Reg No. IP244000 Abbeyfield & Wesley Housing Association Ltd Report and Financial Statements For the Year Ended 31 March 2024
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 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 Housing Association Ltd Year Ended 31 March 2024 Board of Management and Advisers Ms E Stewart Chair Mrs C Worthington Resigned Ilth September 2023 Mr M Beattie Dr D Capper Mr K Gordon Mr G Montgomery Resigned 27th March 2024 Mr W Graham Mrs P Sands Mr K McParland Mrs H Taylor Resigned 25th March 2024 Mrs M Bunting Dr G Turner Chief Executive and Secretary Mr P Thompson 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 Act (Northern Ireland) 1969) Registered number IP 244000 Registered with the Charity Commission for Northern Ireland - NIC 106288 statutory Auditors Sumer Auditco NI Limited, Registered Accountants 4th Floor Glendinning House 6 Murray Street Belfast BTI 6DN
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 Board of Management and Advisers (cont'd) Bankers Danske Bank Ltd Donegall Square West Belfast BTI 6JS Solicitors DWF (Northern Ireland) LLP 42 Queen Street Belfast BTI 6HL
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 Report of the Board of Management for the year ended 31 March 2024 Strategic Report The Board present their report together with the financial statements for the year ended 31 March 2024. 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 activity is the provision of a range of housing and support options for older people across Northern Ireland such as supported sheltered houses, sheltered accommodation and a care home. Business Performance Review The recovery for the Association from the COVID pandemic continues to be slower than anticipated during the financial year, with void levels remaining higher than the target in Supported Sheltered Housing. Voids elsewhere in the business are back at in and around the predicted levels. Agency costs for staffing in the care home continue to be higher than budgeted due to long term sickness cover and challenges in recruiting suitable permanent staff. The Association returned an overall deficit of £201,912 this year, a decrease of £275,608 on the surplus in 2022/23 of £73,696. The operating deficit on social housing activities was £217,259 compared to a surplus of £57,400 in 2022123. 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 the Residential Care Home tariff, this continues to be increasingly challenging. At the start of the year, charges for housing and support were increased by 11 % for Supported Sheltered and 10 % for Sheltered. The Financial Position remains strong with net current assets of £1,419,509 and total reserves of £6,564,639. 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 reflect the aims of enhancing the lives of older people and providing social impact and value for money.
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 Report of the Board of Management for the year ended 31 March 2024 (Cont.) 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 actions 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 has established a financial resilience working group which will feed into an updated Strategic Plan. Void rates, marketing and fixed costs will be key themes going forward, along with updated planned maintenance activity which continued to be delayed while the recruitment of a new Property Manager was ongoing. The cash flow provides assurance 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. 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.
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 Report of the Board of Management for the year ended 31 March 2024 (Cont.) Board of Management The Board meets at least four times throughout the year and in 2023124 met on five occasions. The Finance Sub-committee met on six occasions, the Governance & Audit sub- committee twice, and the Property & Development Sub-committee 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 William Graham Mr Malcolm Beattie Mrs Paula Sands Mrs Margaret Bunting Mr Kevin McParland Mrs Heather Taylor DrGillian Turner 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.
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 Report of the Board of Management for the year ended 31 March 2024 (Cont.) 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 2024. 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 necessaryi 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 2024 Report of the Board of Management for the year ended 31 March 2024 (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 safeguarding 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 The Association has no post balance sheet date events to disclose. 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 2024 Report of the Board of Management for the year ended 31 March 2024 (Cont.) Auditors A resolution to reappoint Sumer Auditco NI Limited will be proposed at the Annual General Meeting pending the usual cyclical re-tendering of External Audit Services. After the year end our auditors ASM (B) Ltd joined a larger national firm of accountants and auditors the Sumer Group. This resulted in them transferring all of their external audit services to Sumer Auditco NI Limited. Signed on behalf of the Board of Management: Ms E Stewart Chair Mr M Beattie Board Member Date: 9 September 2024
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 Independent Auditor's Report Opinion We have audited the financial statements of Abbeyfield and Wesley Housing Association Limited for the year ended 31 March 2024 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 2024 and of its deficit 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 2024 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 requires 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 2024 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. We designed audit procedures to respond to these rlsks, 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 and sample testing of journals posted during the year. 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 2024 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, forgeryi 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 .uk auditorsres onsibilities. This description forms part of our auditors, report. other required reporting Co-o erative and Comm re ortin nit Benefit Soci s Act Northern Ir land 1969 exce tion 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 Att (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. B Clerkin (Senior Statutory Auditor) for and on behalf of Sumer Auditco NI Limited Registered Auditor 4th Floor Glendinning House 6 Murray Street Belfast BTI 6DN Date: 9 September 2024 12
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 statement of Comprehensive Income For the year ended 31 March 2024 Notes 2024 2023 Turnover 4,454,404 4,398,307 Operating costs (4,664,757) (4,296,487) Operating (deficit) / surplus Gain / (loss) on disposal of properties held for resale (210,353) 101,820 40,387 Fair value adjustment on investments Unrealised deficit on revaluation of properties held for resale 13 19,781 (22,020) (55,000) (65,000) Interest and investment income 43,660 18,509 (Deficit) / Surplus before tax (201,912) 73,696 Taxation (Deficit) / Surplus after tax (201,912) 73,696 Other comprehensive income Unrealised surplus / (deficit) on revaluation of housing properties Total comprehensive income for the year (201,912) 73,696 There are no other recognised gains and losses for 2024 or 2023 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 2024 Statement of Financial Position As at 31 March 2024 Notes 2024 2023 Fixed assets Housing properties other tangible fixed assets Investments io 14,942,307 131.836 305,936 15,186,046 140,328 286,155 12 13 15,380,079 15,612,529 Current assets Properties held for sale Trade and other debtors 14 380,000 64,875 806,205 608,605 435,000 373,409 852,975 415,469 15 Investments Cash and cash equivalents 1.859,685 2,076,853 Less: Creditors: amounts falling due within one year Net current assets 16 (440,176) (504,015) 1,419,509 1,572,838 Total assets less current liabilities 16,799,588 17,185,367 Creditor5.' amounts falling due after more than one year 16 (10,234.949) (10,418,816) Total net assets 6,564,639 6,766,551 Reserves Share capital Revenue reserves 21 6,564,589 42 6,766,501 42 Capital reserves Designated reserves 22 Total reserves 6,564,639 6,766,551 These financial statements were approved by the Board of Management and authorised for issue on 9 September 2024and signed on its behalf by: Ms E Stewart, Chair Mr M Beattie, Board Member Mr P Thompson, secretary The notes on pages 19 to 31 form part of these financial statements. 15
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 Statement of Cash Flows For the year ended 31 March 2024 Notes 2024 2023 Net cash inflow / outflow from operating activities Returns on investments and servicing of finance Capital expenditure and financial investment 159,277 5,679 43,660 (56,571) 18,509 (39,247) Cash inflow / outflow before use of liquid resources and financing 146,366 (15,059) Financing 146,366 (15,059) Reconciliation of net cash flow to movements in net debts (Note C) Increase / decrease in cash in period Net funds at l April 2023 146,366 1,268,444 Net funds at 31 March 2024 1,414,810 The notes on pages 17 to 18 form part of this financial statement. 16
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 Notes to Statement of Cash Flows For the year ended 31 March 2024 A. Reconciliation of operating surplus / (deficit) to operating cashflows 2024 2023 Operating (deficit) / surplus Depreciation Amortisation of grant Profit/(loss) on disposal of properties held for resale Movements in: (210,353) 312,758 (196,847) 101,820 317,595 (205,871) 40,387 Rental debtors 20,432 288,102 (54,815) 11,776 (175,310) (84,718) 5,679 Other debtors Creditors less than one year 159,277 B. Analysis of cash flows for headings netted in the cash flow statement Returns on investment and servicing of finance 2024 Interest and investment income received Bank charges Net cash inflow / (outflow) for returns on investment and servicing of finance 44,893 (1,233) 43,660 Capital expenditure and financial investment other fixed assets Housing, land and buildings Capital grant received Properties held for resale Major repairs spend Net cash inflow / (outflow) for capital expenditure and financial investment (1,399) (59,128) 3,956 (56,571) Financing Loan principal repayments Share capital issued Net cash inflow / (outflow) from financing 17
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 Notes to Statement of Cash Flows (cont'd) For the year ended 31 March 2024 C. Analysis of changes in net funds At 01/04/23 other Changes At 31/03/24 Cashflows Cash in hand and at bank Investments Debt due within one year Debt due after more than one year 415,469 852,975 193,136 (46,770) 608,605 806,205 1 268 444 146 366 1 414 810 18
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 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. Turnover 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 expenditure 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 2024 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 Office furniture and equipment 20% 20
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 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 2024 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 instruments. 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 year. 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 2024 2023 Operating Surplus/ (deficit) Operating Surplus/ (deficit) Operating Turnover Operating Costs Social Housing Activities (Note 4) 4,433,546 (4,650,805) (217,259) 57,400 Non-social Housing Activities (Note 5) 20,858 (13,952) 6,906 44,420 4,454,404 (4,664,757) (210,353) 101,820 22
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Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 4. Turnover, operating costs and operating surplus/(deficit) from social housing activities (cont'd) Dfc Allowances 2024 2023 Management allowances Management cost5 Deficit 3,564 (11,004) (7,440) 3,564 {9,787) (6,223) Maintenance allowances Planned and cyclical maintenance Reactive maintenance Deficit 4,176 (4,972) (2,672) (3,468) 4,176 (6,339) (2,618) (4,781) Technical & Non Technical Income 2024 2023 Technical Non-Technical Total 2,180,454 2,038,085 4,218,539 2,024,321 2,076,844 4,101,165 Turnover, operating costs and operating surplus/(deficit) from non-social housing activities 2024 2023 Operating Income Development Management Services Other income Legacy donation received Total Non-social Housing Income 7,664 6,598 6,983 36,758 20,858 57,789 Operating Costs Development Costs Management Services Costs Other Costs Total Non-social Housing Expenditure 7,664 6,598 13,952 13,369 Operating surplus on non-social housing 24
AbbeyfJeJd & Wesley Housing Association Ltd Year Ended 31 March 2024 Surplus on ordinary activities Surplus on ordinary activities is stated after charging/(crediting): 2024 2023 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 312,758 (196,847) 317,595 (205,871) 8,950 3,400 8,950 3,400 Net interest and investment income 2024 2023 Investment income Bank overdrafts Bank loans On housing property loans Bank interest and charges 8,606 8,802 25
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 Employee information Average monthly number of employees during the financial year expressed as full-time equivalents is as follows: 2024 2023 No. Administration Housing & Support Care 12 83 46 141 13 77 44 134 Staff costs 2024 2023 Wages and salaries Social security costs Pension costs Agency costs 2,220,113 157,645 60,810 343,949 2,782,517 1,981,916 147,203 57,589 449,855 2,636,563 Included within wages and salaries is a total expense of termination costs of £30,000 (2023:£nil) and redundancy costs of £1,408 (2023:£nil). 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: 2024 2023 Aggregate remuneration 351,335 351,335 306,946 306,946 Emoluments payable to the highest paid employee (excluding pension contributions but including benefits in kind) 46,325 67,452 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: 2024 2023 Salary band: 60,000 - 65,000 65,000 70,000 26
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 Board of Management remuneration There was no remuneration paid to the Board members of the Association (2023: £Nil). No board members were paid out of pocket expenses (2023: £Nil). 10. Tangible fixed assets Housing properties Housing properties held for letting Cost or valuation At l April 2023 Additions Disposals At 31 March 2024 21,638,584 59,128 21,697,712 Depreciation and impairment At l April 2023 Charge for the year Eliminated on disposal At 31 March 2024 6,452,538 302,867 6,755,405 Net book value At 31 March 2024 14,942,307 At 31 March 2023 15,186,046 11. Housing Stock Number of units owned and mana edat ear end Self-contained 2024 Properties 2023 Properties General Needs Housing Supported Housing Sheltered Housing Shared Ownership/ Affordable Housing 96 96 105 105 Non Self-contained 2024 Bedspaces 39 156 2023 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 2024 Number of units m na ed but no wned ear end Self-contained 2024 Propertles 2023 Properties General Needs Housing Supported Housing Sheltered Housing Non Self-contained 2024 Bedspaces 2023 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 2023 Additions Disposals At 31 March 2024 248,352 291,026 189,609 1,399 728,987 1,399 248,352 291,026 191,008 730,386 Depreciation At l April 2023 Charge for the year Eliminated on disposal At 31 March 2024 124,109 4,880 291,026 173,524 5,011 588,659 9,891 128,989 291,026 178,535 598,550 Net book value At 31 March 2024 At 31 March 2023 119,363 124,243 12,473 16,085 131,836 140,328 28
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 13. Investments 2024 2023 Valuation At l April 2023 Additions Disposals Fair value adjustment At 31 March 2024 286,155 308,175 19,781 305,936 (22,020) 286,155 Net book value At beginning of year At end of year 286,155 305,936 308,175 286,155 14. Propertied held for resale 2024 2023 Properties held for resale 380,000 380,000 435,000 435,000 Properties held for resale is valued at lower of cost and net realisable value. 15. Debtors 2024 2023 Gross rental debtors Technical Gr055 rental debtors - Non-Technical Provision for bad debt Net rental debtors Housing Association Grant receivable Prepayments and accrued income other debtors 19,319 (18,474) (9,941) (9,096) 23,175 4,358 (16,197) 11,336 45,647 28,324 64,875 47,482 314,591 373,409 29
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 16. Creditors Amounts fallin due within I ar 2024 2023 Housing Association Grant Accruals and deferred income Rent and service charges received in advance Tenants. Services Fund Other taxes and social security Other creditors 196,847 124,099 205,871 139,378 10,519 42,561 28,936 90,294 440,176 105,686 504,015 Amounts fallin duea er more than I ear 2024 2023 Housing Association Grant 10,234,949 10,234,949 10,418,816 10,418,816 17. Deferred grant 2024 2023 At l April 2023 Grant received in the year Released to income in the year Eliminated on component disposals Eliminated on housing unit disposals At 31 March 2024 10,624,687 3,956 {196,847) 10,829,471 1,087 (205,871) 10,431,796 10,624,687 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 2024 the Association had capital commitments as follows: 2024 2023 Contracted for but not provided in the financial statements 30
Abbeyfield & Wesley Housing Association Ltd Year Ended 31 March 2024 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 £60,810 (2023: £57,589). Contributions outstanding at 31 March 2024 amounted to £9,990 (2023: £10,660). 21. Share capital Ordinary shares of £1 each fully paid: 2024 2023 At l April 2023 Issued in the year Transferred to capital reserve At 31 March 2024 22. Capital reserves 2024 2023 At l April 2023 Transferred to / from revenue reserves At 31 March 2024 42 42 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 act on the Association's behalf by the Association's insurance company. 31