Apex Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 Th¢ Board present their strdtegic report together with the audited financial statements for the year ended 31 March 2023 of Apex Housing Associalion Limited (the "Association") and its subsidiaries (the"Group"). This report includes required disclosures of the Trustees Report for charity law purposes. Principal activity Apex Housing Association Limited ("Apex") 15 a major housing association managing a Stock of some 6,725 homes, which will grow to over 8,500 when our current planned programmes are completed. Our busine55 is housing and associated care and support services. and from tiny beginnings in 1965 in Derry-Londonderry, we have grown into a substantial not-for-profit housing association, led by volunteers working to social enterprise principles. We employ some 621 staff throughout the organisation and provide= General needs housing for families and single people Purpose-built accommodation for older people and families with complex needs Supported housing for people wilh menlal health difficultie5. learning disabilities, alcohovdrug 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 tenan15 and the wider community through our community investment programme Community buildings under the management 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 Homes (Nl) Ltd, provides affordable housing for sale. Fairshare is an innovative shared ownership scheme developed by Apex. The scheme enables Apex and other housing associations in Northern Ireland to oive homebuyers the opportunity to buy a share of their new home now. with the option of buying the rest later. Through Fairshare. homebuyers can buy a share of a newly constructed home directly from a housing association. or from a privale developer. Newington Housing Association (1975) Limited ("Newington") is also a member of the Apex Group. Newirkgton 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 Newingion to Use their resources efficiently for mutual benefit. What Guides us. Our Corporale Strategy 2023 2026 provides us with strategic themes and objectives which set Ihe direction of travel for everything we will do over the 3-year period. We need this to give us a focus and to make Sure we are working towards common goals. To ensure we achieve thes¢ goals. the Business Plan section sets specific tasks annually for each of the 3 years. These arc measurable and the outcomes are reported to the Board of Management and to shareholders at the Annual General Meeting. The Strategy has been shaped by feedback from employees, 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 theme5 of the Corporate Strategy feed into staff appraisa15. training and development initiatives, team action plans and key perforn]ance indicators. Apex does not operate in isolation, but instead is influenced by and must reacl effectively to changing contexts, not only within the housing and care sectors but also within the societal and community fabric. In the same way we must learn from our own recent past, using our experiences both good and bad, to help us plan ahead. Due lo the hard work and commitment of our staff over the lifetime of the previous Corporate Strategy 2020-2023, Apex has performed well and remains in a strong position despite challenging times. By pulling together 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 currenl 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 supporL in vibrant and caring comrnunities. Our Mission To lead ihe 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 lake oivnersliip We are all responsible for ensuring we deliver our mission. We do iliings well We lead the way; we aim to get it right and to continuously improve. We work iogeilier We collaborate to get the best result. We sliow respecl We are respectful and courteous to everyone we come in contact with. Factors influencing our plan Apex recognises that as we continue on our joumey there are factors that will influence implementation of our plan. We will continue to identify, assess and manage the risks, challenges and opportunities arising. in pursuit of delivering our vision. These include- Ensuring effective govemance Ensuring compliance Ensuring tenancy sustainment Implernenting Welfare Reforni 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 lo improve our systerns, 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 perforn)ing organisations. Our Customers are looking for something straightfoNiard- a responsive, reliable. and timely service offering value for money. While the rnajority get that service. we must strive to identify any weaknesses that adversely impact upon our perfonnance. Using our strong work ethic, we will ontinue to direct our energies to improving our weaker areas and tackling issues before they become problems. Iniplementation of tlie 'Tenant and Resident En(yagement Strategy 2023-2026. will lielp us ei)sure a strong custoiner focus and better sei-vice delivery wliicli underpin our overall direction of travel. Strategic priorities Our aiialysis of tlie issues has detenniiied tliat our objectives and tasks fall under five slrategic priorities. By firinly com Initting to priority l .0 - Sustaiiiable coinin uiiities. we will Inaxiinise our hopes of achieving all our objeclives 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 r¢freshed our medium-term corporate strategy for 2023-2026, in response to the current and expected operating environment and building on what we hav¢ achieved to date. This set5 Out a number of initiatives and activities to be undertaken or cornmenced in the current 3 yeaiB. 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 tenants. Completed 80,000 repair5 and sp¢nt 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 - Suslailiable coniiiiunllies 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 with others to provide wider Community support. Promote tenant engagement and cominunity investment. Priorify 2 - Higli quiility, eliergy efficieni lioiiies 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 living Deliver high-quality, cost-effective support and care services. Review service delivery. ensuring it remains strategically relevant and meets servic¢ user needs. Priority 4- An efficieiif and effeclive orgaiiisalioii Ensure effective governance and compliance. Gl'ow the balance sheet, while meeting key financial targets. Work to meet govemment's social and affordable liousino agenda. Deliver cost effective services. Ensure sustainability. Implement effective and efficient ICT solutions. Communicate effectively to drive service improvement. Priority s- Skilledpeople aiid leams 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 works across a range of vibrant and diverse communities throughout Northern Ireland and increasingly sees the need to targ¢t this work beyond our core business activities. This is nece5Sltated 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 programrnes and services that instigate positive change and make a fundamental difference to people's lives. thereby making our communities better places to live. Through investing in people, property, and tlie environment, we aim to inake a positive differ¢nce. To help achieve our aim, we work with several community partners to enable tenants and residents to access a range of initiatives including 5elf-development prograrnmes, advice on health and well-being, budgeting and employment opportunities. By enhancing our eiigagement in community inve5tTnent activities. w¢ have established Apex as one of the leading socially responsible organisations in Northem Ir¢land. We want to continue with this irnportant work to ensure that we continue to build thriving comtnunities 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 landlord purpose and provides a focus to ensure we are working towards our cornmon 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 fundam¢ntal 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 l 00 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 meals per week through our Luncheon Club service. Delivered almost 65,OOOkg of food to local communities. Supported a1rn05t 200 households though our Community Superniarket. 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 envii'onment. Within the strategy we have considered the following theme5- Themes Tlienie J- Eiiablepeople lofulfil their aspirniloiis Support people lo make infomied decisions about their lives and increase their Independence. Support people to recognise their potential by increasing their motivation, confidence, skills, and knowledge. Tlieipie 2- Eiiable siiccessful eoniviuiillles Provide opporlunilies for people to participate in making decisions about their communities. Support people to fulfil their vision and aspirdtion5 for their commuT]ity and between communities. Promote and encourage diversity and good relations in all housing developments and particularly within area5 where there is 'shared housing.. Develop biodiversity and sustainability initiatives within our communities. Tlienie 3 - Proinoleposilivepartiiersliips Ivitlilii coniiiiunilies Support charilies, social enterprises, and SMES within our communities. Support the development of economic activity within Ihe areas that we work. Maximise the social value impact for our communities within Apex development contracts. SustainabiIity 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 'Suslainability Strategy 2023-2026, The strategy sets out our plans for ihe next thr¢e-year period. focusing on key actions to make a real, measurable impact within our association and communities. as well as contributtng to the achievement of government sustainability targets. Our vision for this sustainability strategy has been developed to help 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 communities. Strategy In order to achieve our vision. we have developed six drivers of our strategy, with the overarching aim of contributing to th¢ Sustainable Development Goals (UN SDGS). Supporting residents and communities 2. Cliinate action Environmental protection 4. Affordability Supporting our people Strong governance
Apex Housing Association Limited Strategic report of the Board for the year ended 31 March 2023 (continued) In turn, these six drivers will inforn) three key areas for target and action. Targel l - Suslaiiiable lioiiies Reduced fuel poverty Reduced carbon emissions Good quality. affordable homes Improved biodiversity Reduced resource use Tapgei 2- Siisluiiinble associnlioii Reduced carbon emission5 from association Reduced resource use Supported and molivated staff Increased transparency and accountability Targel 3 - Siislaiiiable coniiiiiiiilries 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 Stralegy. Operattng Performance Apex measures perfomance through a range of key indicator5 which are reviewed quarterly, Indicator Average no. of staff employed during the ear Workin lime lost Staff turnover Units started /0 of total Nl starts Voids % of total stock Total arrears 0/0 airs com leted within res onse time eratin mar in Grou Retained surplusl(deficit) for the year (after pension changes) Grou 22123 result 645 21122 result 680 7.57°/0 6.900/0 J4.02°/ 307 18.00/0 1.420/. 6.660/. 87.36°/ 15.0% £1.3m 553 28.27 % 0.930/0 7.390/0 14.4 % £11.6m Our People Our staff are one of our most valuable assets. Apex provides a comprehensive employment package inrluding access to pension schemes, on-going training and development, and access to a range of employee well-being initiatives. Board of Management The Board is a voluntary committee who have responsibility for the strategic direclion, general policy and management of the Group. The day-to-day managemenl 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 is comprised of 3 males and 4 females. The 8550ciation has 618 ¢mployees of which 21 % are male and 790/0 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 staternents. Value for Money (VFIVD Apex is fully committed to achieving value for money (VFM). We recognise that we need to continue to push our performance 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 and continually monitor and report perforniance 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 registered charity (Registration no. NICI 06107). Newington Housing Association {1975) Limited is reoistered under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (IP000158) and is a Registered Housing Association with the Department for Communities (NI)- No. R13. The Association is a registered charity (Registration No. NICI 02477). Risk 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 facino the organisation are shown below. These, along with the other main business risks captur¢d on the strategic and key risk register, are reviewed by the Board on at least a quarterly basis. Failure to secure adequate revenue funding for the 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 targets 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 Teputational 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 challenges from unsucce55ful contractors and wider public criticism.
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 Ihe year the number of homes in management in Apex Housing Association increased by 113 units (1.710/y) 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 wiihin the Apex Housing Group increased by 113 units (1.68 %) to 7,444 (net of Sales and shared own¢rship completions). £53. Im was spent on developing and improving housing properties during the year, partly funded by £3 Im of Housing Association Grant. Association tumover increased to £57. Im (1.650/0) from £56.2m in 2022. Turnover from shared ownership sales was £1.2m in 2022, whereas ihis was lower in 2023 at £0.6m. Operaling costs increased from £48.7m in 2022 to £53.Im in2023. Nel financing costs increased by £0.2m to £7.3m. Surplus for the year was £9.5m (including actuarial gain of £12.4m on the NILGSOC defined benefit scheme) compared with a surplus of £0. I m in 2022 (including actuarial gain of £3.4m). There was a large gain on the accounting treatment oftheNILGOSC defined benefit scheme during the year (£12.4m), excluding this, the association incUed a loss of £2.87m. This was attributable to the high level of voids in supported living scliemes. lower than inflation uplifts in care and support funding, and the impact of inflation on costs. The Association increased rents by 90/0 for general needs properties for incoining year, 23124 year to mitigate against the impact of inflation. There was also an increase of £2.3m in supported living renls for 23124 arising from a review of costs and charges. The association closed a1055-making supported living unil in July 22 and leased a loss-makincv nursing home to another opei'ator in February 23. The combined operating losses for thes¢ 2 units in 2023 amounted to £1.23m. Work is continuing to secure further increases in income for 5UPPOrted living schemes via discussions with the local healih 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 compared to £0.6m in 2023 and a nil turnover from Fairbuild in 2023 compared to £800k in 2022. Group operating cost5 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 2023 as a result of the impact on the parent set out above. Total comprehensive income for the year was £1 1.6m ompared to £1.3 m for 2022. however this was due to an increase the accounting value of the defined benefit pension scherne accounting for a recognised gain of £li.9m (2023) compared 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 ihe year increasing stock owned or managed by the group to over 7,500. By Order of the Board Ms S Mccallion Honorary 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 perfomance in the year ended 31 March 2024, which ar¢ 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 plans for additional outreach schemes due to funding constraints and therefore staff numbers are not anticipated to increase significantly in the coming financial year. Staff tumover was 20.54% (2022.. 14.020/0) and the average absence percentage was 7.57Q/o. up from 6.900/0, in the previous financial year. Principal risks and uncertainties Perfomanc¢ 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 ¢onstruction costs, shortage of qualified nursing staff, demographic trends, ¢nergy 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 them. 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 ac¢ommodation' cyber security. failure of subsidiaries to meet performance 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 comply with General Data Protection Regulations. and potential chall¢nges froTn unsuccessful contractors if proper procurement processes are not robust. Key performance indicators Developinenl New sites starts achieved.. 553 {28.270/0 of Dfc prograrnme) Housing Manageinenf 2023 2022 Allocations Rent Collection Total Arrears Non-technical Arrears as % of NT turnover Voids as % of rent receivable Void5 as % of housing stock Response maintenance within time 798 99.66°/. 7.39°/. 14.35°/. i.o°/ 897
Apex Housing Association Limited 11 Report of the Board for the year ended 31 March 2023 (continued) Environmenl The Association recogni5es its corporate responsibility to cary out its operations and development programme whilst minimising environmental impacts. The Board's continued aim is to comply wilh all applicable environmental legislaiion. prevent pollution and reduce waste wherever p055ible. Health Aiid 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 sites and otTices safe environments for employees and ienants alike. Human resources The Association's most important resource is its people. their knowledge and experience are crucial in meeting ienant5' 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 lo a variety of fanCIal risks that include the effects of changes in interest rate risk, liquidity risk and cUencY risk. Responsibility for the management of risk is delegated to the Finance Committee. Interest rAte risk Exposure to fluctuating interest rates is managed by the composition of a balanced portfolio between fixed rate and variable rate loans, Liquidlty risk The Association maintains a mixture of long terni and short tenn loan finance that is designed to ensure there is sufficient fund5 to achieve business objectives and to facililate planned growth. Curreney risk The Association does not engage in foreign currency transactions and 50 is not exposed to foreign exchange risk. Donations The Association made charitable 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 employment by disabled persons are always fully considered, bearing in mind the respective aptitudes and abilities of the applicant conc¢rned. In the event of members of staff becoming disabled every effort is Inade to ensure that their employment with the company continues and that appropriate training is arranged. It is the policy of the company that the training. career development and promotion of a disabled person should. as 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 accouni when decisions are made that are likely to affect their interests and that all employees are aware of the financial and economic performance 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 resource5 to continue in operational existence for the foreseeablc future. The Board considered the new financial plan for 2023124 and beyond at their Tneeting held on 31, May 2023. This plan included various assurnptions and slress-testing around a raiige 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 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 15 a Registered Housing Association (R23). The Association is a recognised charity for Inland Revenue purposes (Charity number.. XN48080). The Association is also registered with NI Charities Commission (Charity number.. NIC106107). Board of Management The members of the Board of the Association are listed on page l. Each member 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 re-election. Statement of the responsibilities of the Board The Board is responsible for preparing the financial statements in accordance with applicable laws and Tegulations. The Co-operative and Community Benefit Societies Act INorthern Ireland) 1969 and registered social housing legislation require the Board to prepare financial slalemenls for each financial year which give a true and fair view of the stale of the Group and Association's affairs and of its surplus or deficit for that period. In preparing those financial statements the Board is required to- select suitable accounting policies and then apply them consistently. make judgements and estimates that are reasonable and prudent. state whether applicable accounting slandards have been followed. Subject to any material departures disclosed and explained in the financial siaiements. and prepare the financial statements on ihe going concern basis unless it is inappropriate to presume thai the Association will continue in busine5S. The Members of the Board are responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association and to enable them to ensure that the financial statements comply with the Co- operative and Community Benefit Societies Act (Northem Ireland) 1969 and the Registered Housing Associations (Accounting Requirements) Order (Northem Ireland) 1993. It has general responsibility for taking reasonable steps to safeguard the assets of the Association and detect fraud and other irregularities. They are also responsible for safeguarding the asset5 of the Association and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Statement of disclosure of information to auditors So far as each of the members of the Board at the date of approval of these financial statements is aware: There is no relevant audit infomation of which the Group and Association's auditor5 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 infonnation and to establish that the Group and Association's auditor5 are aware of that infonnation.
Apex Housing Association Limited 14 Report of the Board for the year ended 31 March 2023 (continued) Statement on internal ¢ontrol The Board acknowledges tts ultimate responsibility for ensuring that Apex Housing Association Limited has in place a robust system of iniemal conirols 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 ¢stablished in October 1965 and has in place a range of internal controls which are and will continue 10 be reviewed on an annual basis. The systein of internal control is designed to manage risk to an acceptable level rather than lo eliminate all risk of failure to achieve policies, aims and objectives. it can therefore only provide reasonable and not absolu1¢ assurance of effectivenes5. The system of internal ¢ontrol is based on an ongoing process designed to identify and prioritise the risks to achieving the Associations, policies, aims and objective5. to evaluate the likelihood of those risks being realised and Ihe impact 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 the date of approval of the annual report and financial statements and Ihis accords wilh recommended Treasury guidance. The setting of risk appetite by the Board, and identification and assessment of the impaci of risk. is incorporated into the COTporate planning and decision-making processes of the Association. Consequenily, the Association ensures that there are procedures in place for verifying ihai internal controls and aspects of risk management are regularly reviewed and reported on. During 2022r2023 a number of measures were implemented to enhance the systems of internal control in place. These included: Implementation of the Risk Management Framework. Regular reporting to the Audit and Risk Committee, other Committees and the Board. Annual review of the Risk Management Framework and setting of the 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 forward. Delivery of trainiiig on risk management to staff, Audit and Risk Committee and Board members- 6. Furtlier development of the risk and governance arrangements thi'ough embedding ofthe 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 A550ciation plans to- Conlinue to operate the Risk Management Framework; 2. Ensure that the Association's Audit and Risk Assurance Committee continues to review the risk framework at its meetings. Embed the new systems for managing and reporting on key peTfonnance through the Decision Time IT software. 4. Conlinue to deliver appropriate training for staff. Audit and Risk Committee members and Board members; and 5. Strengthen the systems for ensuring compliance with extrrnal reporting requirements throuoh development of an overarching policy for 'notifiable eveT]ts' reporting. As an integral part of its corporate planning process, the Board sets the risk appetite and the inherent risks for each corporate objective are identified and assessed for impact and likelihood using a risk matrix. The Association iJpdates ils risk registers. identifying the controls necessary to mitigate aoainsl each risk, assessing the residual risk, identifying further actions lo be taken and assigning risk ownership to relevant staff. These risks are reported to and managed 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 issues. Risk is reviewed on a quarterly basis and the Board is informed of any emerging issues. The Committee receives regular reports on the implementation of internal and external audit r¢ports and rneets with the auditors on a regular basis. The Committee will commission further reports on specific issues where they feel this is nece55ary. The Board has responsibility for reviewing the effectiveness of the system of internal control. Its review of the effectiveness of the system of internal control is infom)ed 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 reporting.
Apex Hollsing Association Limited 15 Report of the Board for the year ended 31 March 2023 (continued) A plan to addr¢ss weaknesses and ensure continuous improvement of the system is ongoing. The Board has been infornied by inlernal and external audit on the adequacy and effectiveness of internal controls operating within the Association. In the internal auditors report they have staled that in their opinion the Associaiion's internal control systems were adequate and operated effectively thereby providing salisfaclory assurance regarding the effective and efficieni achieveinent of the Association's objectives. however a number of recommendations were made and an implementation plan is in place to address these. Progress on issues raised by internal and external audit continues to be formally monitored through the Audit and Risk Assurance Comniittee. 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 objective5 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 ihe Board Ms S Mccallion Honorary Secretary 20 September 2023