflation uplifts in care and support funding, and the impact of inflation on costs. The Association increased rents by 9 % for general iieeds properties for incoming year, 23124 year to mitigate against the impact of inflation. There was also an increase of £2.3m in supported living rents for 23124 arising from a review of costs and charges. The association closed a loss-making supported living unit in July 22 and leased a Ios5-making nursing home to another operator in February 23. The combined operating losses for tliese 2 units in 2023 amounted to £1.23m. Work is continuing to secure further increases in income for supported living schemes via discussions with the local health trusts and NIHE Supporting People team. Group turnover increased to £61.9m (0.30/0) from £61.8m in 2022. This was due to shared ownership sales of £1.2m in 2022 COTnpar¢d to £0.6m in 2023 and a nil turnover from Fairbuild in 2023 compared to £800k in 2022. Gi-oup operating costs increased from £53.Om in 2022 to £56.8m in 2023. Group operating surplus for 2022 of £9.3m decreased to a group surplus of £8.90m in 202) as a result of the impact on the parent set out above. Total comprehensive income for the year wa5 £11.6m compared to £1.3m for 2022, however this was due to an increase the accounting value of the defined benefit pension scheme accounting for a recognised gain of £13.9m (2023) cotnpared to £3.8m for 2022. Expected performance in the year ended 31 March 2024 It is planned that 250 additional units will be completed during the year increasing stock owned or manag¢d by the group to over 7,500. By Order of the Board Ms S M¢Callion HoDorary Secretary 20 September 2023 Apex Housing Association Limited 10 Report of the Board for the year ended 31 March 2023 The Board present their report and the audited financial statements for the year ended 31 March 2023 of Apex Housing Association Limited (the 'Association") and its subsidiaries (the 'Group"). This report includes required disclosures of the Trustees Report for charity law purposes. Board of Management The Board is a voluntary cornrnittee who have responsibility for the strategic direction, general policy and management of the group. The day lo day managernent of operations is delegated to the Chief Executive and the Senior Management Team. Performance in the year ended 31 March 2023 and expected performance in the year ended 31 March 2024 The sections on performance in the year ended 31 March 2023 and expected perforn)ance in the year ended 31 March 2024, which al'e in the strategic report, are included in this report by cross reference. Average staff numbers decreased from 680 in 2022 to 645 in 2023. There are limited plan5 for additional outreach schemes due to funding constraints and therefore staff numbers are not anticipated to increase significantly in the coming financial year. Staff turnover was 20.540/0 (2022.. 14.02%) and the average absence percentage was 7.570/0. up from 6.900/0, in the previous financial year. Principal risks and uncertaintie5 Perfomance in the voluntary housing sector is affected greatly by central government decisions on rnatters of social and care provision in the community, housing policy. planning issues, land and construction costs, shortage of qualified nursing staff, demographic trends, energy prices, pension costs and budgetary constraints in the Northern Ireland budget. The board and senior management carry out quarterly reviews of risks and identify control measures to manage tliem. Some of the top key risks identified by the Association during 202J were. funding levels in supported living schemes. voids in nursing care accommodation. difficulties in recruiting nursing and other staff. financial impact of the NILGOSC defined benefit pension scheme on the accounts. the legacy impact of Covid-19 including void levels in supported accommodation. cyber security. failure of subsidiaries to meet perfonnance targets. financial impact of sale of affordable homes and mixed tenure developments. building and other materials cost increases. failure to ensure effective adult safeguarding. fraud- failure to ensure good governance and compliance. failure to coinply with General Data Protection Regulations. and potential challenges froTn unsuccessful contractors if proper procurement processes al'e not robust, Key performance indicators Developixenl New sites starts achieved.. 553 {28.270/0 of Dfc prograrnme) Housing Map7agemenf 2023 2022 Allocations Rent Collection Total Arrears Non-technical Arrears a5 0/0 of NT turnover Voids as % of l'ent receivable Void5 as % of housing stock Response maintenance within time 798 99.66°/. 7.39°/. 897 i.oo/. Apex Housing Association Limited 11 Report of the Board for the year ended 31 March 2023 (continued) Environment The Association recogni5e5 Its corporate responsibility to carry out it5 operations and development programme whilst minimising environinental impacts. The Board's continued aim is to comply with all applicable environmental legislation, prevent pollution and reduce waste wherever possible. Health and safety The Association has a dedicated health and safety officer who is dedicated to achieving the highest practical standards in health and safety management, and strives to make all 51tes and offices safe environments for eit)ploye¢s and tenants alike. Human resources The Association's most important resourc¢ is its people. their knowledge and experience are crucial in meeting tenant5, requirements. Retention of key staff is critical and the association has various strategies and plans in place to develop capacity in our teams. Financial risk management The Association's operations expose it to a variety of financial risks that include the effccts of changes in interest rate risk, liquidity risk and ¢UiTency risk. Responsibility for the management of risk is delegated to the Finance Committee. Interest rote risk Exposure to fluctuating interest rates is mana(Fed by the composition of a balanced portfolio between fixed rate and variable rate loans. Liquidity risk The Association maintains a mixture of long tenT] and short term loan finance that is designed to ensure there is sufficient funds to achieve business objectives and to facilitate planned growth. Curreney risk The Association does not engage in foreign cU￿encY transactions and 50 is not exposed to foreign exchange risk. Donations The Association made cliaritable donations amounting to £5,790 during the financial year {2022.. £Nil). No donations for political purposes were made during the financial year (2022: £Nil). Employees Applications for employrnent by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant concerned. In the event of members of staff becoining disabled every effort Is Jnade to ensure that their employment with tlie company continues and that appropriate training is arranged. It is the policy of the company that the training, career developtnent and promotion of a disabled person should, a5 far as possible, be identical to that of a person who does not Suffer from a disability. Consultation with employees or their representatives has continued at all levels, with the aim of ensuring that their views are taken into account when decisions are made that are likely to affect their interests and that all employees are aware of the financial and economic perfonnance of the company. Apex Housing Association Limited 12 Report of the Board for the year ended 31 March 2023 (continued) Going concern The Board has a reasonable expectation that the Association has adequate resources to continue in operational existence for the foreseeable future. The Board considered the new financial plan foi. 2023124 and beyond at theiT meeting held on 3 ISI May 2023. This plan included various assumptions and stress-testing around a range of scenarios and considered any mitigations that inay need to be put in place depending on the outputs of each scenario. For this reason, they continue to adopt the going concern basis in preparing the financial statements and are confident that the Group will be a going concern for at least 12 months from the date of this report. Status The Association is registered under the Co-operative and Community Benefit Societies Act (Northern Ireland} 1969 (Registered number IP125) and is a Registered Housing Association (R23). The Association 15 a recognised charity for Inland Revenue purposes (Charity number.. XN48080). The Association is also registered with Nl Charities Commission (Charity number.. NIC106107). Board of Management The members of the Board of the Association are listed on page l. Each m¢mber of the Board holds one fully paid share of £1 in the Association. In accordance with the Rules of the Association, Ms C Cooke, Mr L Hannaway, Mr S McKenna, Ms M Nicholson, and Mr C McQuillan are due to retire by rotation and being eligible, offer themselve5 for re-election. Mr M Doherty has also indicated his intention to retire and is not opting to stand for r¢-election. Statement of the responsibilities of the Board The Board is responsible for preparing the financial statements in accordance with applicable law5 and regulations. The Co-operative and Cornrnunity Benefit Societies Act (Northern Ireland) 1969 and registered social housing legislation require the Board to prepare financial statements for each financial year which give a true and fair view of the state of th¢ Group and Associatioii's affair5 and of its surplus or deficit for that period. In Preparing those financial statements the Board is required to: select suitable accounting policies and th¢n apply them consistently. mak¢ judgements and estimates that al'e reasonable and prudent. state whether applicable accounting standards have been followed, subject to any material departures disc105ed 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 in business. The Members of the Board are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial positioii of the Association and to enable them to ensure that the financial statements comply with the Co- operative and Cornrnunity Benefit Societies Act (Northem Ireland) 1969 and the Registered Housing Associations (Accounting Requirements) Order (Northem Ireland) 1993. It has general responsibility for taking reasonable step5 to safeguard the assets of the Association and detect fi'aud and other irregularities. They are also responsible for safeguarding the assets of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other ]￿egUlar1t1es. Statement of disc105ure of information to auditors So far as each of the members of the Board at the date of approval of tliese financial statements is aware.. There is no relevant audit inforniation of which the Group and Association's auditors are unaware. and Apex Housing Association Limited 13 They have taken all the steps that they ought to have taken as members of the Board in order to make themselves aware of any relevant audit information and to establish that tlie Group and Association's auditors are aware of that infornlation. Apex Housing Association Limited 14 Report of the Board for the year ended 31 March 2023 (continued) Statement on internal control The Board acknowledges its ultimate responsibility for ensuring that Apex Housing Association Limited has in place a robust system of inteimal controls which is appropriate for the various business environments in which it operates and supports the achievement of the Group and Association's policies, aims and objectives whilst safeguarding its funds and assets. Apex Housing Association Limited was established in October 1965 and has in place a range of Intel￿al controls which are and will continue lo be reviewed on an annual basis. The systein of inlemal control is designed to manage risk to an acceptable level rather than to eliminate all risk of failure to achieve policies, aims and objectives. it can therefore only provide reasonable and not absolute assuranc¢ of effectiven¢ss. The system of internal control is based on an ongoing process designed to identify and prioritise the risks to achieving the Associations, policies, aiins and objectives, to evaluate the likelihood of those risks betng realised and the irnpact should they be realised, and to manage them efficiently. effectively and economically. The system of internal control has been in place throughout the financial year ended 31 March 2023 and up to th¢ date of approval of the annual report and financial statements and this accords with recommended Treasury guidance. The setting of risk appetite by the Board. and identification and assessment of the impact of risk, is incorporated into the corporate planning and decision-making processes of the Association. Consequently, the Association ensures that there are procedures in place for verifying that internal controls and aspects of risk management are regularly reviewed and reported on. During 202212023 a number of measures were implemented to enhance the sys¢¢ms of intemal control in place. Thes¢ included: Implementation of the Risk Management Framework. Regular reporting to the Audit aT)d Risk Committee. other Committees and the Board. Annual i-eview of the Risk Management Framework and Setting of tlie risk appetite for 2023-24; Implementation of the Decision Time Goals IT module to improve the systems for managing and reporting on key perfonnance going fonyard. Deliveiy of training on risk management to staff, Audit and Risk Committee and Board members. Furtlier development ofthe i'isk and governance arrangeinents through embedding of the Governance and Risk Manager role and the introduction of further administrative support. In addition to the actions outlined above. in the coming financial year the Association plans to: Continue to operate the Risk Mana(rement Framework- 2. Ensure that the Association'5 Audit and Risk Assurance Committee continues to review the risk framework at its meetings. Embed the new sy5terns for managing and reporting on key perforniance through the Decision Time ET software. 4. Continue to deliver appropriate training for staff, Audit and Risk Comrnittee members and Board members. and Strengthen the systems for ensuring compliance with extemal reporting requirements through development of an overarching policy for 'notifiable events, reporting. As an integral part of its corporate planning process, the Board 5et5 the risk appetite and the inherent risks for each corporate objective are identified aiid assessed for impact and likelihood U5iT)g a risk inatrix. The A550ciation update5 Its risk registers, identifying tlie controls necessary to mitigate against each risk. assessing the residual risk, identifying further actions to be taken and assignin(r risk ownership to relevant staff. These risks are reported to and manatsed by the relevant Committee of the Board and by the Audit and Risk Assurance Committee. who review and report to the Board on risk management issue5. Risk is i'eviewed on a quarterly basis and the Board is infonned of any emerging issues. The Committee receives regular report5 on the implementation of internal and extemal audit reports and Meets witli the auditors on a regular basis. The Committee will commission further reports on specific issues where they feel this Is necessary. The Boai'd ha5 responsibility for reviewing the effectivenes5 of the system of internal control. Its review of the effectiveness of the system of internal control is infomied by the work of the internal auditors and those within the company who have responsibility for the development and maintenance of the Association's internal control framework and comments made by the external auditors in their i'eporting. Apex Housing Association Limited 15 Report of the Board for the year ended 31 March 2023 (continued) A plan to address weaknesses and ensure continuous improvement of the system is ongoing. The Board has been informed by intemal and extemal audit on the adequacy and effectiveness of internal controls operating within the Association. In the internal auditors report they liave stated that in their opinion the Association's internal control systems were adequate and operated effectively thereby pi'oviding satisfactory assurance regarding the effective and efficient achieveinent of the Association's objectives. however a number of recornmendations were made and an implementation plan is in place to address these. Progress on issues raised by internal and external audit continues to be fomially monitored through the Audit and Risk Assurance Committee. Taking all of these matters into account the Board is suitably content that the intemal control framework in operation within the Association provides reasonable assurance that objectives will continue to be met. Independent auditors The auditors, ASM. have indicated their willingness to continue in office, and a resolution concerning their reappointment will be proposed at the Annual General Meeting. By Order of the Board Ms S Mccallion Honorary Secretary 20 September 2023 Apex Housing Association Limited 16 Independent auditors, report to Apex Housing Association Limited Report on the audit of the financial statements Opinion We have audited the financial statements of Apex Housing Association Limited ("the Association") and its consolidated undertakings ("the Group") for the year ended 31 March 2023 wliich comprise.. the Consolidated and Association Statements of Comprehensive Income, the Consolidated aiid Association Statements of Changes in Reserves. the Consolidated and Association Statements of Financial Position and the Consolidated Cash Flow Statement and the related notes, which include a description of the significant accounting policies. The financial reporting framework that has been applied in their preparation is applicabl¢ law and United Kingdom Standards including Financial Reporting Standard 102 'The Fiiiancial Reporting Standard applicable in the UK and Republic of Ireland, (United Kingdom Genei'ally Accepted Accounting Practice) and the Housing SORP - Statement of Recommended Practice for Social Housing Providers. In our opinion, the Consolidated and Association financial statements.. give a true and fair view of the state of the affairs of the Group and of the Association as at 31 March 2023 and of the income and expenditure of the Group and of the Association for the year then ended. have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice. and have been properly prepared in accordance with the Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 (fornierly the Industrial and Provident Societies Act (Northern Ireland) 1969). the Housin(r (Northern Ireland} Order 1992, the Registered Housing Associations (Accounting Requirement5) Order (Northern Ireland) 1993. the Cliarities Act (Northern Ireland) 2008 and Regulation 9 of the Charities (Accounts and Reports) Regulation5 (Northern Ireland) 2015. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities under ISAS (UK) are further described in the auditors. responsibility for the audit of the financial statements section of our repoit. We are independent of the Group and the Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and wc have fulfilled our other ethical responsibilities in accoTdRnc¢ with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. ConcIusion5 relating to going concern In auditing the financial statements, we have concluded that the Board's use of the going concern basis of accounting in the preparation of the financial slalements is appropriate. Based on the work we hove perfomied, we have not identified any material uncertainties relating to events or conditions that. individually or collectively, may cast significant doubt on the Group or the Association's ability to continue as a going concern for a period of at least hvelve months from when the financial statenients are authorised for i55ue. Our responsibilities and the responsibilities of the Board with respect to going concern are described in the relevant sections of this report. Apex Housing Association Limited 17 Other information The other information comprises the information included iii the Annual Report other than the financial statements and our auditoi's, report thereon. The Board is responsible for tlie other infonnation contained within the Annual Report. Our opinion on the financial statements does not cover the other inforniation and, except to the extent otherwise explicitly stated in our report, we do not express any fonn of assurance conclusion thereon. Our responsibility is to read the other information and, in doing 50, coiisider whether the other inforniation is materially inconsistent with the financial statements. or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If. based on the work we have perfornied, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothiiig to report in this regard. Matters on which we are requircd to report by exception In light of our knowledge and understanding of the Group and the Association obtained in the course of the audit, we have not identified Inaterial misstatements in the Report of the Board and Ihe Strategic Report. We have nothing to report in respect of the following matters where the Charities (Northern Ireland) Act 2008 and Regulation 9 of tlie Charities (Accounts and Reports) Regulations (Northern Ireland) 2015 require us to report to you if, in our opinion.. the inforniation given in the Report of the Board and the Strategic Report is inconsistent in any material respect. sufficient accounting records have not been kept. the financial stateinents are not in agreement with the accounting records. or we have not received all the Tnformation and explanations required to complete our audit. We have nothing to report in this regard. Under the Co-operative and Community Benefit Societies Act (Northern Ireland) 2016 (fonnerly the Industrial and Provident Societies Act (Northern Ireland) 1969) are required to report to you if, in our opinion: a satisfactory system of control over transactions has not been maintained. or we have not received all the information and explanations we require for our audit- or proper accounting records have not been k¢pt by the Association. or the Association's financial statements are not in agreement with the accountino records. We have nothing to report in this regard. Responsibilities of the Board As explained more fully in the Board's Statement of Responsibilities on page 15, the Board of Management is responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The Board of Management is also responsible for such internal control as it deterniines is necessary to enable the preparation of financial statements that are free frorn material mi55tatement, whether due to fraud or error. In preparing the financial statements, the Board is Tesponsible for assessing the Group's and the Association's ability to continue as a going concern, di5c105ing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and the Association or to ce8se operations. or have no realistic alternative but to do so. Auditors, responsibility for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole ar¢ free from material misstatement, whether due to fraud or e￿Or, and to 155ue an auditors. report that includes our opinion. Reasonable assu12nce 15 a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAS (UK) will always detect a Tnaterial misstatement when it exists. Misstatements can arise from fraud or'error and are considered material if, individually or Apex Housing Association Limited 18 in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities. outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed b¢low'. We considered the opportunities and incentives that may exist within the Group and tlie Association for fraud and identified the greatest potential for fraud in the following areas: management override of controls relating to posting of journals. To address this risk we discussed the risks with client management and designed audit procedures to test sample of journals to confinn they were appropi'iate. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at.. www.frc.org.uk/auditorsresponsibilities. This description fomis part of our auditor5, report. Use of our report This report Is made solely to the Board in accordance with section 43 of the Co-operative and Cominunity Benefit Societies Act (Northern Ireland) 2016 (fonnerly the Industrial and Provident Societies Act (Northern Ireland) 1969) and article 19 of The Housing (Noitheim Ireland) Order 1992. Our audit work has been undertakeii so that we might state to the Board those matters we are required to stat¢ to them in an auditors. report and for no other purpose. To the fullest extent perniitted by law, we do not accept or assume responsibility to anyone other than the Association and the Board. for our audit work, for this report, or for the opinions we have fornied. Brian Clerkin Senior Statutory Auditor for 4ind on belialf of ASM (B) Ltd Chartered Accountant5 and Statutory Auditors Glendinning House 6 Murray Street Belfast BTI 6DN 20 September 2023 Apex Housing Association Limited 19 Consolidated statement of comprehensive income for the year ended 31 March 2023 2023 2022 Note Turnover 61,938,818 (56,783,934) 3,744,800 8,899,684 585,126 121,408 (7,844,758) (4,030,880) (54,000) {2,323,420) 61.092,210 (52,956,696) 1,855,289 9.990,803 96,723 23,506 (7,685,362) (2,80J.666) (2,127.811) (2,505,808) Operating cost5 Gainl(loss) on disposal of housing properties Operating surplus Surplusl(deficit) arising from disposals of fixed assets Interest receivable and similar income Interest payable and similar expenses Transfer to disposal proceeds fund Other finance costs 10 20 Surplusl(Deficit) for the financial year Transfer to designated reserves (5,790) 13,918,506 11,589,295 Actrjarial (loss)Igain in respect of pension schemes Total comprehensive income for the year 24 3,799,000 1,293,192 All arnounts above relate to continuing operations of the Group. Consolidated statement of changes in reserves for the year ended 31 March 2023 2023 2022 Surplusl(Deficit) for the financial year Moveinent in designated reserve Movement in called up share capital Actuarial (loss)Igain in respect of pension schemes Net addition to capital and i-e5erves Opening total capital and reserves Closing total capital and reserves (2,323,420) (5,790) (2,505,808) 24 13.918,506 3,799.000 1,293,192 33,243,698 34,536,890 11,589,295 34,536,890 46,126,185 The notes on pages 23 to 53 forni an integral part of these financial staternents. Apex Housing Association Limited Association statement of comprehensive income for the year ended 31 March 2023 20 2023 2022 Note Turnover 57,135,381 (53,086,201) 3,744,800 7,793,980 187,513 118.962 (7,317,893) (3,633,267) (23,000) (2,873,705) (5,790) 12,407,506 9,528.011 55,526,097 (48,673,563) 1,855,289 8.707,823 (237,887) 19,430 (7,159,199) (2,469.057) (2.187,811) (3,326,701) Operating costs Gain/(loss) on disposal of housing properties Operating surplus Surplus ai-ising from disposals of fixed assets Interest receivable and similar income Interest payable and similar charge5 Transfer to disposal proceeds fund Other finance costs 20 Surplusl(deficit) for the financial year Transfer to designated reserves Actuarial (loss)/gain in respect of pension schemes Total comprehensive income for the year 24 3,436,000 109.299 All amounts above relate to continuing operations of tlie Association. Association statement of changes in reserves for the year ended 31 March 2023 2023 2022 Surplus for the financial year Actuarial (loss)/gain in respect of pension Schemes Net addition to capital and reserves Movement in designated reserve Opening total capital and reserves Closing total c2Pital 2nd reserves (2,873,705) 12,407,506 9,533,801 (5,790) 20,600,877 30,128,888 (3,326.70 I) 3,436,000 24 109.299 20,491.578 20,600,877 The notes on page5 23 10 53 forni an integral part of these financial statements. Apex Housing Association Limited Consolidated statement of financial position as at 31 March 2023 21 2023 2022 Note Fixed assets Housing properties - depreciated cost Other tangible fixed assets 12 797,321,780 10,402,953 807,724,733 757,758.139 10,740,931 768,499,070 13 Current assets Stock 15 302,814 63.107,650 24,496,285 1,594,370 89,501,119 (110,650,118) (21,148,999) 786,575,734 (751,065,549) 10,616,000 46,126,185 335.857 30.383,935 3,872,839 2,285,697 36,878,328 (48.841,183) (11,962,855) 756.536,215 (718,862,819) (3.136,506) 34,536,890 Debtors 16 Investments 17 Cash at bank and in hand Creditors.. amounts falling due within one year Net current assetsl(liabilitie5) Total assets less current liabilities Creditors: amounts Iling due after more than one year Pension surplus/(defi¢it) Net assets 19 24 Capital and reserves Called up share capital Capital reserve Supporting People reserves Common fund 25 28 28 103 103 27 28 20,000 46,106,047 46,126,185 20,000 34,516.759 34,536.890 Revenue reserve Total funds The notes on pages 23 to 53 forni an integral part of these financial stat¢ments. The financial statements on pages 18 to 53 were approved by the Board of Management on 20th September 2023 and were signed on its behalf by.. 1 4ILAA P Caldwell Chairperson Treasurer S Mccallion Secretary Registered number: IP 125 Apex Housing Association Limited 22 Association statement of financial position as at 31 March 2023 2023 2022 Note Fixed asset5 Housing properties - depreciated cost Other tangible fixed assets Investments 12 731,479,783 ,344,133 691,016,012 8,613,006 21 13 14 739,823,919 699,629,039 Current assets Stock 15 302,814 62,524,826 24,496,284 249,985 87,573,909 (108,766,079) (21,192,170) 718,631,747 (699,046,859) 10,544,000 30,128,888 335,857 30,330,389 3,872,839 1.094,900 35,63J.985 {47,081,996) (11,448.011) 688.181,028 (665.660,645) (1,919,506) 20,000,877 Debtors 16 Investments 17 Cash at bank and in hand Creditors". gmounts falling due within one year Net current asset51(liabilitie5) Total assets le55 current liabilities Creditors: amounts falling due after more than one year Pension surplus/(deficit) Net assets 19 24 Capital and reserves Called up share capital Capital reserve Supporting People reserves Common fund 25 28 28 26 27 28 20,000 30,108,853 30,128,888 20,000 20,580.842 20,600,877 Revenue reserve Total funds The notes on pages 23 to 53 fonn an integral part of these financial statements, The financial Statements on pages 18 to 53 were approved by the Board of Management on 20th September 2023 and were signed on it5 behalf by.. eehan Treasurer P Caldwell Cliairper50n ccallion Secretary Registered number: IP 125 Apex Housing Association Limited Consolidated statement of cash flows for the year ended 31 March 2023 23 2023 2022 Note Net cash from operating 4lCtivities Casli flow from investing activities Payments to purchase and develop housing properties Receipts of Housing Associatioii Grant Receipts of other grants Purchases of other tangible fixed assets Receipts froin disposal of housing pi'operti¢s Interest received 17,174,051 18,326,882 (53,551,430) 18,908,984 717,800 (28,726) 5,178,550 121,408 (28,653,414) (42,692,711) 3.694.694 601,560 (1,408,447) 231,219 23,505 (39,550,180) Net cash generated from/(used in) investing activities Cash fiows frorn financiiig aetivities Repayment of bank loans Loan advances (8,659,875) 47,939,115 (7,867,758) 31,411,482 19,932,119 6,158,536 26,090,655 (87,926,855) 78,450,000 (9.727.099) (19,203,954) (40,427,250) 46.585,786 6.158,536 Interest paid Net cash gener4lted from financing activities Net increase in Cash and cash equivalents Cash and casli equivalents at the beginning of the year Cash and casli cquivaleiits at the end of the year Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 24 General information The group and association's principal activity during the financial year was providing high quality, affordable homes for rent throughout Northern Ireland and to help facilitate home ownership for people who cannot afford to purchase a home outright. The group is registered under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 and domiciled in the UK. The address of the registered office is l O Butcher Street, Londonderry, BT48 6HL. Statement of compliance These financial statements of Apex Housino Association 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 Kiiigdom and the Republic of Ireland" ("FRS 102") under the historical cost convention, and in accordance with applicable accounting standards 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 statements complies with the Registered Housing Associations (Accounting Requirements) Order (Noithern Ireland) 1993. the Charities Act (Northern Ireland) 2008 and the Charities (Account5 and Reports) Regulations (North¢rn li-eland) 2015. Summary of significant accounting policies The principal accounting policies applled in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years pr¢sented, unless oth¢iivise stated. The significant accounting policies adopted by the group and association are as follows.. Basis of preparation of financi*l statements These consolidated and separate financial statements are prepared on .a going concern basis. under the historical c05t onvention. The preparation of financial statements requires the use of certain critical accounting estimates. It a150 requires management to exercise its jud(reinent in the process of applying the group and association accounting policies. The areas involving a higher degree ofjudg¢ment or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 4. Basis of consolidation The group statement of comprehensive income and group statem¢nt of financial p051tion included within the financial statements of the group and its subsidiary undertakings are made up to 31 March 2023. Intra group transactions, any unrealised profitsllosse5 arising, and intercompany balances al'e elirninated fully on consolidation. Foreign currencies Transactions and non-monetary assets, denominated in foreign currencies, are translated at the exchange rate at the date of the traiisaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the rate of exchange ruling at the statement of financial p05ltion date or the exchange rate of a related foreign exchange contract where relevant. The resulting exchange gains or105ses are dealt with in the income and expenditure account. Going concern The Board has a reasonable expectation that the Association has adequate resources to continue in operational exist¢nc¢ for the foreseeable future. The Board considered the new financial plan for 2023124 and beyond at tlieir meeting held on 31" May 2023. This plan included various assumptions and stress-testing around a range of scenarios and considered any mitigations that may need to be put in place depending on the outputs of each scenario. For this reason, they continue to adopt the going concern basis in preparing tlie financial 5tateTnents and are confident that the Group will be a going concern for at least 12 months from the date of this report. Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 25 Summary of significant accounting policies (continued) 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 group and association and value added taxes. The group and association base its estimate of returns on historical results, taking into consideration the type of customer, the type of transaction and the specifics of each arrangement. Where the consideration receivable in cash and cash equivalents is deferred and the arrangement constitute5 a financing transaction, the fair value of the consideration is measured at the present value of all fu￿re receipts using the imputed rate of iiiterest. The group and association recoonises revenue when (a) the sitsnificant risks and rewards of ownership have been transferred to the buyer. (b) the group and association retains no continuing involvement or control over the goods. (c) the amount of revenue cali be measured reliably. (d) it is probable that futui'e economic benefits will flow through the group and association and (e) when the specific criteria relating to each of the group and association's sales channels have been met, as described below and in note 5. Net rental income IncoiT]e includes rent and service charge income arising from the provision of housing accommodation and the amortisation of Housing Association Grant. Income is r¢¢ognised in the period to which it relates. First tranche equity sales Proceeds from the first tranche disposals are accounted for as turnover in the Statement of comprehensive incorne in the p¢riod in which the disposal occui's. iii) Other income Other income is recognised in the Statement of comprehensive income whcn the temis of revenue recognition have b¢¢n met. Employee benefits The Group provides a range of benefits to employees, including paid holiday arrangements and defined contribution pension plans. Short term benefits Short term benefits. including holiday pay and other similar non-rnonetary benefits, ar¢ recognised as an expense in the period in which the service is received. Multi-employer pension plan The A550ciation operates a defined benefit scheme through the Northem Ireland Local Government Officers, Superannuation Scheme (NILGOSC). The assets of NILGOSC are held separately from those of the Association. The Association has adopted scction 28 of FRS 102 in these financial statements. Pension scheme assets are measured using market value. Pension scheme liabilities are rneasured using the projected unit method and discounted at the current rate of return on a high quality coryorate bond of equivalent term to the liability. Tlie increase in the present value of the liabilities of the Association's defined benefit pension scheme arising from employee Service in Ihe year is charged to opei-ating surplus. The expected return on the scheme's assets and the increase dui'ing the year in the present value of the scheme's liabilities arising from the pa55age of time are included in other finance costs. Actuarial gains and losses are recognised in the statement of total recognised surpluses and deficits. Defined contribution pension plan5 The group operates a defined contribution scheme for certain employees. A defmed contribution plan is a pension plan under which the group pays fixed contributions into a separate entity. Once the contributions have been paid the group has no further payment obligations. The contributions are recognised as an expeiise when they are due. Amounts not paid are shown in accruals in the statement of financial position. The assets of the plan are held separately fi'om the group in independently administered funds. Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 26 Summary of significant accounting policies (continued) All new employees joining Apex Housing Association Lirnited are not eligible to join the NILGOSC scheme except in the case where they are already active mernbers at the titne of becoming an Apex employee. All other new employees join the Social Housing Pension Scheme Defined Contribution (SHPS DC). SHPS DC is a defined contribution workplace pension scheme administered by The Pensions Trust and is the pension vehicle provided by the Association under auto-enrolment legislation. Each employee holds a separate pension plan with The Pensions Trust to which the Association contributes 6% of pensionable pay with the employee contributing a minimum of 4 %. The employee is responsible for any investment decisions from the various investment options provided by The P¢nsions Trust. The Association's liability is limited to the above employer contribution. Tangible fixed assets Housing properties The group operates a full component accounting policy in relation to the capitalisation and d¢preciation of its completed housing stock. Other housing properties - acquired by the Association Other housing properties are stated as cost which is purchase price together with any incidental costs of acquisition. These properties are effectively purchased concurrently by th¢ Association and participant5 and so are disclosed in fixed assets at the cost to the Association with the participants, net investment also disclosed in the housing properties note to the ac¢ounls. Tlie initial cost of the houses is not split between cutTent and fixed assets since the Association and the participant effectively purchase Ih¢ir i'espective shares simultaneously. The circumstances of thi5 type of ti'ansaction means that no gain nor loss will evei. be made by the Association on first tranche sales and 50 the proceeds and costs are not shown in turnover or cost of sales. This allows the Association to present a true and fair view of the commercial reality behind such a co-ownership scenario. Other housing properties developed by the A550ciation For housing developed by the Association to provide a supply of affordable homes sales proceeds ar¢ accounted for in the stateinent of comprehensive income with proceeds recorded in turnover and costs in cost of sales in accordance with SORP. Un501d prop¢rties at the year-end are included in stock and are valued at the lower of cost (cost of land together with associated costs of development) and net realisable value. For housing developed for outright sale the proceeds less the costs of developing the property are accounted for in the stateTnent of comprehensive income and disclosed within the surplus or deficit arising from disposals of hoiising propeity. Other fixed assets Other fixed assets are stated at C05t. Housing Association Grant Mnd other grants Housing Association Grant and other grants received as a contribution toward5 the capital costs of housing properties of the Association are recognised in income over the useful life of the housing property structure and its individual components. 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. bul any amount repayable would be restricted to the net proceeds of the sale. Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 27 Summary of significant accounting policies (continued) Depreciation and Impairrnent Housing properties Housing properties are split between land, structure and major components which require periodic replacement. Replacement or refurbishment of such major cotnponents is capitalised and deprecialed over the estimated useful life which has been set taking into account professional guidance and the group's asset management strategy. Jn determining the remaining use￿1 lives for the housing stock. the group has taken account of views provided by both internal and extemal professional sources. Freehold land is not subject to depreciation. Depreciation is charged so as to write down the cost or valuation of the freehold housing properties and major components on a straight line basis over their expected use economic Iiv¢s. Major components are treated as separable Rssets and depreciated over their exp¢cted useful economi¢ lives or the lives of the structure to which they relate, if shorter, over the following periods.. Main fabric Roof structure and covering5 Windows and external doors Heating system boilers Kitchens Bathrooms Mechanical systems (heating, ventilation. plurnbing) Electrics Lift 100 y¢ars 40 - 80 years 30 yeaTS 15 years 20 years 30 years 40 years 40 year5 30 years Housing assets are depreciated in the year of acquisition. or in the case of a larger project, from the year of completion. Where there is evidence of impairment, the fixed assets are written down to the recoverable arnount and any write down would be charged to operating surplus. Other fixed assets Depreciation of other fixed assets is charged on a straight-line basis over the estimated useful economic lives of the assets at the following annual rates: Freehold buildings Motor vehicle5 Plant and machinery Office furniture and equipment Computer equipment 250/0 250/0 25% Subsequent additions and major compollents 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 group and the cost can be measured reliably. The carrying amount of any replaced component is derecognised. Repairs, maintenance and minor inspection costs are expensed as incurred. Derecognition Tangible assets are derecognised on disposal or when no future economic benefits are expected. On disposal the difference between the net disposal proceeds and the canying amount is recognised in the Statement of comprehensive income. Leased a55ets At inception the group assesses agreements that transfer the rioht to use assets. The assessment ¢onsiders whether the arrangement is, or contains, a lease based on the 5ub5tance of the arrangement. Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 28 Summary of significant accounting policies (continued) Operating leased asset5 Leases that do not transfer all the risk5 and rewards of ownership are classified as operating leases. Payments under operating leases are Charged to the Statement of cornprehensive income on a straight-line basis over the period of the lease. Cash and cash equivalents Cash and casli equivalents include cash in hand, deposits held at call with banks. other short-terni highly liquid investments with original maturities of one month or less and bank overdi'afts. Bank ovei-drafts are shown within borrowings in current liabilities. Current asset investments Current asset investments are investments in short-tenn deposits with an original maturity between one and twelve months. Impairment of non-financial assets At each statement of financial position date non-financial assets not catTied at fair value are assessed to deterniine whether there is an indication that the asset (or asset's cash generating unit) may be impaired. If Ihei'e is such an indication the recoverable amount of the asset (or asset's cash generating unit) is compared to the carrying ainount of the asset (or asset's cash generating unit). The recoverable amount of the asset (or asset's cash generating unit) 15 the higher of the fair value less costs to 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 oenerating unit) continued use. These rash flows discounted using a pre-tax discount rate that represents tlie current market risk-free rate and tlie risks inlierent in the assets. IF the recoverable amount of the asset (or asset's cash generating unit) is estimated to be lower than the carying amount, the Carying amount is reduced to its recoverable amount. An impairment loss is recognised in the Statement of comprehensive income unless the asset has been revalued when the amount 15 recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in the Statement of comprehensive income. If an impainnent loss is subsequently reversed, the carying amount of the asset (or asset's cash generating unit) 15 increased to the r¢vised 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 detennined {n¢t of depreciation or amortisation) had no impairment loss been recognised in prior periods. A reversal of an impaimient loss is recognised in the Statement of comprehensive income. Provisions and contingent liabilities Provisions Provisions are recogni5ed when the group has a present legal or constructive obligation as a result of past event5. 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 obligation5. the likelihood that an outflow will be required in settlement is detennined by considering the class of obligations as a whole. A provisioi) is recognised even if the likelihood of an outflow with respect to any one item included in the Same cla55 of obligations may be small. Provisions are measured at the present value of the expenditures expected to 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 F￿anCe cost. Contingencies Continuent liabilities, arising as a result of past event5, are not i-ecognised when (i) it is not probable that there will be an outflow of resoui-ces or that the amount cannot be reliably measured at the reporting date or (ii) when the existence will be confirmed by the occurrence or non-occurrence of uncertaiii future events not wholly within the group's control. Contingent liabilities ar¢ disclosed in the financial statement5 unless the probability of an outflow of resources is remote. Apex Housing Association Limited 29 Notes to the financial statements for the year ended 31 March 2023 (continued) Summary of significant accounting policies (continued) Financial instruments The group has chosen to adopt Sections I l and 12 of FRS 102 in respect of financial in5trurnents. Financial assets Basic financial assets, including trade and other receivables and cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a Financints transaction, where Che transaction is measured at the present value of the future receipt5 discounted at a tnarket rate of ii)terest. Such assets are subsequently carried at amortised cost using tl)e effective interest method. At the ¢nd of eacli reporting period financial assets measured at aiT]Ortised cost are assessed for objective evidence of impainnent. If an asset is impaired the irnpainnent loss is the difference between the carryii)g amount and the present value of the estimated cash flows discounted at the asset's oi-iginal effective intei'est rate. The impainnent loss is recognised in Statement of comprehensive income. If there is a decrease in the impainnent loss arising from an event occurring after the impairment was recognised, the impairnient is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairnient not previously been reco(rnised. The impaiment reversal is recognised in Staternent of cornprehensive income. Financial assets.are derecognised when {a).the contractual rights to the cash flows from the asset expire or are settled, (b) substantially all the Tisks and rewards of the ownership of the asset are transferred to another party or, (c) despite having retained some significant risks and rewards of ownei'ship, control of the asset has been transferred to another paty who has the practical ability to unilaterally sell the asset to an unrelated third paity without imposing additional restrictions. Other financial assets. including investments in equity instruments which are not subsidiaries. a550ciates or joint ventur¢s, are initially measured at fair value. which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fail. value are recognised in Statement of comprehensive income, except that investments in equity instruments that ar¢ not publicly traded and whose fair values cannot be measured reliably are measured at cost less impainnent. Financial liabilities Basic financial liabilities. including tt7de and other payable5. bank loans and loans from fellow group companies, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, wher¢ the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Debt instruments are subsequently carried at arnortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities 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 o¢¢urs. To 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 service5 and amortlsed over the period of the facility to which it relates. Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of busine55 from suppliers. Accounts payable are classified as current liabilities if payment 15 due within one year or less. If not, they are presented as non-cllrrent liabilities. Trade payables are recognised initially at transaction price and subsequently measured at arnortised cost using the effective interest method. Disposal proceeds fund The net surpluses, after loan repayments, that arise from the sale of property to tenants under the voluntary purchase grant arrangements insti￿ted by the Department for Communities can be used by the Association to purchase or develop additional properties for letting rather than claiming housing association grant on same. On acquisition of a property an amount equal to the acquisition cost (Total Cost Indi¢atoi' from l June 2008) is removed from the fund and reclassified as recycled housing association grant. With efffect from l October 2006 notional interest on the balance is included in the fund. Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 30 Critical accounting judgements and estimation uncertainty If the surpluses are not used witliin two years of their receipt they may be payable in part or in full to the Department for Communities. Revenue reserves The group and association's policy is to retain a level of revenue reserves, which rnatches its needs at the cu￿ent time and in the foreseeable future. The reserves required are sufficient to meeting committed running costs for a period equivalent to three months budgeted future expenditure. Annually the Board of Management review the adequacy of this period amending it, where necessary, to reflect clianging needs. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Crilicnljiidgenieiils in applyiiig ilie eiility'.¥ ftccoiiiiliiig policies There are no critical judgements in applying the entity's accounting policies. Key accoiinliiig eslinillles niid as511111plioiis The dii'ectors make estimates and assumptions concerning the future in the process of preparing the group financial statements. Key estimates and a5SUIT]Ptions that have been made in the preparation of these finaiicial statements as follows- Usefiil economic lives ofhotlsingproperlies The annual depreciation on housing propeities is sensitive to changes in the estimated useful economic lives and residual values of the asset5. The useful economic lives and residual values are reviewed annually. They are amended wh¢n necessary to reflect CUITent estimates, based on future investments, economic utilisation and tlie physical condition of the assets. See note 12 for the carying amount of housing properties. and note 3 for the useful economic lives for each component of housing property. There are no other critical accounting estimates and assumptions. Turnover Turnover relates to the Group and Association's main activity which is carried out in the United Kingdom. Tumover represents rental and service charge incoTne and residential charges for special needs scheme5. net of voids. It also includes incorne arising from other rental 5ub5idTes, services provided to other Housing Associations. supporting people legacy funding received for the provision of learning disability care, income frorn other sundry ancillary service5 and the amortisation ol Housing Association Grant. Apex Housing Association Limited 31 Notes to the financial statements for the year ended 31 March 2023 (continued) Operating cost5 2023 2022 Group Direct pi'opeity management costs Administrative expenses 45,592,107 11,191,827 56,783,934 41.966,874 10,989,822 52,956,696 Operating surplus 2023 2022 Group Operating surplu5 IS Stated after eharging/(crediting): Staff costs (note 8) Depreciation of tangible fixed assets - owned assets Release of capital grant Operating lease charges Fees payable to the group's auditors for the audit of the financial statements Fees payable to the group'5 auditors for lax services 22,055,965 11,400,990 (6,955,670) 39,622 49,200 1,500 20,850,702 ,767,592 (6,310,373) 45,438 49,200 Employee information Group .A550ciation 2023 2022 2023 2022 Average staff number5 Administration Number Number Number Number 177 184 155 163 Sheltered schemes 15 16 15 16 Supported living sclieines Gardeners and bus drivers 458 483 458 483 17 17 667 701 645 680 2023 2022 2023 2022 Staff cost5 Wages and salarie5 Social security costs Other pension costs 17,375,807 1.662,780 3,017,378 22,055,965 16.523,022 1.452,580 2.875.100 20,850,702 16,605,807 1,580.272 2,680,778 20,866,857 15.831.057 1.383,398 2,741,063 19,955,518 Directors. emolurnents are disclosed in note 30. Staff costs in 2023 include redundancy payments of £82.122. Interest receivable and similar income 2023 2022 Group Bank interest receivable 121,408 23,506 Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 32 10 Interest payable And similar expenses 2023 2022 Group Interest charge before capitalisation Development interest capitalised Interest cliarge after capitalisatioii 9,077,947 (1,233,189) 7,844,758 8,975,622 (1,290.260) 7,685.362 Development interest is capitalised at a weighted average cost of borrowing of 3.240/0 (2022.. 3.040/0). 11 Other finance costs 2023 2022 Group Other finance losses 54,000 2,127,811 Other finance losses during 2022 include £2.109,81 l in relation to breakage costs payable on repayment of long-tenn fixed rate debt that was refinanced during the year. Such costs did not occur in 2023. 12 Housing properties - depreciated cost 2023 2022 Group C05t At l April Additions 868,167,864 56,614,084 (8,541,325) 916,240,623 824,119,476 50,810.263 (6,761,876) 868,167,863 Disp05als At 31 March Accumulated depreciation At l April Charge for year Disposals At 31 March 110,409,724 10,973,785 (2,464,666) 118,918,843 797,321,780 102,128,359 8.415,720 (134,355) 110.409.724 757.758.139 Net book amount Net book amount comprises: Completed schemes Land held for development Properties under construction At 31 March 673,500,746 14,186,744 109,634,290 797,321,780 677,272,867 21,284.771 59.200.501 757,758.139 Net book amount comprise5: Freehold propertie5 Long leasehold properties At 31 March 795,006,849 2,314,931 797,321,780 755.383.354 2,374,785 757.758,139 Apex Housing Association Limited 33 Notes to the financial statements for the year ended 31 March 2023 (continued) 12 Housing properties - depreciated cost (continued) 2023 2022 Group Housing Association and other grants At l April Additions 525,843,691 33,541,887 (5,808,195) 553,577J83 496,933,182 32,618,471 (3,707,962) 525,843.691 Disposals At 31 March Accumulated amortisation At l April Charge for year Disposals At31 March 74,447,104 6,955,670 (1,831,849) 79,570,925 69,511,964 6,310,373 (1.375,233) 74,447,104 Net book amount At 31 Marcli 474,006.458 451,396,587 Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 34 12 Housing properties - depreciated cost (continued) 2023 2022 Association Cost At l April Additions 788,927,097 56,119,040 (8,054,516) 836,991,621 745.770,193 49,450,462 {6,293,558) 788.927,097 Disposals At 31 March Accurnulated depreciation At l April Charge for year Disposals At31 March 97,911,084 9,909,197 (2,308,443) 105,511,838 731,479,783 90,561,847 8,924,680 (1,575,443) 97,911,084 691.016.013 Net boolc amount Net book amount comprises: Completed schemes Land held for development Properties under construction At 31 March 607,658,749 14,186,744 109,634,290 731,479,783 610,530.741 21,284,771 59,200,501 691,016,013 Net book amount comprises.. Freehold pi'operties Long leaseliold pi-operties At 31 March 729,164,852 2,314,931 731,479,783 688,641,228 2.374.785 691,016.013 Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 35 12 Housing properties - depreciated cost (continued) 2023 2022 Association Housing A5SOCi#tion and otlier grants At l Api'il Additions 481,373,034 32,638,443 (4,634,569) 509,376,908 452.522,626 32,269,844 (3,419,436) 481.373.034 Disposals At 31 March Accumulated amortisation At l April Charge for year Disposals At 31 March 64,942,441 6,292,991 (1,692,459) 69,542,973 60,552,624 5.655,561 (1,265,744) 64.942.441 Net book amount At31 March 439,833,935 416,430.59J 13 Other tangible fixed assets Other land and buildings Office furnitllre and equipment Plant and machinery Motor vehicles Computer equipment Total Group Cost At l April 2022 Addition5 12,941,215 12,408 {16,166) 12,937.457 186,063 9,600 (17,288) 178,375 24,000 404,286 6,717 1,595,677 15,151,241 28.725 (33,454) 15,146,512 Disposals At 3] March 2023 24,000 411,003 1.595,677 Accumulated depreciation At l April 2022 Charge for year Disposals At 31 March 2023 2,422,878 258,512 185,286 3.163 (17,288) 171,161 24,000 270,J38 29,835 1,507,808 59,028 4,410,310 350,538 (17,288) 4.743,560 2,681,390 24,000 300,173 1,566,836 Net book amount At 31 Marcli 2023 10,256,067 10,518,337 7,214 777 110,830 133,948 28,841 87,869 10,402,952 10,740,931 At 31 March 2022 Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 36 13 Other tangible fIxed assets (continued) Other land and buildings Office furniture and equipment Plant and machinery Motor vehicles Computer equipment Total Association Cost At l April 2022 Additions 10,795,471 186.063 9,600 (17,288) 178,375 24,000 247.909 5,158 1,595,677 12,849,120 14,758 (17,288) 12,846,590 Disposals At 31 March 2023 10,795.471 24,000 253,067 1,595,677 Accumulated depreciation At l April 2022 Charge for year Disposals At 31 M#rch 2023 2,284,180 215.815 185,286 3,163 (17,288) 171,161 24,000 234,841 5,624 1,507,807 59,028 4,236,114 283,631 (17,288) 4,502,457 2,499,995 24,000 240,465 1,566,835 Net book amount At 31 Mareh 2023 8,295,476 8,511,292 7,213 777 12,602 13,068 28,842 87,870 8,344,133 8,613,006 At 31 March 2022 14 Investments 2023 2022 Subsidiary undertaking Subsidiary undertaking Association Cost 21 21 Details of the Association's subsidiaries are as follow5-. Name Country of incorporation Fairbuild Homes (Nl) Ltd Northem Ireland Principal activity Construction Company 0/0 Share ownership Class 100 Ordinary shares of £1 each - £2 Newington Housing Association (1975) Limited Northem Ireland Housing Association 100 Ordinary shares of £1 each- £25 The Board believe that the carrying value of the inve5tTnent is supported by the underlying net assets. Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 37 15 Stock Group 2023 Association 2022 2023 2022 Oil stocks 19,974 282,840 302,814 34,237 301,620 335,857 19,974 282,840 302,814 34,237 301,620 335.857 Consumables 16 Debtors Group 2023 Association 2022 2023 2022 Rental Debtors Gross Technical 2,356,421 1,414,174 (172,348) 3,598,247 2,427,489 769,444 (164,828) 3.032,105 2,269,652 1,278,] 91 (82,520) 3,465,323 45,170 4,570,820 49,622,066 2,038,167 2,783,279 62,524,826 2,349,641 656,408 (75,000) 2,931,049 144,409 4.285.157 16,734.412 2.096,064 4,139,298 30,330,389 Rental Debtors Gross - Non-technical Provision for bad debts Net rental (including rates, service charges) debtors Amounts owed by subsidiary undertakings (note 37) Arnounts owed by related undertakings (note 37) HAG Receivable 4,570,820 49,622,066 2,459,941 2,856,576 63,107,650 4,285,157 16,734,412 2.137,012 4,195,249 30,383,935 Other debtors Prepayments and accrued income 17 Current asset investments Group 2023 Association 2022 2023 2022 Short tenn deposit5 24,496,285 3,872,8J9 24,496,284 3,872.839 Apex Housing Association Limited 38 Notes to the financial statements for the year ended 31 March 2023 (continued) 18 Creditors: amounts falling due within one year Group Association 2023 2022 2023 2022 Department for Communities loans (note 21) Bank loans (note 22) Other creditors 26,359 35,385,602 1,750,660 561,883 740,046 236,111 6,939,495 51,093,851 2,555,228 4,429,355 6,931,526 110,650,116 34.818 9,012,341 666,598 571.016 689.lJ5 250.553 2,668.405 26,621,557 1,773,525 250,000 6.303,2J5 48,841,183 26,359 34,622,490 1,679,512 561,883 740,046 236,111 6,557,725 51,093,851 2,555,228 4,429,355 6,263,519 108,766,079 34.818 8,266,094 650,881 571,016 689,135 148.142 2,428,407 26,621.557 1,773,525 250,000 5,648,422 47.081,996 PA YE and other taxes Rental and service charges received in advance Trade creditors Accruals and deferred income Housing Association Grant in advance TBUC grant Disposal proceeds fund (note 20) Deferred Housing Association Grant 19 Creditors: amounts falling due after more thall one year Group 2023 Association 2022 2023 2022 Department for Cominunities loaT)s {note 21) Bank loans (note 22) Other loans (note 22) Disposal proceeds fund (note 20) Other creditors 12,515 167,741,758 i 10,000,000 4,567,167 1,063,361 467,074,932 605,816 751,065,549 43,959 176,696,479 90,000,000 5.314,855 1.094,928 445,093,353 619.245 12,515 43,959 150,069,446 158,249,737 i i 0,000,000 90,000,000 3,725,308 4,870,609 1,063,358 1.094,925 433,570,416 410,782.170 605,816 619,245 699,046,859 665.660.645 Defe￿ed Housing Association Grant Deferred income 718.862,819 Apex Housing Associatxon Limited 39 Notes to the financial statements for the year ended 31 March 2023 (continued) 20 Transfer to disposal proceeds fund Group 2023 Association 2022 2023 2022 At l April DPF Expenditure Proceeds from house sales 5,564,854 (599,214) 4,030,880 8,996,520 2,761,187 5,120,609 (599,214) 3,633,267 ,154,662 2,651,551 2,803,667 5,564,854 2.469,058 5,120,609 At 31 Mareh The association is required to spend amounts allocated to the DPF within 24 months and plans are in place to ensure this requirement is met. 21 Department for Communities - housing property loans Group Association 2023 2022 2023 2022 Due in under one year (note l 8) Due within one lo two years Due within two to five years 26,359 12,515 34,818 27,805 16,154 78,777 26J59 12,515 34.818 27,805 16,154 78,777 38,874 38,874 All loans b¢ar interest at varying interest rates of between 8.75 % and 12.375010. and have a maturity date of 0110412024. 22 Bank loans Group 2023 Association 2022 2023 2022 Due in under one year Due within one to Iwo years Due within two to five years Due after five years 35,385,602 11,991,582 28,690,349 127,059,827 203,127,360 9,012,341 9,078,429 JO,217,548 137.400,502 185,708.820 34,622,490 8,524,092 24,136,523 117,408,831 184,691,936 ,266,094 8.323,878 24.983.519 124.942.340 166,515,831 All loans bear interest at varying interest rates of between 1.24 % and 6.25 %. A rolling capital facility IS currently in place. Maturity datesfor all other loans range from September 2025 to Decetnber 2055. Security Bank debt from AIB, Barclay's Bank, Ulster Bank. Pension Insurance Corp and European Investment Bank are Secured by way of mortgages upon the deeds of the related properties financed by the loans and bear interest at fixed and variable rates. Group and association Other loans (THFC and PIC) 2023 2022 Due after five years (note 19) i 10,000,000 90,000.000 Apex Housing Association Limited Notes to the financial statements for the year ended 3] March 2023 (continued) 40 22 Bank loans (continued) Security The THFC loan bears interest at a fixed rate of 6.350/0 on the capital sum bO￿OWed (£ l O million) payable at 6 monthly intervals for 30 years to 8 June 2039 after which it is repayable in full. The loan is secured by a fixed charge over various housing assets. The THFC loan (2012) bears interest at a fixed rate of 5.200/0 on the capital sum borrowed (£20 million) payable at 6 monthly intervals for 30 years to 28 September 2042 after which it is repayable in full. The loan is secured by a fixed charge over various housing assets. The PIC Senior Notes (£80 million) are secured by a fixed charge over various housing assets and this has an effective interest rate of 2.48Q/D. 23 Financial instruments The group has the following financial instrurnents.. 2023 2022 Group Financi21 assets that are debt instruments measured at amorti5ed cost Rental debtor (note 16) Other debtors (note 16) Amounts owed from related undertakings 2,356,421 2,459,941 4,570,820 2,427.489 2,137,012 4,285,157 Financial liabilities rneasured at amortised c05t Dfc loans (note 21) Bank loans (note 22) Other loans (note 22) Trade creditors (note l 8) Other creditors (note 18 and 19) Accruals (note 18) 38,874 203,127,360 i i 0,000,000 236,111 4,912,827 6,939,495 137,083 185,708,820 90,000,000 250,553 2,493,756 2,668,405 Apex Housing Association Limited Notes to the finaneial statements for the year ended 31 March 2023 (continued) 41 24 Pension commitments The net pension 'surplus' shown below under section 28 of FRS 102 deals with the accountiiig for employee benefits does not represent a slioitfall which requires short terni cash funding. The amount shown below is calculated to 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.. (i) actuarial deficiencies to be recognised immediately as a "liability" in the financial statements rather than being spread forward over employees, remaining Service lives- 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 IoTJger tenn liabilities. The below is in relation to employees and ex-employee5 who are members of the NILGOSC pension scheme. An Actuarial Valuation of the 5cherne was carried out as at 31 March 2022. Included within the Group are 2 schemes. APEX Housina Association Limited {"Apex") and Newington Housing Association (1975) Lirnited ("Newington"). The closing surplus of each scheme has been shown below.. APEX 2023 £'ooo Newington 2023 £'ooo Group 2023 £'ooo 2022 £'ooo 2022 £'ooo 2022 £'ooo Total market value of asset5 Unrecognised asset Present value of scheme liabilitie5 Net pension sur Ius1(deficit) 44,835 46,713 3,264 3.154 48,099 49,867 {1,168) (33,123) (1,168) (36,315) (48,633) (3,192) (4.371) (53,004) 10,544 (1,920) 72 (1.217) 10,616 (3.137) APEX Housin Association Limited The major assumptions used by the actuary were-. 2023 2022 Rate of increase in salaries 3.75/. 3.25% Rate of increase in pensions in paym¢nt Discount rate 2.70 /0 3.20% 4.70 / 2.70% Inflation assumption 2.700/0 The Inortality assumptions used were as follows.. 2023 2022 Years Years Average expected future life at age 65 for male currently aged 65 female currently aged 65 male currently aged 45 fernale cutTently aged 45 22.2 21.8 25.0 25.0 23.2 23.2 26.0 26.4 Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 42 24 Pension commitments (continued) The fair value of the assets in the scheme were.. 2023 2022 £'ooo £'ooo Equities Property Bonds Multi Asset Credit Cash & Other 18,517 4,708 10,402 5,873 5,335 44,835 (1,168) (33,123) 10,544 18,965 5,092 12.099 6.026 4,531 46,713 Total mArket value of assets Unrecognised asset Present value of scheme liabilities (48,633) (1,920) Net pension surplu51{deficit) Reconciliation of present value of scheme liabilities 2023 2022 £'ooo £'ooo At l April Service cost 48,633 2,081 48,101 2,224 Past service cost Member contributions 301 293 Interest on scheme liabilities 1,310 (18,629) {573) 33,123 ,009 (2,588) (406) 48.633 Actuarial loss/(gain) Benefits paid At 31 March Reconciliation of fair value of scheme assets 2023 2022 £'ooo £'ooo At l April Expected return on scherne assets Actuarial gain/(1055) Employer contributions Member contributions 46,713 1,287 (5,053) 2,160 301 42,970 923 848 2,085 293 Benefits paid At 31 March (573) 44,835 (406) 46,713 Analysis of amounts charged to income and expenditure: 2023 2022 £'ooo £'ooo Cu￿ent service cost 2,081 23 2,224 86 Net interest on pension deficit 2,104 2,310 Apex Housing Association Limited Notes to the financial statements for tlie year ended 31 March 2023 (continued) 43 24 Pen510D commitments (continued) ATnount5 for current and previous five years". 2023 2022 2021 2020 2019 £'ooo £'ooo £'ooo £'ooo £'ooo Fair value of employer assets Unrecognised asset Present value of defined benefit obli ation Surplus/(deficit) 44,835 (1,168) 46,713 42,970 32,697 31,201 (37.965) (37,091) (33,123) (48,633) (48,101) 10,544 (1,920) (5,131) (5,268) (5,890) Newin ton Housin Association 197S Limited The major assumptions used by the actuary were.. 2023 2022 Rate of increase in salaries 4.1 /0 4.40/0 Rate of increase in pensions in payment Discount rate 2.6/ 2.9tr/. 4.60/0 2.7 /. Inflation assumption 2.90/0 The mortality assumptions used were as follows.. 2023 2022 Years Years Average expected future life al age 65 for male currently aged 65 female currently aged 65 rnale currently aged 45 female currently aged 45 22.2 21.8 25.0 25.0 23.2 23.2 26.0 26.4 The assets in the scheme and the expected rates of return were.. 2023 £'ooo 1,347 343 1,185 193 196 3,264 (3,192) 72 2022 £'ooo 1,280 344 1,224 196 110 3,154 (4,371) (1.217) Equities Property Bonds Cash Other Total market value of assets Present value of scheme liabilities Net pension defIcit Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 44 24 Pension commitments (continued) Reconciliation of present V21ue of scheme liabilitie5 2023 £'ooo 2022 £'ooo At l April Service cost Member contribution5 Interest on scheme liabilities Actuarial lossl(gain) Benefits paid At 31 March 4,371 337 48 118 (1,632) (50) 3,192 4,255 356 42 89 (305) (66) 4,371 Reconciliation of fair value of scheme assets 2023 2022 £'ooo £'ooo At l April Expected return on scheme assets Actuarial gain Employer contributions Member contributions Benefits paid At 31 March 3,154 87 (121) 146 2,926 63 58 131 42 (66) 3.154 48 {50) 3,264 Analysis of amounts chargedl (credited) to income and expenditure: 2023 2022 £'ooo £'ooo Current service cost 337 356 Past service cost Expected return on pension scherne assets Interest on pension scheme liabilitie5 (87) 118 (63) 89 368 382 Amounts for current and previous five years". 2023 2022 2021 2020 2019 £'ooo £'ooo £'ooo £'ooo £'ooo Fair value of einployer assets Present value of defined benefit obli ation Deficit 3,264 3,154 2.926 2,256 1,975 (3,192) (4,371) (4.255) (3.169) (2,686) 72 {1.217) (1,329) (913) (711) Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 25 Called up share capital 45 2023 2022 Association Ordinary shares of £1 each, allotted and fully paid At 31 March 28 28 26 Capital reserve 2U23 2022 A550Cl4tion At 31 March 27 Supporting people reserves 2023 2022 A550Cl4ltion At l April Incoiiie 4,152,144 (7,015,491) 2,863,347 4,173,871 (5,929,573) 1,755,702 Expenses Trclnsfer froin general reserve5 At 31 March This funding is restricted for use in providing housing related support services only. 28 Common fund 2023 2022 Association At l April 2022 and 31 March 2023 20,000 20,000 29 Capital commitments 2023 2022 A550ciation Capital commitments contracted for at the balaT)ce sheet dale amounted to 190,253,420 105,661,934 30 Director emoluments The remuneration of directors (defined as Ihe Board and the Management Team of the Association) during the year was.. 2023 2022 Aggregate emoluments including benefits in kind Pension contributions to money purchase schemes 722,967 174,032 896,999 708,727 178.836 887,563 Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 46 30 Director emoluments (continued) The ¢moluments to the highest paid Director (currently included within the above table) are as follows.. 2023 2022 Aggregate emoluments including beneflls in kind Pension contributions to money purchas¢ schernes 130,572 48,604 128,562 47,840 The number of directors to whom emoluments were paid during the year fall within each of the following bands.. 2023 Nurnber 2022 Number Salar Band: £130,000 £135,000 £100.001 £105,000 £95,001 £ 100.000 £90,001 £95,000 £85,001 £90,000 £70,001- £75,000 £25,001- £25,000 Members of the Board serve in a voluntary capacity and none were in receipt of emolument5 during the year. Expenses paid to board members during the year arnounted to £829 (2022.. £Nil). 31 Notes to cash flow statement (a) Reconciliation of operating surplus to net Cash inflow from operating activities 2023 2022 Surplu5 for the financial year Deficit arising from disposals of fixed assets Interest receivable and similar income Interest payable and similar expenses Other finance costs (2,323,420) 3,445,754 (121,408) 7,813,758 54,000 8,868,684 8,859,655 (5,123,821) 208,271 1,232,073 3.179,858 33,043 (ioi,000) 17,156,763 (2.505,808) 335,039 (23.505) 7.599,288 2,127.811 7.532,825 8.633,237 (4,935,140) 2,803,666 1.845,966 (1,254,421) 3,839.749 (139,000) 18,326.882 Opcrating Surplus Depreciation oftangible assets Amortisation of housing association grant Profit on disposal of tangible assets Movement in debtor5 Movement in creditors Movement in inventories Pension movement Net cash inflow from operating activities Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 47 31 Notes to cash flow statement (continued) (b) Analysis of net debt l April 2022 Cash Flows 31 Mareh 2023 Cash at bank and in hand (including cash investments) Debt falling due within l year Debt due after more than l year 6,158,536 (8,902,821) (266,884,779) (275,787,600) (269,629,065) 19,932,119 26,090,655 (26,513,514) (35,416,335) (10,869,497) (277,754,276) (37,383,011) (313,170,611) (17.450,892) (287,079,957) Net debt 32 Operating lease commitments At the balance sheet date, the Association and group had a commitment to vehicles of £38,051 (2022.. £63,257). 2023 Other 2022 Other Within one year Between two to five years Total 26,787 11,264 38,051 34,946 28.311 63,257 Apex Housing Association Limited Notes to the financial statements for the year ended 31 March 2023 (continued) 48 33 Housing Stock- association Number of units owned on 31 March 2023 2022 General needs housing Independent livingl housing for older people (including resident scheme co-ordinator) Supported housing (including housing with care and nursing) Total owned 5,796 350 5,683 350 559 559 6,705 6,592 Number of unit5 managed by (but not owned) on 31 March General needs housincr Total units managed at 31 March Total units owned and managed at 31 March 20 20 20 20 6,725 6.612 34 Contingent liabilities The Association released Housing Association Grant (net of amortisation) of £355,231 {2022'. £298,869) during the year in relation to building component5 replaced arising from planned Tnaintenance works. The accumulated position of total Housing Association Grant released at 31 March 2023 is £2,849,748 (2022.. £2,494,517). The accuinulated amount of Housing Association Grant ainoitised and recognised as income as at 31 March 2023 is £69,542.973 (2022.. £64,942,441) (note 12). The possibility of any reiinbursement to the Department for Communities is considered to be unlikely as the housing properties are expected to continue to be made available for social housing for the foreseeable future. 35 Turnover, operating costs and operating surplus A550ciatio 2023 2022 Operating turnover Operating Operating costs surplu. Operating turnover Operating costs Operating surplus Social Housing Activities Non-social Housing Activities Total 53,001,247 (46,125,579) 6,875,668 51,908,228 4.134,133 (6,960,622) (2,826,489) 4,301,646 57,135,381 (53,086,201) 4,049.179 56,209,874 (41,885,119) (6,788,445) (48,673.564) 10,023,109 (2,486,799) 7.536,310 ¥ts 41 e D tyn ol) w> oo irt ¥ts41 tso oj) OD r M¢A iii" Apex Housing Association Limited 53 Notes to the financial statements for the year ended 31 March 2023 (continued) 35 Turnover, operating costs and operating surplus (continued) 2023 2022 Total Total Dfc Maiiagement Allowances- Genergl Needs Management Allowances Management costs Surplusl(Defieit) 2,187,504 (7,799,745) (5,612,241) 2,210.076 (10,712,299) (8,502,223) Dfc Maintenance Allowances- General Needs Maintenance Allowances Maintenance administration costs Planned and cyclical maintenance Reactive maintenance 2,746,253 (1,201,679) (2,388,652) (2,177,843) {3,021,921) 2,772,701 {1,217,745) (1,804.954) (2,671,138) (2,921,136) Surplusl(Deficit) Cross Income from ReDts and service charges Technical 37,294,501 12,232,475 49,526,976 37,947.212 10,454,032 48,401,244 Non-Technical Total 36 Particulars ot lettings 2023 2022 A550ciatioD Rent and service charges Le5s'. rent losses fi'om bad debts and voids Supporting people and other subsidies 45,571,447 (474,472) 4,430,001 49,526,976 45.304,672 (570,658) 4,285,360 49,019.374 37 Related party disclosures One member of the Board is a leaseholder of the A550ciation. Rents and service charges are charged at full rental rates. Apex Housing Association (Ireland) Limited, Fairbuild Homes (Nl) Ltd and Newington Housing Association (1975) Limited are regarded as a related paty as defined by section 33 FRS 102 due to the fact that a number of director5 of these companies are also members of the Board of Apex Housing Association Limited. The transactions and balances duc from/to these related parties during the financial year were as follows.. 2023 2022 Apex Housing (Ireland) Limited Fairbuild Homes (Nl) Ltd Newington Housing Association (1975) Limited Amount owed from related party at 31 March 4.570,820 4,285,157 101,558 42,851 4,429,566 45,170 4,615,990 Apex Housing Association Limited 54 Notes to the financial statements for the year ended 31 March 2023 (continued) 37 Related party disclosures (continued) 2023 2022 Apex Housing Association (Ireland) Limited Amount owed from related party at l April Management and administration charge to Apex Housing Association (Ir¢land) Limited Expenditure paid on behalf of Apex Housing Association (Ireland) Limited Amounts written off (Receipts frorn)Ipayments to Apex Housing Association (Ireland) Limited Amount oived from related party at 31 March 4,285,157 4,826,641 73,894 70,617 211,769 187,899 (800,000) 4,570,820 4,285,157 Fairbuild Home5 (Nl) Ltd ("Fairbuild Homes") Amount owed from related party at l April Manageinent and administration charge to Fairbuild Homes Amount5 written off Expenditure paid on behalf of Fairbuild Homes Receipts from Fairbuild Homes Amount owed from rel4qted party at 31 March 101,558 1,361 (114 J80) 11,461 819,374 5,239 76,945 (800,000) 101.558 Newington Housiiig Association (1975) Limited Amount owed from related paty at l April Expenditure paid on behalf of Newington Housing Association Receipts frorn Newington Housing Association Amount owed from related party at 31 March 42.851 2,319 42,437 414 45,170 42,851