Reg No. IP244000 Abbeyfield & Wesley Housing Association Ltd Report and Financial Statements For the Year Ended 31 March 2023
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Contents page Page Board of Management and Advisers Report of the Board of Management Independent Auditor's Report 9-12 Statement of Comprehensive Income 13 Statement of Changes in Equity 14 Statement of Financial Position 15 Statement of cash flows 16 Notes to the Statement of cash flows 17-18 Notes to the financial statements 19-31
Abbeyfield & Wesley Mousing Association Ltd Year Ended 31 March 2023 Board of Management and Advisers Ms E Stewart Chair Mrs C Worthington Mr M Beattie Appointed 12th September 2022 Dr D Capper Mr K Gordon Mr G Montgomery Mr A Shott Resigned 12th September 2022 Mr W Graham Mrs P Sands Mr K McParland Appointed 13th March 2023 Mrs H Taylor Appointed 13th March 2023 Mrs M Bunting Appointed 13th March 2023 Dr G Turner Appointed 13th March 2023 Chief Executive and Secretary Mrs G Gilpin Registered office 2 Wesley Court Carrickfergus BT38 8HS Registered under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969, (formerly the Industrial and Provident Societies Att (Northern Ireland) 1969) Registered number IP 244000 Registered with the Charity Commission for Northern Ireland - NIC 106288 Statutory Auditors ASM (B) Ltd, Chartered Accountants 4th Floor Glendinning House 6 Murray Street Belfast BTI 6DN
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Board of Management and Advisers (cont'd) Bankers Danske Bank Ltd 77 Main Street Bangor BT20 SAP Solicitors DWF (Northern Ireland) LLP 42 Queen Street Belfast BTI 6HL
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Report of the Board of Management for the year ended 31 March 2023 strategic Report The Board present their report together with the financial statements for the year ended 31 March 2023. Principal activities The Association is a registered non-profit making Housing Association and is recognised by CCNI and HMRC as having charitable status. The Association's principal actlvity is the provision of a range of housing and support options for older people acmss Northern Ireland such as supported sheltered houses, sheltered accommodation and a care home. Business Performance Review The recovery for the Association from the Coronavirus pandemic was slower than anticipated during the financial year. Void levels remained significantly higher than budgeted and increased staff pressures resulted in agency costs being higher than budgeted. However, improvements in occupancy were noted in the last quarter and houses were beginning to return to pre-covid style. The Association returned an overall surplus of £73,696 this year, a decrease of £43,256 on the surplus in 2021/22 of £116,952. The operating surplus on social housing activities was £57,400 compared to a deficit of £418,095 in 2021/22. The Board aims to keep rents and charges affordable for all, however, with the annual increases in minimum wage payments (and resulting implications for differential payment levels), as well as pension contributions, increases in costs, particularly in relation to food, utilities and maintenance, combined with a lack of a meaningful increase in Supporting People funding and Residential Care Home tariff, this continues to be increasingly challenging. At the start of the year, charges for housing were increased by 5.8010 for Supported Sheltered and 4 % for Sheltered, charges for support were increased by 5.8010. The Financial Position remains strong with net current assets of £1,572,838 and total reserves of £6,766,551. COVID-19 and Ukraine Crisis Impact The Association reviewed its working practices over the year balancing the safety for staff and residents as well as ensuring that core services to residents were maintained. The key areas of focus are support for our staff, residents and suppliers through this challenging time. The Association have reviewed their budgets and cash flows to provide financial assurance and will ensure to keep under close review. Although not directly impacted by the crisis in Ukraine, this has had a significant impact on our suppliers. We continue to focus on providing support through this challenging time.
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Report of the Board of Management for the year ended 31 March 2023 (Cont.) Value for Money Abbeyfield and Wesley aims to provide more than simply somewhere for older people to live. In our accommodation we aim to create a sense of family and close links with the local community, enabling our residents to maintain social connections which are so vital to health and well-being. In order to provide this added social value, as well as providing quality services and maintaining properties to a high standard, resources have to be managed as efficiently and effectively as possible. Everyone in the association is involved in this endeavour, and we also actively encourage input from external resources. The key themes in the Strategic Plan for 2023-24 reflect the aims of enhancing the lives of older people and providing social impact and value for money. Risks The Board have reviewed the strategic and key risk register quarterly throughout the year. This covers inherent and residual risks for the key strategic areas within the organisation as well as further artions that the Association has put in place to minimise any potential impact. This will continue to be reviewed and amended by the Association. Strategic changes in the coming year The Association will continue to implement the post-covid recovery plan, concentrating on returning occupancy levels to pre-pandemic levels and restructuring the planned maintenance programme which had been delayed. The cash flow provides reassurance that the Association can operate for the foreseeable future. Corporate Governance In the opinion of the Board, the Association is in compliance with the Best Practice Code of Governance issued by the NHF and has complied with all Dfc Regulatory Standards during the year.
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Report of the Board of Management for the year ended 31 March 2023 (Cont.) Treasury Management Policy Abbeyfield & Wesley considers that effective treasury management will support the achievement of its business and service objectives and is committed to.. The security of financial assets and the minimisation of risk. The preservation of asset value and liquidity levels. The minimisation of costs within those parameters. Achieving an appropriate rate of return. The Association maintains a risk averse stance to investment of cash balances and aims to have sufficient liquid funds available to meet operational costs and borrowing to a minimum. The Association does not currently have any loans. Board of Management The Board meets at least four times throughout the year and in 2022/23 met on five occasions. The Finance Sub-committee met on five occasions, the Governance & Audit sub-committee twice, and the Property & Development on four occasions. Members, attendance at board meetings during the course of the year was as follows: Board Members Meetings Attended Possible Attendance Ms Eileen Stewart Dr David Capper Mr Ken Gordon Mrs Celia Worthington Mr Glenn Montgomery Mr Andrew Shott Mr William Graham Mr Malcolm Beattie Mrs Paula Sands Mrs Margaret Bunting Mr Kevin McParland Mrs Heather Taylor Dr Gillian Turner
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Report of the Board of Management for the year ended 31 March 2023 (Cont.) Going Concern After making enquiries, the Board has a reasonable expectation that the Association had adequate resources to continue in operational existence for the foreseeable future. For this reason they continue to adopt the going concern basis in preparing the financial statements. Internal controls The Board confirms that no issues were raised by the Department for Communities in relation to their Regulatory Standards during the year ended 31 March 2023. The Board is responsible for the Association's systems of internal financial control and along with senior management, is responsible for establishing and operating detailed control and report procedures. The systems of internal financial control can provide only reasonable, and not absolute, assurance against material misstatement and loss. The Board has reviewed the effectiveness of the Association's system of internal financial control. The review included consideration of the business risks facing the association and of the existing internal financial control procedures. The key elements of the control system in operation are: Adoption by the Board of a formal schedule of matters reserved for its approval, ensuring it maintains responsibility for overall strategy, approval of all property transactions and other major capital expenditure projects. An organisational structure with clearly defined lines of responsibility and delegation of authority. Preparation of detailed budgets covering the business of the Association which are approved and regularly reviewed by the Board. Actual results are compared against budget and, where necessary, appropriate action identified and initiated. Compliance with Code of Best Practice The auditors have confirmed that in their opinion, with respect to the Board's statements on internal financial control and going concern above, the members have provided the disclosures required by the Code and such statements are not inconsistent with the information of which they are aware from their audit work on the financial statements, and that the Board's statement on pages 3 to 8 appropriately reflects the Association's compliance with the other paragraphs of the Code. They have carried out their review in accordance with the relevant Bulletin issued by the Auditing Practices Board, which does not require them to perform any additional work necessary to express a separate opinion on the effectiveness of either the Association's system of internal financial control or corporate governance procedures, or on the ability of the Association to continue in operational existence.
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Report of the Board of Management for the year ended 31 March 2023 (Cont.) Statement of the responsibilities of the Board of Management The Board is required to prepare accounts for each financial period which give a true and fair view of the state of the Association's affairs and of its surplus or deficit for that period. In preparing those accounts the Board is required to:_ select suitable accounting policies and then apply them consistentlyi make judgements and estimates that are reasonable and prudent; state whether applicable accounting standards have been followed subject to any material departures disclosed and explained in the accounts. and prepare the accounts on the going concern basis unless it is inappropriate to presume that the Association will continue to operate. The Board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the Association. It is also responsible for safegL5arding the assets of the Association and hence for taking reasonable steps for the prevention of fraud and other irregularities. Events after the Balance Sheet date Mrs Geraldine Gilpin, Chief Executive Officer (CEO) of the Abbeyfield & Wesley Housing Association for over 25 years, will be retiring later in 2023. Under her leadership, the Association has grown through the mergers of Abbeyfield societies in 2003 and with Wesley Housing Association in 2013. The Association is recognised for the high standard of support and care provided for its residents, with an underlying ethos to provide a sense of community and alleviate loneliness. In preparation for the forthcoming retirement of Mrs Geraldine Gilpin, the Management Board of Abbeyfield & Wesley undertook a recruitment exercise and Mr Patrick Thompson will be taking over as CEO following a period of handover. statement of disclosure to auditors So far as each of the members of the Board of Management is aware at the date of approval of these financial statements.. there is no relevant audit information of which the Association's auditors are unaware; and they have taken all the steps that they ought to have taken in order to make themselves aware of any relevant audit information and to establish that the Association's auditors are aware of that information.
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Report of the Board of Management for the year ended 31 March 2023 (Cont.) Auditors Following a formal re-tendering for External Audit Services in 2018-19, a resolution to reappoint ASM (B) Ltd was proposed and accepted at the Annual General Meeting. Signed on behalf of the Board of Management: Ms E Stewart Chair Mr M Be3ttie Board Member Date: 24 August 2023
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Independent Auditor's Report Opinion We have audited the financial statements of Abbeyfield and Wesley Housing Association Limited for the year ended 31 March 2023 which comprise the statement of comprehensive income, the statement of changes in reserves, the statement of financial position, the statement of cash flows and the related notes to the financial statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice) and the Housing SORP - Statement of Recommended Practice for social housing providers issued by the National Housing Federation. In our opinion the financial statements: give a true and fair view of the state of the Association's affairs as at 31 March 2023 and of its surplus 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 requirements of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (formerly the Industrial and Provident Societies Act (Northern Ireland) 1969), with the requirements of Article 19 of the Housing (Northern Ireland) Order 1992, Registered Housing Associations (Accounting Requirements) Order (Northern Ireland) 1993, the Charities Act (Northern Ireland) 2008 and Regulation 9 of the Charities (Accounts and Reports) Regulations (Northern Ireland) 2015. Basis of opinion We conducted our audit in accordance with International Standards on Auditing (UK) (ISAS UK) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the Association in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC'S Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with those requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Conclusions relating to going concern We have nothing to report in respect of the following matters in relation to which the ISAS (UK) require us to report to you where: the Board of Management's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Independent Auditor's Report (cont'd) the Board of Management have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the Association's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue. Other information The other information comprises the information included in the Report of the Board of Management other than the financial statements and our auditor's report thereon. The Board of Management is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in so doing, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in 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 there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. Opinion on other matters prescribed by the Companies Act In our opinion, based on the work undertaken in the course of the audit; the information given in the Report of the Board of Management for the financial year for which the financial statements are prepared is consistent with the financial statements; and the Report of the Board of Management has been prepared in accordance with applicable legal requirements. Matters on which we are required to report by exception In the light of the knowledge and understanding of the Association and its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Board of Management. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requi5 us to report to you if, in our opinion: adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us. or the financial statements are not in agreement with the accounting records and returns. or we have not received all the information and explanations we require for our audit. io
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Independent Auditor's Report (cont'd) Responsibilities of the Board of Management As explained more fully in the Board of Management responsibilities statement the Board of Management is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Board of Management determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the Board of Management is responsible for assessing the Association's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting, unless the Board of Management either intend to cease operations, or have no realistic alternative but to do so. Auditor's responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAS {UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in 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 below: We gained an understanding of the legal and regulatory framework applicable to the Association and the industry in which they operate, and considered the risk of acts by the Association that were contrary to applicable laws and regulations, including fraud. We considered the opportunities and incentives that may exist within the Association for fraud and identified the greatest potential for fraud in the following areas: management override of controls and fraud risk relating to revenue. We designed audit procedures to respond to these risks, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. Our audit procedures included: enquiries of management about their own identification and assessment of risks of irregularities, testing the design and implementation of controls relating to the risks, sample testing of journals Posted during the year and agreeing a sample of revenue items to underlying documentation. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. li
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Independent Auditor's Report (cont'd) This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. 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.or auditorsres onsibilities. This description forms part of our auditors, report. Other required reporting Co-o erative and Communit Benefit Societies Act ortin Northern Ireland 1969 exce tion re Under the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 we 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 kept by the association. or the financial statements are not in agreement with the accounting records. We have no exceptions to report arising from this responsibility. Use of our report This report is made solely to the Board of Management, in accordance with Article 38 of the Co-operative and Community Benefit Societies Act (Northern Ireland) 1969 (formerly the Industrial and Provident Societies Act (Northern Ireland) 1969). Our audit work has been undertaken so that we might state to the Board of Management those matters that we are required to state to them in an auditors, report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Society and the Board of Management, for our audit work, for this report, or for the opinion we have formed. fy. QThL B Clerkin (Senior Statutory Auditor) for and on behalf of ASM (B) Ltd statutory Auditor 4th Floor Glendinning House 6 Murray Street Belfast BTI 6DN Date: 24 August 2023 12
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Statement of Comprehensive Income For the year ended 31 March 2023 Notes 2023 2022 Turnover 4,398,307 4,548,839 Operating costs 3 {4,296,487) (4,465,167) Operating surplus Gain / (loss) on disposal of properties held for resale 101,820 83,672 40,387 Fair value adjustment on investments Unrealised deficit on revaluation of properties held for resale 13 (22,020) 19,401 (65,000) Interest and investment income / (costs) 18.509 13,879 Surplus before tax 73.696 116,952 Taxation Surplus after tax 73,696 116,952 other comprehensive income Unrealised surplus / (deficit) on revaluation of housing properties Total comprehensive income for the year 73.696 116,952 There are no other recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income. The notes on pages 19 to 31 form part of these financial statements. 13
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 statement of Financial Position As at 31 March 2023 Notes 2023 2022 Fixed assets Housing properties Other tangible fixed assets Investments io 15,186,046 140,328 286,155 15,366,143 130,636 12 13 308,175 15,612,529 15,804,954 Current assets Properties held for sale Trade and other debtors 14 435,000 373,409 852,975 415,469 106,856 709,875 850,190 433,313 15 Investments Cash and cash equivalents 2,076,853 2,100,234 Less: Creditors: amounts falling due within one year Net current assets 16 (504,015) (590,696) 1,572,838 1,509,538 Total assets less current liabilities 17,185,367 17,314,492 Creditors: amounts falling due after more than one year 16 (10,418,816) (10,621,637) Total net assets 6,766,551 6,692,855 Reserves Share capital Revenue reserve5 21 6,766,501 6,692,805 Capital reserves Designated reserves 22 42 42 Total reserves 6,766,551 6,692,855 These financial statements were approved by the Board of Management and authorised for issue on 24 August 2023 and signed on its behalf by.. Ms E Stewart, Chair Mr M Beattie, Board Member s G Gllpin, Secretary The notes on pages 19 to 31 form part of these financlal statements. 15
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 statement of Cash Flows For the year ended 31 March 2023 Notes 2023 2022 Net cash inflow / ouffiow from operating activities Returns on investments and servicing of finance Capital expenditure and financial investment 5,679 (125,494) 18,509 (39,247) 13,879 (94,917) Cash inflow / outflow before use of liquid resources and financing (15,059) (206,532) Financing (15,059) (206,532) Reconciliation of net cash flow to movements in net debts (Note C) Increase / decrease in cash in period Net funds at l April 2022 (15,059) 1,283,503 Net funds at 31 March 2023 1,268,444 The notes on pages 17 to 18 form part of this financial statement. 16
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Notes to Statement of Cash Flows For the year ended 31 March 2023 A. Reconciliation of operating surplus / (deficit) to operating cashflows 2023 2022 Operating surplus Depreciation Amortisation of grant Profit/(loss) on disposal of properties held for resale Movements in: 101,820 317,595 (205,871) 40,387 83,672 321,882 (207,834) Rental debtors 11,776 (175,310) (84,718) 5,679 63,802 (563,285) 176,269 Other debtors Creditors less than one year (125,494) B. Analysis of cash flows for headings netted in the cash flow statement Returns on Investment and servicing of finance 2023 Interest and investment income received Bank charges Net cash inflow / (outflow) for returns on investment and servicing of finance 19,644 (1,135) 18,509 Capital expenditure and financial investment Other fixed assets (14,952) (132,238) 1,087 106,856 Housing, land and buildings Capital grant received Properties held for resale Major repairs spend Net cash inflow / (outflow) for capital expenditure and financial investment (39,247) Financing Loan principal repayments Share capital issued Net cash inflow / (oufflow) from financing 17
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Notes to Statement of Cash Flows (cont'd) For the year ended 31 March 2023 C. Analysis of changes in net funds At 01/04/22 Other Changes At 31103/23 Cashflows Cash in hand and at bank Investments Debt due within one year Debt due after more than one year 433,313 850,190 (17,844) 2,785 415,469 852,975 1 283 503 1 268 444 18
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Notes to the financial statements l. Legal status Abbeyfield & Wesley Housing Association is a housing association registered in Northern Ireland in the United Kingdom under the Co-operative and Community Benefit Societies (Northern Ireland) Act 2016 (formerly known as the Industrial and Provident Societies Act (Northern Ireland) 1969). The registered office of the Association is 2 Wesley Court, Carrickfergus, BT38 8HS. 2. Accounting Policies 2.1 Basis of accounting These financial statements have been prepared in accordance with Financial Reporting standard 102 'The Financial Reporting Standard Applicable in the UK and Republic of Ireland, and the Statement of Recommended Practice ("SORP") for Registered Social Housing Providers. The financial statements are presented in Sterling (£), which is the functional currency of the Association. 2.2 Revenue recognition Revenue is recognised when the Association has entitlement to the funds and it is probable that the income will be received and the amount is reliably measured. Tumover includes rent and service charge income arising from the provision of housing accommodation and the amortisation of Housing Association Grant. 2.3 Government and other grants Social housing grant (SHG) or Housing Association Grant (HAG) is receivable from the Northern Ireland Housing Executive (NIHE) and is recognised in income over the useful life of the housing property structure under the accruals model. SHG/HAG due is included as a current asset. SHG/HAG received in advance is included as a liability. SHG/HAG received in respect of revenue expenditu is credited to the income and expenditure account in the same period as the expenditure to which it relates. SHG/HAG released on sale of a property may be repayable but is normally available to be recycled and is credited to the Disposal Proceeds Fund and included in the Statement of Financial Position within Creditors. 19
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Notes to the financial statements (cont.) 2.4 Tangible fixed assets Housing properties Housing stock are properties held for the provision of social housing or to otherwise provide social benefit and are accounted for within tangible fixed assets. Housing properties are principally available for rent and are stated at cost less accumulated depreciation and any accumulated impairment losses. Cost includes the cost of acquiring land and buildings, development costs, interest charges incurred during the development period. Works to existing properties which replace a component that has been treated separately for depreciation purposes, along with those works that result in an increase in net rental income over the lives of the properties, thereby enhancing the economic benefits of the assets, are capitalised as improvements. Depreciation of housing properties The Association separately identifies the major components which comprise its housing properties, and charges depreciation, so as to write-down the cost of each component to its estimated residual value, on a straight-line basis, over its estimated useful life. The Association depreciates the major components of its housing properties over the following estimate useful lives: Land Structure/main fabric Roof Windows and doors Primary heating unit Kitchen Bathroom Mechanical systems Electrics Lifts Furniture and equipment Not depreciated Over 100 years Over 70 years Over 25 - 30 years Over 15 years Over 17 - 20 years Over 20 - 25 years Over 35 years Over 30 35 years Over 30 - 35 years Over 10 years Depreciation of other tangible fixed assets For other tangible fixed assets, depreciation is charged on a straight-line basis over the expected useful lives of the assets to write off the cost, less estimated residual values using the following rates.. Leasehold building 20/0 Offfice furniture and equipment 20% 20
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Notes to the financial statements (cont.) 2.5 Impairment Housing properties are assessed annually for impairment indicators. Where indicators are identified an assessment for impairment is undertaken comparing the asset's carrying amount to its recoverable amount. Where the carrying amount of an asset is deemed to exceed its recoverable amount, the asset is written down to its recoverable amount, this is likely to be the fair value in use of the asset based on its service potential. The resulting impairment loss is recognised as expenditure in income and expenditure. Where an asset is currently deemed not to be providing service potential to the association, its recoverable amount is its fair value less costs to sell. Other assets are reviewed for impairment if there is an indication that impairment may have occurred. 2.6 Properties held for sale Properties held for sale are valued at the lower of depreciated cost and net realisable value. 2.7 Cash and cash equivalents Cash and cash equivalents include cash in hand and in bank with maturities of one month or less. 2.8 Current asset investments Current asset investments are investments in short-term deposits with an original maturity between one and twelve months. 2.9 Employee benefits - Defined Contribution Pension The Association operates a defined contribution scheme for eligible employees. A defined contribution plan is a pension plan under which the Association pays fixed contributions into a separate entity. Once the contributions have been paid the Association has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are included as accruals in the Statement of Financial Position. The assets of the plan are held separately from the Association in independently administered funds. 2.10 Tenants, Services Fund For certain schemes the Association is required to charge to the tenants an additional amount to fund the cost of common facilities. Annual surpluses or deficits are transferred to the Tenants, Services Fund to equalise the financial position over the lifetime of the scheme. 2.11 Disposal Proceeds Fund The net surpluses, after loan repayments, that arise from the sale of property to tenants under the voluntary purchase grant arrangements, instituted by the Department for Communities, can be utilised by the Association. If the surpluses are not used within two years of their receipt they may be payable in part or in full to the Department for Communities. 21
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Notes to the financial statements (cont.) 2.12 Income tax The Association is accepted as a charity by the HMRC. Income and capital gains of the Association are generally exempt from tax if applied for charitable purposes. 2.13 Value Added Tax The Association is not registered for VAT. All of its income, including rental receipts, is exempt for VAT purposes. 2.14 Financial instruments The Association only has financial assets and financial liabilities of a kind that qualify as basic financial instru ments. Basic financial instruments are initially recognised at transaction value and subsequently measured at their settlement value. 2.15 Judgements in applying accounting policies and key sources of estimation uncertainty No judgments have been made in the process of applying the above accounting policies (apart from those involving estimates). There were no key assumptions made concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial yea r. 2.16 Going concern After making appropriate enquiries, the Board of Management has a reasonable expectation that the Association has adequate resources to continue in operational existence for the foreseeable future. For this reason, it continues to adopt the going concern basis in the financial statements. 3. Turnover, Operating costs and operating surplus 2023 2022 Operating Surplus/ (deficit) Operatlng Surplus/ (deficit) Operating Turnover Operating Costs Social Housing Attivities (Note 4) 4,340,518 (4,283,118) 57,400 (418,095) Non-social Housing Activltles (Note 5) 57,789 (13,369) 44,420 501,767 4,398,307 (4,296,487) 101,820 83,672 22
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Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 4. Turnover, operating costs and operating surplus/(deficit) from social housing activities (cont'd) Dfc Allowances 2023 2022 Management allowances Management costs Surplus/ (deficit) 3,564 (9,787) (6,223) 3,564 (2,493) 1,071 Maintenance allowances Planned and cyclical maintenance Reactive maintenance Surplus/ (deficit) 4,176 {6,339) (2,618) (4,781) 4,176 (3,897) (3,167) (2,888) Technical & Non Technical Income 2023 2022 Technical Non-Technical Total 2,024,321 2,076,844 4,101,165 1,811,569 1,850,595 3,662,164 Turnover, operating costs and operating surplus/(deficit) from non-social housing activities 2023 2022 Operating Income Development Management Services Other income Legacy donation received Total Non-social Housing Income 6,598 6,497 36,758 95,717 503 669 &05,883 57,789 Operating Costs Development Cost5 Management Services Costs Other Costs Total Non-social Housing Expenditure 6,598 6,497 13,369 104,116 Operating surplus on non-social housing 501 767 24
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Surplus on ordinary activities Surplus on ordinary activities is stated after charging/(crediting): 2023 2022 Depreciation owned tangible fixed assets Amortisation of grant / Release of capital grant Auditor's remuneration External audit of these financial statements Internal audit Non-audit services 317,595 (205,871) 321,882 (207,834) 8,950 3,400 10,950 2,550 Interest payable 2023 2022 Bank overdrafts Bank loans On housing property loans Bank interest and charges 25
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Employee information Average monthly number of employees during the financial year expressed as full-time equivalents is as follows: 2023 No. 2022 Administration Housing & Support Care 13 77 44 134 12 70 41 123 staff costs 2023 2022 Wages and salaries Social security costs Pension costs Agency costs 1,981,916 147,203 57,589 449,855 2,636,563 2,040,216 143,085 59,906 529,674 2,772,881 The aggregate remuneration, including benefits in kind and pension contributions, of key management personnel of the Association, as defined under FRS 102, during the year was: 2023 2022 Aggregate remuneration 306,946 306,946 302,818 302,818 Emoluments payable to the highest paid employee (excluding pension contributions but including benefits in kind) 67,452 66,223 The number of management personnel to whom emoluments (including salary and benefits in kind) were paid during the year falls within each of the following bands: 2023 2022 Salary band: 60,000 65,000 65,000 - 70,000 26
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Board of Management remuneration There was no remuneration paid to the Board members of the Association (2022: £Nil). No board members were paid out of pocket expenses (2022: £Nil). 10. Tangible fixed assets - Housing properties Housing properties held for letting Cost or valuation At l April 2022 Additions Disposals At 31 March 2023 21,512,643 132,238 (6,297) 21,638,584 Depreciation and impairment At l April 2022 Charge for the year Eliminated on disposal At 31 March 2023 6,146,500 312,335 (6,297) 6,452,538 Net book value At 31 March 2023 15,186,046 At 31 March 2022 15,366,143 11. Housing Stock Number of units owned and mana edat ear end Self-contained 2023 Properties 2022 Properties General Needs Housing Supported Housing Sheltered Housing Shared Ownership/ Affordable Housing 96 96 105 105 Non Self-contained 2023 Bedspaces 39 156 2022 Bedspaces 39 156 Care Home Supported Sheltered Housing Sheltered Housing 195 195 Total Units Owned and Managed at year end 300 300 27
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 Numb f units mana ed b t not owned at ear end Self-contained 2023 Properties 2022 Properties General Needs Housing Supported Housing Sheltered Housing Non Self-contained 2023 Bedspaces 2022 Bedspaces General Needs Housing Supported Sheltered Housing Sheltered Housing Total Units Managed at year end 12. Other tangible fixed assets Office premises Furniture and fittings Office equipment Total Cost or valuation At l April 2022 Additions Disposals At 31 March 2023 248,352 291,026 174,657 14,952 714,035 14,952 248,352 291,026 189,609 728,987 Depreciation At l April 2022 Charge for the year Eliminated on disposal At 31 March 2023 119,229 4,880 291,026 173,144 380 583,399 5,260 124,109 291,026 173,524 588,659 Net book value At 31 March 2023 At 31 March 2022 124,243 129,123 16,085 1,513 140,328 130,636 28
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 13. Investments 2023 2022 Valuation At l April 2022 Additions -Disposals -Fair value adjustment At 31 March 2023 308,175 288,774 (22,020) 286,155 19,401 308,175 Net book value At beginning of year At end of year 308,175 286,155 288,774 308,175 14. Propertied held for resale 2023 2022 Properties held for resale 435,000 435,000 106,856 106,856 Properties held for resale is valued at lower of cost and net realisable value. 15. Debtors 2023 2022 Gross rental debtors Technlcal Gross rental debtors - Non-Technical Provision for bad debt Net rental debtors Housing A550ciation Grant receivable Prepayments and accrued income Other debtors 23,175 4,358 (16,197) 11,336 37,103 2,206 (16,197) 23,112 47,482 314,591 373,409 47,444 639,319 709,875 29
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 16. Creditors Amounts fallin within I ear 2023 2022 Housing Association Grant Accruals and deferred income Rent and service charges received in advance Tenants, Services Fund (schemes undercharged and payable) Other taxes and social security Other creditors 205,871 139,378 10,519 42,561 207,834 181,832 29,361 28,064 105,686 504,015 143,605 590,696 Amount fallin due after more than I ear 2023 2022 Housing Association Grant 10,418,816 10,418,816 10,621,637 10,621,637 17. Deferred grant 2023 2022 At l April 2022 Grant received in the year Released to income in the year Eliminated on component disposals Eliminated on housing unit disposals At 31 March 2023 10,829,471 1,087 (205,871) 11,033,460 3,845 (207,834) 10,624,687 10,829,471 Deferred grant is Housing Association Grant (HAG) originally received less accumulated amortisation. This was received to fund all Schemes the Association own. 18. Capital commitments At 31 March 2023 the Association had capital commitments as follows: 2023 2022 Contracted for but not provided in the financial statements 30
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2023 19. Contingent Liabilities The Association released Housing Association Grant during the year in relation to building components replaced. The possibility of reimbursement to the Department for Communities is considered to be unlikely as the housing properties are expected to continue to be made available for social housing for the foreseeable future. 20. Pension commitments - Defined Contribution Pension The Association operates a defined contribution pension scheme. The assets of the scheme are held separately from the Association in an independently administered fund. The Association paid contributions during the year amounting to £57,589 (2022: £59,906). Contributions outstanding at 31 March 2023 amounted to £10,660 (2022: £10,332). 21. Share capital Ordinary shares of £1 each fully paid: 2023 2022 At l April 2022 Issued in the year Transferred to capital reserve At 31 March 2023 16 {9) 22. Capital reserves 2023 2022 At l April 2022 Transferred to / from revenue reserves At 31 March 2023 42 33 42 42 23. Related Parties Worthingtons Solicitors is deemed to be a related party of the Association. During the year there were no direct transactions, and as a result no outstanding balances at the year end, with the firm however from time to time they are appointed to att on the Association's behalf by the Association's insurance company. 31